8289. American Bank (Baltimore, MD)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
June 19, 1858
Location
Baltimore, Maryland (39.290, -76.612)

Metadata

Model
gpt-5-mini
Short Digest
63e39c93

Response Measures

None

Description

Multiple contemporaneous newspaper reports (June 19–21, 1858) state the American Bank of Baltimore closed its doors/suspended business, assets assigned to a trustee and charter forfeited under state law. Articles describe it as a dubious/bogus institution with circulation mainly in the West and funds drawn from the Bank of Commerce. No article describes a depositor run; this is therefore classified as a suspension that resulted in permanent closure (trustee/assignment).

Events (1)
1. June 19, 1858 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank opened under 'doubtful circumstances', lacked local confidence, heavy western circulation returned for redemption exhausting deposits at Bank of Commerce; assets assigned to trustee and charter forfeited under state law, indicating insolvency/unsafe condition rather than mere rumor or government action.
Newspaper Excerpt
The American Bank, which lately opened in this city under doubtful circumstances, closed its doors this morning.
Source
newspapers

Newspaper Articles (7)
1. June 21, 1858 The Daily Exchange Baltimore, MD
Article from The Daily Exchange, June 21, 1858

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Article Text

VOL. [--NO. 103. BOARD OF TRADE. Committee of Arbitration for the month of June. HENRY S. GARRETT. JOHN H. WYMAN. GUSTAVUS HENDERSON, JAS. CAREY COALE CLAAS VOCKE Monetary and Commercial Rebiew. BALTIMORE, June 19, 1858. The Stock market was very quiet to day, the transactions amounting to only about $32,000. Baltimore and Ohio Railroad ad vanced 50 cents, with sales of 450 shares It at $57 cash, and seller's option, $57 1/2 buyer 60 days. closed firmly at $57 bid, $57 1/6 asked regular way. North ern Central is steady, and 175 shares sold to-day at $18 cash and seller's option. The closing rstes were $17 % of fered, $18 asked. Very little doing in Loans or Bonds. $1000 Baltimore 6's 1875, sold at 95% an improvement of 3/4 on last sales. Northern Central 1885's are held firmly with an advancing tendency, and -day $1000 brought 651/2 @65, an ad rance of 1@ on previous transactions. Endorsed 3d mort gage bonds of North-Western Virginia Railroad have im proved $1, with sales of $1000 at 73% cash. Springfield Mining Company is better, 498 shares selling o-day at $2.50 cash. The American Bank, which was chartered at the last session of the Maryiand Legislature, and which has been in operation in this city for the past two months suspended business o-day. Since its organization its bills have had no hold on the confidence of the community here, and its circulation has been very limited, the Banks declining to exchange with it. At one time, we learn, it had on deposit $30.000 with the Bank of Commerce of this city, and that Institution redeemed its notes until the fund was ab sorbed. Its principal circulation was in the West, where, we understand, it succeeded in putting afloat a considerable amount of its paper. An assignment of the assets of the Bank have been made to a trustee for the benefit of its creditors, which the President states in a card are sufficient to meet all liabilities, the truth of which time will show. The New York Commercial Advertiser of Saturday af ternoon, says: The market did not show much activity this morning, but on the whole prices were shade better than they were last evening. though scarcely as high as they were at the morning board. New York Central of which there were large sales, opened at 80% went down to 801/ and closed at 80% against 80% at the first and 80% at the second board yeaterday. Reading, which closed yesterday at 43 1/4 in the morning and 43% in the afternoon, began to day at the latter price and went up to 43% Erie com menced at 16 and left of at 16% against the latter price at the first and 16% at the second board yesterday. Dela ware and Hunson advanced 1/2. In Pacific Mail there was no change in price. Of the Western Roads, Galena and Chicago and Chica go and Rock Island were the most active. The former fell from 83 to 82 vesterday. To-day, though sold during the call at the latter price. it opened and closed at 82) Chicago and Rock Island began at 7014 and fell to 70% the closing price of last evening. but 1/2 below that of the morn ing. Michigan Southern old stock after opening at 20% went up to 21. the same as at the first board yesterday. and 1/6 above the afternoon sales. heguarantied stock brought 41 % against 42% yesterday morning. La Crosse declined 1 and Milwaakee and Mississippi 3. Michigan Central closed at 53 regular against 55% buyer sixty yesterday Sales of Panama were made at 108; Cleveland, Columbus and Cincinnati at 92% and Illinois Central at 83 1/4. 100 shares Canton sold at 18 Of state Stocks the principal sales were of Missouri Six es at 85% @8534 yesterday's prices. New York Sixes of 1873 were sold at 114 X. interest off, and California new bonds 86. A small lot of Ohio Sixes of 1860 was taken t 100 1/2. There was a large business in Illinois Central construction bonds closing at 94% 1/2 decline on the morning and on the evening sales yesterday; La Crosse Land Grant at 31 % % advance. and Hannibal and St. Joseph at 64 % New York Central sevens closed at 100: Erie second mort gage at 93. third at 77 % bonds of 1875 at 31, and of 1871 at 32, 1/2 advance: Harlem second mortgage at 74 1/2, yesterday price, and Michigan Southern sinking fund at 62% There is only a light movement in foreign exchanges and the rates are without change. We quote at 108% 109 1/2 for bank and banker's bills on London: 108@109 for commercial bills: 16 X a5t.13% for Paris; for Hamburg; 41 1/4 @43% for Amsterdam, and 79a79 for Bremen. A meeting of the creditors of the Bay State Mills was held at Boston on Friday at which a plan was presented of re organizing the Company under the name of "the Washington Mills, for which there had already been 400 shares subscribed for, by individuals, at $500 each, to liquidate the debts by the purchase of the property. The Assistant Treasurer at New York reports Friday as follows Total receipts $125,566.99 Total payments 177,612.18 Total balance 7,725,231.17 The receipts include $43,000 from customs. The exchanges at the bank clearing house on Friday were $14,419,683.68 and the balances $827,235.49. The following is a comparative statement of the Imports of Foreign Dry Goods at the port of New York for the week and since Jan. 1: For the week. 1856. 1857 1858. 1,125,902 Entered at the port 1.031.300 745,138 914,791 Thrown on market. 158,508 787,661 Since Jan. 1. 1856. 1857. 1858. 44,155,472 Entered at the port 43,469,356 20,922,634 Thrown on market. 43,693,106 38,939,166 26,220,318 The well known banking house of William J. Bell & Co., New York, have resumed their business, having,as we understand, settled all their liabilities in full. This house had a large Western business, and their resumption will be gratifying to their numerous friends and customers. PENNSYLVANIA RAILROAD. Gross Net Earnings Expenses. Earnings. $480,476.92 May, 1858 260,778.29 219,698.33 May, 1857 405,553.07 264.657,38 140,895.69 From January to June 1858 2,197,926.25 1,203,247.69 994,678.56 From January 1 to June 1, last year.2,204,300.59 1,366,637.55 837,663.04 In relation to the London market for American securities Mr. Satterthwaite's circular says Since our last of this day week the Stock market has become more unsettled, from various unsatisfactory features, chiefly political, namely, the continuance of the war between the Turks and Iontenegrins, and the French threatened demonstration on the African coast, in addition to which much difficulty is experienced in our own progress in the quelling of insurrection in India and in the settlement of the dispute with China; and lastly. comes from the United States the demand for reparation for injuries inflicted upon American vessels by English war cruisers exercising the right of search for slave ships. It is devoutly to be wished that the two Governments may amicably arrange the matter; it surely were better to concede the right on the part of Great Britain, if troubles such as those reported arise out of it. The effect of the advices from New York has been not only to check purchases of American securities. but has induced many sales at reduced rates. Erie shares have been sold at 20: New York Central shares are offering at 70 to SO: Illinois shares have been very dull at 15 discount, closing. however, buyers at that figure. The business in railroad bonds is of a very restricted character; sales of well known bonds can only be made by concession in price, while the attempted introduction of some new ones has proved an entire failure Consols close heav at 97 @97% for money, and %@ 97 % for July account GOVERNMENT SECURITIES

2. June 22, 1858 Cleveland Morning Leader Cleveland, OH
Article from Cleveland Morning Leader, June 22, 1858

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MORNING LEADER OFFICE, MONDAY, June 21-6 P. M.S Financial, &c. The Money Market for the past week shows no material change, although the offerings of accommodation paper at the Banks have somewhat increased since our last report. The Exchange Bank at Griffin, Ga., and the American Bank at Baltimore, are reported failed. Thompson's Reporter learns that the injunction against the Woodbury Bank, Conn, has been sustained, and the Bank will probably go into liquidation, a receiver having been appointed The appointment of a receiver has depreciated th notes in the market, not so much on account of the fear of an improper application of the assetsof the bank as from the delay in closing up to final dividend a bank in any of the Eastern States. The Litchfield Bank, Conn., rumor says, will shortly be able to resume. Some of the interested parties are in negotiation with the Suffolk Bank, Boston, to make an arrangement to redeem the notes of the bank there instead of New York. Those holding the notes had better not part with them hastily, as there is a fair presumption of their early payment. The Branch of the Bank of the State of Indiana, at Jeffersonville, which suspended last winter. is to be reinstated on the 15th of July. J.S. Harvey is to be President. The time limited for the presentation of the notes of the Merchants' Exchange Bank, Conn., expires on the 24th instant. Mr. Coffin, one of the assignees of the Bank of the Capital at Indianapolis, Indiana, has made a report from which it appears that the total amount of assets are about $9,740. The total deposits are $74,000, leaving due $61,200. He also says th it many notes given in as assets he had never seen, and did not believe they ever existed. LIST OF NEW BANKS. In Itlinois-Narragunsett Bank, Vienna; Garden City Bank, Bank of Prairie du Chien, Bank of Brooklyn, Schujlor; Bank of Cairo, Cattle Bank, Urbana. In Wiscons nNorthern Wisconsin Bank, Aurora; Buffalo County Bank, North Houston. In Georgia-Exchange Bank, Savannah. Iu Louisiana-City Bank, New Orleans. In Maine-Umbeguagns Bank, Banger. In Missouri-City Bank, Exchange Bank, St. Louis. In Canada-Bank of Brantford. The Cincinnati Times of Saturday evening has the fo:lowing:- "The telegraph announces the failure of the American Bank at Ballimore, which closed its doors this morning.This Bank has beenin existence only a few months, and always was regarded as a bogus institution. It had no office in that city we believe, but did what business it transacted, and its notes were redeemed at the Bank of Commerce. Our bankers throw it out nearly two weeks ago, and we think there is little of the paper although it has been extensively circulated throughout the West, which will probably be a large loser. The notes of the Americ in Bank are probably worthless. The monetary market has been and is still very easy for all legitimate business purposes, and the Discount Houses have been desirous to loan freely to their regular customers at 10@12 P cent. First-class namos can be passed at 9a10, but few of this kind are offering. Operations can be made with the bankers and private capitalists as low as 8@9, but there are few applicants for money even at these rates.Call loans could be had at 6@7 P cent but no one wants them. small demand has been experienced for currency, which has been in very largesupply. Monetary matters are exceedingly easy and money is a drug. Capitalists have few opportunities such as they desire to make investments.Currency is accumulating every week at the banking houses while the calls for it are diminishing. Eastern Exchanges have been dull and inactive at previous rates, because no one wishes any more currency The London Economist of June 5, says the money market remains as easy as last reported. In the open market the demand has been perhaps rather more active than of late, but choice bills having two or even three months to run are still freely discounted at 2M@2% P cen'. At the Bank there has consequently been no revival of business. Yesterday it was announced that the rate of the establishment will be P cent for advances until the 14th of July, on government stocks and approved commercial bills not having more than six months to run. This, as is well known, is the recognized practice of the Bank and tends in ordinary times to facilitate the release of the large mass of Treasury deposits which accumulate in Threadneed'e street at this period of the quarter. The regular customers of the institution also find the practice convenient, for while the Bank hasa-fixed rule of not discounting bills with more than 95 days to run, their willingness to make advances upon long bills presents the requisite facilities in another shape. It is not likely however that the formal announcement just made will result in any important additions to the Bank's business, considering the present glutted state of the market. The moderate extent of the demand for money is more worthy of notice because the amount of mercantile bills falling due this day [the 4th] was large.' At the annual meeting of the Copper Falls Mining Company, held at Boston on the 15th inst., the following statem.pt was mane of its business for the year ending the 8:h of June:

3. June 24, 1858 Lewistown Gazette Lewistown, PA
Article from Lewistown Gazette, June 24, 1858

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resorts are again the order of the day. An artillery company has been started in Brown township. ISA History of Pennsylvania is being prepared by, it is said, a competent hand. Two camp-meetings will probably be held near this place in August. Reported dead-The emperor of China.— Who cares? See advertisement of Dr. Sanford's LIVER INVIGORATOR in another column. The losses paid by the Lycoming Insurance Company for the year ending June 10, amount to $65,582 81. 10. The American Bank, a bogus institution at Baltimore, closed its doors on Saturday. Mr. Buckalew, from this State, has been appointed minister to a South American State-a reward for his advocacy of slavery in Kansas. NO. The States bordering on the Mississip. pi continue to suffer from the heavy rains. But little corn had been planted up to the middle of June. If the Clearfield Republican is as innocent of the locofoco "poor list" of 1856 as we are on Swoope's, the editors can congratulate themselves on their smartness. 2.Among the successful bidders for work on the Sunbury and Erie Railroad are Porter & Glasgow, Wm. M. Wiley & Co., and Dull, Criswell & Dull. A great Union Meeting was held in Philadelphia on the 15th. The ball is rolling onwards, and needs but proper guiding hands to make its success certain. The democrats of McKean county, opposed to the Lecompton swindle, have called a meeting to appoint delegates to the State Convention which is to assemble at Harrisburg on the 14th of July. They have a two-headed girl in Louisville. From the description given by the Democrat of that city, she must be a young lady capable of getting up a private evening party on her own individual resources. The democratic papers are just now rejoicing because Lane, who is no doubt a ruffian, shot a neighbor in Kansas for trespas sing, and they thereupon shout look at the free State men, as if one act on the part of a free State man justified hundreds of worse ones on the part of the slavery ruffians. The Yaqui Indians are at war with the people of Sonora, California. These Indians entered Santa Crus de Mayo and killed every man there was in it, got all the women and children together, shut them up in the church and set fire to it and the rest of the town. About a year ago, James Dean, who was working as a journeyman carpenter at Chicago, Illinois, received a legacy of about $200,000 by the death of an uncle in Australia. He died a few days since from the effects of dissipation. A lady in New York having bought some clams recently, her little son, six years of age, run his tongue into one of them to get the juice, when the clam shut and nearly cut the little shaver's tongue off before his mother could free its hold. Culpable Negligence.-We are satisfied that in most cases where coughs end in consumption a timely resort to some potent yet simple remedy, like Wistar's Balsam of Wild Cherf ry, would have saved the life and health of the patient. For sale by C. Ritz, Lewistown. The Scissors, Reporter and Editor of the Philadelphia Bulletin will open their eyes still wider when we inform them that the subject of their notice actually refused to take possession of a good farm, left him by will, because he did not want to be "bothered" with 80 much property. Wouldnt that have been a chance for "stocks"- Bank of Pennsylvania, for instance? The American Agriculturist will be d published hereafter in German as well as English. Terms, cash in advance, $1 per h annum, or six copies for $5. Address O. Judd, 189 Water street, N. Y. The German edition commences in July, and we think hundreds of our German readers would benefit themselves by taking it from

4. June 24, 1858 The Jeffersonian Stroudsburg, PA
Article from The Jeffersonian, June 24, 1858

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Suspension of a Baltimore Bank. Baltimore, June 19, I858. The American Bank, which lately 0pened in this city under doubtful circumstances, closed its doors this morning It is supposed to have considerable circulation in the West. Its funds have all been drawn from the Bank of Commerce.

5. June 25, 1858 The Bedford Gazette Bedford, PA
Article from The Bedford Gazette, June 25, 1858

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# SIGNIFICANT. The great money panic which last Fall oros- strated the business of the country, had its origin in the failure of the Ohio Trust Compa- ny, an institution located in a Black Republi- can State. The first failure since the resump- tion of specie payments by the banks, was that of the American Bank, of Baltimore, which, collapsed a few days ago, and which had been gotten up under the auspices of Know Nothing- ism. These are facts of peculiar significance, and serve to show the dangerous tendencies of Opposition legislation.

6. June 25, 1858 Cooper's Clarksburg Register Clarksburg, WV
Article from Cooper's Clarksburg Register, June 25, 1858

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Closing of the American Bank. The American Bank, of this city, which went into operation early in April, under an extension by the last Legislature, of an act passed in 1856, closed its doors on Saturday morning. The afternoon papers of that day contained a card, signed by Mr. James Jeffery, president of the bank, officially announcing the fact, stating that it was done "for the protection of its creditors and stock holders," and expressing the belief "that the assets (which have been conveyed in trust) will be ample for the payment of all its debts and liabilities." The event caused very little sensation in Baltimore, as few of the issues of the bank had currency in the city; but it is generally reported that a large amount has been put in circulation in the West, and that within a few days a considerable portion has returned to this city for redemption. lh consequence of this, the original amount of funds on deposit with the Bank of Commerce, $30,000, has been exhausted or withdrawn, and with the doors of the bank closed, further redemption is of course suspended. The career of the American Bank from the outset has been somewhat irregular, and consequently it failed to command the confidence of our citizens. The president in his card alludes to "systematic opposition" to the institution, but whether at home or abroad we do not learn.— We believe the bank occupied an unusual relation to the other banks of the city, but from what cause is not distinctly stated. The paper was not received by the other banks, and only redeemed by the Bank of Commerce by virtue of a special deposit. A short time since inquiry as to its standing and resources became active in the West, where it is understood the paper of the bank was chiefly in circulation, and these inquiries of course hastened its return to Baltimore, and the sequel is known. Under the general banking law of the State, the closing of the doors of the bank forfeits the charter, and therefore the institution cannot be received in the hands of other parties, as the case has been with some Maryland banking institutions under a perpetual charter. What the future may disclose we cannot pretend to say. The president of the bank ought to be well advised of the condition of the institution, and of the relation of the liabilities to the assets. His card is therefore the only present reliance of note holders. The trusteeship has been vested in Willian Alexander, Esq., attorney of this city, and a representative in the late house of delegates. [Baltimore Sun.

7. June 25, 1858 Burlington Free Press Burlington, VT
Article from Burlington Free Press, June 25, 1858

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BANK SUSPENSION. BALTIMORE, June 19th. The American Bank, lately opened under doubtful circumstances, closed its doors this morning. It is supposed to have consider able circulation at the West. Its funds have all been drawn from the Bank of Commerce of this city.