8487. Mineral Bank (Cumberland, MD)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
April 1, 1848*
Location
Cumberland, Maryland (39.653, -78.763)

Metadata

Model
gpt-5-mini
Short Digest
b85a21c3

Response Measures

None

Description

Multiple contemporary papers (Apr 1848) report the Mineral Bank of Cumberland suspended/closed following the failure of its New York correspondent Joseph S. Lake & Co. The suspension is described as forfeiting its charter and leading to liquidation; no explicit depositor run is described in these articles.

Events (1)

1. April 1, 1848* Suspension
Cause
Correspondent
Cause Details
Direct consequence of the failure of Joseph S. Lake & Co. of New York; news of that failure created a panic and directors closed the bank and assigned assets for distribution.
Newspaper Excerpt
The Mineral Bank, (in Cumberland, Alleghany County, Md.) suspended payments on Wednesday, and closed its doors.
Source
newspapers

Newspaper Articles (6)

Article from The New York Herald, April 2, 1848

Click image to open full size in new tab

Article Text

BALTIMORE, April 1, 1848. All Fools' Day-Preaching vs. Editing-Unthankful Party- Mineral Bank-New York Shavers, &c. To-day being the first of April, the boys are exercising the license of the day, in cutting up all sort of pranks out of doors. "All-fools' day" is never neglected in Baltimore. The Hutchinson family make their first appearance in Baltimore, for three years, on Wednesday evening next. Their imprudent singing of abolition songs at the North, shut them out from all chance of success here, and there is a probability that it may still do so at this late day. They have taken Carroll Hall, the largest room in the city, and if they should draw full houses at 50 cents per ticket, they will make money. The Rev. Theophilus Fisk, the "Apostle of Universal Damnation." 18 holding forth on a variety of topics at the Universalist church in Calvert street, every Sunday He is as energetic a preacher as he was a violent and uncompromising editor of the Old Dominion. The party, however, treated him bad, having turned him loose on the world, whilst his partner, Pop Cunningham, was given a lucrative situation in one of the departments at Washington. The Mineral Bank of Maryland, located at Cumberland, has failed outright, with a large amount of bills in circulation in this city, and the western part of the State. It was connected with Joseph S. Lake & Co., of New York, and the failure of the latter has brought destruction on the former. It is a singular fact, that the only banks that have failed in Maryland for the last fifteen years are those that have been got up for speculative purposes by New York brokers; and as there is one or two still in existence-one of which is full cousin to the defunct Plainfield-it would be well for all who desire to run no risks to keep clear of them. The New York money shavers are getting a terrible character in this section of the country.


Article from New-York Daily Tribune, April 4, 1848

Click image to open full size in new tab

Article Text

06 10 188 Net amount subject to draft The net amout is smaller than last month. The Mineral Bank, (in Cumberland, Alleghany County, Md.) suspended payments on Wednesday, and closed its doors. The Civilian publishes the following card from the Cirectors: The President and Directors of the Mineral Bank have, in consequence of the news of the failure of Jos. S. Lake & Co. of New-York, determined to close the bank for the present. They have determined on this course, not be. cause they believe the creditors of the bank will lose anything, but because the news which reached this place last night has created such a panic among the people; and the President and Directors not knowing the true condition of their position with Lake & Co. have thought it ad. visable, to secure an equal distribution of the assets of the institution among its creditors. To secure this object the Board has made an assignment of all the assets of the bank for equal distribution. In the meantime, Mr. Tucker, the Cashier, has gone to New-York, at the instance of the Board, to secure the money due the bank by Lake & Co. and the Board will direct Thomas J. McKaig to proceed immediately to New-York to look after the interests of the bank We ask the public to suspend their opinion until the Board can lay before them a full statement of the af fairs of the bank Joseph S. Lake & Co. never borrowed a dollar of this bank, but their indebtedness arises from the proceeds of notes, bills and drafts, belonging to the bank, in their hands for collection. The Civilian, in publishing this card, says: "The bank having suspended, by that very act forfeits its charter, and must, of course, go into liquidation." The arrivals at Baltimore during March were 115, of which 42 were foreign. The clearances were 110, of which 60 were foreign. The arrivals at Boston were 569, of which 169 were foreign. The clearances were S71, of which 124 were foreign.


Article from The Daily Union, April 6, 1848

Click image to open full size in new tab

Article Text

From our Baltimore Correspondent. BALTIMORE, April 5-5 p. m. The Mineral Bank.-Telegraph west.-Massachusetts and Connecticut election.-Steamer's news. - The markets, g.c. The credit of the Mineral Bank of Cumberland is said to be improving; a rumor being in circulation that some ten or fifteen boxes of silver passed through the city from New York this morning to replenish its vaults. The telegraph wires of the line connecting this city with Harrisburg, and from thence to the west, are all up, and the line will be in operation in a few weeks. Although nothing positive has been received here in relation to the special election in Massachusetts, I observe that it is positively announced in the Philadelphia papers that the Hon. Horace Mann (whig) is elected to fill the vacancy occasioned by the death of Mr. Adams, by a small majority over both of his competitors. The majority for Mr. Bissel, the whig candidate for governor in Connecticut, is said to be about six hundred. The notes of the Havre-de-Grace Bank are again within a fraction of par. There was evidently no cause for the panic, except what arose from the closing up of the Mineral Bank. The steamer Washington is still lagging behind. She has now been out sixteen days. She generally makes good passages out, but bad ones in returning. THE MARKETS.- -In the Baltimore market there was more activity in flour to-day, and sales were made of 300 bble. Howard street at $5 68, and subsequently 1,500 bbls. more at $5 75. Sales yesterday of 600 bbls. City Mills at $6, and it is now held at $6 12. Rye flour is held at $4; and sales of 300 bbls. city corn meal $2 75. Wheat is in fair request at 128 a 133 cents for red, and 145 a 150 cents for white, with considerable sales. Corn is selling at 41 a 42 cents for white, and 44 a 45 cents for yellow. At New York, this morning, the flour market exhibited no change. Dealers generally are waiting for the steamer. Small sales of Genesee at $6 5 a $6 62j southern at $6 25 a $6 37; corn meal $2 37. Genesee white wheat 150 cents, and mixed 138 a 145 cents. Corn 50 a 53 cents for mixed and prime yellow; oats and rye unchanged; whiskey 24 cents. Provisions rather dull, and prices in favor of buyers. Groceries quiet. The cotton market heavy; no sales of moment, and prices as yesterday. The remains of General Hopping, who died in Mexico, arrived here to-day for interment, in the ship Quebes, from New Orleans.


Article from The Lancaster Gazette, April 7, 1848

Click image to open full size in new tab

Article Text

Wooster Bank. We have as yet received no definite news of the suspension of this Bank.The Wooster Democrat says: "Ata meeting of the Directors of the of Wooster, on Tuesday evening Bank resolution was adopted, as we are authorizing a on its notes. that informed, last, a Depositors suspension this are of payments usual. We understand paid as has been resorted to in consecourse of the Banks of Cincinnati quence out their paper, a measure prothrowing duced a rumor prevailing in that city, of the failure of Joseph S. Lake, Esq, has of York, who it is well known New business connections with the Bank the large Wooster. We are informed by of of that a meeting of a full Board which Cashier will be held to-day, at will the Directors future course of the institution be determined upon." This is one of two or three Banks, that accepted the Locofoco principle of "inliability" and if it is worth anywe will soon learn the is certain, it did not keep thing thing dividual fact. the is Bank One one from suspending. The following of the sections of its charter, passed February 15th 1844: SEC. 2. That from and after the first one of in the year one thousand March, and forty-four, the stockholders Bank of Wooster of liable in their individual claim ally for each and every Bank, except in cases capacity. against said hundred said shall shall valid and be private where other- severdepositors and said Bank 19. wise agree." - O. L. vol. 42, p. It would appear that this is not the on connection that the Bank has with Locofocoism. ly From the notice above it will be seen that the Bank did not suspend operations until Tuesday evening. Ohio Yet on the Monday preceding, the Statesman gave out a hint that the Bank V had gone by the board. So it would ap0 that that paper had obtained others. some r information pear not communicated to e But this is not all. The Ohio Press, also a Locofoco paper, in speaking of the a failure of the Bank, makes the following e g grave "Medary charges: seemed to know more else about acoming event than any body the the bouthere, except the banks. By assets way that an account of all the be 8 of we hope Lake and the Wooster bank may curin published. It would present some Meda items. Among others, unless last ous has bought it up within the dary would be found a mortgage upon and ''year, the Ohio Statesman; all its property for ten thousand dollars-part himself patronage, of the money that Medary sold g. for in 1845.' is The Statesman in return evades a bu di rs rect reply to his brother Locofoen, i. concludes a long article as follows: "The foul imputation that we had any n. to do with the Wooster Bank, n. thing or its claims, is only worthy vs mortgages, coward and paltroon, the insignifican who dare bark at others nthe heels, foul slan bu puppy approach to bite. The and d. never of daddy and son, public the pri so ders whose wealth consists in full; pas vate, of bank charters, will be es er. robbings appreciated, and properly understood. no as Thus rests the matter. We shall Tha VS interfere with the family quarrel. them ed the Locofocos must settle among bee The Bank of Wooster has le er selves. one of their pets,chartered by a'Legisla an ture of which they had a majority the charter is engrafted one of So let he We have no doubt it darling in out. that principles. them but should that quarre rai th ns developments will take place, of whole truth leak out. e President cts Bank is an old crony of the Editor he the :heOhioStatesman and while a member ey Ohio Senate from Wayne county without or the for him as State Printer and bee his ted vote Medary would not have elected. to The Ohio Statesman says that Oh less IV is the third, if not the secon th ntState "now in the Union, and rich in all the constitutes the real wealth of a people. Who could ask a better commentary u mWhig measures, from a Locofoco wi pa no on than the above? The truth me sometimes per, leak out by accident. ice, The Mineral Bank of Cumberlan hus Md. has failed We have received


Article from Portage Sentinel, April 12, 1848

Click image to open full size in new tab

Article Text

Failure of the Mineral Bank. The Cumberland ( ivilian and Baltimore Sun contain publications, from which it appears that the Mineral Bank at Cumberland has failed and closed its doors. The Bank, it seems had a connection with Jo srph S. Lake & Co., of New York, which placed it in a siguation similar to the Bank of W ooster The Mineral Bank, by this act f suspension, ferfeits its charter. The C vilian is informed that arrangements will be speedily made "to give assurance that every demand will be speedily satisfied," and adds that it would be prudent for holders not to part with notes at a sacrifice. The working men of Allegheny are said to be great sufferers Such is always the case when a bank explodes - Pitts Post. The advice to the bill holders not to part with their notes at a sacrifice, may be very good in this instance, and it may be that the swindling concern, as well as the Bank of ooster, will eventually redeem their entire circulation, though we very much doubt it. " hether they do so or not, the advice is of litttle avail to the labering poor who are always the severest sufferers when a bank fails, though they may have but a small portion of its notes in their possession. But we don't recollect of ever having known of a bank failure, when the same caution was not put forth to the bill. holder, or when the statement of the condition of the bank did not exibit a sufficient amount of assets to meet the entire liabili. to Even the old Canton, Galliopolis, Urbana, St. Clair, River Raisin, and all their kindred institutions, have been able to present a fair and solvent appearance upon paper, to exhibit a well-balanced account, whether before or after their suspension, and their reeking corruption was not fully made manifest until the bill-holders found that, instead of the assets discharging the liabilities of the bank, nearly the whole eir. culation has proved a dead loss to the hold. ers


Article from Iowa Capitol Reporter, April 26, 1848

Click image to open full size in new tab

Article Text

23 The rumors which have been in circulation for several days in relation to the Mineral Bank of Maryland, located at Cumberland, are confirmed. It has suspended business and closed its doors.