8542. Valley Bank (Hagerstown, MD)

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: August 1, 1856
Location: Hagerstown, Maryland (39.642, -77.720)

Metadata

Model: gpt-5-mini
Short Digest: 7c361860

Response Measures

None

Description

Contemporary newspapers report the Valley Bank (Valley Bank of Maryland) failed/closed in August 1856 with a receiver appointed (Hon. J. Dixon Roman). Circulation ~ $190,000; failure appears tied to insolvency related to the Leland proprietors' indebtedness to the bank. No article describes a depositor run prior to suspension; the bank was placed in receivership and expected to be wound up. OCR errors corrected (tank->bank, Roman receiver clarified).

Events (3)

1. August 1, 1856 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank failure/insolvency tied to proprietors (the Lelands) indebtedness to the bank; insufficient local banking assets reported; capital apparently impaired.
Newspaper Excerpt: Aug. 1st.-VALLEY BANK, of Maryland, at Hagerstown, failed: Circulation $190,000.
Source: newspapers

2. August 20, 1856 Receivership

Newspaper Excerpt: The court has appointed Hon. J Dixon Roman receiver for the bank, who will settle up the business of the institution, and make a dividend of all moneys received.
Source: newspapers

3. December 5, 1856 Other

Newspaper Excerpt: The Receiver of the Valley Bank at the Hagerstown Bank ... states that the bills of the Bank will be redeemed, if the Lelands are solvent.
Source: newspapers

Newspaper Articles (9)

1. August 20, 1856 Evening Star Washington, DC

Article from Evening Star, August 20, 1856

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EXCITEMENT AT WHEELING.-A few persons calling themselves "Republicans," held a meeting at Wheeling, Va., on Friday night, A large number of persons attended through curiosity, and much excitement prevailed. A man named Smith made a speech. At itsconclusion he attempted to leave, and was followed by a large crowd, when a general skirmish ensued, during which two men named Harding and Ward were wounded, the latter seriously. This had the effect to increase the excitement, and to prevent the indignant populace from lynching Smith on the spot, the Wheeling Argus says he had to be conveyed to jail. THE VALLEY BANK - The Hagerstown Chronicle says: In reply to a number of inquiries which we have received from abroad in regard to the condition of this bank we can only state that at present the money is worth nothing. The court has appointed Hon. J Dixon Roman receiver for the bank, who will settle up the business of the institution, and make a dividend of all moneys received. Note holders may possibly receive 50 cents on the dollar.

2. August 29, 1856 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, August 29, 1856

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50. Disburring Checke, $82,899 The receipts of the Morris Canal have been $172 089 47 Total to Aug. 16 1856 182,017 87 9,928 40 Week endin a Aug 23, 1856 164,953.16 Total to Aug 18. 1855 173,503 24 8,553 08 Week ending Aug. 25, 1855 $8,511.63 Increase in 1856 The advices in regard to Breadstuffs, brought by the Canada's mail, have had t favorable effect, and holders have increased their demands. The transact one in consequence of the firmness are checked. State brands are Ma 86 25; eales of 9,000 bble. Southern is more active. There is an active demand for prime shipping parcels of Wheat, and the market is 3c. per bushel better. The sales reach nearly 100,000 bush., including Southern Red, #1 50@ 65; Red Illinois, $1 55; and Milwaukee Club, $1 28. Corn is also better, and in good export demand at 61 70c. Sugars are moderately active, but prices are still working in favor of the buyer. Coffee is firm, but quiet. Oile are active and buoyant. In consequence of apprehensions in regard to yellow fever, there is but little doing in Hides. The Canada's news has given Cotton a start, and about 3,000 bales sold to-day at full prices Pork is active, but irregular; Mees, 19 50@19 621; Prime, 818 The business of the Clearing-House was $19,347,000. Further sales of Chiriqui Improvement Stock were made at auction to-day at 29, which is an advance. With an active employment of money there is no pressure to suetain. The contraction of bank loane is going on to moderate extent, but the supply appears to be about equal to the wan's of the business world. The offerings at bank are not very large. and these institutions are able to meet nearly all the wants of their customers. In the street, paper is not pressing, and first-clues short goes at 10 P cent. The Milwaukee and Missiesippi Railroad Company will pay on the let Sept., at its office, No. 37 Exchange place, the semi-annual interest Coupone then due on their real estate Bonds. In regard to the exploded Valley Bank of Hagerstown, The Times pays: "The regular local banking assets we understand to be next to nothing. The 80-called capital stock ($100,000) is mainly in New-York names, and with a personal liability, under the charter, for its forthcoming. The vouchere, in the shape of notes, memorandum checks, &c., for the circulation used in New. York, are said to be on $70,000 Mesars. Leland, of Metropolitan Hotel 17,000 D. H. Mitchell. No. 63 Wall street Loaned by Leland on Hocking Valley Railroad Bonds. 30,000 $117,000 Total New-York vouchers 17,500 Local paper at Hagerstown $134,500 Together $156.000 Circulation registered 100,000-256,000 Capital stock $121,500 Apparent deficit "The Receiver is an attorney of high respectability, and will probably be able, in some shape, to bring the statement of the concern nearer to a satisfactory bal. ance than the foregoing figures appear to do. The hope is that the amount of outstanding circulation left upon the hands of the community at the time of failure was much below the registered total.' The amount of tolls received upon the canals of this State for the third week in August were as follows: $92,163 58 August 1856 91,509 12 Same 3d week in August, 1855 To Aug. 23d. 3d week Aug The following statement gives the receipt from 1851 to 1856 during the 3d week of August, and to August

3. September 8, 1856 The New York Herald New York, NY

Article from The New York Herald, September 8, 1856

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Total, $23,480,531 27 A. H. Nicolay's regular semi-weekly auction sale of stocks and bonds will take place on Monday next, thaltpast 12o'clock, at the Merchants' Exchange. The anthracite coal trade for the past week has been tetive, and the tonnage by each of the several carrying companies large. The Lehigh Navigation shipped for the week ending on Saturday last, 38 576 tons, making for he season, 743,688 tons, being 73,773 tons less than to corresponding time last year. For the week ending at he same time, there were carried over the Lehigh Valley Railroad 5,794 tons, and for the season 94,059 tons, vhich, added to the present season's tonnage by the anal, gives an aggregate tonnage from the Lehigh region of 837,747 tors, exceeding last year's tonnage by 20,286 ons. From the Schuylkill region the tonnage for the week nding on Thursday last was, by the canal, 34,660 tons, nd for the season, 711,385 tons, being a falling off on last 'ear's business to corresponding time, of 3,605 tons; and y the Reading Railroad, 52,829 tons for the week, and ,484,878 tons for the year, being 156,452 tons less than 18t year to corresponding time. The falling off in pro uction in the two regions to this time is 136,166 tons-a ifference that can hardly be made up at this late period f the season. Coal prices we think must advance. The Hon. J. Dixon Roman, receiver of the Valley tank, Hagerstown, Md., has prepared his report of the ssets of the bank, but cannot publish it until it has been resented to the Coart, which will not sit again for about month. Mr. James M. Whiton, in his recent pamphlet upon railay management, gives some interesting facts drawn om is experience as superintendent of the Boston, oncord and Montreal Railroad. He states that the acial weight of a fifty seat passenger car is 23,000 pounds. he weight of a passenger train would therefore be as folWS:15 ton=. Veight of engine " 10 " tender, &c., &c " 10 passenger cars, capable of carrying 120 " 500 passengers 40 " eight of 500 passengers, at 12 to the ton 185 tons. otal weight of passenger train The fare upon such a train from Boston to Fitchburg ould be, at $1 25 per passenger, $625. The weight of a freight train would be as follows:15 tons. eight of engine " 10 " tender, &c., &c " 10 freight cars, capable of carrying 30 tons each 120 " 300 " eight of merchandise 445 tons. Total weight of freight train The receipts from freight on such a train from Boston Fitchburg would be, at $1 50 per ton, $450. The difference in favor of passenger transportation ould be $175 per train. In addition to this, freight retires an expenditure for handling, which passengers do t. The Philadelphia Ledger, of the 6th inst, gives the folwing relative to the earnings of the Reading Railroad: The following tabular statement shows the business of e Philadelphia and Reading Railroad Company, as comred with last year:-

4. September 15, 1856 Wheeling Daily Intelligencer Wheeling, WV

Article from Wheeling Daily Intelligencer, September 15, 1856

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THE N. Y. Independent reports the following failures throughout the United States for the week ending on Thursday last: A. S. Thayer & Co., Boston, Mass., failed. David Andrews, Providence, R. 1., suspended and assigned. A.M. Rose, Kingston, R. I., failed. Reuben Rice, New Haven, Conn., failed; offers 45 per cent. on time; liabilities are said to be about $20,000. Draper & Eldridge, New York city, assigned. Wm. Sherman, Hower N. Y., assigned. Milton S. Price, Syracuse, N. Y., assigned, Geo. W, Barney, Mount Morris, N. Y., assigned to Jas. Northrup. E. I. Chapin, Clyde, N. Y. suspended. Lex & Kirkpatrick, Philadelphia, Penn., sus. ponded. T. O'Crien, Philadelphia, Penn., failed; offers twenty-five per cent. Elder & Cowen, Newcastle, Penn., assigned to Johnston & Dans. Jos. P. & Austin D. Moore, Frankstown, Pa., failed. Indebtedness large. J. C. Boyd & Endley, Mansfield, Ohio, assigned to G. F. Carpenter. Harris & Summerfield, Chicago, III., assigned, W. Vincent, Lapeer, Mich., assigned. Geo. Rippen, Soeboygan, Wis, failed. [From Thompsom's Reporter, September 11.] VALLEY BANK OF MARYLAND.-No other bank has followed in the wake of the Valley, and the Valley will be redeemed. Mark what we sayevery dollar of the Valley will be redeemed! It is impossible that the owners of that bank can evade their obligation to the public. The public has a right to look to those from whom their -Valley' came. The people did not go to Hagerstown for it-it was given them here by the owners of the bank, and here it must be taken up, MR. WM. REED, near Bethany Va., had three fingers and the thumb of his left hand torn off in a threshing machine last Monday. Dr. Moon assisted by one or two other physicians, amputated that portion of the hand mutilated. Mr. Reed has been connected with a threshing machine for the last fifteen years, and this is the first instance in which he has sustained injury. Too much care cannot be observed in the management of these highly useful, but dangerous machines. - Wash. Tribune.

5. December 5, 1856 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, December 5, 1856

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ground that one of the defendants is a foreign Con..., it is not denied, however, that this plea was fat in in the State Courts and sustained. The Telegraph states the following to have been the shipments of Grain from Chicago this season: Wheat: 5,000,000 bushels to Buffalo, 4,000,000 to Oswego, and 900,000 to other ports. Corn: 7,700,000 bushels to Buffalo, 2,000,000 to Oswego, and 900,000 to other ports. Oats: 500,000 bushels to Buffalo; 64,000 to Oswego, and 200,000 to other ports. Flour: 100,000 barrels to Buffalo, and 43,000 to other ports. The Receiver of the Valley Bank at the Hagerstown Bank, it is reported, states that the bills of the Bank will be redeemed, if the Lelands are solvent. The circulation of the Bank proves to be about $190,000, and the indebtedness of the Lelands to the Bank is sufficient, if it is paid, to secure the billholders against loss. The Directors of the Sackett's Harbor and Saratoga Railroad Company have given notice that the second installment of 5 cent on the subscription to the Company's bonds will be paid on the 10th December. The earnings of the Mad River and Lake Erie Railroad for the months of August, September and October were...$224,951 92 Expenses...95,194 95 Net earnings...$123,756 97 In corresponding quarter of 1855...83,627 48 Net gain in 1856 (54 cent)...$45,129 49 This Road has recently come into the hands of new and experienced managers, and the effect is seen at once. The earnings of the Michigan Central Railroad for the third week of November, 1856, were: 1856. 1855. Passengers $33,049 03 $32,253 11 Freight...40,129 04 35,763 48 Total...$73,178 07 $68,021 59 Increase...$5,156 48

6. December 6, 1856 The Daily Dispatch Richmond, VA

Article from The Daily Dispatch, December 6, 1856

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THE VALLEY BANK.-The New York Times is informed by Clinton Roosevelt, Esq, chairman of the committee appointed at the public meeting held some time since at the Tabernacle, to take steps to secure the holders of the bills on the Valley Bank of Maryland against loss, that the Receiver of the bank at Hagerstown has given notice that the bills of the bank will all be redeemed, if the Lelands are solvent. The circulation of the bank proves to be about $190,000, and the indebtedness of the Lelands to the bank is sufficient, if it is paid, to seeure the bill holders against loss.

7. December 17, 1856 Daily Iowa State Democrat Davenport, IA

Article from Daily Iowa State Democrat, December 17, 1856

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VALLEY BANK OF MARYLAND.-The chairman of the meeting appointed to take measures to secure the holders of the bills on the Valley Bank against loss, statesthat the receiver of the bank, at Hagerstown, has given notice that the bills of the bank will all be redeemed if the Lelands are solvent. The circulation of the bank proves to be about $190,000, and the indebtedness of the Lelands is sufficient, if it is paid, to secure the bill holders against loss.

8. December 25, 1856 Weekly Indiana State Sentinel Indianapolis, IN

Article from Weekly Indiana State Sentinel, December 25, 1856

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Monetary. The following communication, upon the recent Bank excitement, has been handed to us by a friend, for publication. Of the justice and appropriateness of the points made, each reader must judge for himself. Rumors have been afloat for several days prejudicial to the Warren County Bank, Penn; Erie City Bank, Penn.; Bank of Newcastle, Penn.; Rhode Island Central Bank the Exchange Bank at Bangor, Maine; Hartford County and Hartford Banks; and on Monday the Banks of this city threw out the issues of those institutions. The result was a panic among the holders of those bills, and the Bank of the Capital relieved them of their alarm at five per cent. shave. We were unable to trace these rumors" to any reliable source, and our Eastern exchanges contained nothing which wouldjurelly the suspicions set afloat. Under these circumstances we thought it unwise, by a publication of mere rumors, to discredit the character of Banks whose paper was in circulation in this section to a considerable amount. It could have no good effect certainly, and the result of the publication of these rumors by other papers was, to give a sort of authority. to them which created unnecessary alarm. It induced the laboring man, the mechanic, the trader, and all parties to part with this currency at a shave and our Bankers laughed in their sleeves at the rich harvest it was bringing them. We have no sympathy for Banks, but we cannot see the propriety of newspapers discrediting their issues unjustly and unnecessarily, to the disadvantage of the public. Private speculation may be the motive, we can conceive of no other. We should like to see the Constitutional Currency, gold and silver, displace all the small bank notes in circulation, but this era we do not expect to witness until some general commercial revulsion bursts the paper bubble and forces it upon the country. The N. Y. Tribune of Saturday last, states that the Exchange Bank of Bangor, Maine, had been thrown out by the Suffolk Bank, of Boston and it was rumored that some parties at the West had purchased it. The Suffolk is the redeeming agent of all the' New England Banks and its being thrown out is unfavorable to the credit of the Exchange Bank, although no evidence of its failure. [For the Sentinel.] THE CRUSADE AGAINST THE BANKS.Some extremely wise financier has the following in the commercial column of the Journal this morning as a communication INDIANAPOLIS, Dec. 22. EDITORS JOURNAL I notice in your monetary column that some interested party speaks of rumor being afoat in relation to Hartford County Bank and Hartford Bank. Any person with a thimble full of brains would not suspect the Harrford Banks; and to classify them with such concerns as the Rhode Island Central and Erie City, is ridiculous in the extreme. Has this community forgot the losses on the "Valley Bank" at Hagerstown, Maryland? A friend to good Banks is quite adroit in placing Rhode Island Central and Erie City in such good company. The ear-marks of the above are unmistakable. Its author is one of a few that are left of the wonderful genius's of a fast reced. ing generation. He has more than a "thimble full of brains," no doubt-an ceertainly more than a bucket full of impudence. But there is none wise as he,and he thinks no one other than himself has any right to have any opinion of money, Banks or business. He comes down on those'concerns', the Erie City and R. I. Central, with his fiat of doom. He has probably forgot a certain "concern nearer home, that, a few years ago, suspended specie payments, and drove its creditors to rely on its promises a year or two, or get nothing. There is "snobbism" in Banks, as well as other places, it seems.

9. January 31, 1857 Grant County Herald Lancaster, WI

Article from Grant County Herald, January 31, 1857

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Bank Failures and Suspensions of 1856. Jan. 8th-BaNK OF THE OHTo SAVINGS' INSTITUTE, at Tiffin, Ohio; failed. Affairs not yet closed up. Circulation, $500,000. Notes not bought. March 1st.-CENTRAL BANK OF TENNESSEE, at Knoxville, failed. Circulation about $100,000. Affairs yet unsettled.No sales for notes. Aug. 1st.-VALLEY BANK, of Maryland, at Hagerstown, failed: Circulation $190,000. Receiver has not yet made & report. Owned by Simeon Leland & Co., Metropolitan Hotel, N. Y. Notes not purchased by brokers. Sept. 3d-STATE BANK, at Sacketts' Harbor, N. Y., failed. Circulation $50,000. Affairs promptly wound up, and notes redeemed at par. PLANTERS' AND MECHANICS' BANK, Dalton, Ga., failed. Small concern, and nothing known about it. Oct, 27th-Bank OF THE REPUBLIC, Providence, R.I., failed. Circulation $80,000. Affairs in hands of Bank Commissioners, and not yet wound up. Notes bought at thirty cents on the dollar. Nov. 1--MANUFÁCTURERS & MECHANICS BANK, Columbus, Ga., failed. Circulation, $50,000. Not wound up, notes not bought, and prospects bad. Nov. 18th-LANCASTER BANK, Lancaster, Pa.; failed. Circulation $700,000.There is a movement on foot, which will probably be successful, to resuscitate this bank, and if so, the notes will be good again; if not, the assets are sufficient to pay a large dividend on them. Notes bought at sixty cents on the dollar. Nov. 18th-CANTON BANK, South China, Me., closed by State Commissioners.Circulation small. Notes not purchased. Dec. 18th-Exchange BANK, Bangor, Me., enjoined by State Commissioners.Circulation supposed not to exceed $40,000. Will probably go on again: Notes bought at 62 cents. Dec. 31st-ERIE COUNTY BANK, Erie, Pa., suspended: Circulation $300,000:e Notes bought at 50 cents. Of the suspension of the MINERS' AND e MANUFACTURERS' BANK, at Knoxville, Tenn., we know nothing definite. On the 20th ult., the BANK OF EAST TENNESSEE, Knoxville, closed its doors— probably forever. We hear the President has made an assignment of his property to the bank, and that all its assets are in the hands of Trustees for the benefit of d the billholders. There is no sale, here, for the notes. At Knoxville, those indebted to the Bank, pay thirty cents on the dols lar. Many of the above may not be wound up in years, while in this State, as in the case of the State Bank at Sackett's Hare bor, they are closed up and billholders paid n in a few months. e Altogether the past year has been very moderate in bank failures, and with one or two exceptions, there has been no great loss to the public.-[Thompsons] Reporter.