8796. Ship Builders Bank (Rockland, ME)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 1, 1854*
Location
Rockland, Maine (44.104, -69.109)

Metadata

Model
gpt-5-mini
Short Digest
b49b6127

Response Measures

None

Description

Articles (Nov 1854–May 1855) describe the Shipbuilders Bank at Rockland closing its doors/ceasing to redeem and subsequently being placed in the hands of receivers and wound up. The cause is internal mismanagement/falsified books and heavy bad debts; there is no clear description of a depositor run prior to suspension. Receivers met into mid-1855, indicating permanent closure/receivership.

Events (3)
1. November 1, 1854* Suspension
Cause
Bank Specific Adverse Info
Cause Details
Officers discovered falsified books, large bad debts (nearly $27,000 loss), mismanagement by the cashier; feared over-issue and stopped redeeming bills and closed doors.
Newspaper Excerpt
officers got alarmed at an apprehended over-issue of its bills, and neglected to redeem them in Boston and closed its doors.
Source
newspapers
2. March 17, 1855 Other
Newspaper Excerpt
The Commissioners report favorably on all the Banks in the State, excepting the Shipbuilders at Rockland. This Bank has been less fortunate in the management of its affairs. It has sustained a loss of nearly $27000 in bad debts for the year...the books of the Bank show unmistakable evidence of having been falsified... It is expected, however, that fifty per cent. of the capital will be saved, but the Commissioners do not feel sanguine...
Source
newspapers
3. May 24, 1855 Other
Newspaper Excerpt
the Receivers will continue to meet in this city on Wednesday of each week until the last of June, for the purpose of receiving bills on that Bank and giving receipts therefor. Bills must be presented on or before the 27th of June to entitle the holders to a pro rata of the proportion which may be paid.-Rockland - Gazette.
Source
newspapers

Newspaper Articles (4)
1. November 8, 1854 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, November 8, 1854

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Article Text

The Philadelphia Ledger says: "Coal shipments on the Lebigh for the week ending with Saturday last were 41,058 tuns, and for the season 1,067,525 tuns, against 885,499 tune to same time last year-incr+ase, 182,026 tubs, The breach on the Delaware Division of the Pennsylvania Cacal, it is supposed, will require three or four days to repair. But an interruption of the navigation for even a single day, at this late period of the year, is attended with very serious inconvesience. and irreparable loss to all the parties interested, and is calculated still further to inflate the already sufficiently high prices of coal. Until the breach is repaired, and navigation restored, ebipments on the Lebigh will necessarily be restricted, with a dminished force of boats, to the supply of the demand on the Lebigh and Morris Canals, and of the New. York market by the latter avenue. The occurrence of the breach is one more in addition to the many similar cases demonstrative of the urgent necessity for extensive repairs and improveme to the State Canal From the Schuylkill region the tunnage has increased the past week, especially by the Reading Railroad, which reports 36,561 tuns, making for the season 1,813,237 tans, against 1,431,286 tuns to the same time last year. The Navigation Company, for the week, reports the tipment of 14,478 tuns, and for the season 792,978 tuns against 752,432 tuns to the same time last year. We have a report here that the combination formed a few weeks ago in the Schuylkilt region to restrain shipments of coal. has been dissolved, and that for the remainder of the season we may expect the usual supply. Such is the report." The Rockland (Me.) Advertiser give a most singular excuse for the stoppage of the Shipbuilder's Bank of that place. A new Board of Directors had recently been chosen who knew nothing of the affairs of the institution, and bills which they supposed " were in circulation to the amount of $107,000 over "and above its legitimate issue were ones that had "been printed on such poor paper as to be unfit to go "into circulation, and were burnt up in March last, a record of which transaction was duly made." The bank, it understands, has at the present time % circulation of about $30,000, and has due it from its customers in good notes not yet matured about $160,000. There seems to be considerable stringency in the Montreal and Quebec money markets, and we learn of one large and several smaller failures at Montreal; the former with liabilities amounting to £300,000. The Cincinnati Gazette states that Mr. Beckel of Dayton, who has been engaged extensively in railroads, banks, turnpikes, &c., has been in trouble for two weeks past, and was finally forced to suspend on Tuesday last. The Gazette says: He owned the Miami Valley Bank of Ohio, the Wayne County Bank of Indiana and another Indiana Bank, the name of which we do not recollect. He is also principal owner of several turnpikes, and is a heavy stockbolder in various railroads; besides which he has a large amount of real estate. Unless his possessions were greatly overestimated, he will be able to pay all bis debts. The notes of the three banks referred to are secured by the deposit of State stocks." The Chancellor of the Circuit Court of Kenton County, Kentucky, has appointed three Commissionersto settle the affairs of the Kentucky Trust Company Bank of Covington, in lieu of the assignees selected by the Bank. The Commissioners are to give bond and security in the sum of $150,000 for the faithful performance of their trust. The question was raised as to the right of the Commissioners to take the notes of the Bank, and the powers of the Commissioners generally. The Court said that it had not made up i:8 mind as to the ability of the bill-holders who held the notes of the Bask before its failure, to offset such notes against the bills they owed in bank. That question was reserved. The Court held, however, that those who had go: possession of the notes after the failure of the Bank, could not pay their debts to the bank with such Kentucky Trust Company notes, because the charter of the bank requires that all the creditors of the bank shall be paid pro rata. The effect of this order is to make the debtors of the bank pay their debts in gold and silver, and not in the depreciated paper of the bank. The late President of the bank has published a card, in which he says the notes will be worth seventy-five cents on the dollar.

2. November 10, 1854 Oxford Democrat Paris, South Paris, ME
Article from Oxford Democrat, November 10, 1854

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Article Text

We have had occasion to attude to the report, published in the Oxford Democrat, three weeks ago, before. The following article from the Rockland Advertiser, shows the condition of the bank at the present time ; and proves that the institution was entitled to, and should have received the confidence of the community We inserted the item without a doubt of its correctness, and did not know to the contrary, until an extra was received from the Farmer office, contradicting the statement. We have corrected the statement before, and now give the following statement of the affairs of the bank; again expressing our regret for the occurrence. SHIPBUILDERS BANK. It will recollected that in our last issue we announced the election of a new board of officers to this Bank, and at the same time contradicted the rumors that were abroad. prejudicial tothe institution and stated that it was sound, and itsbills current. Last week however, is officers got alarmed at an apprehended over-issue of its bills, and neglected to redeem them in Boston and elosed its doors. Since then they have taken the pains to look at itsown records, and find they were not hurt but only frightened ! The bills which they supposed were in circu. lation to the amount of $107,000. over and above its legitimate issue, were ones that had been printed on such poor paper, as to be unfit to go into circulation, and were burnt up in March last, partly in the unsealed packages just as they came from the printers, and partly naigned sheets, in a lime kiln by the then Directors, a record of which transaction was duly made and signed by them atthe time. If this record had been heeded the present needless panie would not have occurred. The bank we understand has at the present time a cirenlation of about $30,000. and has due it from its customers in good notes not yet matured. about $160,000, to say nothing of its specie and other asserts. Itsbills are current here, its stock is at par, it is in a sound condition, and when its officers get the "hang of the new school house." we opine it will go ahead. [Rockland Advertiser.

3. March 17, 1855 The Weekly Minnesotian Saint Paul, MN
Article from The Weekly Minnesotian, March 17, 1855

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Article Text

THE MINNESOTIAN. SATURDAY MORNING, MARCH 10, 1855 The Maine Banks. A Maine friend has placed in our hands a copy of the annual report of the Bank Commissioners, made to the Legislature of that State for the year 1854. From it we learn that there are thirty-one Banks in operation within the State, thirteen of which were chartcred by the Legislature of 1854, adding to the banking capital of the State the som of $587,252, and making a total of $7,301,252.00. The circulation during the past year has not kept pace with the increase of capital, it being now but half a million more than it was last year, while the capital is nearly a third greater. The deposits are now larger than at any former period. The profits are also considerably increased.The Commissioners report favorably on all the Banks in the State, excepting the Shipbuilders at Rockland. This Bank has been less fortunate in the management of its affairs. It has sustained a loss of nearly $27000 in bad debts for the year. The Directors seem to have entrusted its affairs too much to the manage of the Cashier, who has most shamefully abused the confidence reposed in him. The books of the Bank show unmistakable evidence of having been falsefied from the beginning and it is impossible to ascertain from them with any degree of accuracy the amount of bills in cirulation. This can never be known until the bills are all in. Itis expected, however. that fifty per cent. of the capital will be saved, but the Commissioners do not feel sanguine, and admit the possibility that the whole capital may be lost. A gentleman, who is President of one af the soundest and best Banks in Maine writes one of us that the concerns of the Bank will be speedily wound up, and be the loss however heavy it may upon the stock, that every bill in circulation will eventually be redeemed do llar for dollar. However true this may be, the bills of the Bank must, for the present, be reckoned at a very low value. If we held the bills to any considerable amount, we would not sacrifice very largely on them until further advised. Notwithstanding the depression of the com mercial interests in that State in common with therest ofNewEngland,and the feverish state of the country in regard to Bank suspensions but three of the Banks of Maine-the Hallowell, Ellsworth and Shipbuilders-have failed or neglected to redeem at the Suffolk. We copy from the report, as follows: "Though a Bank ceases to redeemat the Suffolk, it by no means follows that it has failed ; yet it is generally SO regarded-for its bills at once become depressed in valve at the place towards which they naturally flow-in the way of trade-and the free circulation is almost instantly stopped. If it continue to redeem at the counter, the influence of such suspension is felt by all the Banks of the State-causing a with drawal of deposits and of specie, and a loss of confidence in monied institutions. The Bank of Hallowell is the only one that did not make an effort to be restored to favor at the Suffolk-after having been thrust aside. This bank is owned-mostly-and controlledby men of wealth and of good business capacity and the failure to redeem in Boston was not owing to inability to supply necessary funds.They have not ceased to pay all bills at their counter, and we understand that they provide for their redemption at New York-at a discount. The Ellsworth has provided liberally for its liabilities, and the bills are again current.The Bank is in the hands of men of integrity, ability and wealth ; and we doubt not that it will go on, doing a prosperous besiness-deserving and receiving the confidence of the public. There isone very remarkable fact, in the management of our Banks, that deserves a passing notice. With very few exceptions, all the officers, besides Cashiers and assistants, serve without compensation. In some cases the President gives daily attendance to the business of the bank, and bestowsan amount of labor that might be reckoned by months. It gives the Commissioners pleasure to state that our banks seem to be under very creditable management, and that they may be reckoned as safe as any others in the country.Generally their operations have been confined within the limits of the law, and there have been but few, ifany, instances of an excess of circulation. and but a trifling excess of loan for a short period. 'It is manifestly for the interest of the Banks themselves that the laws should be scrupulously observed, even though they might secrue a temporary advantage from their infraction.' As an evidence of their good management, with the exception OI the Shipbuilders' Bank, they have very few bad or doubtful debts; not enough to effect their semi-annual dividend. In conclusion we would say, that our Banks were never more deserving of the confidence of the public than at the present time. While a panic in money matters prevails to a considerable extent in many places, our Banks go steadily on, hardly feeling any 'pressure' or interruption of their ordinary business and though their loan and circulation are large, their paper is well secured, and they have provided liberally for the redemption of their bills in Boston, besides holding a large amount of speciein their vaults. CARIMONA.-This new and promising town, situated in the heart of the rich and beautful

4. May 24, 1855 Eastern Times Bath, ME
Article from Eastern Times, May 24, 1855

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Article Text

SHIPBUILDER'S BANK.-From letters occasionally received by individuals in this city from persons abroad, making inquiries in relation to the prospect of payment on Bills on the Ship Builders' Bank, it is evident that it is not fully understood abroad what is necessary for billholders to do in order to secure such payment on their bills as the Bank may eventually be able to make. For the benefit of such as have not examined the law passed last winter relating thereto, we will mention that the Receivers will continue to meet in this city on Wednesday of each week until the last of June. for the purpose of receiving bills on that Bank and giving receipts therefor. Bills must be presented on or before the 27th of June to entitle the holders to a pro rata of the proportion which may be paid.-Rockland - Gazette.