Peninsular Bank - Detroit, MI

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: October 1, 1857
Location: Detroit, Michigan (42.331, -83.046)

Metadata

Model: gpt-5-mini
Short Digest: 4bd48cb6

Response Measures

None

Description

Article describes Peninsular Bank suspending on Oct 1, 1857 due to injunction proceedings by the attorney general (insufficient securities), then resuming operations on Feb 15, 1858. Later it discontinued operations in 1870 (wind‑down, stockholders received ~20%). Classified as suspension_reopening because suspension was followed by a resumption of operations.

Events (3)

1. October 1, 1857 Suspension

Cause: Government Action
Cause Details: Injunction proceedings instituted by the state attorney general alleging securities insufficient to protect billholders.
Newspaper Excerpt: on October 1, 1857, the president announced to the directors, the suspension of the bank by reason of injunction proceedings instituted by the attorney general because the securities not deemed sufficient to protect the billholders.
Source: newspapers

2. February 15, 1858 Reopening

Newspaper Excerpt: The bank accordingly on February 15, 1858, resumed its operations.
Source: newspapers

3. January 1, 1870* Other

Newspaper Excerpt: After the passage of the National Bank Act, the bank did little business and in 1870 discontinued operations. All outstanding bank bills were paid, the stockholders getting back about 20 per cent of their investment.
Source: newspapers

Newspaper Articles (1)

1. May 10, 1931 Detroit Free Press Detroit, MI

Article from Detroit Free Press, May 10, 1931

Click image to open full size in new tab

Article Text

The Old Financial Center ment plus a surplus of 13 per cent. BANK OF ST. CLAIR. This bank was chartered in March 28, 1836, capital $250,000. It was located Palmer, St. Clair county, with John Clark as president, and Wesley Trusdail as cashier. In 1842 the bank moved to Detroit with Jesse Smith as president, and took quarters in the old Michigan State Bank building on Jefferson avenue, between Woodward avenue and Bates street. In 1842, A. S. Williams became president. as successor to Jesse Smith. and in turn was succeeded in 1845 by Levi Cook. In this year the bank failed. DETROIT SAVINGS BANK. This bank was incorporated on March 1848. and still survives under the hustling initiative of Walter L. Dunham. The bank began busi ness in May. 1849, with Elon Farnsworth as president, and H. N. Walker as vice-president. Among its directors were David Smart. Samuel Lewis nad Levi Cook, and B. B. Kercheval. Its first place of business was northeast corner of Griswold and Woodbridge streets under the name "Detroit Savings Fund Institute.' After moving successively to the west side of Woodward avenue (next to George Kirby's leather store). to Griswold street in the Waterman block, the bank finally in July, 1871. occupied its own building at the northeast corner of Griswold and Larned streets, where it continued until it moved to the Chamber of Com merce building recently purchased for the purpose. Its old building at Griswold and Larned was two years ago torn down to make room for the new Union Trust building The bank started without capital but in July, 1871, upon the com pletion of its then new building. it assumed the name "Detroit Sav ings bank." and was capitalized at $200,000 (since increased to $1,500.000). At first the bank was only open on Mondays. Wednesdays and PENINSULAR BANK. This bank was chartered March 28. 1849. capital $100,000 Among the incorporators were Charles Howard. Gurdon Williams, Benjamin B. Kercheval, Henry P. Bridge. Brown Charles Howard was elected president, and H. H. Brown. cashier. moved into the Farmers and Mechanics bank building which it has purchased for $2,000. On April 28. 1856, the capital was increased to $350,000 and in August an extra dividend of 25 per cent from surplus profits was divided among the stockholders. But after this, business fell off and losses multiplied. The panic of 1857 came on and on October 1, 1857, the president an nounced to the directors, the suspension of the bank by reason of injunction proceedings instituted by the attorney general because the securities not deemed sufficient to protect the billholders. The business was then placed in the hands of committee of four directors. and H O. Mass was elected as president Messrs. George K. Johnson and H. P. Pulling were thereafter chosen succes sively in his stead The office of cashier was successively filled by H. H. Brown. C. M. Davison, E. Wendell and M. F. Dow. On December 19, 1857. the stockholders were invited to lend to the bank 25 per cent of their stockholdings The bank accordingly on February 15, 1858, resumed its operations. After the passage of the National Bank Act, the bank did little business and in 1870 discontinued operations All outstanding bank bills were paid, the stock holders getting back about 20 per cent of their investment. FIRST NATIONAL BANK. The First National bank was the first bank in Detroit to be organized under the national bank act of 1863. It was largely promoted by the efforts of Philo Parsons. A preliminary meeting for organization was held on June 21, 1863. It was followed August 5 by the first meeting of stockholders, at which articles of association. by-laws, etc., were adopted. Its directors included Philo Par sons, W. McPherson, I. Mills, John James, E. G. Merrick, M. B. Kean, J. N. Ford and John Hosmer On November 16 the bank opened for business in the old office of Parsons & Fisher in the Rotunda building, southeast corner of Gris wold and Larned streets. In De cember, 1864, the franchise was purchased by the officers of the State Bank of Michigan, and on January 1. 1865, the bank was reorganized and moved to the southeast corner of Jefferson ave nue and Griswold street, the place it occupied for 41 years, in 1908 it moved to the Ford build ing and again in 1922 to its own. the First National Bank building, the site of the old Russell house, later the Pontchartrain hotel. Its official staff is too well known to need repetition here. SECOND NATIONAL BANK. Second National bank was opened for business November 4, 1863. with capital of $500,000. H. P. Baldwin, president: C. cashier. and C. H. Buhl. E B. Ward. Duncan Stewart, Chancery James F. Joy, John remained in its first location in the the First National bank In the were added to the directorate. AMERICAN NATIONAL BANK. American National bank was organized in 1865 with a capital of $250,000. soon increased to $400.000. with directors who included A. H. Dey, president: Franklin Moore. M Mason, Eber Ward. John J Bagley, Charles Root, M. S. Smith, Edward Kantin and Jacob S. Far rand. W. Morton was the first cashier, followed in a short time by George B. Sartwell. To the directors were added Simon J. Mur phy. Alex. Chapoton, S. Heavenrich, Thomas W Palmer and William A. Moore. The bank first OCcupied quarters at No. 89 Griswold street, then moved to the Newberry & McMillan building. then to the Union Trust building. where it was taken over by the Old Detroit National and eventual ly passed into the First National organization. PEOPLES SAVINGS BANK. Peoples Savings bank was organized January 1, 1871, capital $30,000. with Francis Palms as president, and Charles Ducharme, Patrick Fitzsimmons, A. Kaarer, J. Schulte, A. Putte, M. W. O'Brien, Jeremiah Dwyer. F. F. Palms and William B. Moore among the directors Originally located at 37 Jefferson avenue, on April 22. 1872, it moved to the southeast corner of Congress and Griswold streets, whence it moved to the Moffat building at the southwest corner of Griswold and Fort streets. The bank later was merged with the State Savings as the Peoples State bank, now the Peoples Wayne County bank. George H. Barbour was one of the first directors of the Peoples Savings. and at this writing enjoys the distinction of being the oldest (in point of service) bank director in Detroit. WAYNE COUNTY SAVINGS BANK. Wayne County Savings bank was organized October 2. 1871, capital $30,000. soon increased to $150,000. William B. Wesson was the first president: H. Kiefer, vice-president; S. Dow Elwood secretary and treasurer The directors or trustees included William B. Wesson, S. D. Elwood, John J. Bag ley, William A. Moore. Jerome Croul, Jefferson Wiley, M. S Smith, D. M Ferry. P Knight, Paul Gies, Traugott Schmidt, W. C. Dun can, T. W Palmer. H Kiefer, K. C. Barker and J. S. Farrand. Located first at the northwest corner of Griswold and Congress streets, the bank on December 5, 1876, moved to its own building on Congress street in rear of its first place of business Later this bank merged with the Home Sav ings bank under the title Wayne County and Home Savings bank subsequently merged into the Peoples Wayne County bank In 1879, when was admitted to the bar, the outstanding bankers of the Detroit First were National Emory Wendell of bank: Alexan der H of the American tional bank, and S. Dow Elwood Na of bankers con ing not 80 much to financial state ments as to the confidence in his own judgment of men. It might be said of him. was once said of Sidney D. Miller A borrower would prefer to be refused by him rather than to have his loan grant ed by another Mr. Dey was strong-featured man. gruff in man ner but kindly of heart. Mr. El wood was pioneer of savings banking Of those who followed the greatest banker was Alexander McPherson, of the Second National bank. Mr. George H. Russel of the Peoples. now the Peoples Wayne County bank, typified the human banker who understood hu man nature and thereby won host of friends without risk to his Today mergers or consolidations are the order of the day The banks of Detroit today consist of the two major groups: (a) The First National Group composed of the Peoples Wayne County bank, the First National bank, the Bank of Michigan the Peninsular State bank, the Detroit Trust company, (b) The Guardian Detroit Union Group, composed of the Guardian Detroit bank. the National Bank of Commerce, the Guardian Trust company and the Union Trust com pany, the Keane Higbie company and the Michigan Industrial bank There should also be added the independent banks. such as the Detroit Savings bank This realignment of recent origin is too well known to require elab oration.