Farmers Bank - Homer, MI

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: January 1, 1837*
Location: Homer, Michigan (42.146, -84.809)

Metadata

Model: gpt-5-mini
Short Digest: ee99773f

Response Measures

None

Other: Historical account from 1837–1839; describes collapse after runs due to issuance of worthless paper and speculative financing.

Description

Article (1926) recounts the 1837-1838 'wild cat' Farmers' Bank of Homer: excessive issuance of worthless notes and speculative capitalization led to repeated runs and the bank's collapse. I corrected the bank name to include an apostrophe as in the article's historic usage; dates are approximate (year only) since the article gives years 1837-1838. Determined as run -> suspension/closure (receiver/failed bank).

Events (3)

1. January 1, 1837* Run

Cause: Bank Specific Adverse Info
Cause Details: Bank issued large amounts of essentially worthless paper notes and was undercapitalized/speculative; insolvency and fraudulent capitalization triggered runs.
Newspaper Excerpt: Investors made every run on the bank, which consequently collapsed
Source: newspapers

2. January 1, 1838* Other

Newspaper Excerpt: the organization ... died 1839 after reaching peak of its business in 1838 ... Investors made every run on the bank, which consequently collapsed and the new building and never used banking house school This ended Milton Barney's bank Ing ventures, the organization ing died 1839 after reaching peak of its business in 1838 . . . .
Source: newspapers

3. January 1, 1838* Receivership

Newspaper Excerpt: Investors made every run on the bank, which consequently collapsed
Source: newspapers

Newspaper Articles (1)

1. May 23, 1926 Battle Creek Enquirer Battle Creek, MI

Article from Battle Creek Enquirer, May 23, 1926

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Article Text

Founder of Homer Established First "Wild Cat" Bank in State Milton Barney Originator of Banking tem Which Deluded Many in Michigan Also Village's Civic, Industrial Leader. (By Staff Correspondent) Homer. May 22.-To the founder the village of Homer is laid the establishment of the first "wild cat" bank in the state of Michigan. This Milton son of the famous Nathaniel Barney. of Battle Creek. was all but the destroyer of the settlement he created and the originator of form of banking which left trall of worthless paper money and luded investors across the state. in 1837 that this first cat" bank appeared der the name of the Farmers' bank of Homer with Milton Barney its president, Asahel Finch, then state cashier, and Finch, Elisha Thornton. Arza Lewis Hiram Smith. Skeeles, Walter Wright, all of Homer, and Leonard Stow of Concord directors. The bank was capitalized at large sum those days and considered sufficient to Insure per feet security to investors who flock to the bank from all parts of the to township. All busniess of the bank transacted first over counter in the back part of Bargeneral store, the first frame building in Homer. but soon became large that new structure, the first brick building in the started. Before this building was complet however, became known that most of the $100,000 capitalization of the bank consisted of hopes the the realization of certain real estate ventures and that the paper money which the bank was issuing travagantly was of more value wall paper than as the contents of pocket book. Investors made every run on the bank, which consequently collapsed and the new building and never used banking house school This ended Milton Barney's bank Ing ventures, the organization ing died 1839 after reaching peak of its business in 1838. though existing but short time this form of banking spread from prietor Homer other parts of the state village. with amazing rapidity and banks began spring up the most remote spots. Paper money became of less good than pebbles and and settlers, leary of fraud, soon went back to their dickering barter as they had done before the the establishment of such an tion bank. G. one of the older residents of Homer now can recall hearing his father. G. H. French. who was state senator for several years and largely responsible bringing railroads through er. telling of those days when ney's bank was flourishing. They other days which heated the blood of the gambler and gave wild speculation. Mr. French remember his father speaking of Barney man of great ability but temperamental nature inclined spells depression. After Although Barney's "wild Idea fortune caused great in the state well in the village of Homer until for was halted by congressional idents tion. there were other ideas of his which are largely responsible died the existence and present prosperity health. town. according to the memory of the older residents. For Barney seemed to be the lead in every civic*and industrial dertaking in the early days of tlement. was his home that the first meeting of township board held when bounty of for wolf shot and killed was the first legislative business one of the three original inspectors. Barney was also the builder of the first mill in this locality and platted and sold lots settlement called Barneysville, lat part of Homer. He is also cred ited with being the builder and pro of the first hotel in the the Barney was also one of the leading sponsors the proposal for connect the Detroit river Lake with Lake will the channels of the Huron Joseph rivers. survey intervening land showed that the project feasible and the res. Idents of Homer became enthusthe idea that when the Mich Central railroad was preparing construct its main line through village, they turned The railroad then around the village sented route thus building public and leaving Homer out The canal scheme fell through realizing their mistake the residents extended vited cordial welcome and North railroads they started their Friday tracks the direction of Homer. losing share Barney hope gold rush and left California other the many of the village. But he for recoup his and there broken in spirit and