Oakland County Bank - Pontiac, MI

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: October 8, 1846
Location: Pontiac, Michigan (42.639, -83.291)

Metadata

Model: gpt-5-mini
Short Digest: 67dc7e73

Response Measures

None

Description

Article (NY Herald, 1846-10-22) reports the Oakland County Bank exploded (failed); Bank Commissioner inspected books on Oct 8, 1846; proceedings to wind up and place effects in receivers' hands are underway and the principal proprietor (Truesdail) is to transfer property to satisfy liabilities. No run is described — this is a failure/suspension leading to closure/receivership.

Events (2)

1. October 8, 1846 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank was insolvent: assets largely worthless, principal proprietor (Truesdail) personally liable for large portion; poor credit and bad assets led to failure.
Newspaper Excerpt: The explosion of the Oakland County Bank of Michigan ... Proceedings have been instituted to wind up the bank, and place its effects in the hands of receivers;
Source: newspapers

2. October 22, 1846 Receivership

Newspaper Excerpt: Proceedings have been instituted to wind up the bank, and place its effects in the hands of receivers; and Mr. Truesdail and his counsel have pledged themselves ... to transfer ... property ... to be applied to the payment of the notes of the bank as fast as possible.
Source: newspapers

Newspaper Articles (1)

1. October 22, 1846 The New York Herald New York, NY

Article from The New York Herald, October 22, 1846

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Article Text

Navigation of the Ohio River. Time State of River. Places. 10 feet 0 ins. Oct. Cincinnati 17 feet 0 ins. Oct. 18. Wheeling S feet 0 ins. Oct. 18 Pittsburg 5 feet 0 ins. Oct. 14 Louisville. MONEY MARKET. Wednesday, October 21-6 P. M. The market was heavy to-day, and prices fell off a fraction. Harlem declined 1/4; Norwich and Worcester 1/4. At the second board a further decline was experienced. The explosion of the Oakland County Bank of Michigan, has fallen with great severity upon the poorer classes. This is the third bank in Michigan which has exploded within the past six months; and notwithstand ing the warnings of the press generally, the public continued to take the issues of this institution. Many have paid dearly for their misplaced confidence, and we trust it W 11 be a lesson they will never forget. We have so frequently exposed the rotten condition of such banks as the St. Clair, the Oakland County, &c., that it is a matter of much astenishment that a single individual can be found who will ever receive them, to say nothing about keeping them. The indifference exhibited by the public generally, in relation to the solvency of the institutions the issues of which they so freely take, is enough to discourage the press from taki g any further trouble to protect them from the swindling intentions of these engaged in sustaining these banks, until they reach a certain circulation, and the most favorable point for an ex" plosion. Most of the banks in Michigan and other West ern States, which have exploded within the past five years, have been in very bad credit for a length of time previous to the grand crash, and every effort has been made to put the public on their guard against their bills, but, it appears, without avail, as, in every instance, the result has shown that a circulation to some extent has, in spite of the frequent warnings, been obtained, generally among that class the least able to bear the loss. It is full time for the Legislature of Michigan to do something in relation to the banking business of that State. It is full time that the most restrictive system of banking should be perfected for the protection of that class of the public who will not protect themselves. Michigan has long been celebrated for its wild cat banks; and for the credit of the State, and to remove, if possible, the stigma which it now bears, the most rigid estigation should be made into the CO. dition of those institutions™ which are the least tainted, and a complete revolution should be male at the earliest moment in the system of banking ge. nerally. The present system is a curse to the State, and retards the prosperity of the people more than her public debt ever did. E We annex the official statement of the Bank Commis sioner of the State of Michigan. OAKLAND COUNTY BANK-BANK COMMISSIONER'S REPORT. For the purpose of ascertaining the true amount of the liabilities of the Oakland County Bank, and its resources, I visited Pontiac on the 8th inst., with the Hon. D.V. Bell, Auditor General. With this is a statement of the condition of the bank, sworn to by the cashier, Mr. Rawson. This statement we found to be correct, from a thorough examination of the books of the bank. Of the circulation, it appears from the books of the bank, as well as from the statement of the officers, $5,500 was sent to a house in New York, in November last, with the expectation that it could be used, and if so used to protect the same. It never has been used, and still remains in their hands. If this is so, the actual circulation was. on the 8th, $51,730. From this last sum is to be deducted the amount which Mr. Truesdail has redeemed from time to time, before and since the failure of the bank. He has placed in my hands the sum of $13,002, which reduces the ci culation to $38,728. There is nominally assets to the amount of $57,858 86. Of this amount, Mr. Truesdail is individually liable for $41,897 36. Of the balance, $5,000 is worthless, or nearly so. The remaining portion of the assets of the bank, being about $10,000, it is believed by the officers will be collected, and made availa. ble to reduce the bills and notes of the bank. Proceed. ings have been instituted to wind up the bank, and place its effects in the hands of receivers; and Mr. Truesdail and his counsel have pledged themselves that he will, as soon as the deeds can be prepared, transfer to the Hon. A. S. Porter, property to the amount of his liability to the bank, which is to be applied to the payment of the notes of the bank as fast as possible. HENRY N. WALKER, Attorney and Ex Officio Bank Com'r.