9411. Bank of Tecumseh (Tecumseh, MI)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
state
Start Date
April 29, 1860
Location
Tecumseh, Michigan (42.004, -83.945)

Metadata

Model
gpt-5-mini
Short Digest
dead1f1f

Response Measures

Full suspension

Other: Suspension invoked under state law for sixty days; depositors' committee and bond enforcement pursued afterward.

Description

Newspapers report a run (late April 1860) initiated by a Toledo broker which spread; bank 'redeemed' during the day but then 'closed for sixty days' under the suspension act. Later (Aug 1860) local meetings discuss enforcing the bond for bill-holders and collecting suspended notes; no clear reopening or final closure/receivership is reported in these articles, so outcome remains unsure. OCR errors in original (Tecumseh spelled 'Tecumseb' etc.) corrected.

Events (2)

1. April 29, 1860 Run
Cause
Rumor Or Misinformation
Cause Details
Run reportedly 'started ... by a Toledo broker' and spread through the community; panic and stampede to redeem bills.
Measures
Bank redeemed some bills during the day (redeemed on Monday); brokers and others traveled to redeem; heavy coin/counting noted.
Newspaper Excerpt
The Michigan papers report a run on the Bank of Tecumseh. ... A run was started on this institution on Saturday or Monday by a Toledo broker, which soon spread among the community at large, and the result has been a general stampede for the bank
Source
newspapers
2. May 1, 1860* Suspension
Cause Details
Closure under the statutory sixty-day suspension appears to follow the run; articles discuss suspension and collection/enforcement of bond for bill-holders but do not report a formal receivership or reopening.
Newspaper Excerpt
Since the above was in type we hear that the bank has closed for sixty days, under the act allowing suspension for that time.
Source
newspapers

Newspaper Articles (2)

Article from The Press and Tribune, May 1, 1860

Click image to open full size in new tab

Article Text

Financial and Commercial. MONETARY. MONDAY EVENTNG, April 30, 1860. Exchange went down 1 tc-day, the current rates at the bank being It per cent premium for currency. Some of the banks report the demand dull at the decline, while others have had more calls and report it close. The demand for money on produce bills at the banks is by no means equal to the supply. The shipments have been heavy thus far for the season; but the means to handle produce in the hands of the banks are still beyond the necessities of the trade. Local discounts cannot be obtained to any considerable extent on any terms. Gold H@2 per cent, with no demand. Sr. Lous.-The Democrat of Saturday last says: There was. as anticipated, a greater demand to-day for Eastern exchange than there has been for some time, as it is about the last day that remittances can go to meet with certainty the payments due May 1st. Rates are unaltered, as follows: ForGold. B'k'ble Fnds. III.A Wls. Ontbe East % frem. N prem. 1½ prem. On New Orleans N prem. IX prem. 1% prem. 1 prem. 14 prem. Cincinnati & Louisville par. CINCINNATI-The Gazette of Saturday reports the demand for money was somewhat irregular, it being heavy with a portion of the houses and light with others, but in the aggregate the supply of capital was smple, and good paper was disposed of without difficulty at 10 to 12 per cent. There were indications of a better supply of Eastern Exchange. Dealers were able to buy considerable amounts at 55@60, offered by produce shippers and Kentucky banks, but the demand continued heavy, and matters were close at 50 to 60 prem. buying, and t prem. selling. The tendency, however, now is to an easier market. Western uncurrent money is in good demand at t discount for Missouri, and If discount for Illinois and Wiscousin. Tur BANK OF TECUNSEN.-The Michigan papers report a run" on the Bank of Tecumseb. The Monroe Commercial of the 20th says A run was started on this institution on Saturday or Monday by n Toledo broker, which soon spread among the community at lurge, and the result has been a general stampede for the bank by all who teld enough of the money to make it all object to go to Tecumseh. The bank redeemed on Monday, and on Tuesday a broker of this city went to Tecumseh with 8142. He spcceeded in getting $100 of the amount in fire-cent pieces, which the payer occupied all the forenoon in counting out to him. Be was on hand at the opening of the bank in the afternoon, but some one succeeded in getting abead of him, and be returned after banking hours with 842 of the money. They redeemed in this way up to the hour of closing. Another broker of this place went up the same dav with $300, but was obliged to bring it back. We also hear that the Michigan Soutbern and Northern Indiana Railroad Company sent a messenger over from Toledo on the same day with $3,000, but be was unable to get any portion of it redeemed. A number of our merchants took it for g ods up to Wedne sday, but since that time have refused to touch it. Those who profess to be well posted say there is about $100,000 of the money in circulation, some 825,000 of which is in this county. A place. considerable amount is held by citizens of this Since the above was in type we bear that the bank has closed for sixty days, under the act allowing suspension for that time. We presume an effort will be made to place the bank on its feet again. but our advice to the community is, not to touch it unless it should go to work under the general banking law. Some of our brokers say they will not touch it hereafter.


Article from The Hillsdale Standard, August 28, 1860

Click image to open full size in new tab

Article Text

An adjourned meeting of the citizens of of Monroe was held in the Hall citizens the city in on Saturday last, J. McLAren, E+q, the chair, and D McCormick Secretary.About one hundred citizens were present. The chairman stated that the first bu mess before the meeting would be to hear the report of the committee appointed at the preyou meeting. M. Lewis Darrah, from the committee reported that he had written to S. M. Holmes in r lation to the bond filed with him for APcurity to the bill-holders, and had received the following reply: "DETROIT, Aug. 8. 1860 "LEWIS DARRAIL CHAIRMAN. & Dear Sir: Your favor of the 6th 18 this A. M. at hand. In answer to your inquiries relative to Bank bond, I say that 8 was me while I was Treas'the bond of Tecumsch the filed with beg to urer State, dated May 29th. 1856, and signed by the following gentleman, VIZ: James A. Raynor. Wedworth W. Clark. Thomas G. Cole, Elijah K. Bruce, H C. Lewis, and J. C. Satt erthwaite. The bond runs to 'S. M. Holmes, Treasurer of the State of Michigan, his successor in office, his or their assigns, as trustee for all persons who may be interested in the premises. The nature of the bond is to make the Treasurer or his successor the trustee for the bill-holders of the bank. in care of failure on the of the to On these thus can suit the signers or collective. left, bank the of Treasurer this redeem. bond individually bring notes, against part ly, and can obtain judge rent against their the same as if it were their own note in hand. Suits can be brought in all courts. This is my understanding of the effect of the bond. The bond is in the hands of the Hon, Jacob M. Howard, Attorney General of the State. Mr. Howard stands ready to enforce the bond whenever called upon to do SO in accordance with its conditions. "If you desire a copy of the bond, I presume you can obtain one by advising Mr. Howard, or Howard & Mandel! Mr. How ard is new out of the city. Of the responsibility of the signers of the bond you can judge better than I can, as some of the parties reside in your city, I believe. "Very truly yours, "S. M. HOLMES." Mr. Darrah said he had been told an that were in to the of officer their of power the bank straighten they up doing affairs by all the bank, and that there would be some one at this meeting to explain. He also understood from the same officer that they did not intend to do anything with the bank, and that any one could have the charter that wished it. He hoped, if any one was present from the bank, they would make an explauation. An opportunity was here given for any person connected with the bank to speak, but there was no one present. Roderick O'Cornnor, E-q., who has been appointed Treasurer to receive the bills on the bank, was called upon to report how much hi had received. He said be could n tell X actly how much he had taken but that he had a drawer full. He had declined to receive from parties having large amounts advising them to keep it until after this meeting. Mr. Dansard stated that he had in Mis of fice between four and five hum dollars of parties it, belonging to differe The secretary of the meeting stated that he had taken $10 from a gent eman. is ho also wished to leave five dollars in good mon ey with which to prosecute A number of others stated that they has various amounts Dr. Adams than .ht that leagal stepseshoold be taken forthwith 10 collect the money and if it could not be collecte legally, this munity should take the law in their own hands. Judge Wing stated that the Michigan Southern Railroad held $10.000 of the money when the bank suspended and that they had compromised by taking ten cents on the dollar. After some further discussion it was mov ed that Messre. Lewis Darrah. W. A. Noble, James Tilden, and Benj. Dansard, be authorized to act with Mr. O'Cornor as treasurer, and as a committee to carry out the wishes of this meeting. The motion prevailed. Some one proposed that the committee have power to compromise if they hould think it best to do so. Mr. McCornick was opposed to any compromise. He thought it was time these swindling institutions were done away with. He propozed to have dollar for dohar, or pros ocute the claim to the extent of the law. It was moved that the committee draft an instrument which the depositors of Tecumsels money should sign, obligating them to pay a percentage on their deposit, in good money, not to exce d ten per cent., with which to pay expenses for prosecuting the bond. The motion was carried. Mr. O'Cornor stated that he had received quite a number of letters from different par ties, asking information about what was to be done. He wished to know whether he sho'd receive this money from parties out of the county. Some discussion was had on this point, and was parties out of the e any residing a motion finally only. made holding it that and of aid this money. and desiring to deposit in prosecuting the bonds, may send such amount of Tecum seb money as they hold to any of the above committee, sending also at the same time ten per cent. on the amount in good funds, with which to aid in the prosecution. The meeting then adjourned for one month. Stephen A. Douglas eu'ogises the Compromises of 1850. Herschel V. Johnson denoun-