Albany City National Bank (Albany, NY)

Episode Information

Episode UID
129101085
Episode Type
Suspension โ†’ Reopening
Bank Type
national
Bank ID
12910 national
Charter Number
1291
Start Date
May 11, 1890
Location
Albany, New York (42.653, -73.756)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
8c6fd021b5f7feaa

Response Measures

None

Description

State bank examiner to take possession for investigation; no evidence of permanent closure in these articles.

Events (4)

1. June 16, 1865 Chartered
Source
historical_nic
2. May 11, 1890 Run
Cause
Bank Specific Adverse Info
Cause Details
Large embezzlement by bookkeeper George P. Whitney disclosed, undermining confidence and prompting expectations of a run.
Measures
Directors and other banks proffered aid; Albany City Savings Institution placed $250,000 at disposal of the bank to meet demands.
Newspaper Excerpt
run is expected by the directors of the discount bank. but they assert that they are prepared for it, and that they are able to meet all obligations.
Source
newspapers
3. May 13, 1890 Suspension
Cause
Government Action
Cause Details
State bank examiner to take possession and begin an investigation following discovery of large defalcations by a bookkeeper.
Newspaper Excerpt
The State Bank Examiner, Mr. Groesbeck, was in consultation... Mr. Groesbeck will take possession of the bank to morrow.
Source
newspapers
4. February 5, 1902 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (4)

Article from The Portland Daily Press, May 12, 1890

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Article Text

He Lived High. ALBANY, N. Y., May 10.-The profoundest sensation was caused in business and social circles today by the announcement that George P. Whitney, individual bookkeeper of the Albany City National Bank, was an en bezzler of the bank's funds to the amount of nearly $80,000. The defalcations have been going on at least two and a half years. Whitney was accused of the crime, and made a confession which may result in implicating a prominent business firm here. Bank officials are reticent. but it is generally understood the defalcation is the result of a conspiracy between Whitney and the firm referred to. For the past two days he has been engaged in assisting experts in unravelling his accounts, and showed no disposition to evade the law. If the defalcation reaches $80,000 the capital of the bank is impaired, as by the last re. port the surplus and individual profits amount to only $50,000. Whitney was arrested late this afternoon at the instigation of his bondsmen and arraigned before United States Commissioner King. Much sympathy is expressed for Whitney, who was evidently instigated to the crime by the demands of the parties whic derived benefit from the theft. Though he has been employed by the bank 24 years his salary until recently has only been $1500 per year. It is thought he has been living beyond his means, and speculation is assigned as one of the causes. ALBANY, N. Y., May 11.-The whole clerical force of the Albany City Bank, from which Bookkeeper Whitney embezzled, has been at work on the books. It is stated the sum will be $100,000 or over. The bank is perfectly solvent, and is prepared for a run in the morning. William Gould, of the firm said to have been in collusion with Whitney, said tonight that the statement was false, and asserted individual members of the firm had been culprits. Several other firms are mentioned as having crooked transactions. One of the directors of the bank, Amsdell, the head of a large brewing firm, paid in $10,000 last night to cover worthless paper his son made in collusion with Whltney. Burglars in Canton. CANTON, May 10.--Burglars raided several places in town Friday night. Tools were taken from a blacksmith shop with which the front doors of Houghton's hardware store were pried open. His safe was cracked but encountering a steel chest which contained all the money, nothing was secured here. The station office of the Rumford Falls & Buckfield railroad was entered, the safe cracked and the money drawer carried off with about $6. Coburn's grain store was entered and a bag of oats taken. Entrance was attempted at Taylor & Griffith's store, but the burglars were unsuccessful. Fresh wagon tracks after the rain showed the manner and direction of the approach and departure of the burglars. Two men seen on the street at a late hour are supposed to have been the thieves.


Article from New-York Tribune, May 12, 1890

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Article Text

HELPING THE CRIPPLED ALBANY BANK. Albany, May 11 (Special).-The State Bank Exam. iner. Mr. Groesbeck, was in consultation here this afternoon with the officers of the Albany City National Bank, whose individual bookkeeper is a tofaulter to a large sum. Mr. Groesbeck will take possession of the bank to morrow. it is understood, and will begin an investigation to cover a year back. which will include the three large losses this bank has suffered. There have been meetings of directors of several banks to day, and it was the sense of all that each had better prepare for any emergency. They believe that the confidence of the people is shaken. and there is no telling what turn affairs will take. They also prof fered aid in sams ranging from $30,000 to #200,000 to the unfortunate bank. The Albany City savings Institution, which occupies the same building with the crippled bank, has placed at the disposal of the discount bank a quarter of a million of dollars, which, A it thinks, will be sufficient to meet all demands. run is expected by the directors of the discount bank. but they assert that they are prepared for it, and that they are able to meet all obligations.


Article from The Sun, May 12, 1890

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Article Text

THE ALBANY BANK DEFALCATION. It May Amount to Over $100,000-Other Banks Preparing for a Run. ALBANY, May 11.-The clerks of the City National Bank were kept at work on the books all last night and to-day. but without discovering that the defalcation of Bookkeeper Whitney was any less than even the higher flgures of yesterday's estimates. It is even intimated that the aggregate of the overdrawn accounts covered by false entries will amount to over $100.000, and it is now thought that these operations have been going on for nearly. if not quite, ten years. The members of the Gould firm are to-day disclaiming all knowledge of Whitney's transactions, and aver that they are not concerned further than that ex-Recorder Anthony Gould, one of the family. acted as Whitney's counsel. Some comment has been excited by the secrecy with which the examination before United States Commissioner King has been conducted. and by the sureties he accepted. These sureties are Stephen W. Whitney (father of the defaulter). Police Commissioner George L. Thomas, and E. L. Taylor. The further examination on May 16 is therefore looked forward to with interest. The City Nations Bar k and its sister institution, the City Savings Institution. anticipate a run to-morrow. and are making preparations to meet it. The directors of the other banks have held meetings and have proffered all needed assistance. Believing that in the excitement depositors of other banks will become alarmed, there has been a general preparation for a run. United States Bank Examiner Groesbeck is here. and is expected to take possession to-morrow and begin a thorough investigation. The City Savings Institution has thus far been able to secure a quarter of a million. which it has placed at the disposal of the crippled bank.


Article from Daily Republican, May 13, 1890

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Article Text

A $100,000 Thief. ALBANY, N. Y., May 13.-The stealings of Bookkeeper Whitney from the National City Bank of this city, are now said to exceed $100,000. A run on the bank was expected yesterday, but the deposits are reported to have exceeded the amounts withdrawn.