National Union Bank (Swanton, VT)

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Episode Information

Episode UID
163401012
Episode Type
Run Only
Bank Type
national
Bank ID
16340 national
Charter Number
1634
Start Date
April 8, 1884
Location
Swanton, Vermont (44.918, -73.124)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
9b20f7b3316230b1

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Public signal of financial health, Partial suspension

Events (3)
1. February 15, 1866 Chartered
Source
historical_nic
2. April 8, 1884 Run
Cause
Local Banks
Cause Details
Run triggered by the closing/embarrassment of the First National Bank of St. Albans and the Sowles family's connections.
Measures
Officers paid out available funds while they lasted and asked depositors for a few days' time; bank opened next day but temporarily refused payments pending conversion of short paper to cash.
Newspaper Excerpt
There has been a run on the National Union Bank today owing to its close business relations with the first National of St. Albans.
Source
newspapers
3. April 28, 1885 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (9)
1. April 9, 1884 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, April 9, 1884

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Article Text

Hendee will at once make a complete investigation and if it is not feasible to continue the business the bank will go into voluntary liquidation. The assets are not of the quick kind and to speedily realize on them will be difficult, LATER. The bank crisis here is not surprising to the publฤฑc, who have been expecting it. The stockholders of the institution are E. A. Sowles $30,000, Albert Sowles $90,000, Mrs. E. A. Sowles $40,000, Merritt Sowles $4.000, O. A. Burton, G. W. Foster and B. C. Hall, $1,000 each; the balance is owned by two sisters of Sowles' some $4,000 or $5,000. There is no expectation that the bank will resume business again. The investigation will not be concluded before tomorrow or Thursday. A general impression prevails that depositors are more likely to come out whole than in the case of the previous crisis. Developments are awaited with interest. A Run on the Swanton Bank. SWANTON, April 8.-There has been a run on the National Union Bank today owing to its close business relations with the first National of St. Albans. Payment was kept up while the funds lasted. The officers ask for delay, pronouncing the bank perfectly solvent, with ability to pay every dollar. Sixty thousand dollars has been drawn out by depos itors in the past ten days. An Illinois Bank Crippled by a Defaulting Cashier. MONMOUTH, April 8.-The First National bank closed doors this morning. The caused assigned is speculation by Cashier Hubbard whose [deficit is estimated at from $45,000 to $100,000. The bank is expected to resume in a day or two.

2. April 10, 1884 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, April 10, 1884

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Article Text

BANK TROUBLES. Condition of the Swanton, vi., Bank. SWANTON, April 9.-The National Union Bank opened this morning, but no money is being paid to depositors. The bank now owes depositors only $52,000, and to meet this they have $117,000 of A 1 short time paper. The Swanton Bank holds only a small amount of the St. Albans Bank paper, and that is secured by collateral. The officers are positive of the bank's solvency and ability to continue business, and confidence is being restored. The Suspended St. Albans Bank. ST. ALBANS, Vt., April 9.-President Sowles of the suspended First National Bank issues a card, in which he says it has resources to pay all depositors and save the stockholders from loss if permitted to continue business. He suggests the following plan: To sell $25,000 of stock to leading citizens of the town and county at a price to be fixed by Examiner Hendee, the bank to be organized with such new officers as are deemed proper, and business to be resumed at once. He thinks confidence can be restored by a favorable consideration of his proposition. Local merchants are not deeply implicated by the suspension of the bank, there being only two cases where the loss reaches $900 or more. The president's card is not favorably received, as it does not offer stock enough to change the controling interest.

3. April 10, 1884 Daily Republican Wilmington, DE
Article from Daily Republican, April 10, 1884

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The Closed Banks. The National Union Bank at Swantown, Vermont, was opened yesterday morning, but no money was paid to depositors. It is said that the bank now owes its depositors $52,000, and has $117,000 of good short paper to meet it. The officers are sure of the banks solvency, and of its ability to continue business. President Sowles, of the suspended first National Bank of St. Albans, Vermont, said that the bank had resources to pay all depositors and save its stockholders from loss if only permitted to continue business. He appeals to the public for assistance, and suggests a plan to sell $25,000 worth ofstock at such prices as may be fixed by Bank Examiner Hendee, the bank to be reorganized by the choice of such new officers as is deemed proper, and business resumed at once. The Exchange Bank at Versailles, Ohio, closed its doors on Tuesday, and a receiver was appointed. It is said that the loss, which is about $60,000, will fall on the stockholders. E 8 t I 1

4. April 10, 1884 The Manchester Journal Manchester, Bennington, VT
Article from The Manchester Journal, April 10, 1884

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Article Text

Two More Vermont National Banks in Trouble. Bank Examiner Goo. W. Hendee closed the doors of the First National Bank at St. Albans Tuesday morning. The St. Albans Messenger says: "Bank Examiner Hendee closed the institution because they didn't have suffic. ient funds to meet their drafts in Beston OR Saturday. President Sowles took the Saturday night train for Boston for the purpose of arranging for the payment of these drafts. On account of disappointment in reseiving expected funds the bank was unable to meet the demands made up. on it Monday. More than usual was drawn out by depositors on that day, and the bank was left without funds to do busness. Mr. Sowles has not yet returned, and the exact situation cannot yet be learned. Under the circumstances, Gov. Hendee thought beat not to have the bank open yesterday, and it may be that the institution will not be open again at all. The trouble at the bank began about two months ago, whe a run was made upon it; the public confidence in the institution has been declining ever since. Seon after that run Gov. Hendee prevailed upon E. A. and Albert Sowles to put into the bank, for its benefit, collaterals of the nomina] value of about $110,000-worth in cash probably from $80,000 to $90,000. The deposits, we are informed, have in the meantime decreased and the assets been made better. "The cause of the troable has been apparent for some time and can be briefly stated as unfortunate speculation in stocks by the Sowles brothers, both of whom have lost heavily of late; and this result is only a estuaral one. "From all that we can gather from parties likely to know, there seems no reason why the depositors may not be paid in full in case the institution remains closed. The deposits amount to some $215,000; the nominal assets are not a great way from $450,000. The liabilities are of course $90,000 for circulation, and the $450,000 referred to includes $100,000 U. S. bonds. "Cashier Albert Sowles seems confident that depositors will suffer no loss. He says that at the time the trouble first began the bank bad over $460,000 deposits, and since then $278,000 of this had been paid over to depositors. He will not say that the closing is only temperary, as that cannot be determined until his brother, E. A., returns; he is expected this morning. E. A. Sowles and O. A. Burton owe the bank considerable and if the latter comes to time with $30,000 worth of paper it will help matters a good deal. If this had been done before, he says, present disaster might have been avoided. He says the bank has had overything to comtend against since the failure of the Ver. most National and Trust company. Pub. lie confidence is them has diminished gradually-a very natural result of the previous failures; the new village bonds were put on the market just in season to catch a number of their depositors and other things have told against them. He thought there was no question about the bank's paying depositors and if any less occurred it would strike the stockholders. He thought they might go into voluntary liquidation, but could not say at present." The elosing of the St. Albans bank S caused a run on the National Union Bank of Swantee and at 11 M. all the available M funds of the bank had been paid out. Those depositors who were not paid agreed to wait until funds can be procured. The directors of the bank held $ meeting for the purpose of determining the best way to meet the situation. They and

5. April 10, 1884 St. Johnsbury Caledonian Saint Johnsbury, VT
Article from St. Johnsbury Caledonian, April 10, 1884

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Vermont Banks in Trouble. The First national bank of St. Albans was closed Tuesday by Bank Examiner Hendee because there was no money to pay Saturday's drafts from Boston. The failure was caused by: stock speculations of E. A. and Albert Sowles, who have lost heavily. The stockholders of the institution are : E. A. Sowles, $40,000 ; Albert Sowles, $9000; Mrs. E. A. Sowles, $40,000 ; Merritt Sowles, $4000; O.A. Burton, G. W. Foster and B. C. Hall, $1000 each. The balance, about $5000, is owned by two sisters of Sowles. There is no expectation that the bank will resume business again. There was a run on the National Union bank at Swanton the same day, the Sowles Bros. being largely interested in that as well as their St. Albans bank. Depositors have drawn out $60,000 in the past ten days. The directors declare that the bank will be able to pay depositors in full with a few days time.

6. April 10, 1884 New-York Tribune New York, NY
Article from New-York Tribune, April 10, 1884

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EMBARRASSMENT OF BANKS. A PLAN FOR CONTINUING THE BUSINESS OF THE FIRST NATIONAL BANK OF ST. ALBANS. ST. ALBANS, Vt., April 9.-President Sowles, of the suspended First National Bank, published an open letter to-day ID which he says the bank has resources to pay all depositors and save its stockholders from loss if permitted to continue business. He suggests a plan to sell $25,000 of stock at such prices as may be fixed on by Bank Examiner Hendee, the bank to be reorganized by the choice of such new officers as is deemed proper, and business to be resumed at once. The letter 18 not favorably received. SWANTON, Vt.. April 9.-The National Union Bank opened this morning, but no money is being paid to depositors. The bank new owes its depositorsonly $52,000, and to meet this has $111,000 of good short-time paper. The officers are positive of the bank's solveney.

7. April 11, 1884 The Windham County Reformer Battleboro, VT
Article from The Windham County Reformer, April 11, 1884

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ANOTHER BANK DRAWN UPON. There was a run on the National Union bank at Swanton Wednesday, the Sowles brothers being largely interested in that as well as their St Albans bank. Depositors have drawn out $60,000 in the past 10 days. The directors held a meeting Wednesdov evening and they declare that the bank will be able to pay depositors in full with a few days time. There is confidence in the Swanton managers of the bank, the Sowleses being the parties distrusted.

8. April 11, 1884 Burlington Weekly Free Press Burlington, VT
Article from Burlington Weekly Free Press, April 11, 1884

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stocks and bonds. As executor he has controlled the affairs of the bank. TROUBLE AT SWANTON. A Bank Closed, but its Solvency Insisted on, Owing to the St. Albans bank troubles a run began on the National Union Bank of Swanton as soon as the concern opened its doors yesterday morning. It being market day, many depositors were in town and all the forenoon an anxious crowd thronged the bank. All classes of depositors were present, the rich and the poor. Funds were freely paid out as long as there were any to pay out, but at noon the officers askeda few day's time until more funds could beobtamed. They assert positively that with a few day's time the bank can meet every obligation RS the concern is perfectly solvent. The Union bank is closely related to the First National of St. Albans, the cashier of the latter, Albert Sowles, being president of the Swanton bank. E. A. Sowles, Albert Sowles and some other members of the family own about half the stock of the Swanton bank. During the recent run on the St. Albans bank, there was something of a scare at Swanton, but norun of importance. Public confidence, however, was shaken and depositors have been drawing out their money for some weeks past, to the amount of sixty thousand dollars or more. The run of yesterday was not anticipated and the bank was unprepared for it. The National Union bank was organized in 1866 with $75,000 capital. The present officers are: Albert Sowles, president H. Aseltine, vice-president; A. Sowles, E. A. Sowles, H. Aseltine, H. G.Stowe, H. Smith, Hervey Stowe and J. B. Criss, directors : G. W. Beebe, cashier. While the public have faith in the local officers, the connection of the Sowleses renders them timid. It is believed that the bank will pay every dollar. The Swanton Bank Solvent. SWANTON. Vt., April 8.-The directors of the National Union bank held a meeting in the banking rooms this evening for the purpose of determining the best way to meet the situation. They are sanguine in regard to the bank's soundness and its ability within a few days' time to pay the depositors in full. The officers do not anticipate any loss to the stockholders. There will be a full directors' meeting in the morning. H. M. Stone, one of the directors of the Swanton bank, says that the bank officers met this morning and decided tojtake steps at once and do their best to procure funds in Boston Each pay the depositors ; and he thinks there will be no trouble in securing the cash, and that one of he officials will go to the city immediately for that purpose. Mr. St ne says that the bank owes the depositors fifty-two thousand dollars, has one hundred and seventeen thousand dollars in paper to pay it with, and the depositors are sure of every dollar the bank owes them but that it will take a little time to procure cash on the paper now in their possession. The amount of deposits has been reduced about seventy thousand dollars since the failures of the Trust company and the Vermont National.

9. April 14, 1884 Orleans County Monitor Barton, VT
Article from Orleans County Monitor, April 14, 1884

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NATIONAL BANK IN TROUBLE. The national bank at St. Albans, Vt., was closed yesterday by Bank Examiner Hendee because there was no money to pay Saturday's drafts from Boston. President Sowles went to Boston Saturday night to raise money and has not returned. The failure was caused by stock speculations of E. A. and Albert Sowles, who have lost heavily. The trouble began with a run on the bank about two months ago, and since then public confidence in the concern has sunk rapidly. After the run the bank examiner induced the Sowles to put into the bank, as collateral, securities with a face value of $110,000 and a cash value of from $80,000 to $90,000. The deposits have now run down to $215,000 and there is said to be no apparent reason why they should not be paid in full. The bank's last statement showed assets of $578,856, including $381,000 of loans and discounts. The assets are not "quick" and it will take a long time to settle up the concern. The stockholders of the institution are : E. A. Sowles, $40,000; Albert Sowles, $9000 Mrs. E. A. Sowles $40,000 Merritt Sowles $4000; O. A. Burton, G. W. Foster B. C. Hall, $1000 each. The balance, about $5000, is owned by two sisters of Sowles. There is no expectation that the bank will resume business again. The investigation cannot be concluded before Saturday. There was a run on the National Uuion bank of Swanton yesterday, the Sowles Bros. being largely interested in that as well as their St. Albans bank. Depositors have drawn out $60,000 in the last ten days. The directors held a meeting last evening and they declare that the bank wil be able to pay depositors in full witl