16895. Farmers & Mechanics Bank (Rochester, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
January 26, 1842
Location
Rochester, New York (43.155, -77.616)

Metadata

Model
gpt-5-mini
Short Digest
1c51ff9d

Response Measures

None

Description

Articles (Jan–Mar 1842) report the Farmers & Mechanics' Bank of Rochester had notes protested for non-payment and the Comptroller published that the bank 'had failed.' The cashier issued a notice assuring continued redemption, but there is no mention of a run or later reopening. I therefore classify this as a suspension/failure leading to closure (suspension_closure).

Events (2)

1. January 26, 1842 Other
Newspaper Excerpt
The Farmers and Mechanics' Bank of Rochester has had its notes protested for non-payment at its agency. ... It is one of the Free Banks. ... the circulation of $38,900. Its securities with the Comptroller are $20,000 Bonds and Mortgages ... Total $45,000 Those Banks marked thus pay specie.
Source
newspapers
2. January 30, 1842 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank's notes were protested for non-payment and the Comptroller published that the bank had failed, indicating insolvency/financial failure rather than a rumor-driven run.
Newspaper Excerpt
The Comptroller recently published a notice that the Farmers' & Mechanics' Bank of Rochester had failed.
Source
newspapers

Newspaper Articles (3)

Article from New-York Tribune, January 26, 1842

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Article Text

s10d 25 2,000 do As was expected a receiver has been named for the Commercial Bank of Buffalo. Mr. Stephen G. Aution of that city, has received the appointment. The Farmers and Mechanics' Bank of Rochester has had its notes protested for non-payment at its agency. It is one of the Free Banks. and had OH like 1st December last a circulation of $38,900. Its securities with the Comptroller are$20,000 Bouds and Mortgages 5,000 Illinois Improvement Souds 11.000 Illinois and Michigan Canal do 10,000 Michigan University do Total $45,000 Those Banks marked thus pay specie. The average circulation of the specie-paying Banks compared with the coin on band. is 4 1-5 dollars for one. O: the non-speciepaying Banks the average is 71-10 for one. So that the latter class of Banks keep out a circulation nearly twice as great as the former-this being in fact a premium on suspension. The greatest comparative circulation of the paying Banks is that of the State Bank at Merris, which is 12 for 1. Of the suspended Banks the New Hope and Delaware Bridge Company has the greatest circulation. being 36 for 1. The question of resumption was made the special order of the day in the Legislature for to-day.The West Jersey people seem to be strougly opposed to an immediate resumption. but they do not wish it delayed a moment beyond the time fixed by Pennsylvmmia and Maryland. The quotation in London for United States Bank Stock was £1. REAL ESTATE-By Wilkins & Rollins-The farm and plantation with the building. thereou, on Staten Island, IN Southfield, Richmond county, containing 147 acres, $8,755.


Article from The New York Herald, January 30, 1842

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Article Text

MONEY MARKET. Saturday, Jan. 29-6 P. M. The sales at the Stock Board to day were large, and prices generally fell heavily-Delaware & Hudson 1 per cent., Indiana dollar : Illinois 6's 1, Harlem #; Mohawk 2 per cent, Paterson Railroad 1, Long Island improved I New York State 6 per cents, 1861, fell 2 perct., and sales of 6's, 1860, were IF ade at 75 ! U. S. Bank stock is in demand, and the cash stock 18 very scarce. Bills on Philadelphia 7 a 8; Baltimore 4, Mobile 15, New Orleans 9. A heavy failure of a broker's house (A. Benson & Co.) took place in Philadelphia yesterday. They were the correspondents of some of the leading houses in Wall street-the withdrawal of whose accounts, growing out of increasing distrust of every thing that relates to Philadelphia, was probably the immediate cause of the stop. page. The house of, Otis, Arnold & Co., at Nashville, and John Clark, of Baltimore, have also stopped. These events indicate the extent of the pressure which exists in the suspended districts. The business portion of the community are beginning to discover that a toleration of bank insolvency is not the true method to preserve credit, or to induce ease in the money market. Sales of Illinois 6 per cent, 1865, bonds were made to day tothe/extent of $48,600, 16; and $8,000, 15. The Comptroller recently published a notice that the Farmers' & Mechanics' Bank of Rochester had failed.The cashier of that associatian has published the follow ing notice :To THE PUBLIC.-The bills of the Farmers & Mechanics' Bank will continue to be redeemed at their office in the city of Rochester as usual. E. HUNGTINGTON, Cashier of the Farmers' & Mechanics' Bank. The Agricultural Bank of Herkimer, a free bank, pays a semi.annual dividend of four per cent to its stockhold ers on the 31st inst. The following is a comparative table of the leading features of the Exchange Bank of Virginia:STATEMENT OF THE EHCHANGE BANK OF VIRGINIA. Jan 1841. Inc. Jan 1842. Dec 2.068.975 Loans, 340,588 2,409.553 248,256 247 371 Specie, 9,115 722.575 18,715 703,860 Circulation. 377.330 Deposites. 486 077 108.747


Article from New-York Tribune, March 8, 1842

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Article Text

# MONEY MARKE Sales at the Stock Exchange, March 7. 130 Del & Hud.cash 86 50 do..b So0 days 47 90 do...$$ days 852 70 do... 47 75 do 251 50 do.... 60 days 45 25 do. 53 days 85 50 do 46 95 do.. ..s 4 days 851 75 do cash 461 25 do .cash 25 25 do.. ..≤90 days 4 25 do.... ..b 3 days 864 50 L Island. 534 20 Mechanics'.. .cash 624 50 do.. 20 Union Bank... 974 50 do.. 47 47 do.. 97 300 do.. 531 26 Phenix. 65 200 do.. 15 days 53 20 Bank State N. Y. 67 50 do ...cash 53 25 Bank of Com..scrip.. 86 400 do this week 53 50 Farmers' Loan.... 21 100 do.. next week 53 25 do s 4 months 20 200 do..b 30 days 531 25 do ...cash 21 15 N. Y. & Erie R 14 100 Paterson R 44 20 Au & Roch R. 97 100 do... 560 days 433 50 N. Jersey R.s 60 days 61 150 do.. 441 25 Bos. & Prov. R...s30 824 50 Mohawk 463 5 Canton Co 19 SECOND BOARD. 10 Mobawk.. 17 # Commercial and Money Matters. MONDAY, P. M. The sales at the Board to-day were to fair extent, but the downward feeling continued to prevail. Delaware and Hud- son declined, Union Bank 3 per cent. within a few days, Phenix 3 per cent, Farmers' Loan 1. Paterson, Long Island 4. N. Y. and Eric Railroad sold at 14. Tu State Stocks the prices were generally lower. State Sixes, 1861, sold at 21, a decline of 1 per cent on the last sale. 51s, 1861, sold at 74. Illinois Sixes closed at 184, and Indiana Fives at the same price, a decline of per cent. The sales were as follows: 3,000 New-York 6s, '61..81 2,000 dos 10 days 184 5,000 New-York 5s, 61. 74 2,000 do ...cash 184 5,000 Illinois 6s, '70. 183 10,000 dos 30 days 18 2,000 dos 30 days 18 7,000 do... .cash 183 2,000 do cash 13 1,000 do.s 3 days 182 5,000 dos 10 days 13 5,000 dos 10 days 184 2,000 dos 10 days 184 1,000 Indiana 5s.. 19 1,000 do ....cash 18 2,000 do. 193 Some Francs are selling at 5.30, but not to much extent. Sterling 7 a 8. On Philadelphia the rate closed at 5 a 31, in demand. The business is not very brisk but the rates have a tendency to improve. We quote Philadelphia.. 3 a 3 Montgomery 154 a Baltimore 2 Tuscaloosa a Virginia .73 a 2 New-Orleans 54 n 54 North Carolina .5 a 51 Nashville.. a 17 Charleston 14 a 12 Louisville as Savannal 2 a 2 St. Louis. 12 a 20 Augusta.. 24 a 2 Cincinnati 6a7 Columbus 13 a Interior of Ohio.9 a Macon 13 a Indiana a Mobile ..14 a15 Illinois a Treasury Notes are plenty and heavy at al per cent. We understand that Treasury Notes due on Saturday and to-day, have been protested for non-payment. U. S. Bank Notes are in improved demand, and the rate has improved. Sales at 58 a 60 discount. The Philadelphia U. S. Gazette states the contraction of the Banks since 1st November last at $5,500,000, leaving the circulation less than $100,000. The aggregate liabilities of all the Banks are supposed to be about $3,418,000, against which they have $1,800,00 in specie. Relief Notes were sell- ing at 15 per cent dist. The Committee of Conference of the Pennsylvania Legis- lature reported on the Bank Bill on Saturday last, which was to be considered to-day. It was supposed it would pass the Senate without difficulty, and probably the House. The bill requires immediate resumption. No previous contract in regard to deposites to be disturbed. Provides for winding up Banks which refuse to pay specie. Authorizes assign- ments of Banks. Prohibits the paying out by a Bank of any notes, but its own, payable in specie or those of other specie paying banks, or what are called Relief notes, at the option of the receiver. Stay executions in favor of Banks which continue suspended on their liabilities, excepting on the Re- lief notes. Requires reports to be made quarterly. Forbids Cashiers to engage in any other business, or in the purchase or sale of stocks. A bill has passed the House of Pennsylvania anthorising the Governor to sell the Bank stock belonging to the State and receive in payment State bonds at par. A resolution passed in the Senate to prevent the issue of any more Relief notes. A bill passed in the House to incorporate a company with a capital of $20,000,000 to purchase the Public Works of Pennsylvania. The Committee of Conference in the Maryland Legisla- ture have reported in favor of the Banks resuming on the 1st May, and of granting them the right to issue small notes till Ist January next. The Richmond Wing states that the Senate of Virginia has passed a repeal of the two dollar law. The very heavy house of Shelton & Brothers on India Whart, Boston, has suspended. Several other failures have occurred. The panic at N. Orieaus is on the increase. The notes of the four discredited banks are selling at a large discount. Sales had been made of Exchange Bank at 25 to 40 discount. Im- provement S a 20: Atchatalaya 3 a 10; Orleans Sa S. The Senate of Florida has passed repudiating resolutions. The Rochester Democrat says that it is stated that the Farmers' and Mechanics' Bank will be prepared to redeem its notes fully in a few days, At Chicago exchange on New-York was at 35 per cent premium for Illinois money. Merchants were refusing to take Ilinois money at better than 75 cents on the dollar. By an official report of the State Bank of Illinois and branches, it appears that the circulation is $2,361,288, Depo- sites $157,448, Due Banks 46,826, Due from Banks 336,827. Bank Notes 141,476, Specie 526,096, Discounts and Loans 2,239,100-in addition to suspended debt $825,469. No discounts are to be made by the Montgomery (Ala.) State Bank excepting bills of exchange predicated on actual business transactions. No renewals to be allowed.