17003. Unadilla Bank (Unadilla, NY)

Bank Information

Episode Type
Suspension โ†’ Closure
Bank Type
state
Start Date
July 27, 1867
Location
Unadilla, New York (42.325, -75.312)

Metadata

Model
gpt-5-mini
Short Digest
20a11a71

Response Measures

None

Description

Contemporary articles (late July 1867) report the Unadilla Bank as 'suspended' and insolvent; a receiver was later appointed (receiver Lewis Kingsley entered duties on Aug 10, 1867). Causes described are internal mismanagement, speculation, and alleged swindling (bank-specific adverse information). No article describes a depositor run prior to suspension; thus classified as a suspension leading to receivership/closure.

Events (3)

1. July 27, 1867 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Fast living, wild and unprofitable speculations, alleged swindle and criminal mismanagement by managers; assets insufficient to meet liabilities; bank had gone into voluntary liquidation and then was treated as suspended under national supervision after failing to file required report to Controller of the Currency. Articles mention stock gambling, bad investments, and possible forgeries tied to cashier's checks and bad paper. (Sources: multiple July 27-31, 1867 dispatches.)
Newspaper Excerpt
The liabilities of the suspended Unadilla Bank are estimated at $200,000.
Source
newspapers
2. July 30, 1867 Other
Newspaper Excerpt
About six weeks ago the Bank went into voluntary liquidation, which had a right to do under Act of Congress. The managers of the concern then applied to the Bank Superintendent at Albany ... A receiver will probably be appointed to-morrow.
Source
newspapers
3. August 10, 1867 Receivership
Newspaper Excerpt
Hon. Lewis Kingsley, of Norwich, N. Y, has been appointed receiver of the Unadilla Bank, and entered upon his duties on the 10th.
Source
newspapers

Newspaper Articles (8)

Article from The Wheeling Daily Intelligencer, July 29, 1867

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The Unadilla Bank. NEW YORK, July 27.-The liabilities of the suspended Unadilla Bank are estimated at $200,000. It was chartered about 12 years ago under the old safety fund law of the State, and some two years ago it took its national character with a capital of $150,000, and power to increase to $250,000. The President, it issaid, owned $100,000 of thestock, and the balance was in the hands of the cashier and some relations at Albany. Itis reported that the assets of the bank will not go fartoward meeting its liabilities. The redemption agency is said to be the house of Watson & Co., leather dealers, at Albany. The Herald says: Fast living on the part of somebody connected with the bank, together with wild and unprofitable speculations in produce and mining stocks, contributed to its downfall. A Boston dispatch says: The receiver to the Newton National Bank has collected the liabilities and forwarded the amount to Washington. The discount notes amounted to about $110,000, of which nearly $90,000 have been collected, of the balance $10,000 are considered good, and the rest doubtful or bad, including $2,500 of forged paper of Wm. H. Lane. The authorities having charge of the bank propose that in case it is wound up, to resist the payment of the checks obtained through the cashier, Mr. Dyer.


Article from Daily Ohio Statesman, July 29, 1867

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FROM NEW YORK. Bishop Mclivaine, NEW YORK, July 27.-Bishop McIlvaine, of Ohio, sailed in the City of Antwerp for England, to attend the Grand Council of the Episcopal Church in September. Mortality Report. The deaths in New York for the week were 678; increase 92 over last week. The mortality was mostly among children. Arrests. George Williams, George M. Wilkes and Joseph S. Odley, have been arrested as the supposed authors of a large number of forgeries within several months, including that of a check for $17,000 on the Broadway Bank, purporting to be signed by the Board of Education. George W. Chandler, alias Garrison, an actor of-some repute. has been arrested for alleged bigamy. He pleads an Indiana divorce in bar. Fatal Case of Cholera. A fatal case of cholera occurred in the township of Newton, Greene county. It is reported that several other persons were attacked in the same house. The premises have been disinfected. The Unadilla Bank. NEW YORK, July 27.-The liabilities of the suspended Unadilla Bank are estimated at $200,000. It was chartered about 12 years ago, under the old safety fund law. of the State, and some two years ago took its national charter with a capital of $150,000. however to increase to $250.000. The President, it is said, owned $100,000 of the stock, and the balance was in the hands of the cashier and some relations at Albany. It is `reported the assets of the bank will not go far towards meeting its liabilities. The demption agency is said to be the house of Watson & Co., leather dealers. Albany. The Herald's dispatch says fast living on the part of somebodyeconnected with the bank, together with wild and unprontable speculations in produce and mining stocks, contributed to its downfall. The Newton National Bank. A Boston dispatch says the Receiver to the Newton National bank has collected the liabilities and forwarded the amount to Washington. The discount notes amounted to about $110,000, of which nearly $90.000 have been collected. Of balance $10.000 is considered good and the rest doubtful or badi; including $25,000 in forged paper of Wm. H. Lane. The authorities haying charge of the bank, propose, in case it is wound up, to resist the payment of checks obtained through the cashier, Mr. Dyer.


Article from The Wheeling Daily Register, July 29, 1867

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Sunday Night's Dispatches. FROM NEW YORK. Liabilities of Suspended Banks. NEW YORK, July 28.-The liabilities of the suspended Unadilla Bank is estimated at $200,000. It was chartered about twelve years ago under the' old safety fund law of the State and some two years ago took its national charter, with a capital of $150,000 and power to increase to $250,000. The President, it is said, owned $100,000 of the stock, and the balance was in the hands of the Cashier and some relations at Albany. It is reported that the assets of the bank will not go far toward meeting its liabilities. The redemption agency is said to be the cause of the failure of Watson & Co., leather dealers, Albany. The Herald says: Fast living on the part of somebody connected with the bank, together with wild and unprofitable speculation in produce and mining stocks, contributed to its downfall. A Boston dispatch says: The receiver to the Newton National Bank has collected the liabilities and forwarded the amount to Washington. The discount notes amounted to about $100,000 of which nearly $90,000 has been collected. Of the balance. $10,000 is considered good, and the rest doubtful or bad, including $2,500 forged paper of Wm. H. Lane. The authorities having charge of the bank propose. in case it is wound up, to resist the payment of checks obtained through the Cashier, Mr. Dyer.


Article from Daily Ohio Statesman, July 30, 1867

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FROM NEW YORK. Late News from Havana. NEW YORK. July 29.-The Herald's Havana special, 26th, says: The Spanish mail steamer, Ciuidad Condal, hence to Sissal, with 28 passengers and 57 crew, was lost on the 12th. Only three passengers, ten marines and the boatswain have been heard of so far. Santa Anna continues a prisoner. All tranquil throughout the country. Yellow fever is still prevailing in Havana. There were 120 deaths in June, out of 750 cases. In Porto Rico confidence is rather shaken. Finance and trade are paralyzed and three hundred establishments are closed, owing to the inability to support the new taxation. The Government of Venezuela has exposed the revolutionary plan instigated by General Mosquera, pretending to restore were to sand the Columbian men expected Contederacy. arrive Fifty in Vene- thouzuelan territory. Cargoes of arms were being introduced. The Havana Telegraph Cable. The Herald's Key West special says: The Havana telegraph cable will be completed about the fourth of August. The Cholera in Memphis. The Herald's Louisville special says: The mortality from cholera in Memphis is fifty per day. Incendiary Fires. The Herald's Concord, N. H., special says: Half a dozen incendiary fires have occurred within the past few days. The loss is upwards of one hundred thousand dollars. Bishop Timon's Successor. The Herald's Buffalo special says: Letters from Rome state that Bishop Rosecrans, of Cincinnati, is to be the successor of the late Bishop Timon. General Grant and the Presidency. The Herald's special says: Gen. Grant recently remarked that it nominated for the Presidency it must be without exacting pledges. Died. Prof. Charles Anthon, of Columbia College, died to-day, aged 79. Fight. A fight occurred among the excursion which went up party the Hudson yesterday in the steamer Tilimore and two barges. One man was pushed overboard and drowned, two others were stabbed, and a number large injured. the The fight absent, lasted nearly all the time party was most of whom, including a number of females, were innocent spectators of the brutal scene. The Bennett Libel Suit. In the Supreme Court Judge Leonard overruled the motion of the counsel of Cumming, who sues Jas. Gordon Bennett for alleged libel. The plaintiff had asked that the defendant's answer be made more definite. The court declared it definite enough. This is probably fatal to the case. Attemptat Bank Robbery. An unsuccessful attempt was made to rob the Citizens' Bank on Saturday night. Immigration. Arrivals-Immigrationt to-day, 2,635. The Unadilla Bank. It is stated that the liabilities of the Unadilla bank will not be less than a quarter of a million. It is feared the depositors will not receive ten cents on the dollar. A Receiver from Washington has been applied for and will probably arrive in a few Great distress One woman, a dilla. days. prevails widow, about became Unacrazed by her loss. Another attempted suicide.


Article from The Wheeling Daily Register, July 30, 1867

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New York Items. NEW YORK, July 29.-Prof. Charles Anthon, of Columbia College died today, aged 79. A fight occurred among an excursion party which went up the Hudson yesterday in the steamer Wm. Titamire and two barges. One man was pushed overboard and drowned. Two others were stabbed and a large number injured. The fight lasted nearly all the time the party were absent, most of whom, including a number of females, were innocent spectators of the brutal scene. In the Supreine Court Judge Leonard overruled the motion of the counsel of Mr. Cummings, who sues James Gordon Bennett for alleged libel. The plaintiff had asked that the defendant's auswer be made more definite. The Court declared it definite enough. This is probably fatal to the case. An unsuccessful attempt was made to rob the Citizens' Bank on Saturday night. The arrivals of immigrants to-day were 2635. It is stated that the liabilities of the Unadilla bank are not less than a quarter of a million, while some estimate them at over a million. A receiver from Washington has been applied for and will probably arrive in a few days. Great distress prevails about Unadilla. One woman, a widow, became crazed by her loss: another attempted snicide.


Article from New-York Tribune, July 31, 1867

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ASHINGTON. GEN. SHERIDAN'S SUCCESSOR-THE MEXICAN MISSION-TENNESSEE POLITICIANS AND THE PRESIDENT-THE UNADILLA AND NEWORLEANS BANK FAILURES-THE SURRATT TRIAL-NEWSPAPER CANARDS-T INDIAN COMMISSION-PERSONA ST PALSGRAPH 20 THE TRIBUNE WASHINGTON, July 30, 1867. It may be some days yet before the order relieving Gen. Sheridan of the command of the Fifth District is issued. The President has not yet determined what officer shall be assigned to succeed Gen. Sheridan. The successor will doubtless be either Meade or Hancock. Upon inquiry in the proper quarters it is ascertained that certain newspapers are mistaken in supposing that there has been any disregard of law in the case of Mr. Otterburg. It will be recollected that after the resignation of Mr. Campbell, during the recess of the Senate, Mr. Otterburg, who was United States Consul in Mexico, was appointed Minister. At the subsequent session of the Senate, however, Gen. McClernand was nominated as Minister, and Mr. Otterburg as Secretary of Legation. The nominations of both these gentlemen having been rejeeted. it was deemed advisable, as Mr. Otterburg was on the spot, to authorize him to retain that charge of the archives of the Legation which, as Consul. he had some time held. This proceeding is contemplated by the 11th section of the act of Congress of the 18th of August, 1856, entitled An act to regulate the diplomatic and consular systems of the United States.' The following circular to District-Attorneys and Marshals of the United States was issued to-day ATTORNEY -GENERAL L'S OFFICE, July 30, 1867. you States, By direction of the President of the United all pervigilance with are hereby instr observe suspect sons whom you may into the territory combining unlawfully for expeditions nation, and to promptly intery the author any foreign States whenever you have probable bause Ity of the believing United that any person has violated the Neufor United States. the trality laws JOHN M. BINCKLEY, Attorney General Johnson Tennessee politicians here are very much perplexed over political affairs in their State. Gen Thomas they think will aid Gov. Brownlow in preventing any disturbance on election- day, which they bay means that he will aid the election of the Republican ticket. The President has been appealed to by these men to aid them in the election, and he has been doing all he can to insure them success. The stories that have appeared in Washington dispate hes of a New-York paper of the prosecution in the Surratt trial suborning witnesses, and about Gen. Butler having a detective following Gen. Grant in his travels, emanate from an utterly untrustworthy source. The person who furnished the news to the newspaper's correspondent is an officer of a United States Court here. He is a foreigner, has been in the theatrical. newspaper, and law business, is looked upon as an adventurer, and has a reputation that will not bear ross-examination. He was in the army. under Gen. Butler, and there got into trouble, which causes his hatred to the General. The stories are received with little credence by the public here. There is a rumorhere that Sir Frederick Bruce and Mr. Beward have been trying to agree upon a plan at Auburn of a cession of the British American possessions adjacent to Walrussia in settlement of the Alabama claims. From official sources I learn that the deposits in the Unadilla Bank amount to about $80,000, and the securities in the hands of the Government amount to about $13,000 more than the circulation. About six weeks ago the Bank went into voluntary liquidation, which had a right to do under Act of Congress. The managers of the concern then applied to the Bank Superintendent at Albany, lew-York, for leave bank under State authority. On the first of July the Controller of the Currency notified the bank that it had failed to file report, and sent a messenger to examine aflairs. The bank officers declined to report to the Controller of the Currency, claiming that they were subject to State law. &c. A "few days after ard, however, a report was filed. The bank claims to have been doing business since giving notice of liquidation under the laws of the State of New-York. A receiver will probably be appointed to-morrow. In the First National Bank of New Orleans, which failed about two months ago, swindling the Government out of half a million dollars, were about 500 local depositors of money, and of this number only 130 have thus far proved their claims. The deposits amount to about $1,000,000. The assets, from which the depositors are expected to receive a percentage, consist of a number of notes for heavy sums, bearing the antographs of a number of heroes of 'the lost cause." The Virgin, an old blockade-runner turned over as part of the assets of May & Company, of the bank, has been sent from New-Orleans to New-York for sale, by order of the Secretary of the Treasury. Wm. P. Kellogg, Collector of Customs at New-Orleans, against whom there have been somany charges of corruption by eliques of Louisiana politicians, left that city on Saturday last, and is expected here early next week. Attorney- -General Stanbery has gone off on a three weeks vacation. No decision will be rendered in the case of the Idaho appointments until his return. District-Attorney Carrington concluded his argumont to-day in the Surratt trial. He began his argument on last Saturday, and to-day was his third day His remarks were very and the report of the Associated Press is a mere outline, and very imperfect. Mr. Merrick will begin for the defense to-morrow. He is expected to consume at least three days, and will be followed by Mr. Bradley, sr., also for the defense. Judge Pierrepont, for the prosecu tion, will close the case. It is doubtful if the case will go to the jury this week. The Republican State Convention of Virginia meets on Thursday in Richmond. It is expected the Commissioners appointed under the late act of Congress to treat with hostile Indians will assemble at St. Louis, on the 6th of August, for organization and the arrangement of a programme. Those who are now in the Atlantic States will start for the point of rendezvous at once. Gen. Sherman is now at Madison, Wisconsin, Gen. Terry at St. Paul, and Gen. Harney is already at St. Louis. No difficulty is apprehended in respect to the territory proposed to be appropriated as a permanent home for the Indians. That portion of it comprising the northwestern portion of Texas is cut off from the residue of the State by what is called the Stake Plains, a sandy waste. and the consent of the State, if that, indeed, in these times should be deemed necessary, can be procured at comparative trifle. It isestimated that the whole expense of the proposed plan of ending forever our Indian difficulties, will not exceed the cost of carrying on the present quasi war for a single year. The Secretary of the Treasury has appointed Capt. Ashcroft, late of the New-York Voluntoors, and now of St. Louis, to be special agent of the Treasury for the Internal Revenue Bureau, vice Linton of Pennsylvania, resigned. Asheroft is assigned to the district west of the Mis-


Article from The Evening Telegraph, August 6, 1867

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The Unadilla Bank Failure. From the Albany Argus, August 3. The Unadilla Times of Wednesday makes some disclosures affecting the management of this bank, which, if true, look very much like a huge and deliberate swindle on the part of those who owned and controlled it. We do not know how far these parties have made themselves liable to a criminal prosecution for the manner in which the farmers of Otsego and other counties have been cheated out of their hard earnings by alleged stock gambling, but for crimes of far less magnitude than are here charged against the Unadilla Bank managers, the State prisons have closed their doors for years on many less "respectable" financial operators. We hope the matter will be probed to the bottom, and it there has beenferiminal mismanagement, that it will be exposed and punished. These developments show that, while the national bank system has inspired the farmers with increased confidence, in the iallacious belief that it furnishes greater security for their deposits as well as for circulating notes, it has at the same time furnished a cloak for bankers to carry on their dishonest speculations for many months without exciting suspicion. After referring to the assignment of Messrs. Watson & Hayes to Messrs. Sands & Loomis, the Times says:This step necessarily involves the question or their ability to pay the depositors not only of the old Unadilla Bank, but also those of the Unadilla National Bank. Since the organization of the latter institution large amounts of money from a wide section of country have been flowing into its capacious vaults for safe keeping. Widows and orphans contributed their mites, while the fortunate possessor of thousands freely added to the already overflowing fountain, all alike attracted by the glitter of equipage and by extravagant boastings of accumulating wealth. To avoid the unpleasant exhibit which the books of the bank would present with the record of such enormous amounts placed to the credit of depositors, it seems to have been the policy of the bank officers to give the notes of Watson & Hayes, instead of certificates of deposit, for sums left with them, many persons not recognizing the difference. The amount of their liabilities, we are informed, has not yet been ascertained, but are variously estimated from a quarter to halt a million dollars. The assets are said to consist of bank stocks, real estate near home and in Buffalo, undeveloped gold diggings in Nevada, oil investments in Pennsylvania, and innumerable moonshine speculations with promises of corresponding remunerative returns. Such is the kind of property from which creditors are to extract dividends for their deposits, in most cases the production of honest industry and laborious toil. As yet no receiver has been appointed for the bank.


Article from Daily Davenport Democrat, August 15, 1867

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WASHINGTON. WASHINGTON. Aug. 14-It is stated that George S. Pendleton, of Culpepper, will be arrested to answer an indictment for registering contrary to the Federal statute. The receipts of customs for the week ending the 31st of July, was $45,799 12. Only specimen copies of the new fifteen cent piece have been printed. It appears probable that the Secretary of the Treasury will not authorize their issue till after the meeting of Congrese. The Commissioners of the General Land Office have received returns of the survey of 91,751 acres of land in Arapahoe county, Colorado. The Post Office Department has almost completed the re-opening of the post offices in the Southern States. New offices are being established to meet the increasing demand for postal services. John H Kirkwood has been appointed postmaster at Sitka, and the mails are to be forwarded there by any vessel from Son Francisco. Attorney General Stapberry, now at Capon Springs, is in poor health, and will not return here for two or three months. Hon. Lewis Kingsley, of Norwich, N. Y, has been appointed receiver of the Unadilla Bank, and entered upon his duties on the 10th.