Bank of Bennington (Bennington, VT)

Episode Information

Episode UID
3481922590503
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
348192259 hash
Start Date
November 8, 1841
Location
Bennington, Vermont (42.878, -73.197)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
5892c118d94d6c8b

Response Measures

None

Description

Court of Chancery injunction and receivers appointed; institution closed and wound up.

Events (3)
1. November 8, 1841 Suspension
Cause
Rumor Or Misinformation
Cause Details
Suspension followed heavy withdrawals attributed to alarming reports and a run on the bank.
Newspaper Excerpt
BANK OF BENNINGTON SUSPENDED. We learn that the bank of Bennington suspended specie payment on Monday last.
Source
newspapers
2. November 9, 1841 Run
Cause
Rumor Or Misinformation
Cause Details
Director cites unfortunate reports that caused a run; no specific fraud or external bank failure mentioned.
Measures
President redeemed fifty thousand dollars in New York within two days to meet demands.
Newspaper Excerpt
My only regret is that unfortunate reports should have gone forth which caused a run upon the bank.
Source
newspapers
3. November 20, 1841 Receivership
Newspaper Excerpt
the Court of Chancery has issued an injunction against the Bank of Bennington, and appointed Gen. Henry Robinson and N. H. Bottum receivers to close up its affairs.
Source
newspapers

Newspaper Articles (14)
1. October 27, 1841 New-York Tribune New York, NY
Article from New-York Tribune, October 27, 1841

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Article Text

The Philadelphia Peunsv Ivanian says that several of the Banks of that city refuse to receive the notes of the Towanda Bank, the Erie Bank, and one of the Berks County Banks. A meeting of the Stockholder of the Bank of Kentucky ou the Philadelphia Agency, is to be held in that City on the 10th of November. The Book of Bennington's Charter expired on the 1st January last, and the Bank Commissioners have recommended that an application in regard to it be made to the Court of Chancery-probably for the appointment of a Receiver. The Bank Commissioners of Vermont have published a statement of the situation of the Banks of that State.The aggregate circulation is $1,164,000; Deposits and Debts $200,000; Discounts $1,507,000; Specie $93,502; Deposites in Boston and Troy $431,700; other resources $193,500. An injunction has been placed on the Stillwater Canal Bank at Orono. The report of the Bank Commissioners of Maine says that this Bank has been in the hands of Now-York speculators, introduced by Mr. Cyrus Moore. The bills are nearly all in circulation in distant States.The amount of circulation is $:5,820. The resources. consist, first, of $19,816 paper past due. and of little value, principally in executions, and $38,354 due from the NewYork speculators, of which $15,857 was given for stock and $2,490 bills out. There is a deposite of 86500 in the Washington Bank, of this city, to redeem the circulation, but which is supposed to be exhausted. The Bank also owned a dwelling house, but this was destroyed by fire, and the real ostate is worth little or nothing. The value of its bills, of course, depends upon what may be obtained of the New-York speculators.

2. November 8, 1841 Vermont Watchman and State Journal Montpelier, VT
Article from Vermont Watchman and State Journal, November 8, 1841

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Article Text

BANK OF BENNINGTON SUSPENDED. We learn that the bank of Bennington suspen ded specie payment on Monday last. BANK OF BESSINGTON.-This Institution has closed its doors and stopped payment. When it is to re-open and resume the redemption of its bills (if ever) we are unable to say. Since its management fell into new hands and its affairs have been mainly controlled by its president and a certain locofoco director, said director has cens. ed to write his violent phillippics against it ; all hostility on the part of locofocoism has been sus pended, and it has seemed to have become a favorite in certain quarters. or course we have not been permitted to know its counsels, and are consequently entirely unacquainted with the actual condition of the institution. The general impression, however, seems to be, as far as we can learn, that all its bills will ultimately be redeemed. At any rate, we advise all holders of its bills not to dispose of them at a loss at present. We forbear further comment at this time, but may hereafter refer to this matter again, aud, if necessary, shall state some stubborn facts.-State Banner (Bennington.)

3. November 9, 1841 Rutland Herald Rutland, VT
Article from Rutland Herald, November 9, 1841

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Article Text

Bank of Bennington. - This institution has closed its doors and stopped payment. When it is to re-open its doors and resume the redemption of its notes (if ever) we are un able to say. Since its management fell into new hands and its affairs have been mainly controlled by its president and a certain locofoco director, said director has ceased to write his violent phillipies againstit, all hostility on the part of locoism has been suspended, and it has seemed to have become a favorite in certain quarters. Of course we have not been permitted to know its counsels, and are consequently entirely unacquainted with the actual condition of the institution. The general in. pression, however seems to be, as far as we can learn, that all its bills will ultimately be redeemed. At any rate, we advise all holders of bills not to dispose of them at a loss at present. We forbear further comment at present but may hereafter refer to the matter, and if necessary shall state some stubborn facts.--Ben nington Banner.

4. November 9, 1841 Rutland Herald Rutland, VT
Article from Rutland Herald, November 9, 1841

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Article Text

BENNINGTON BANK. We are permitted to publish an extract of a letter from one of the directors of the bank of Bennington, to a gentleman of this village, as follows:"You can assure the bill-holders in Rutland that the directors are determined to have the affairs of the bank liquidated forthwith. My only regret is that unfortunate reports should have gone forth which caused a run upon the bank. Fortunately the president was in New York and redeemed fifty thousand dollars in two days at the customary discount, and no shaving. No man has presented his claim at the bank and gone away dissatisfied. Every bill holder will be paid as soon as we can collect in our debts." We think the above may be relied upon, as the gentleman who wrote the letter is a man of strict integrity and would not deceive the public by any misrepresentations of the facts in the case. Therefore, bill holders are advised to hold on to their notes for the present.

5. November 18, 1841 Edgefield Advertiser Edgefield, SC
Article from Edgefield Advertiser, November 18, 1841

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Another Bank Suspension.-The Bank of Bennington. Vt., has closed its doors and stopped payment. It is the general opinion, says the Bennington Banner, 111 that viciuity. that its bills will be ultimately redeemed, and advises the holders of them not to part with them at present at a loss.

6. November 20, 1841 New-York Tribune New York, NY
Article from New-York Tribune, November 20, 1841

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For State 5s. 1845, 89 was offered, 90 asked; 1858, 793 offered, 81 asked; as 73 offered, 75 asked ; City Loan, 1858, 77 offered-1870, 78 offered, 80 asked ; Ohio Sixes, 881 offered Fives, 83 asked. Delaware and Hudson boods 105 offered, 1061 asked. In consequence of several of the Banks having commenced drawing on London, the rate for individual billhas declined to 91 a 94; Francs 5.221 a 5.233. The busiLess has been limited 10-day. Should Sterling go down to 9 a 91 and France tw 5.25. the drain of specie would cease. Sales of American Halves have been made to-day at t premium; Mexican Dollars are dall at It. There is no material change in Domestic Birls. The rate on Philadelphia is 5 u 51, Baltimore 31 a 4; New Or leans at 4 3 41, Mobile 9 a 94. The demand for money was very great to day in the street, and some of the Brokers appeared to be very "hard up." The Banks are refusing to make loans on hypothecation of funds until the departare of the Great Western. This stricture in the money market is one reason for the great decliue in stocks. To raise the wind, holders are obliged to seil. The Vermont State Banner states that the Court of Chancery has issued an injunction against the Bank of Beanington, and appointed Gen. Henry Robinson and Hou. N. H. Bottum receivers to close up its affairs.

7. November 29, 1841 Vermont Watchman and State Journal Montpelier, VT
Article from Vermont Watchman and State Journal, November 29, 1841

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Article Text

BANK OF BENNINGTON. We learn from the State Banner, that an injunction has been issued by the Court of Chancery against this bank, and that Gen. Henry Robinson and Nathan H. Bottum have been appointed receivers, who are to close up the affairs of the bank according to the Revized Statutes.

8. December 7, 1841 The Caledonian Saint Johnsbury, VT
Article from The Caledonian, December 7, 1841

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tion of said University, and report their views in relation to them to the next legislature. RESOLUTION, authorizing the appointment of a committee to revise the militia laws. Resolved, by the Senate and House of Representatives, That the Governor be authorized to ap. point a committee of three to revise the militia laws of this state, and report a bill to the next ses. sion of the General Assembly. RESOLUTION, relating to the Bank of Ben. nington. Resolved,by the Senate and House of Representatives, That the bank commissioner be authorized and directed to make application, without de. lay, to the court of chancery, to appoint one or more persons, to be receiver of and for the Bank of Bennington, agreeably to the provisions of sec. tion eighteen of chapter 79 of the Revised Statutes.

9. December 10, 1841 Burlington Free Press Burlington, VT
Article from Burlington Free Press, December 10, 1841

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Resolution relating to the Bank of Bennington. Resolved by the Senate and House of Representalives, That the bank commissioner be authorized and directed to make application, without delay, to the court of chancery, to appoint one or more persons, to be receivers of and for the Bank of Bennington, agreeably to the provisions of section eighteen of chapter 79 of the Revised Statutes.

10. December 28, 1841 Rutland Herald Rutland, VT
Article from Rutland Herald, December 28, 1841

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Resolution authorizing the appointment of a committee to revise the militia laws Resolved by the Senate and House of Representatives, That the Governor be authorized to appoint a committee of three to revise the militia laws of this state, and report a bill to the next session of the General Assembly Resolution relating to the Bank of Bennington Resolved by the Senate and House of Representa tives, That the bank commissioner be authorized and directed to make application, without delay, to the court of chancery. to appoint one or more persons, to be receivers of and for the Bank of Bennington, agreeably to the provisions of section eighteen of chapter 79 of the Revised Statutes.

11. December 28, 1841 The Middlebury People's Press Middlebury, VT
Article from The Middlebury People's Press, December 28, 1841

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RESOLUTION relating to the Bank of Benn.ngton. Resolved by the Senate and House of Representives, That the Bank Commissioner be authorized and directed to make application, without delay, to the Court of Chancery, to appoint one or more persons, to be receivers of and for the Bank of Bennington, agreeably to the provisions of section eighteen of chapter seventy-nine of the Revised Statutes.

12. December 29, 1841 Vermont Telegraph Brandon, VT
Article from Vermont Telegraph, December 29, 1841

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to borrow from the school fund whatever may be necessary for that purpose; and that no part of the school fund shall be reloaned to individuals while the state may be owing to individuals or corporations. Resolution relating to Essex Counly Bank. Resolved by the Senate and House of Representatives, That David Hibbard Jr., Sewall Fullam Jr., and Diniel Cobb, be appointed a committee to investigate the situation and concerns of the Bank of Es. sex County, to ascertain the manner of the transfer of the stock of said bank to foreign purchasers, the liabilities and responsibilities of each officer of said bank since the incorporation thereof, and to adopt and pursue such measures, by suits or otherwise, as said committee may deem expedient to protect the safety fund and the public from loss, in consequence of the failure of said bank to redeem its bills, and to correct frauds if any be found to exist. Resolution for the appointment of a commillee to report upon the subject of education. Resolved by the Senate and house Representatives, That the Governor be reto a 1 and a to next quested prepare appoint make committee report of the three to e session of the legislature, of such plan or S plans as may be most expedient and ju. dicious to earry into practical effect the views and suggestions contained in the d report of the committee on education to I the present legislature. d Resolution relative to the University of Vermont. C Resolved by the Senate and house of d Representatices, That the commissioners 0 who may be this year appointed to visit the University of Vermont, be directed to give special attention to the objects set forth h in the memorial of the corporation of said University, and report their views in ree lation to them to the next legislature. I Resolution authorizing the appointment e of a Commitlee to Revise the Militia Laws. f Resolved by the Senate and House of n Representalites, That the Governor be authorized to appoint a committee of three to revise the militia laws of this state, and r report a bill to the next session of the Gen, eral Assembly. g Resolution relating to the Bank of Beno nington. Resolved by the Senale and House of Representatives, Toat the bank commisso ioner be authorized and directed to make application, without delay, to the court of 7. chancery, to appoint one or more persons to be receivers of and for the Bank o of Bennington, agreeably to the provisions le of section eighteen of chapter 79 of the 8, Revised Statutes.

13. March 4, 1842 The Spirit of the Age Woodstock, VT
Article from The Spirit of the Age, March 4, 1842

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Resolution relating to the bank of Bennington. Resolved, by the Senate and House of Representatives, That the bank commissioners be authorized and directed to make application to the court of chancery, to appoint one or more persons, to be receivers of the bank of Bennington, agreeably to the provisions of section eighteen of chapter 79 of the Revised Statues.

14. July 4, 1842 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, July 4, 1842

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Treasury Notes are scarce, and selling at par and I premium for investment Specie is very abundant, and Mexican Dollars are not worth a premium. Spanish are worth 3 per cent. About $20,000 arrived from Charleston to-day and yeste rday. It is pouring in from all quarters. The Boston and Worcester Railroad Company have declared a dividend of four per cent, payable on the 5th inst. The Paterson and Hudson River Railroad Company have declared a dividend of two and a half per cent, payable on the 15th inst. The interest on the New Octeans City Debt, which was dishonored yesterday, was paid to-day. Contrary to general expectation, the Mechanics' Bank of Philadelphia did resume specie payments yesterday, on all her liabilities. There was no run, nor any special demand for the solid coins, Theother City Banksreceived the notes of the Mechanics' in payment or deposite. Another batch of the Millington Bank of Maryland notes, altered to read Commercial Bank of Pennsylvania, and from one to ten dollars, have been put in circulation in Philadelphia. Also, counterfeit to notes of the Princeton Bank, New-Jersey The law passed at the last session of the Maryland Legisiature, imposing a tax or license of $3,000 upon brokers, was to go into effect yesterday. We learn from the Baltimore American that all the brokers in that city have determined to abandon the business until the constitutionality of the law can be tested before the proper tribunal, and that means will be taken to bring the matter into Court as speedily as possible. On the 25th ult. the receivers of the Bank of Bennington issued a manifesto, in which they "deem it proper to state, to those who are interested in this institution, that, in with holding a formal report of the affairs of the Bank, they are governed by what they believe to be the best interests of the bill-holders and all concerned and in this they have also acted advisedly." The notes are generally believed to be worthless. A convention of the officers of the Banks in Alabama has lately been held at Mobile, and we learn from a source which, though not official, is worthy of all credit, that from the exhibit of their affairs the State Bank at Tuscaloosa, with the Branches at Heatsville, Decatur and Montgomery are able and willing to resume immediately, as are also the joint stock Banks in Mobile. The Branch in Mobile is said to be utterly insolvent, and will no doubt be forced to wind up; in which case, that part of the circulation that may be unredeemed, and the portion of the debt creating its capital. will become a charge on the State. This will be provided for, as our accounts lead us to believe that a majority of the members of the Legislature who are to be elected in August next, will be pledged to vote for a tax. to form a sinking fund for the payment of the interest and ulti mate redemption of the debt. It is now positively asserted that William Robinson, Jr. of Pittsburg, is to embark in the next steamer for Europe, to endeavor to negotiate the twelvemillion loan for the General Government. At Cincinnati, at the latest dates, there was little money in circulation, and but for the fact of the great stagnation of business, which made the demand very limited, it would be very scarce.