Article Text
Suspension of a National Bank. Newark, N. J., June 11.-The first naMonal bank closed to-day and applied for d receiver. The cashier has sailed for Europe.
First National Bank (Newark, NJ)
Episode Information
- Episode UID
5200966- Episode Type
- Suspension → Closure
- Bank Type
- national
- Bank ID
-
520national - Charter Number
- 52
- Start Date
- June 11, 1880
- Location
- Newark, New Jersey (40.736, -74.172)
Metadata
- Model
- gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
aaaaa50fe73d0822
Response Measures
None
Receivership Details
- Depositor recovery rate
- 100.0%
- Date receivership started
- 1880-06-14
- Date receivership terminated
- 1885-02-18
- OCC cause of failure
- Excessive lending
- Share of assets assessed as good
- 77.7%
- Share of assets assessed as doubtful
- 11.9%
- Share of assets assessed as worthless
- 10.4%
Description
Used government-record receivership date (1880-06-14) which slightly differs from some newspaper appointment reports.
Events (4)
1.
August 7, 1863
Chartered
- Source
- historical_nic
2.
June 11, 1880
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Reports of irregularities, missing funds and false surplus statements; cashier absent (sailed for Europe).
- Newspaper Excerpt
- The First National bank of this city has suspended. ... reports of irregularities are afloat.
- Source
- newspapers
3.
June 14, 1880
Receivership
- Source
- historical_nic
4.
June 14, 1880
Receivership
- Newspaper Excerpt
- Receiver Appointed. ... has been appointed receiver of the First National Bank of this city. (newspapers report appointment mid-June).
- Source
- newspapers
Newspaper Articles (21)
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NEW JERSEY. NEWARK, June 11.-The First National Bank closed to day for a receiver. The cashier sailed for Europe last week on leave of absence, but will be recalled; rumors of irregularities prevail.
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First National Bank of Newark Closed. Newark, N.J., June 11.-The First National bank closed to-day and the directors applied for the appointment of a receiver. The cap tal, $800,000. is believed to be wiped out.
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Suspenion of a National Bank. NEWARK, N. J., June 11.-The First National bank of this city has suspended. The last statement claimed $62,000 surplus, which it is though was falsely stated. Financial circle are excited and reports of irregularities are afloat. The managers are unable to give definite information till the government examiners report. The cashier sailed for Europe last week on leave of absence.
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Collapse of a National Bank. NEWARK. N.J., June 11.-The First National Bank closed to-day, and the directors have applied for the appointment of a receiver. The capital stock of $800,000 is believed to be wiped out.
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Receiver Appointed. NEWARK, N. J.. June 15. Senator Hobart. or Paterson. has been appointed receiver of the First National Bank of this city.
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Senator Hubert has been appointed receiver of the First National Bank of Newark.
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FOUR HUNDRED THOUSAND DOLLARS is the reported loss of the suspended First National Bank of Newark, and still the directors profess not to know where the money is. If they tell the truth it may be impossible to send them to jail; but they would not be out of place in an asylum for idiots.- Herald.
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Gone by the Board. 1100 The First National Bank, of Newark, N. J., has suspended; the First National Bank, of Meadville, Pa., has closed its doors; Handleth, Ellis & Co., iron dealers, Boston, have quit, with lia abilities at $750,000.
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THE First National Bank of Newark, N.J., has closed its doors and applied for a Receiver.
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Stockholders Assessed for the Dificiency. NEWARK, N. J., July 19.-The - comptroller of the currency has ordered an assessment of one hundred per cent. on the stockholders of the suspended First National bank, to make good the deficiency, one-half payable in thirty days, the other half in sixty days. If not paid, suit will be brought
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Briaging Them to Time, NEWARK, N. J., July 19.-The Comptroller of Currency has ordered an assessment of one hundred per cent on the stockholders of the suspended First National Bank to make good the deficiency, one-half payable In thirty days the other in sixtv days. If not paid suit will be I brought,
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The report of the receiver of the First National Bank of Newark, N. J., shows that the assets amount to a little less than $400,000, and the liabilities to $600,000.
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Stockholders Assessed for the Dificiency. NEWARK, N. J., July 19.-The comptroller of the currency has ordered an assessment of one hundred per cent. on the stockholders of the suspended First National bank, to make good the deficiency, one-half payable in thirty days, the other half in sixty days. If not paid, suit will be brought
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The receiver of the First National Bank of Newark, N.J., reports a deficiency of $200,000.
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# FOUR HUNDRED THOUSAND DOLLARS IS The reported loss of the suspended First National Bank of Newark, and still the directors profess not to know where the money is.
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FOUR hundred thousand dollars is the reperted loss of the suspended First National Bank of Newark, and still the directors profess not to know where the money is.
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Receiver Hobart, of the wrecked First National Bank of Newark, is busy with his clerks paying the 70 per cent. dividenu to stockholders. On Friday, 240 creditors were paid, and a large number on Saturday.
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THE BROKEN BANK. The Examiner's Report Not to be Made Public-What the Directors Think - Excitement Subsiding Comptroller Knox on the Duty of Examiners. NEWARK, November 2.-Government Examiner Shelley is still at work in the Mechanics' Bank, and does not expect to finish his report to the Comptroller of the Currency until Thursday night or Friday. The report will not be made public, and will be sent to Washington as soon as finished. The directors believe that Baldwin's accusation, that Nugent has received the money which 18 missing. Several directors expressed their belief that the depositors would lose 25 per cent., and perhaps more. There has been no manifestations of trouble in the business community resulting from the failure, and the excitement here has abated. WASHINGTON, November -The Comptroller of the Currency has appointed Frederick Frelingbuyeen receiver of the Mechanics' National Bank of Newark, N. .J., and Lineus M. Price assistant receiver. The Comptroller says that the report of Bank Examiner Shelly, of August 16, 1880, contained the following paragraph: "I verified the account with the Mechanics' Bank of Newark, by obtaining its own balance and reconciling." Comptroller Knox says further that if the examiner had not been deceived by a forged letter of Baldwin's, which was handed to the examiner in place of the genuine letter of the cashier of a bank in New York, the enormous losses of the bank would have been exposed fourteen months ago at the date of the examination. He also says that the bank examiners have always been instructed to verify the accounts of correspondents, and that immediately after the failure of the First National Bank, of Newark, N. J., in June, 1880, the following special letter of instructions was sent to every examiner: TREASURY DEPARTMENT, OFFICE COMPTROLLER OF CURRENCY, WASHINGTON, July 31, 1880. SIR-I desire to call your attention to the importance of proving the correctness of the accounts of the banks you examine with their corresponding banks, and to this end you are instructed to call for and examine critically and, as far as possible, reconcile accounts current in all cases, or if it be found impossible to reconcile the accounts, as it, probably, often will be, you will satisfy yourself that the balances claimed, both debit and credit, are substantially correct, the means of doing which must be left to your own judgment. When the balances claimed are exceptionally large, or if you see any reason to .doubt that they are correct, you will rectify them by corresponding with the debtor or creditor of the banks as the case may require. Very respectfully, JOHN J. Knox, Comptroller.
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THE NEWARK DEFALCATION. The Government Examiner Still at Work. NEW YORK, Nov. 2. Government Examiner Shellery is still at work on the Mechanics' Bank, and does not expect to furnish his report to the Comptroller of the Currency, until Thursday night or Friday. No report. will be made for the public, but. will be sent to Washington as soon as finished. Upon the receipt of this statement the Comptroller will appoint a receiver. The directors believe that Baldwin's accusation that Nugent received the monev is missing. Several directors express their belief that the depositors would lose twenty-five per cent. and perhaps more. There has been no development as to the trouble in the business community from the failure, and the excitement has abated. No further arrests will be made at present. The Comptroller of the Currency appoints Frederick Frelinghuysen receiver of the Mechanics' National Bank of Newark, and Linus M. Price assistant receiver. The Comptroller says the report of Bank Examiner Shellev of Aug. 16th, '80, contains the following paragraph : "I verified accounts with the Mechanics' National Bank of New York, by obtaining its own balance and reconciling." Comptroller Knox says further that if the Examiner had not been deceived bv a forged letter of Baldwin, which was handed to the Examiner in place of the genuine letter of the cash ier of the bank who was in New York, the enormous losses of the bank would have been exposed fourteen months ago. Also says the Bank Examiner has always been instructed to verify the accounts of correspondents, and that immediately after the failure of the First National Bank of Newark, in June, '80, a special letter of instructions was sent to every examiner, calling attention to the importance of proving the correctness of the accounts of the bank examined.
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THE NEWARK ROBBER Y. A Receiver Appointed for the Broken Bank. NEWARK, Nov. 2.-Government Examiner Shelley is still at work on the Mechanics Bank and does not expect to finish the report to the Comptroller of the Currency until Thursday night. It is not to be made public, but will be sent to Washington as soon as finished. Upou this statement the Comptroller will appoint a receiver. The directors believe Baldwin's accusation that Nugent received the money missing. Several detectives express the belief that depositors would lose twenty-five per cent and perhaps more. There have been no developments as to the trouble in the business cummunity from the failure, and the excitement has abated. No further arrests will be made for the present. Dennis Osborn, wholesale grocer and liquor dealer, is embarrassed by the Mechanics Bank failure. WASHINGTON, Nov. -The Comptroller of the Currency has appointed Frederick Frelinghuysen receiver of the Mechanics Bank of Newark and Linus M. Price assistant receiver. The Comptroller says the report of Bank Examiner Shelley of Aug. 16,1880, contains the following paragraph:-"I verified the account with the Mechanics National Bank of New York by obtaining its own balance and reconciling." Comptroller Knox says further that if the examiner had not been deceived by the forged letter of Baldwin, which was handed to the examiner in place of the genuine letter of the cashier of the bank in New York, the enormous losses of the bank would have been exposed fourteen months ago. He also says always been instructand that immediately after the failure of the First National Bank of Newark in June, 1880, a special letter of instructions was sent to every examiner calling attention to the importance of proving the correctness of accounts of the banks examined.