Eagle Bank (New Haven, CT)

Episode Information

Episode UID
6100234290309
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
610023429 hash
Start Date
September 24, 1825
Location
New Haven, Connecticut (41.308, -72.928)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
dc267aa4cb28eb0c

Response Measures

None

Description

Court-ordered partial payment to depositors in 1829 indicates winding up/receivership after suspension.

Events (4)
1. September 24, 1825 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Reported gross mismanagement and engagement in commercial/speculative ventures; heavy bad debts and overissue of notes caused insolvency.
Newspaper Excerpt
The Eagle Bank of New-Haven ... has stopped pay. ment and closed its doors. ... the Bank has suspended specie payments.
Source
newspapers
2. March 2, 1826 Other
Newspaper Excerpt
Previously to the failure of the Eagle Bank, that country had been inundated with the post-notes of that institution. ... the bubble burst. The holders applied to the endorsers ... were discharged from all responsibility by not presenting them at New-Haven in person or by proxy before expiration of the time for which they were drawn. [Comm. Ade.] (Martinsburg Gazette, 1826-03-02).
Source
newspapers
3. June 6, 1829 Other
Newspaper Excerpt
A statement from the agents of the New Haven Eagle Bank has appeared ... The indebtedness of the bank is about 778,000 dollars, and its effects are about 50,000, besides about 1,200,000 dollars in bad debt ... they were unable to say when the concern will be closed.
Source
newspapers
4. October 1, 1829 Receivership
Newspaper Excerpt
A notice appears in a New-Haven paper, that agreeably to an order of Court, there will be paid to the depositors in the Eagle Bank, on and after the 1st of October, fifty per cent of the original amount of their several deposits.
Source
newspapers

Newspaper Articles (7)
1. September 27, 1825 American Watchman and Delaware Advertiser Wilmington, DE
Article from American Watchman and Delaware Advertiser, September 27, 1825

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opened their doors to receive the Watchman, may rest assured that we are grateful for their kindness, and shall endeavor to repay it by an abundant sup. ply of useful and entertaining matter during the ap proaching winter season. The General Election in Delaware will take place on TUESDAY NEXT. We trust that no Democrat who is able to appear at the polls, will remain at home on that day. The confidence of success in New Castle County has rendered some of our Democratic Brethren too indifferent on the subject of the approaching election. This ought not to be. While you sleep, the enemy is awake-and take care that he does not put his foot upon your neck. We are not without a strong hope that a great part, if not all of the Democratic Ticket in Kent will be elected this year. We entreat our brethren in that County to exert themselves in the good cause of Democracy. The time will come, and that ere long, when Delaware will be exalted from the insignificant station into which federal rulers have plunged her, to that rank among her democratic sister States, to which her well wishers desire to see her raised. The New City of Refuge.-The ceremony of laying the foundation of a new City, to be called Ararat, on Grand Island, in the State of New York, was performed on the 15th inst. with great splendor. To this city, the Jews throughout the world, are requested to repair-the Jewish government is revived therein-and M. M. Noah IS appointed Governor and Judge of Israel. The account of the proceedings is 100 long for our paper to-day-but as cannot fail to be interesting to our readers, we will embrace an early opportunity to lay it before them. Slander.-In the District Court for the City and County of Philadelphia, in an action of slander instituted by Eser Hadden Banks, a young cordwainer, against John Gibbs, Lottery Broker. the Jury returned yesterday morning with a verdict in favor of the plaintiff for seven hundred and fifty dollars damages. The trial occupied the court several days. Gibbs had charged Banks with having altered lottery tickets. Counsel for the plaintiff, Thomas Kittera and P. A. Browne; for the defendant, James C. Biddle and D. P. Browne. The accounts fron: Greece have been generally so vague and contradictory, that we have refrained from occupying much of our columns with them. Our readers will, however, find in our paper to-day, some interesting letters from that part of the world, which proceed from sources entitled to the fullest credit. The report that the Salem Steam Mill Banking Company had bursted their boiler, is without foundation. The notes of that institution are received on deposite at the United States Bank, and at several other banks in Philadelphia. The President left Philadelphia yesterday. Mrs. Adams continued so much indisposed that she was compelled to remain in that city. The Boston papers of last week state that the health of the President's father has lately much improved, and that he is now as well as he has been for ten years. The Eagle Bank of New-Haven, heretofore considered one of the safest banks in New England, has stopped pay. ment and closed its doors. If report speakstrue, there has been gross mismanagement somewhere. Instead of atten ding to legitimate banking business, it is whispered that the bank, as such, has been engaged in commercial and other speculations unbefitting an institution of that description As an instance, we are informed that a vessel arrived a short time since from North Carolina, freighted with pine boards, consigned to the Eagle Bank As there is supposed to be an immense quantity of the paper of this bank afloat, the sufferers will be many for even if the Bank should make a respectable dividend, the paper will probably be bought up by brokers and specula. N. Y. Com. Adv. tors for a mere song. New Haven, Sept. 24.-The first article of news that our readers will probably look for, will be concerning the EAGLE BANK. We have in short to say, that the Bank has suspended specie payments. The bills of the Bank, however, we understand, have thus far been taken in payment of notes due the bank, as they become payable from individuals. We pretend not to say, or even guess, how the concerns of the institution will come out eventually. The bills were selling yesterday at from 87 to 90 cents for a dollar; the day before yesterday sales were made in town at about 75 cts. for the dollar. Several stores take the bills at par for goods, at the current prices.-Register. The American Colonization Society acknowledg es the receipt of S2045, 25-from the 22d of Au. gust, to the 20th of September, 1825.

2. March 2, 1826 Martinsburg Gazette and Public Advertiser Martinsburg, WV
Article from Martinsburg Gazette and Public Advertiser, March 2, 1826

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NORFOLK, FEB. 15. Conspiracy to Rob and Plunder.-An organized conspiracy among a number of Negro Boys of this town, to rob and plunder Stores, Dwellings, &c. has just been discovered. Their schemes were so adroitly concerted, by private signal, and other devices, as to throw store keepers and others off their guard while they bore off articles of Merchandise from the counters, doors, &c. These villanies took a very wide and miscellaneous range, extending to Hardware, Grocery, Apothecary, Confectionary and Fruit Stores, and were in many in stances perpetrated in open day-passages were entered in the evenings, while families were taking their tea, and Cloaks, Coats, &c. borne off. Ten of this association were yesterday brought up for examination before the Mayor-three of whom were dismissed for want of sufficient evidence; three were ordered to be publicly whipped, and four committed for trial on a charge of Grand Larceny.-'BR [We are not quite up to this in Washington; but, if we want the organization, we have the material. One night this week, before the boarders had retired to rest, in a house near this office, the door of a passage was opened, and three or four excellent cloaks, and as many hats, stolen from it. We ought to have mentioned this before, as a caution to our city readers: it escaped our memory in the press of business, until reminded of it by the above. The thief has been detected, and committed to take his trial.]-Nat. Intell. More of the Eagle Bank.-We learn from the Huntsville Democrat, that previously to the failure of the Eagle Bank, that country had been inundated with the post-notes of that institution. And it is added, that these notes, when drawn from the Bank, were but partially filled up. Their value was, we believe, specified, but the length of time which they had to run, and the individual to whom they were made payable. were left to the discretion of the borrowers. These notes were pushed into circulation in Alabama,by representations as to the solvency of the Bank, "and the liability of the endorsers in the event of any unforeseen depreciation. No danger was for some time apprehended; but at last the bubble burst. The holders applied to the endorsers; but they were informed, that by not presenting them at NewHaven, in the State of Connecticut, 1200 miles distant, in person or by proxy, before the expiration of the time for which they were drawn, that the endorser was completely discharged from all responsibility. It was to no purpose that the deluded planters insisted that they had been received for valuable considerations- in lieu of the labor of his hands and the sweat of his brow. He was coldly told that if he felt himself aggrieved, he was welcome to try what redress the law would afford him." [Comm. Ade.

3. July 26, 1826 The Massachusetts Spy, and Worcester County Advertiser Worcester, MA
Article from The Massachusetts Spy, and Worcester County Advertiser, July 26, 1826

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BANK AFFAIRS.-In addition to the fail. ures in New-York, mentioned in our last, the Tradesman's Bank in that city has stopped payment. Several others have been hard run, but it is thought they will weather the storm. The stock of the Fulton Bank is quoted at sixty per cent. discount. When the Eagle Bank in the City of New-Haven failed, 3 great outcry was made, particularly in New-York, against the country Banks, and they were denounced almost in toto as un. worthy of confidence. We have examined the late New-York papers with great care, but do not find any thing further on the subject of "the Country Banks." The Green County Bank, located at Catskill, N. Y. has failed-owing. 1 as it is said, to its unfortunate connexion with the Wall-street brokers.

4. June 5, 1828 The Litchfield County Post Litchfield, CT
Article from The Litchfield County Post, June 5, 1828

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Connecticut Ligislature. HOUSE OF REPRESENTATIVES Bill to prevent the sale of foreign lottery tickets introduced by the Committee. Petition of Wm. D. Foster respecting pay table orders, granted without debate. Much was said respecting this petition last year. Mr. Eaton, the officer over Bill by in levying executions,shall providing that but the when charge officer his fees, the levy shall be valid, shall forfeit threefold the amount of his whole charges, read a second time. Mr. T. S. Perkins respecting nuiswhen the title of question, an be made to ances, Bill by appeal may land &c. the is Superior in Court, read second time. City Bank New-Haven.-Mr. Kibbe moved the bill on the table, as petitions were to be to for lay banks heard; the time other that to Wed- hear nesday next be assigned as them. Mr. T. Pitkin said this was an exception to the for It be added to the would general not principle granting banking stockhold- capital, banks. but a priviledge to the ers in fault for the He wished we now Eagle who extending Bank. were not the might failure of act. with some of is not comMr. them Parish replied guilty either of warmth, acts of of who of omission. The cause the failure is their was that this was claimed as a mission surprise or gross negligence. It favorable From with exception to the general principle. one section of the State of 20,000 inhabit$200,000 banking capital, where are is a petition a has more on ants, many but this and manufactories, company brought for ruin bank all the ever in the He saw no any more in the State. State capital than New-Haven. necessity counterfeiters of If the obto restore the rights to ows and to ject banking and was orphans the College, ruined there widwould be some claim. But no; the rich want an opportunity to make another experiment. Mr. T. Pitkin replied, the committee have examined the claim and reported favorably. If had considered the to blaim would have so. they they said be stockholders the last If they blame, he would one to He would his to the an opportunity to substitute were favor objection, to them. give his therefore charge. gentlemen withdraw Mr. Parish replied, he intended no direct allegation, but the stockholders had not seen so closely to the business as they ought. Mr. Kibbe withdrew his motion. Mr. Kimberly moved, as the house was thin, the bill lie on the table till 2 o'clock, which was carried. a committee to consideration the Resolution for propriety of disfranchising take into Geo. and for a him and the the introduced by & perjury Eagle Hoadly, Bank, against instituting Mr. Cashier Chappell, suit of on motion of Mr. M' Curdy,laid on the table, by a vote of 76 to 50. City Bank in New-Haven.--Mr. Hungerford, from the Committee, spoke at length in favor of granting the Bank. The Bank was to new but the the Bank were to have the taEagle be a one, stockholders privileges owned in of of king as many shares as they that bank; but their shares are but one half as great, so their subscription can be only half the of stock He it was said amount extremely owned unjust in the to that failure transfer Bank. the crime of those concerned in of the Bank, to the stockholders. The committee after a full examination are fully conthat are no censure. vinced, then adverted they deserving the conduct of of He to Mr. that at first was a of trust in any of his small Hoadly official breach proceedings he from concealing the guilty directors; of but he had once it was to go on in after necessary violated farther and this farther trust, order conceal it, constantly in hopes, that at restore taken and clandestinely last to he might appropriated. these funds thus All this the had no means have been and Undoubtedly stockholders they injured, of relief. knowing. if to have some The only is. can relief be them without injury to the ? ought question possible, public The granted committee For, in the banin this city, after esking say, capital yes. first this place bank it the is will not be so great as was before the failure of the Eagle amount of was then now. tablished, capital wanted. Bank. it If that amount of banking is $500,000 while there is $3,000,000! city, The whole only Why capital in should Hartford in there this be there is not in business. it the this difference? nearly Again, is this proposed Bank difference this to transfer the of the to thus save the great institution, and agency Eagle public From the such expense of the present agency. the committee were othis bank to considerations, pinion that ought be incorpora- of the ted. Mr. Chappel moved to amend the bill, so as the directors of the bank, at the time failure, from any in The directors are to for this to bank. of prevent the having banks, blame, note share according to the rules of no can be discounted without the consent of three directors. said, there was a provision in bill to meet their no perMr. the Kimberly objection; failure that of son who had any agency in the the bank, should be allowed to subscribe; and further the previous directors were also much

5. June 6, 1829 Daily Richmond Whig Richmond, VA
Article from Daily Richmond Whig, June 6, 1829

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Richmond we SATURDAY MORNING, JUNE 6, 1829. Banks and Bank Failures:- The New York Morning Herald, says:BANK FAILURES.-The board of Directors of the Middle District Bank at Poughkeepsie give notice that the pressure of the times 18 so groat as to induce to and close the them of the suspend bank. their payments business The funds of the institution are to be applied, say they, to the payment of its debts, and a statement of their affairs is to be made out in a few days. A statement from the agents of the New Haven Eagle Bank has appeared in the Connectiont papers. The indebtedness of the bank is about 778,000 dollars, and its effects are about 50,000, besides about 1,200,000 dollars in bad debt, which will :probably never be worth a dollar. The committee say that "the fact that several of the Judges of the Superior Court are interested in the concerns of the bank, had caused some delay in business before the Court," and they were unable to say when the concern will be closed. This is the second Bank failure in New York, in the lapse of a month. It is but just, that they who have caused the wretchedness and failure of 80 many, should in turn experience the evil. Turn and turn about, is fair play. But, a corporation according to Lord Coke. having no soul, it is to be feared, that full retribution does not overtake banks, even when by "the pressure of the times," they are compelled to stop payment. Cromwell told Lord Kimbolton, that it would not be well for England, until there was ne'er a Peer or a Lord in the realin. What the aristocracy is to England, are the banks in our countrypower, separate and apart from the power of the peo. ple. It will not be well for the U. States, until there is never a bank in them. Asample of the feeling and sympathy of banks, is lately furnished in Georgia. The Savannah Mercary, thus speaks of the case: The last Milledgeville papers state, that the Cen tral Bank will commence operations on the 18th of June next. The Statesman saye that notes to the amount of eight hundred thousand dollars has already been received for discount. So there can be no doubt but the institution will soon get rid of its cash. Whether the state as a collective body, or the people individually, will be benefitted by the emission, is another question. Much will depend upon that class of people who are accommodated with loans. But, according to the rules adopted by the Directors for the government of the Bank, the note of a person who has Judgment-debts against him, will be refused, whatever may be the character or credit of the security offered. That is, the person whose property is about to be sold under execution for less than half its value. cannot relieve it by borrowing from this Bank. although he offer the most undoubted security. Consequently, this Bank will not afford any relief ro people in debt. or laboring under embarrassments. But it will rather increase their difficulties. Because it will place in the hands of a few , griping individuals, an extensive fund for the purposes of oppression. The Statesman mentions a circumstance, the facts of which had become public. An individual of Greene county had applied for a loan at the Central Bank, and had already made arrangements with his embarrassed neighbors, to re-loan it 8 out among them, at the rate of 20 1025 per cent.7 And such cases, we have no doubt, will be found to be numerous. To the individual in debt, it will be seen, the Bank can afford no relief. His property must be sold to payhi debts. But it will enable the griping speculator to buy it up, at one quarter or half its value, By giving, therefore, a new impulse to the spirit of 1 speculation and cupidity, it will increase the difficulties of the poorer classes, and place them more p completely in the power of their wealthy neighbors. I The new Treasurer.--The new Treasurer of the U. States our late energetic Councillor of State. h John Campbell, entered upon the discharge of his dutics on the 1st inst. We cannot help thinking how very happy the Councillor must be, and our philanthropy is 60 much gratified in the contemplation, as almost to reconcile us to the extreme impropriety of Clarke's removal, and his appointment. The terrible scratch, and the more terrible convention $ both escaped! three thousand a year! nothing to do but to sign his name eight or ten times a day! the luxuries of the Metropolis all spread out to the watering mouth! and the dear and inestimable privilego of calling upon and looking at the Hero, without lest or molestation Verily, some men are born with silver spoons in their mouths. Councillor Camphell

6. June 9, 1829 Constitutional Whig Richmond, VA
Article from Constitutional Whig, June 9, 1829

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The Constitutional Whig. SATURDAY MORNING, JUNE 6, 1829. Banks and Bank Failures.—The New York Morning Herald, says:— BANK FAILURES.—The board of Directors of the Middle District Bank at Poughkeepsie give notice that the pressure of the times is so great as to induce them to suspend their payments and close the business of the bank. The funds of the institution are to be applied, say they, to the payment of its debts; and a statement of their affairs is to be made out in a few days. A statement from the agents of the New Haven Eagle Bank has appeared in the Connecticut papers. The indebtedness of the bank is about 778,000 dollars, and its effects are about 50,000, besides about 1,200,000 dollars in bad debt, which will probably never be worth a dollar. The committee say that "the fact that several of the Judges of the Superior Court are interested in the concerns of the bank, had caused some delay in business before the Court," and they were unable to say when the concern will be closed. This is the second Bank failure in New York, in the lapse of a month. It is but just, that they who have caused the wretchedness and failure of so many, should in turn experience the evil. Turn and turn about, is fair play. But, a corporation according to Lord Coke, having no soul, it is to be feared, that full retribution does not overtake banks, even when by "the pressure of the times," they are compelled to stop payment. Cromwell told Lord Kimbolton, that it would not be well for England, until there was ne'er a Peer or a Lord in the realm. What the aristocracy is to England, are the banks in our country—a power, separate and apart from the power of the people. It will not be well for the U. States, until there is never a bank in them. A sample of the feeling and sympathy of banks, is lately furnished in Georgia. The Savannah Mercury, thus speaks of the case: The last Milledgeville papers state, that the Central Bank will commence operations on the 18th of June next. The Statesman says that notes to the amount of eight hundred thousand dollars has already been received for discount. So there can be no doubt but the institution will soon get rid of its cash. Whether the state as a collective body, or the people individually, will be benefitted by the emission, is another question. Much will depend upon that class of people who are accommodated with loans. But, according to the rules adopted by the Directors for the government of the Bank, the note of a person who has judgment debts against him, will be refused, whatever may be the character or credit of the security offered. That is, the person whose property is about to be sold under execution for less than half its value, cannot relieve it by borrowing from this Bank, although he offer the most undoubted security. Consequently, this Bank will not afford any relief to people in debt, or laboring under embarrassments. But it will rather increase their difficulties. Because it will place in the hands of a few griping individuals, an extensive fund for the purposes of oppression. The Statesman mentions a circumstance, the facts of which had become public. An individual of Greene county had applied for a loan at the Central Bank, and had already made arrangements with his embarrassed neighbors, to re-loan it out among them, at the rate of 20 to 25 per cent.—And such cases, we have no doubt, will be found to be numerous. To the individual in debt, it will be seen, the Bank can afford no relief. His property must be sold to pay his debts. But it will enable the griping speculator to buy it up at one quarter or half its value.—By giving, therefore, a new impulse to the spirit of speculation and cupidity, it will increase the difficulties of the poorer classes, and place them more completely in the power of their wealthy neighbors. The new Treasurer.—The new Treasurer of the U. States our late energetic Councillor of State, John Campbell, entered upon the discharge of his duties on the 1st inst. We cannot help thinking how very happy the Councillor must be, and our philanthropy is so much gratified in the contemplation, as almost to reconcile us to the extreme impropriety of Clarke's removal, and his appointment. The terrible scratch, and the more terrible convention both escaped! three thousand a year! nothing to do but to sign his name eight or ten times a day! the luxuries of the Metropolis all spread out to the watering mouth! and the dear and inestimable privilege of calling upon and looking at the Hero, without lett or molestation! Verily, some men are born with silver spoons in their mouths. Councillor Campbell upon whom fortune has rained all these blessings at once, really seems to have a patent right to feed out of the public crib. For some twelve or fifteen years, he was Councillor of State in Virginia, and in all that time we dare to say, that the public service never cost him a half day's labor, or a night's uneasiness. Becoming at the end of this time, (that is to say, when the Council is pronounced an incubus by the people) a great advocate for rotation in office, the public when they were looking out for his conforming his practice to his professions, find him translated to a new office of treble emolument, and permanent nature. Is that your rotation, Mr. Treasurer? All this is bad. Maj. Campbell is a respectable man, but he did not deserve the office, when thousands of old and unprovided public servants, were to be found through the country. There is no adaptation in the claims and qualifications of the man, to the dignity and emolument of the office. The appointment wants symmetry and proportion. On the other hand, the proscription of Mr. Clarke to make way for a man so entirely undeserving public favor, on account of any public services, was to the last degree, unjust and tyrannical.

7. October 1, 1829 Litchfield Enquirer Litchfield, CT
Article from Litchfield Enquirer, October 1, 1829

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GENERAL SUMMARY. A southern editor (observes the Williamstown Advocate) says, that the reason why the dogs who barked so loudly at the late administration are silent now, is, they have each got a bone in his mouth-and no dog can bark when his mouth is full. We think the big dog Duff Green is an exception-il he cannot bark at his enemies, he will turn round and growl at his friends. Sharks.-Another shark, of the great white species, has recently been taken in the Mississippi in the neighborhood of Natchez, supposed to have been driven up that stream by the steam boats. An enormous bear, weighing 540 pounds, was killed in the town of Adams, Mase. on the 12th Sept. It is said there are several still remaining in that neighborhood. The Williamstown Advocate states that for several nights previous to the 23d, the Aurora Borealis had been/uncommonly brilliant. We noticed the appearance here, but not so bright as on many former occasions. Two daughters of a Mr. Adams were killed by lightning in Richmond, Va. on the 31st of August. A sister who was in the same bed with them was uninjured. Eagle Bank.-A notice appears in a New-Haven paper, that agreeably to an order of Court, there will be paid to the depositors in the Eagle Bank, on and after the 1st of October, fifty per cent of the original amount of their several deposits. Gen. Scott.-The Nashville Republican, in reference to the late decision of the President on the subject of brevet rank, remarks-" The DECISION is against the position assumed by Gen. Scott, and though the country will, of course, be deprived of the services of that officer, his friends will be compelled to acquiesce in the justice and necessity of the DECISION." The same paper adds, that "no other alternative is now left him," but to resign.-Niles. Green County Bank.-I will be perceived by the order of the Chancellor, that a dividend of Sixty-five cents on every dollar of the claims against this bank, presented to the receiver to the 1st inst. has been declared, and will be paid to the Catskill Bank.-Argus. A man by the name of Ivey Wilkins, of Currituck County, N.C., who has been in the habit of abusing his wife, murdered her last week. He made a coffin, and was about interring the body, when he was overtaken by a jury of inquest. He ran, and before he e would suffer himself to be taken, had one of his legs e nearly shot off.-ib. a Confirmations.-The Rt. Rev. Bishop Brownell, in n his recent visitation has administered the holy rite of d Confirmation in the following parishes, viz :-In the t parish of Salem, to 26 persons-Waterbury 26-Watertown 15-Woodbury 10-Washington 3-Newis Preston 12-New-Milford 8-Sharon 14-Kent 4e Salisbury 13-Milton 8-Northfield 6. In all 146 perg sons.-Episcopal Watchman.