Grocers Bank (New York, NY)

Episode Information

Episode UID
6780064590694
Episode Type
Run โ†’ Suspension โ†’ Closure
Bank Type
state
Bank ID
678006459 hash
Start Date
October 12, 1857
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
37e88e7d7bbff0ef

Response Measures

None

Description

A receiver was appointed and a large embezzlement was later discovered; directors voted to liquidate, though the bank briefly resumed operations in early 1858.

Events (6)
1. October 12, 1857 Run
Cause
Bank Specific Adverse Info
Cause Details
Heavy withdrawals amid the October 1857 panic and later-discovered internal embezzlement undermined confidence, producing runs and large withdrawals.
Measures
Receiver appointed; temporarily permitted to resume at Clearing House for a short period
Newspaper Excerpt
The Grocers' Bank of this city suspended this morning. ... there was a renewal this morning of the run on the Brooklyn Savings Bank, but all demands were promptly met. There was also a slight run on the Marine Bank, and the Grocer's Bank.
Source
newspapers
2. October 12, 1857 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspended during the wider October 1857 banking panic and in the context of later-discovered embezzlement by an officer; placed in hands of a Receiver.
Newspaper Excerpt
The Grocer's Bank of this city suspended this morning.
Source
newspapers
3. October 14, 1857 Receivership
Newspaper Excerpt
Charles D. Garrison has been appointed Receiver of the Grocers' Bank, and will immediately enter upon the discharge of his duties. GROCERS' BANK. Charles D. Garrison has been appointed Receiver of the Grocers' Bank, and will immediately enter upon the discharge of his duties. (New-York Daily Tribune, 1857-10-14 / corroborating articles.)
Source
newspapers
4. October 20, 1857 Other
Newspaper Excerpt
the directors of the Grocers' Bank have, by a unanimous vote, resolved to go into liquidation on the 20th instant. (New York Herald 1857-10-21).
Source
newspapers
5. November 1, 1857* Other
Newspaper Excerpt
examination has disclosed the fact that Geo. A. Clark, assistant cashier and paying teller, is a defaulter to the amount of about $68,000. (Nov. 1857 newspapers reporting discovery of embezzlement.)
Source
newspapers
6. February 1, 1858 Reopening
Newspaper Excerpt
The Grocers' Bank of this city, we understand, will resume business on Monday, February 1, and will pay all demands upon presentation. (New-York Daily Tribune 1858-02-01)
Source
newspapers

Newspaper Articles (22)
1. October 13, 1857 Worcester Daily Spy Worcester, MA
Article from Worcester Daily Spy, October 13, 1857

Click image to open full size in new tab

Article Text

BANK FAILURES.-Buffalo, Oct. 12.-The Pratt Bank closed its doors today. Nem York, Oct. 12.-The Grocer's Bank suspended this morning. Messrs. Corning & Co., bankers, failed on Saturday. They have been embarrassed by Brooklyn city stocks, of which they hold half a million. and by their inability to sell Exchange on London, where they have one hundred and fifty thousand dollars to their credit. New York Weekly Bank Statement.-The weekly bank statement shows a contraction of loans during the week of about five millions.

2. October 13, 1857 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, October 13, 1857

Click image to open full size in new tab

Article Text

ANOTHER FAILURE IN NEW YORK. NEW YORK, Oct. 12.-The Grocers' Bank has suspended. It is understood that the bank contractions last week will exceed $5,000,000. Corning & Co., bankers, who suspended on Saturday, were large stockholders in the Southern Bank at New Orleans.

3. October 13, 1857 The Evansville Daily Journal Evansville, IN
Article from The Evansville Daily Journal, October 13, 1857

Click image to open full size in new tab

Article Text

Financial. NEW YORK, Oct 12-M The East River Bank of this city has suspended specie payment. Corning & Co.'s suspension is announced. The firm are heavy stockholders in the Southern Bank of New Orleans. CLEVELAND, Oct 12-M The Cuyahogo Steam Furnace Company has assigned. Assets $100,000 over liabilities. Two hundred men were thrown out of employment. Chicago, Oct 12-P M Wadsworth & Co., bankers, failed to-day. Assets 3 to 1 of liabilities. BUFFALO, Oct 12-P M The Pratt Bank hasclosed its doors. NEW YORK, Oct 12-P M The Grocers' Bank of this city suspended this morning. It is understood that the Bank contractions fer this weak will reach five millions. BANK STATEMENT.-Increase of specie, $76,000; Decreas of loans, $4,018,000. Decrease of circulation $392,000; Decrease of deposits 84 677,000. BOSTON, Oct 12-P M The Mich. Central Railroad asks an exten sion on paper maturing now, till funds are realized from the proposed loan. The coupons will be paid as usual. No change is necessary in the management of the road.

4. October 13, 1857 The New York Herald New York, NY
Article from The New York Herald, October 13, 1857

Click image to open full size in new tab

Article Text

to-day, half a dozen banks were reported early in the morning, and the names of many of our largest and staunchest houses were quite current as having suspended. So far as the banks are concerned, only one actually suspended. The Grocers' Bank closed its doors to day at or having made up its account at the Clearing House. The returns of this institution made to the Clearing House this morning were as follows:-

5. October 14, 1857 The Day Book Norfolk, VA
Article from The Day Book, October 14, 1857

Click image to open full size in new tab

Article Text

Bank Suspension. NEW YORK, Oct. 12, P. M.-The Grocers' Band of this city has suspended. It is understood that the bank contractions for the week will exceed $5,000,000.

6. October 14, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, October 14, 1857

Click image to open full size in new tab

Article Text

officer and clerk was buay with bis pen, and all remained at work long beyond the usual hour. CITIZENS' BANK. Here, too, the crowd and excitement were great, and the "drawing" large, and 80 long continued that before the close of office hours the Paying Teller was compelled to announce a temporary suspension of specie payments. Most of the depositors in this bank (it is located at No. 58 Bowery) are small traders, likely to feel most sorely a bank suspension, however brief; but such as failed to obtaintheir deposits yesterday took the matter with seeming coolness, hopeful that it would " all be right in & few days." BANK OF COMMERCE. The Paying Teller of the Bank of Commerce did not feel authorized to give the amount of specie paid out. CONTINENTAL BANK. At the Continental Bank a heavy run commenced at about 11, o'clock, which was continued until 3 o'clock. The greater portion of the run was from bill holders: No gold was paid to depositors. The run was very quiet; there was no call for a policeman. At 3 o'clock people were assured that the bank would open in the morning. About $75,000 in gold was paid out. DRY DOCK BANK. The Dry Dook Bank was also compelled to seek protection from the calls of its depositors by a suspension of speoie payment. Nothing particular attended the circumstance, A few who applied early received their deposite, but only a few. The great majority were doomed to depart empty-handed; with the assurance, however, that they would not be losers by the painful but necessary step which the Bank, like meny others, felt compelled to take. GROCERS' BANK. Charles D. Garrison has been appointed Receiver of the Grocers' Bank, and will immediately enter upon the discharge of his duties. HANOVER AND COMMONWEALTH BANKS. The run on the Hanover and Commonwealth banks was not very active, and both banks paid promptly up to 3 o'clock. IRVING BANK. This bank, located at the corner of Greenwich and Warren streets, suspended specie payment very soon after opening their doors yesterday morning. The run upon them was commenced on Monday, and 80 vigorously continued that $42,000 in specie were drawn from them during the day. They opened on Monday morning with $75,000 in specie. When the doors were thrown open yesterday morning they were at once besieged by a crowd of people who had been for some time in waiting, and the checks presented were 80 lange and numerous that $9,000 was paid out in less than fifteen minutes. From outside indications it was evident to the officers that they could not long breast the current, and they determined to close at once. This caused a good deal of dissatisfaction and grumbling among those who were awaiting their turn," but the excitement soon subsided and the crowd dispersed. The demand upon this bank came almost wholly from depositors. IMPORTERS' AND TRADERS' BANK. The Importers' and Traders' Bank have paid out $60,000 in specie; but they have received $15,000 in gold on deposits. They run out of bills between 11 and 12 o'clock, and were consequently obliged to pay out much more specie than they would otherwise. The statement of the bank on Tuesday morning was: $1,425,525 Capital 100,000 Surplus $1,525 525 Total $1,627,447 Loans 182,000 Circulation 215,000 Secured on State Stocks, par value 421,102 Deposits 194,000 Spucie

7. October 16, 1857 Fremont Journal Fremont, OH
Article from Fremont Journal, October 16, 1857

Click image to open full size in new tab

Article Text

ous Bank Suspensions--Heavy Run on the Wall Street Banks Police Called Out!!! NEW York, Oct. 13. The following banks have suspended today Marine, Ocean, Merchant's Exchange, New York Exchange, North River, Irving, Citizen's, Chatham, Bullshead, St. Nicholas and Market Banks. There is a general run on the Wall St. banks, and intense excitement in the street. Policemen are stationed at many of the banks to preserve order. BOSTON, Oct. 13. The suspension of Messrs. Geo. T. & W. P. Lyman, commission merchants, on State street, is announced. NEW York, Sept. 12. No important event to-day in money affairs beside the suspension of the Grocers Bank. There were a few unimportant failures of merchants. There is a rumor that a party of business men have gone to Albany, to urge the Governor to call an extra session of the Legislature. At the clearing house to-day, it was resolved by the Banks to continue specie payments at all hazards. The failure of the Merchant's Bank created no excitement.The other banks will continue to receive its bills on deposit. There was a renewal this morning of the run on the Brooklyn Savings Bank, but all demands were promptly met. There was also a slight run on the Marine Bank, and the Grocer's Bank. Dispatches from St. Louis announce the failure of Doane, King & Co., and Collins, Kerby & Co., of that city, each with liabilities in Atlantic cities of one million. Our Bank returns to-day show a decrease in loans of upwards of $2,500,000, and an increase of $3,750,000 in specie. At the 2d Board to-day, stocks were lower generally. I.C. bonds 50; N. Y. C. R. R. 53; M. S. 9; I. C. 703; C. & T. 22; C. & P. 8; Erie 8; Cal. & Chi. 54; Ch. & R. I. 55; Harlem 51. The sailing of the steamer Atlantic for Liverpool has been postponed till the 24th. BOSTON, Oct. 12. Nothing new to notice in money affairs. The stringency continues, and with little transaction.

8. October 16, 1857 Daily Nashville Patriot Nashville, TN
Article from Daily Nashville Patriot, October 16, 1857

Click image to open full size in new tab

Article Text

The New York Banks. The news from the city of New York is anything but pleasant in these times of disaster. Our telegraphic despatches of yesterday announced the suspension of the East River Bank We heard reports last night also of the Chatham Bank and the Grocers' Bank, that added to the gloomy news. It may be well, however, to state that neither of these banks stand among the financial monarchs of Gotham. The Chatham Bank has a capital of only $400,000, the East River $319,918, and the Grocers' $300,000 In the West these would be pretty considerable banks, but in New York they are small concerns. In New York City there are fifty-six banks, with an aggregate capital of $65,557,755. On the 3d instant, they had in specie in their vaults $11,400,413, with a circulation of $7,916,102. Their discounts for the week ending Oct. 3d, were $105,935,489, and their deposits $67,978,657. These vast figures will at once indicate the disaster that would follow the suspension of the lead ing banks of New York City The people may care but little for those that have fallen, but should the Commerce, with its capital of $8,222,000, or the American Exchange, with its $4,614 950, or the Metropolitan with its $3,800,000, or the Manhattan, Mechanics, New York, American, Repub. lic, Continental or Park, with their $2,000,000 and upwards;-should either of these mammoth institions suspend, it would be the beginning of trouble to which we are yet strangers.-Lou. Courier.

9. October 17, 1857 The New York Herald New York, NY
Article from The New York Herald, October 17, 1857

Click image to open full size in new tab

Article Text

PROGRESS OF THE PANIC. Meetings of Merchants in Boston, Syracuse and Detroit. Speech of Ex-Speaker Banks on the Crisis. NATHAN APPLETON ON THE NEW YORK BANKS. Effect of the Panic on New Churches, New Private Residences and the Pawnbrokers. BANK SUSPENSIONS THROUGHOUT THE COUNTAY. Heavy Business of the Telegraph Lines. Influence of the Metropolis Over the Union, &c. &c. &c. AFFAIRS IN WALL STREET. TEE CONDITION 07 THE BANKS AT TUN CLEARING HOUSE. New York has within a few weeks realized the CPE and downs of life. For some time past everything has been tumbling down at a fearful rate, but for the last two days everything bas been going up, even in a greater ratio-stocks, dry goods and-alas! for the poor-provisions. The arrival in this city of over a million and a half of gold by the Northern Lighton Thursday night, as woll at the favorable condition represented by the banks at the Clearing House, infused a new spirit into commercial and financial affairs, and reemed yeaterday. judging from appearances in Wall street, to cause an elation more sudden than the recent depression. How far such animpulsive re. velution may be an index of permanent relief time only can tell. Certain 14 is that the spirits of the community have gone up as rapidly as the stock market. At the Clearing House yesterday the banks paid up their balances well, and everything went on smoothly. As we stated yesterday as likely to occur, the bills of the well secured State banks were taken in payment of balances, and to a very large amount. Certificates of State bills deposited at the Metropolitan were presented freely probably not less than a million of dollars of that currency having been received. The Grocers' Bank made application for re-admission as a member of the Clearing House. The application will be considered to-day, with every prebability of access In our statement in yesterday's HEBALD of those banks not represented 1a the Clearing House, we inadvertanily mentioned the Citizens'. This was an error which we are happy to correct. The Citizens' was not narepresented. It should have been the East River Bank, which still re. maine out of the Clearing House. Discounts on uncurrent money remain as unsteady as ever. Buying and selling the paper of all banks out of our State is a mere matter of speculation, and most likely will continue to be so for some time to come. It must not be forgotten, in our sudden elation, that the revulation was just as instantaneous in 1837. The stocks went up in the very same way; yet commercial prosperity aid not fellow quite 10 fast as people expected, though the the improvement was as rapid as was commensurate with our resources. Then we had no California gold to fall back upon. It is better not to be too sanguine just yet. A healthy condition of the financial constitution will be arrived at in good time, but the convalescence must be gra. dual in order to be complete ADDITIONAL. The effects of increased supply of currency and confidence was Bill further manifested yesterday in nearly all de partiments of trade, with increased melivity in transac. tions. We board of an improved movement of produce from the country for the city, and of shipments of groce rice and other goods hitherto checked for the country. Flour again advanced about 10 to 16 cents per barrol, wheat from 2 to 3 cents per bushel, and one from 3 to 4 cents per besital. Sugars were also firmer, wish sales of about 1,000 bhdg. There continued to be & good export demand for breadstuff. fue ther shipments of which were made at steady rates of freight. One tank yesterday received from two assignees of specio by the Northern Light $50,000, and others were said to have gained deposits from the same vessel. In consequence of this fact, with the return of the de pcaits previously withdrawn, several of the wall street banka were enabled yearerday to increase their loans and to discount more fully than was expected. The American Exchange Bank received $181,000 in gold by the Northern Light, which, with other receipts, is was stated enabled 1# to increase its loans to about $300,000. The Merchants' Bank gained special also, and 18 is and discounted about all the paper their old customers of. fored.

10. October 17, 1857 Muscatine Weekly Journal Muscatine, IA
Article from Muscatine Weekly Journal, October 17, 1857

Click image to open full size in new tab

Article Text

THE NEWS. -Telegraphic dispatelies from the eastern cities to the 12th, note no improvement in financial affairs. The Grocer's Bank of New York City has failed. Dispatches from St. Louis announce the failure of Donne, King & Co., and Collins, Kirby & Co, of that city, each with liabilities in Atlantic cities of one million. -No official returns from Kansas, but it is generally conceded that the Free State party have carried the Territory. The Democrats, however, still claim a majority in the Legislature. FOREIGN.-By the Atlantic, which arrived at New York on the 12th, we have Liverpocl dates to the 30th. The India mail with Calcutta dates of August 23d, and Bombay 21st, and Delhi 12th, had arrived. Delhi was still in the hands of the insurgents. A good deal of skirmishing had taken place, the rebels being invariably defeated, but with considerable loss to the British. -We have conflicting reports of the election in Kansas. A St. Lonis dispatch of the 8th states that the Republicans were 200 ahead at Leavenworth (another report gives a Democratic majority of 250,) and the Democrats ahead at Wyandotte. The Free State men have probably elected the Congressman (Parrott) and the Democrats have a majority in the Legislature. -The Bowery Bank of New York closed its doors on the 9th inst., and a heavy run was made on the Park Bank, of the same city, but it withstood the pressure. -Shocks of an earthquake were felt about half past four o'clock on the morning of the 8th, at St. Louis, Mo., and at Springfieid and Centralia, Ills. The rumbling was deep and heavy, making the most substantial buildings tremble, and overturzing small articles in dwellings. -Louis McLean, a prominent and well known public maa of the nation in by gone days, died at Baltimore on the 7th. -A dispatch from St. Louis of the 8th, speaks encouragingly of the success of the Free State men at the election in Kansas on the 5th. It was conceded that Parrott would beat Kansom for Congress. -A Calcutta letter of August 10, puplished in the N.1 Y. Herald, says Lucknow, the capital city of Oude, had fallen. All the Europeans have been massacred. It is not stated on what day the garrison at Lucknow surrendered. -The failure of Bowen, McNamee & Co., Geo. Bliss and Wruts, Lane & Co., three of the most prominent houses of New York, is announced. The Addison Bank and Brooklyn Bank, N. Y., are discredited. On a test vote in the Pennsylvania Legislature on the 7th, it is considered improbable that the su pension of specie payments by the banks will be legalized. - -A fire in Chicago, on Sabbath morning last, destroyed the old Irving House and five or six adjacent buildings on State street. Loss estimated at $125,000.

11. October 17, 1857 Semi-Weekly Standard Raleigh, NC
Article from Semi-Weekly Standard, October 17, 1857

Click image to open full size in new tab

Article Text

The Financial Distress. There is no abatement in the stringency money market, and we yield reluctantly to lief that we have not seen the worst of it yet. The decrease in the New York banks for the ending October 10th, was as follws; Of loans, 017,930; of deposits, $3,058,190 of circula $224,668; by failure of capital, $626,000. of specie for same time, $75,881. The New Times of Monday last says: The mercantile failures to-day are numer and particularly important in the Dry Goods est, where the feeling of discouragement, on of the embargo on the estern exchanges severity of the pressure at home, is becoming and worse every day. Two large and well firms, who have not suspended, resort to-day new course of business to be rid of their g Chine ะฏ S cash. Joj pueq Dry Goods jobbers, put up their stock at auctio their own store. Messrs Edward Lambert & extensive Silk Goods jobbers in Chambers have opened an establishment in Broadway tailing out their goods for cash at the lowest prices! The suspensions reported are: Messr O. Wilson & Co., Dry Goods jobbers and impor an old house that weathered the storm of 1837, regarded wealthy until the present time; Bliss, Douglas, Wheelock & Co., Dry Goods also an old house under various firms, and of standing up to the present time Hall, Dana & Domestic Goods' house of old standing and tensive trade: J. A. Hearn, Dry Goods; Black Whittemore & Co., an old cloth house, who through 1837; W. Langdon & Co., Dry Carhart, Bacon & Co., Cloth house: W. T. H can, Dry Goods: Herrick, Ferris & Co., Gentlem furnishing goods; Ludlam, Leggit & Co., dealers; and Ames, Herrick, Barnes & Rhodes, stioners. Among the names, onitted in our ing list, should have been John N. Genin, the known fashionable hatter in Broadway. Among old members of the Stock Exchange, Dykers, tyne & Co., are reported as being unable to some of their loans on demand. The firm is stood to have large means, and we hear that the mand upon them to-day was accommodated to convenience. This formidable catalogue of individual and the breaking down of the Grocer's Bank is happily not relieved by any appearance of ment in the exchanges either domestic or foreig The Cotton Market here and at the South is prostrated, for the time being, and the few sales king are at a decline of four cents from the top a few weeks ago, and without the change of a tion in Liverpool. The Corn Exchange to day fered severely from the same cause, though it is isfactory to note increased receipts, and evide that a very large amount is still on the way by and canal. The business in Sterling is done at 101 per cent. A leading banker is offering to short sight at 102 a 1027 per cent. The only redeeming feature in the Money -and certainly an important one, asa rallying -is the steady specie strength and determined cie basis of the City Banks, as shown on the age of the past week, and in the following and resolutions, moved in the Association this ning, by Mr. William F. Havemayer, of the North America, and unanimously adopted. The claration is more important, negatively, as an dence of united purpose and mutual action sistance, than for any positive promise it holds of relief to the mercantile community. At a meeting of the Bank Officers, held this at the Clearing-House, Thomas Tileston was ted Chairman, and James Gallatin, Secretary. on motion, the following resolutions were Whereas, There is no demand for specie upon banks of this City for exportation, and can be at present; but, on the contrary, with the low rate of exchange, affording a profit of to 10 per cent. on its importation, there must speedy influx of it from Europe- for whether body here can draw for it or not, the inevitable of trade mu' be obeyed-and specie will the point of greatest demand: And whereas, All demands for specie upon banks of this City from the interior, SO far as could arise from natural causes, have already met; And whereas, The exchanges with every the C untry are in favor of New York, current of specie towards it for the payment debts and the purchase of goods; And whereas, We are in the semi-monthly of large accessions of gold from California, here for the payment of debts; And whereas, The United States Treasury is idly disbursing coin in the public expenditure, for the redemption of the public debt: And whereas, In this state of things every ral and healthy tendency is to accumulate the banks, and to enable them to diffuse it throu ont the country, as the basis of credits by the abundant crops Providence has given, bountiful than ever, may be brought to market, fidence may revive, the circulation of commodi be resumed, the internal exchanges restored wheels of industry be set in motion, and ment once more be given to labor; And whereas, In the judgment of this there exists at the present time no obstacle ha er to the accomplishment of objects so desirable, less it be in an unfounded and unnecessary which keeps specie from its natural uses, and performing its appropriate functions;

12. October 21, 1857 The River Falls Journal River Falls, WI
Article from The River Falls Journal, October 21, 1857

Click image to open full size in new tab

Article Text

The Very Latest. By the Milwaukee, which arrived last evening we received the following late news; SUSPENSION OF HARPER BROTHERS. This extensive publishing house in New York has gone down In the general crash. A dispatch from Augusta (Gn.) says the South Western Railroad Bank and Bank of South Carolina have suspended. FIRE IN CHICAGO.-A fire which broke out in Chicago, destroyed property to the amount of $100,000. SUSPENDED.-Wadsworth & Co. bankers, of Chicago suspended on the 12th. The Grocers bank of New York, has suspended. J. Morrison broker, of Cleavland has suspended. Corning & Co. of New Orleans have failed Collins, Kirby & Co of New York are down. Liabilities $1,000,000. The Pratt bank of Buffalo has closed its doors. There is nothing new to notice in money affairs. Stringency continues and what little transactions take place at the Brokers Board are mostly pressed sales.St Paul Times.

13. October 21, 1857 Weekly Council Bluffs Bugle Council Bluffs, IA
Article from Weekly Council Bluffs Bugle, October 21, 1857

Click image to open full size in new tab

Article Text

New York, Oct. 12. The Atlantic brought 120 passengers, including Charles 8. Spence, of Baltimore, with the ratification of the Commercial Treaty with Persia. Among the passengers is Mr. Schrostler, late Minister 30 Sweden, and W.A. Osborne, President of the Illinois Central R.R. She also brings $117,000 in specie. The Grocers Bank, of this city, has suspended and closed its doors to-day. Bill holders are safe enough.

14. October 21, 1857 The New York Herald New York, NY
Article from The New York Herald, October 21, 1857

Click image to open full size in new tab

Article Text

The Assistant Treasurer reports to-day M follows:Total eceipts $149 026 68 77.852 87 Total payments Total balance 5,618,897 61 The receipts include $100,000 transferred from Baton, and the pay ments include $20,000 on California drafts. Albert H. Nicolay will hold a special suction sale of stocks and bonds to morrow, mt the usual hour and place. The ltst will Include $34,000 Dubaque and Pacific Railroad first mortgage 7 per cent land grant bonds. Adrian H. Mullor's regular auotion sale of stocks will be held to-merrow, Wednesday, at half past 12 o'clock, at the Merchants' Exchange. S. Draper will hold a special sale to morrow, at the same time and place. Among other stocks, his catalogue will Include shares of the Pacific Mail Steamship Company, New York and Virginia Steamship Company, United States Fire Insurance, and East River Life Insurance. the directors of the Grocers' Bank have, by a unanimous vote, resolved to go into liquidation on the 20th instant. A good many others will follow sult before a general re susption of specte paymen's. We shall not miss them, as there willbe, without doubt, enough left. There is no truth in the report of the failure of Measrs. Sampson & Baldwin, iron dealers, of this city. The New York and Harlem Railroad Company give notice in another column that the couponsos their first mort. gage bonds, will be paid as the treasurer's office, on and after November 2. the Underbill Edge Tool Company, of Nashua, N. H, doing business in this city, made an assignment of their property on Saturday to the Indian Head Bank of Nashus The statement of John Faroum & Co., at the meeting of their creditors, was not no satisfactory as was expected. It eir debts are $2,200,000, their assets are $2,900,000, la which are inolu tei $1,500,000 of suspended paper and over drafts. or the debts, $250,000 are secured by colla terals that are included in the assets. Their assets also in cluie $810,000 in goods. They propose to make up their accounts to the 1st of December, and to pay in ten instal ments of D. 12, 15, 18, 21, 24, so, 83, 42 and 68 months. The firm of D. 8 Brown & Co. propose to pay five cents on the dollar in cash and renew the balance for 6 months. The arrangement relative to the redemption of Eastern money has been completed, as will be seen by the an nexed official circular:METROPOLITAN BANK. New ESGLAND MONEY - This back will take on deposit at N per ัะตะด: discount all New England money which is received at the Suffolk Bank, Beston-(this, for the pre seni, excludes all Rhode Island money)-paying for the net proceeds the day a ter It is received and counted by this cank, re erv ng the right to reject n large or unusual amount or any one bank. No bank can draw on account or its remittance of New England money will the day after n is went forward. Interest on your ace unt will casse on the Slet Inst. GEORGE L. SENEY, Cashier. The last line of the circular is an announcement that the Metropolitan has concurred in the arangement, now adopted by the majority of the banks, declining to receive deposits on interest. Annexed is a list of the Eastern bank notes not taken on deposit prder the

15. October 22, 1857 The Davenport Daily Gazette Davenport, IA
Article from The Davenport Daily Gazette, October 22, 1857

Click image to open full size in new tab

Article Text

Financial Indelitigence. NEW YORK Oct. 20. Money continues stringent Best class paper still selling for 8 per cent per month Business however continues to revive gradu ally Specie stands at from 1 per cent to par, and has a downward tendency. The amounts held by our city banks is no less than ten millions. and compated with their liabilities, they are in a stronger position than they have been for years past. The Grocer's' Bank to-day voted to go into liquidation, and the Bowery Bank having for feited its rights under the banking law will likely have to follow the same course. It is rutuored that several of our banks are preparing for an early resumption of specie payment. The announcement in a morning paper of the suspension of Sampson & Baldwin iron merchants is ustrue. New ORLEAN, Oct. 20 The bank President have agreed to still take the certified checks of the Citizens Bank in payment of it. debt-. The Citizen- Bank redeem- it. circulation but not the checks of depositors. The banks lost over $2,000,000. ST. Louis, Oct. 20 The State Savings Institution has opened a depository for the currency of adjoining States. also New York and the New Eng land States, and the banks of Philadelphia, Pitt-burg and Baltimore. A large number of the heaviest merchants have advertised that they will receive currency at par. PHILADELPHIA Oct. 20. Messrs. Farnam, Kirkham & Co., dry goods merchants, suspended and ask an ex tension.

16. November 8, 1857 The New York Herald New York, NY
Article from The New York Herald, November 8, 1857

Click image to open full size in new tab

Article Text

DEFAULTING BANK OFFICERS. Defalcation of a Teller In the Grocers' Bank UBSTANTIALREASONS FOR A BANK FAILURE-FAST HORSES A FINE HOUSE. AND A BILLIARD TABLE THEDEFAULTERESCAPED,ETC A few days before the general suspension of the New York banks. the Grocers Bank was announced as sus* pended and Receiver was accordingly appointed to take charge of its affairs. When the general suspension took place, by some means the Grocers' Bank was among others permitted to resume its rations at the Clearing House and continued to meet its payments for several days. This however did not continue long and as was believed at the time, the hard times had broken up th business of the bank so the Receiv resumed his duties Whether as the cause or the consequence of the appoint ment of the Receiver, since he has entered upon hi duties the fact has been disclosed that Mr Geo A Clark the assistant Cashier and Paying Teller is a defaulter to the amount of about 68,000 At the time of the suspen sion, the Directors suspected from the state of affairs that there was some other cause besides the hard times, but had no positive clue. At the stated monthly examination the balance sheet of the assistant Cashier has been peatedly made to correspond with the deposit account the entries being properly footed up By means of false entries and certified checks it now appears that Mr. Clark has made his balances correspond with the general balance sheet at the beginning every month, his entire charge the books his department afford. ing him every facility At present he appears to have on been his operations but carrying for months, though it is possible he might have been pursuing the same plan since his first connection with the bank 1851, more than six years since About ten days since, Clark leave obtained in absence on the country plea of needing rest from the exciting labor the past weeks. and until that the defalcation was known. It is said that he has gone New Jersey. and that the officers of the to his whereabouts The papers have already been placed in the hands of the District Attorney action. Mr. Clark the son of Ex Mayor Aaron Clark, and young clerk the North River Bank and left there the of the mation Grocers' offered Bank being con more position He always sidered an exceedingly smart energetic business man, have always before been found note Directors the to that stating been had and deceived stated friend; about by worth of notes and checks of personal friend which proved also left the latter true may account it measure for the disposition that not supposed with him. amount property standing doubtless name though there enough to save the bank from loss His bondsmen which $10,000, considered good Mr. Clark had rather showy and three or four children. has and small from house in large and splendid brown stone which he has built Clinton street, Pacific His living rather fast. and of his gantly on salary not $2,000 been have $10,000 annum. He had fine stable and fast often the road, sometimes His betting was ished fine style, including table. Himself and family always dressed well, spent This money that his rumor who father is reputed wealthy had loaned him money He was not deeply debt can be ascertained One of his creditors said ho eemed him his safest customer and he had generally reputation of being prompt paymaster. The report that he was deeply in debt Mr Gurney untrue he only owed him few hundred dollars The defalcation must hasten the closing up of the business of the bank A Two Hundred Thousand Dollar Defalcation In Philadelphia. ATTACHMENT OF THE PROPERTY OF MR. ALLIBONE, LATE PRESIDENT OF THE BANK OF PENNSYLVANIA. OUR PHILADELPHIA CORRESPONDENCE PHILADELPHIA Nov 7, 1857. Although the desperate condition of the Bank of Pennsylvania has been matter of public notoriety for some weeks past, the community was not quite prepared for the developements of to day. This morning, in the Court of Common Pleas, an attachment was asked for against the property of certain well known brokers in this city who, it alleged, have been concerned with Mr Allibone, the late President of the Bank of Pennsy Ivania, in using the funds of that broken down institution. The following is a correct abstract of the affidavit upon which th reattachment is issued:William Geisse Thos N Newhall William P Newlin, Arthur H Howell, Lawrence Lewis Franklin Fell John Taylor Moncure Robinson. Wm Lyttleton Savage, Wm Patterson being severally sworn affirmed, one and say they are officers viz of the poration styled the President Directors and Company of the Bank of Pennsy Ivania which was duly created by and now exists under the laws of the State Pennsylvania, and for and on behalf of said Company they further say and depose that as they have ascertained, Thomas Allibone (late the President of said bank, justly indebted to the President Directors said bank the sum of two hundred thousand dollars and upwards. for money belonging to the said corporation which money the said Thomas Allibone had and received own use and which he has not returned or repaid to them. The affidavit then states that about the 20th of October 1857 he absconded from his usual place of abode for foreign country with design to defraud his creditors they believe, and that he has not left in this county or State money to pay said debts The affidavit upon which the application for the attach ment was based was signed by the new President of the bank Col Wm C. Patterson and by the majority of the Directors. Some of the latter have been charged hitherto with being the special pets and accomplices of Mr Allibone. Rumor says that some of them have grown rich upon the spoils of the bank, obtained through the agency of the late President The affidavit certainly does not mince matters. but plainly charges Mr Allibone over with to a foreign country absconding $200,000 of the funds. which the deponents believed he intended defraudinstitution the ing Some of the signers of the affidavit are relatives of the autonishlate President, little excites and their course no ment in the business community especially when the fact of their previous conduct to Mr Ailibone is taken into consideration When Mr was about setting out for Europe most prodigious hurry the following corres pondene took place between him and the Board of Direc tors the bank:'PHTT Oct DELPHIA 1857 17. "TO THE BOARD OF DIRECTORS THE BANK health continues that infirm find to be me to perform the duties President your bank My physician has urgentiy pressed on me the necessity of resigning and to endeavor, by travel and absence from excitement. to restore my shattered health My lars interest in the bank as a stockholder would induce me remain and work with you. was my of health such as to render it possible for me to do so. Incessant labor and the excitement of the past few have EO prostrated me that am constrained to leave you. For all of you entertain the most affectionate regard You will please receive this my resignation as President of the bank Yours, very THOS ALLIBONE Whereas Thos. Allibone Esg having compelled by serious illness. under the advice his physician to this of his bank, tender Resolved, The Board of Directors, in accepting the express their feeling of deep regret parting with Mr. Allibone. and sympathise with him that the cessity exists: trust that kind may speedily restore him usual health and to the enjoy. ment long happiness and usefulness. minutes. from Extract October 17 1857 JNO D TAYLOR Sec'y have since above Three the weeks but place even short that period has been amply sufficient to bring about wonderful is It sentiment shrewdly change that suspected the directors had it over again they would their of sympathy unwritten especially been pretty clearly settled that Mr Allibone's ham strongly suspect that the de action of to-day has been instigated by Col Patter the new President of the bank Col. thorough going business man, who never trifles over what undertakes. probable. too that carefully application for an injunction against the Board of Direct may have had something to with the denoumment The effect of this supposed injunction. if urged, would to hold the directors liable for losses sustained the stockholders through any improper use of the funds the bank This injunction has not yet regularly filed. and great care has been taken keep from the knowledge of the public The stock of the bank was

17. November 9, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, November 9, 1857

Click image to open full size in new tab

Article Text

THEDEFALCATION IN THE GROCERS' BANK. Within the last few weeks the fact has become known that Mr. George Aaron Clark, assistant cashier and paying teller of the Grocer's Bank, has embezzled the funds of that institution to the amount of $68,000. Atthe time of the general suspension of the New York barks, it was announced that the Grocer's Bank had stopped payment and closed its doors. A receiver was accordingly appointed. When the general suspension took place, for some reason or other, the Grocers' Bank, among others, was permitted to resume operations at the Clearing-House, and for several days the institution continued to meet its payments. Its operations, however, were of short duration, and it was believed at the time that the hard times had broken up the business of the concern, and the receiver accordit gly resumed his duties. In overhauling the books of the institution the fact become known that some $68,000 of the funds were non est, and suspicion immediately fell upon Mr. Clark as the defaulter. At the stated monthly examination, the balance sheet of the assistant Cashier has been repeatedly made to correspond with the deposit account, the entries being properly footed up. By means of false entries and certified checks, it now appears that Mr. Clark has made his balances correspond with the general balance

18. November 12, 1857 The Washington Union Washington, DC
Article from The Washington Union, November 12, 1857

Click image to open full size in new tab

Article Text

ANOTHER DEFAULTER. The New York Post says: "An examination into the affairs of the Grocers' Bank, since it passed into the hands of the receiver, has disclosed the fact that Geo. A. Clark, assistant cashier and paying teller, is a defaulter to the amount of about $68,000. Mr. Clark had entire charge of the books of his department, and, by means of false entries and certified checks, he managed to make his balances correspond with the general balance sheet at the beginning of every month. It is not known how long he has been engaged in these embezzlements, but probably for several years. He had been engaged in the bank in the same capacity from its commencement in 1851, and possessed the entire confidence of all who knew him. His defalcation was not discoverod until since his departure for the country," soine ten days since, on the plea that he needed rest after the exciting labor of the last few weeks."

19. November 20, 1857 Wilmington Journal Wilmington, NC
Article from Wilmington Journal, November 20, 1857

Click image to open full size in new tab

Article Text

The Latest New York Bank Defalcation. We have heretofore stated that an officer in the Grocers' Bank in New York had been charged with being a defaulter for $68,000. This bank suspended a few days before the general suspension and was placed in the hands of receivers. The New York, Herald gives the name of the officer as Clark, the assistant Cashier and paying teller, and adds: At the time of the suspension the directors suspected from the state of affairs that there was some other cause besides the hard times, but no positive clue. At the stated monthly examination the balance sheet of the cashier has been repeatedly made to correspond with the deposit account, the entries being properly footed up.By means of false entries and certified checks it now appears that Mr. Clark has made his balances correspond with the general balance-sheet at the beginning of every month, his entire charge of the books in this department affording him every facility. At present he appears to have been carrying on his operations but for eighteen months, though it is possible he might have been pursuing the same plan since his first connection with the bank in 1851, more than six years since.About ten days since Mr. Clark obtained leave of absence in the country on the plea of needing rest from the exciting labor of the past few weeks, and it was not until after his departure that the defalcation was made known. It is said that he has gone to New Jersey and that the officers of the law have a clue to his whereabouts. The papers have already been placed in the hands of the district attorney for his action. Mr. Clark is the son of ex-mayor Clark, and a young man-not over 37 years of age. He was formerly a clerk in the North River Bank, and left there at the formation of the Grocers Bank, being offered a more remunerative position. He was always considered an exceedingly smart, energetic business man, and his accounts have always before been found correct. He left a note to the directors, stating that he had been deceived by a friend ; and it is stated that about $50,000 worth of notes and checks of a personal friend of his, which proved to be worthless, were also left. If the latter statement is true it may account in a measure for the disposition of the money, as it is not supposed that he has a large amount with him. The amount of property standing in his name is not ascertained, though doubtless there is not enough to save the bank from loss.His bondsmen are sureties for $10,000, which is considered good. Mr. Clark had a rather showy wife and three or four children, and has within a year past moved from a small house in Pacific street, Brooklyn, to a splendid brown stone house, which he has built in Clinton street, near Pacific. His living was considered rather fast, and many of his acquaintances wondered how he could live SO extravagantly on a salary not varying far from $2,000 per annum. Yet his expenses have been estimated at, at least, $10,000 per annum. He had a fine stable and fast horses, and was seen often on the road, sometimes betting. His house was furnished in fine style, including an expensive billiard table. Himself and family always dressed well, and spent considerable money. This was explained by a current rumor that his father, who is reputed to be wealthy, had loaned him money.He was not deeply in debt, as far as can be ascertained. One of his creditors said he esteemed him his safest customer, and had generally the reputation of being a prompt paymaster.

20. December 10, 1857 Bellevue Gazette Bellevue, NE
Article from Bellevue Gazette, December 10, 1857

Click image to open full size in new tab

Article Text

THE DEFAULTING BANK OFFICER.The defalcation of about $70,000 by George O. Clark, Paying Teller of the Grocers' Bank, of New York, was discovered in the examination of the affairs of the bank since the appointment of a Receiver. When the bank suspended the Directors thought there was a hidden leak somewhere, and the examination of the books showed that the Paying Teller had, for the period eighteen months, been abstracting large sums from the bank and covering them up by false entries. He prevented a detection by the Directors at their stated monthly examinations, by making the ballance-sheet on the last day of each month correspond with the deposit account, and having his entries foot a corresponding amount. Clark has absconded. leaving behind the notes and checks of a friend for about $50,000, which proved to be worthless.

21. February 1, 1858 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, February 1, 1858

Click image to open full size in new tab

Article Text

S. Draper's regular daily sale of bonds and stocks will take place on Monday, the 1st of February, at half-past 12 o'clock, at the Merchants' Exchange. Albert H. Nicolay's regular daily auction sale of stocks and bonds will take place on Monday next, February 1, at 121 o'clock, at the Merchants' Ex change. Money is abundant. to a point of uneasiness, on the part of those who are fortunate or unfortunate enough to have large sums at command. Paper of the highest grade finds ready sale in the open market at from 7 to 8 โ‚ฝ cent, and is taken without hesitation at the banks, and signatures of acceptable character pass with about equal facility at from 9 to 10. These are the only of which afford a fair of names classes market-distrust paper many formerly criterion taking of the fair rank in the market; contracting the circle of money negotiations to narrow limits, except at figures which compare with panic rates, and which are evidences of the shock which credit has received, rather than of the true condition of the Money market. On call the supply is excessive, at rates ranging from 4 to 7 & cent, according to the standing and facilities of the borrower, and the character of the securities offered on hypothecation. The banks are increasing in specie and deposits, and gradually extending loans; taking more freely of good stock collaterals, for lack of desirable business paper. Prospectively, the evidences appear to foreshadow even more favorable rates for the borrower, taking the rapid progress of money accumulation in Enrope into due consideration, and there seems to be little probability of a more active demand for money, until trade throws off its profound apathy, and calls capital from its points of concentration. We understand that, although the Harlem loan has made some progress, $200,000 of the bonds have yet to be subscribed for by the public before it can be conridered certain that the whole amount required will be secured. The stockholders of the Saratoga and Whitehall Railroad Company are requested to meet on the 10th of February, instead of the 1st, as erroneously printed by us. The Grocers' Bank of this city, we understand. will resume business on Monday, February 1, and will pay all demands upon presentation. We annex a comparative statement of the Foreign Imports at New-York for the week and since Jan.1: 1857. 1858. 1856. $721,511 $ 2,571,535 $ 32,801,779 Dry Good 1,083,459 1,180,211 1,194,811 General Merchandise $1,804,970 $3,981,990 Total for the Week $3,766,346 5,085,644 11,108,811 13,264,295 Previously reported $15,090,801 $6,890,614 $17,030,641 Since January 1 The following is a comparative statement of the Exports (exclusive of specie) from New-York to foreign ports for the week and since Jan. 1: 1857. 1858. 1856. $888,236 $1,419,697 $1784,740 Total for the week 2,825,488 1,930,887 1,904 031 Previously reported $3,323,728 $3,715,627 $3,213,724 Since Jan. $8,200,187 Decrease of Imports thus far this year 110,004 Increase of Exports thus far this year $3,310,191 In favor of this country We have besides shipped about $1,400,000 in specie this month more than in January last year. The export of specie from this port for the week ending this day, and for the year 1858, was 83 follows: $85,000 00 Schr. Mary Alice. Ponce, American Gold 1,575.00 Ship Courier, Cape de Verde, Doubloons 18,000.00 Steamer Black Warrior. Havana, Spanish Gold 2,500.00 Ship Hotspur, Hong Kong, Mexican Dollars 57,075 00 Total for the week 4,638,543.59 Previously reported Total 1858 $4,425,618.59 The following is a comparative statement of the value of certain exports from the commencement of

22. April 16, 1858 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, April 16, 1858

Click image to open full size in new tab

Article Text

The State Canals are to be opened on the 20th April. The business of the Clearing-House was $19,591,619. The Metropolitan certificates are reduced to $245,000. At the meeting to-day of the Cumberland Coal Company, Mr. E. H. Miller was elected a Director, and Mr. F. Bloodgood, who resigned yesterday, was reelected, vice Mr. E. W. Hinman, resigned. The amendments to the charter of the Company author. izing issue of a preferred stock, and also releasing the Company from the obligation to mine and ship annually a given amount of ecal, were ulanimously accepted. A circular embodying the plans of the Company is in preparation. The new parties who have taken hold of the affairs of this Company feel confident that with the increasing demand for this coal for locomotive and other steam purposes, and the reduced cost of transportation by canal and railroad, they can work the mines of the Company profitably. The bill in regard to the Mechanics' Banking Association, North River, East River and Grocers' Banks of this city, has become & law. This permits the reduction of their capital, and removes any objections which may have been raised by reason of their liabilities having been paid through Receivers. The annual meeting of the stockholders of the New Jersey Central Railroad for the election of nine Directors to serve for the ensuing year, will be held at Elizabeth. port on Monday, May 3. Three per Cent Treasury Notes are not plenty and are wanted for Custom-House purposes at 20 a 30c. โ‚ฝ $100. The Four @ Four and & half per Cents are worth about par, and the Five per Cents P cent premium. The cargo of the J ohn Gilpin, the loss of which ship we announ xed yes'erday, consisted of 6,394 bble., whale and 395 bble. sperm oil, and 227,693 to bone, valued at over $300,000. In COD. sequence of this wieck, bone has advanced, with large sales, 5c. t 1b. The movement of the Banks in the four principal cities of the Union, in which weekly reports are made, as shown by their last statements, is as follows: