Bank of Sandusky (Sandusky, OH)

Episode Information

Episode UID
736592790545
Episode Type
Run → Suspension → Closure
Bank Type
state
Bank ID
73659279 hash
Start Date
May 8, 1845
Location
Sandusky, Ohio (41.449, -82.708)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
80d4984acedcbecc

Response Measures

None

Description

The bank experienced a panic/run in May 1845 which it survived, but it eventually failed and suspended in early 1849.

Events (4)
1. May 8, 1845 Run
Cause
Rumor Or Misinformation
Cause Details
Rumors of connection to the failed Bank of St. Clair and the Smiths of Cleveland.
Random Run
Yes
Random Run Snippet
rumor that Smiths were connected with Bank of Sandusky; panic subsided, banks resumed receiving notes
Measures
The bank continued to redeem in specie; brokers eventually resumed purchases at lower discounts.
Newspaper Excerpt
all holding the notes of these banks seemed anxious to get rid of them, by deposit in bank or otherwise. Some of the banks refused to receive them, and the panic became general.
Source
newspapers
2. January 1, 1849* Run
Cause
Bank Specific Adverse Info
Cause Details
Apprehensions of failure as charters were nearly run out.
Newspaper Excerpt
the circulation has been run in within a short time to the amount of 8275,000.
Source
newspapers
3. January 5, 1849 Suspension
Cause Details
Charter expiration approaching and heavy circulation redemption (run) immediately preceding the failure.
Newspaper Excerpt
A slip from Thompson's Bank Note Reporter announces the failure of the Banks of Sandusky and Norwalk, Ohio.
Source
newspapers
4. June 14, 1849 Other
Newspaper Excerpt
The bills of the Banks which have broken during the last year are selling as follows: ... Bank of Sandusky, Ohio, 37 cts.;
Source
newspapers

Newspaper Articles (9)
1. May 13, 1845 American Republican and Baltimore Daily Clipper Baltimore, MD
Article from American Republican and Baltimore Daily Clipper, May 13, 1845

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BANK PANIC. There is quite a panic existing among the Banks of Cincinnati on account of the failure of the Bank of St. Clair, at Detroit, and its agent at Cleveland. On Thursday the notes of the Bank of Sandusky were refused by the Cincinnati Banks. The Banks of Norwalk and Wooster were also in bad repute, from the same cause. The Bank of St. Clair had about $300,000 in circulation at the time of its failure, which is now almost valueJess. Its agent, at Cleveland, Mr. Smith, was also doing an extensive business.

2. May 14, 1845 Richmond Palladium Richmond, IN
Article from Richmond Palladium, May 14, 1845

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Sandusky, Norwalk and Wooster Banks. The Cincinnati Gazette of the 9th says that tho holders of the notes of the above Banks bc. came more and more alarmed yesterday. There was quite an excitement during the day, and men. pressed forward to sell or otherwise convert their notes. The broker who had the courage to buy the day before, continued his purchases yesterday at an increased discount, while the Trust Co., as heretofore, took in the Wooster notes of all do. nomination, and those of the Sandusky and Norwalk Banks less than five dollars. The other Banks received the Wooster notes. Wo know no reason for discrediting the notes of these Banks, nor do we believe any exists; consequently the broker, who had the courage to buy, will reap all the profit of this panic, and the people bear the loss. The Gazette of the same date received a Norwalk paper of the 6th, from which it appears that there is no ground whatever for alarm concerning the notes of that Bank on account of any connection of the Smiths with it. Tho Norwalk Reflector says: BANK OF NORWALK.--A report having been put in circulation that Jesso Smith was a largo stockholder in this Bank, quite a number of the holders of its notes, yesterday presented them to the Bank and received the specie for them. We are authorized by the Cashier to state, that not one dollar of the stock of this Bank is owned by Mr. Smith. that he has no interest whatever in the Institution, and that his failure will not affect its solvency in the least. This Bank, we have not the least doubt, is abundantly able to redeem all its liabilities when called upon and holders of its notes need not bo alarmed a. bout their redemption. The Gazette of the 10th states that the Bank note panic has subsided, and all is quiot again as usual. The Banks now take tho notes of all denominations of the Banks of Sandusky. Norwalk and Wooster. The result is what might have been predisted. Holders of small amounts of notes have been frightened into the sale of them at a loss. for the benefit of the broker purchasing. In the present case only one broker purchased the discredited notes. He dealt fairlysaying to all, that he believed the notes good, but if they were determined to sell, ho would buy; and he has probably made a handsome sum by it. It way a bad move, on the part of some of our banks, to reject the paper. Under the new Bank Law, the Banks will be required each to take the notes of all the other Banks of the same kind: thus, the Branch of the State Bank must tako the notes of all the other branches. The Independent Banks must take the notes of all the other Independent Banks while they continue to pay specie. This will prevont these panics, and make the circulation good to the holder. We hope soon to have a currency of these new Bank notes.

3. May 15, 1845 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, May 15, 1845

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Increase 52,311 55 The Detroit brokers are paying 50 to 6212 cents per dollar for the St. Clair money, and the merchants are taking It at fifty cents. The panic at Cincinnati in relation to the Bank of Sandusky and Norwalk has subsided. and the Banks were receiving the notes of these institutions. RATES OF DISCOUNT AT THOMPSON'S OFFICE, 52 WALL-ST. Uncurrent Money. Broken Bank Money.

4. May 15, 1845 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, May 15, 1845

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COMMERCIAL AND MONEY MATTERS. (For Commercial and Money Matters, see Last Page.) STOCK EXCHANGE-Second Board-May 14. $40,000 Penn 5s 73 81 96 Vicksburg 50 Nor & Wor 45 742 75 Canton Co 75 do 742 75 Stonington 860 371 WEDNESDAY P. The upward tendency of the Stock Market continues, and the feeling to-day was very buoyant. The bulls have the advantage just now, and seem disposed to keep it. The fancies improved 1 to I per cent. The demand is considerable for foreign bills, and the rates tend upward. Sterling we quote 93 a 92: Francs 525; Amsterdam 397 a 40, Hamburg 351 a 352 Premen 79. The supply of bills is moderate. The Money Market is well supplied, and the rate of interest is 5 a 6 per cent. Mest of the loans are made at 6 per cent and good short paper is done at the same rate. The receipts of the Mehawk Railroad continue to be larger than last year, and promise to make the aggregate of the years business large. The receipts of the week ending May 7th, were Passengers $1,068 136 35 Freight Total $1,804.35 1,463 Same time last year Excess in 1845 S341 35 The receipts in the same week of 1843 were $1,415. The receipts on the Tide Water Canal to 10th $23,127 72 May, 1845 20.816 16 Do. to same date lost year Increase $2,311.56 The Detroit brokers are paying 50 to 6212 cents per dollar for the St. Clair money, and the merchants are taking it at fifty cents. The panic at Cincinnati in relation to the Bank of Sandusky and Norwalk has subsided. and the Banks were receiving the notes of these institutions. RATES OF DISCOUNT AT THOMPSON'S OFFICE, 52 WALL-ST. Uncurrent Money. Broken Bank Money. 20 Bank of Osweco Eastern bankable in Bost tal 20 1 Commercial, Oswego Albany, Troy, Sch. &c 20 Western New-York in Commercial, Buffalo 20 No Clinton County Jersey 20 Watervielt 1/4 Philadelphia 30 Baltimore United States, Philadel 25 1 Brockport, N. Y Virginia 121 Hamilton, N. Y 2A Ohio, Indiana and Ky 20 2 Wisconsin and Iowa Bank of Lyons 3 Bk. of III. at Shawneetown 65 Michigan 50 14 Illinois State Bank N. Carolina & Georgia 75 I South Carolina Union, Florida 11 Southern Life and Trust 85 Mobile 14 New-Orleans Thompson's Bank Note Reporter for this week contains a valuable directory of Wall-st, with both the new and old numbers. The total Canal Tolls received from the commencement of navigation to the 8th May have been as fol1845. 1844. lows: 20 days. 23 days. $323,819 $346,837 On all the canals 115,859 123,490 At Alb'y & Troy (on up freight) 230,978 $200,329 At all other offices on down do The daily average of the receipts in each year for the time stated is as follows $15,079 $16,190 On all the canals 5,037 6,174 On up freight $10,016 10,042 On down freight Showing a decrease for the 23 days of $1,137 per day, on merchandize or up freight, and an increase of S26 per day on down freight. The time of opening of the books of the Montreal and Portland Railroad is fixed for 30th June. $1's of Eagle Bank, Boston, altered to fives, exceedingly well done, are in circulation. The genuine five's have a spread eagle, and cupids sporting In a flower arbor, whereas the one's have the eagle without the cupids and arbor. Counterfeit 5's of the Madison Co. Bank have been detected. Letter A.J. reneyck. President. Chas. D. Miller. Cashier. The whole bill has a scratchy appearance, and is wholly unlike the genuine fives of that Bank, the centre vignette of which is a female resting on an anchor, the right, a drove of cattle, and the left, the coat of arms of the State. The Cleveland papers state that the Smiths have paid most of their depositors, and are engaged in arranging their assets. The failure both of the St. Clair Bank and the Smiths are regarded as very bad ones. The Evening Post has the following paragraph. It is probably some ruse of the bears in the stock: We understand that the trustees for the boxdholders of the Norwich and Worcester Railroad Company, to whom the income of the road is pledged, feel themselves called upon to interfere and prevent any dividend or disbursement a ntil a sufflcient sinking fund is provided for the payment of the bonds."

5. May 24, 1845 Iowa Territorial Gazette and Advertiser Burlington, IA
Article from Iowa Territorial Gazette and Advertiser, May 24, 1845

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The Money Panic in Cincinnati.-The Cincinnati Atlas of the 8th, says: In consequence of the failure of the SMITHS, who are said to own the Bank of St. Clair, Michigan, to meet the payment of certain drafts drawn by them on New York, the notes of the Bank of St. Clair, have been refused by our merchants and others, and have been subjected to a heavy discount. A rumor also became current in the city yesterday, that the Smiths were in some way connected with the Banks of Sandusky, Norwalk and Wooster-and all holding the notes of these banks. seemed anxious to get rid of them, by deposit in bank or otherwise. Some of the banks refused to receive them, and the panic became general. The brokers continued until after business hours to receive them at a aiscount of 10 per cent. We could not ascertain that there was any substantial reason for discrediting the notes of our Ohio banks, and think this panic will only prove a havest to the brokers. There is no information that the banks have failed, or refused to redeem their notes in specie which we believe they are better able to do than the banks of Indiana, whose notes are scattered all over the whole Mississippi valley. While remarking upon this subject, we feel ourselves bound in justice to notice the fact, that the Citizens' Bank, which paid out in the morning notes which were subsequently discredited, promptly exchanged them during the day for other current notes,

6. January 6, 1849 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, January 6, 1849

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COMMERCIAL AND MONEY MATTERS For sales of Stocks, &c. see Fourth Page FRIDAY, Jan. 5-P.M. The Stock market was heavy to-day, and all descriptions fell off at the First Board. After the session, and at the Second Board, there was a better feeling, and the quotations advanced Treasury Notes recov. ered from 74 to 8. New Haven sold at 944, and Erie at 614. In Sterling there is as yet no movement, and the rates are-Sterling 8j @9. France 5 261@5 25, Guilders 404@404 Rix Dols 78f@79. Marks Banco 35 a 35). There is but little doing to day in Freights Grain is 71@71. Flour 2s 6d nominally. Engagements of Corn, in bags, at 6jd; 500 bales Cotton at 5-32d, Id asked Heavy freight 27s 6d. To Glaegow Cotton was engaged at Id, and to Autwerp. de ₽ lb. A slip from Thompson's Bank Note Reporter announces the failure of the Banks of Sandusky and Nor. walk, Ohio. Apprehensions have been felt for some time that these failures would occur, and the circula. tion has been run in within a short time to the amount of 8275,000. The Sandusky and Norwalk are two of the seven remaining chartered institutions, and their char ters are nearly run out. Their condition in November last W88 as follows:

7. June 14, 1849 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, June 14, 1849

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The main increase is in local travel, a portion of which is to be ascribed to the opening of the Nashua connection. The freight item has also improved—all of which is evidence of a sound improvement in the condition of the Company. The sale of surplus dépôt lands at Worcester to the Worcester and Boston Road for $58,000 has enabled the Company to pay off a considerable amount of debt. The bills of the Banks which have broken during the last year are selling as follows: Bank of Norwalk, Ohio, 50 cts; Bank of Sandusky, Ohio, 37 cts.; Canal Bank, Albany, 90 cts.; Bank of Wooster, Ohio, 20 cts.; New Hope Delaware Bridge, 20 cts; Atlas Bank, real estate notes, 70 cts. N. Y. stock notes, 95 cts; Erie Bank, Pa. 85 cts.; Hamilton, R. I. 25c. We annex a list of the latest counterfeits, from Thompson's Bank-Note Reporter: Threes, on the Mechanics' Bank, of New-Haven—vignette, three female; Tens, on the Bank of Waterville, N Y—vignette, Declaration of Independence; Tens, on the Camden Bank, N J; Tens on the Tolland County Bank, Conn; Fives, on the Troy City Bank, Threes, on the Camden Bank, N Y; Threes, on the Bank of Westfield, N Y; Tens, on the Claremont Bank, N H; Threes, on the Stamford Bank, Mass; Threes, on the Otego County Bank; Fifties, on the State Bank, Newark; Twenties, on the Cumberland Bank, Md; Fives, on the Troy City Bank; Twenties, on the Stark Bank, East Bennington, Vt; Fives, on the Franklin County Bank, Malone, N Y—altered from Ones, by the pasting operation. Hon. Jas. K. Moorhead has been elected President of the Cincinnati and Louisville Telegraph Co. The Stock market is running upward at Philadelphia as well as here. Almost all descriptions are in speculative demand. The Governor of Connecticut has signed the bill chartering the Hartford County Bank. The Farmers' Bank of Bridgeport has passed both Houses.

8. January 31, 1850 Burlington Hawk-Eye Burlington, IA
Article from Burlington Hawk-Eye, January 31, 1850

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Just as we expected!!! When our Low Water neighbers turned out Financiers, and made a futile effort to run a tilt gainst Clark's paper, and read puerile lectures on currency to their readers, we knew they must render themselves, and the whig party even, in a measure, ridiculous. The aim of the Whig party should be to establish in our State a banking system, with all checks and safeguards necessary to secure entire solvency and proper management. As the experiments heretofore made seem to indicate, all expedients have failed, and the solvency of banks has seemed to be the result of honest and judicious management, and not legislative restriction. If there be any exception, it is in New York. The State Branch system of Ohio never has and never will have the entire confidence of financiers. Whether the banks of that State are good or not, nobody can tell here or there. If any one personally knows the managers he can form an opinion satisfactory to his own mind, but after all, actually knows nothing. And yet the bulk of the currency of Iowa is Ohio paper. How much tter-would be a currency of our own, under our own control? The Keokuk Register published a statement of the condition of the Ohio Banks-as they said-to "head the advocates of Clark's paper !" This statement shows that the immediate liabilities of those banks exceed their immediate means $7,022,131, and that neither the editors at Keokuk nor the people of Ohio know any thing about the actual value of Ohio Bank paper. They show by their statement that their immediate means are not sufficient to meet their liabilities. But say these astute financiers of the Keokuk Register-we took our statement "from the Cincinnati Gazette-the oldest and most influential Whig paper in the State-the editor of which remarks, 'that the Banks of no State in the Union are stronger and more impregnable.' The fact that their immediate liabilities exceed their immediate means seven millions and more, does not prove to be true, what the Gazette says as to the solvency of these banks; but the fact that the oldest Whig paper in Ohio says so, satisfies the financiers of the Regis. ter, that such is the fact. Now weare pretty much of the same opinion-but for a very different reason. We do not think, with the Register, that the statement proves anything, except the inability of the Ohio Banks to pay; but when the editors of the Cincinnati Gazette assure us that we may have confidence in Ohio Banks-we are disposed to contide in the editors of that paper, because we believe they are honest and well informed. So in regard to Clark's paper. Men, as honest and well informed, assure us, and give us confidence. We cannot descend to the slang of the Register. We desire to reason and be met in the same way.If "billingsgate" suits better the appetites of the readers of the Register, we can forgive it. But in justice to Clark & Co., we must copy one remark of the Register, as follows make no objection whatever to the regular business of Clark & Co., in the Exchange and Broker line; that is entirely legitimate, and had they confined their operations to that, no one would have just cause of complaint." So far as we have been able to ascertain, the business of Clark s Co. in this place, has been, wholly confined to the business of buying and selling, of exchange, and to notes of foreign banks. We do not know of a single loan-nor, do we believe one to have been made. It is regretted by business men that their paper cannot be borrowed. And the reason why it cannot, is owing to the fact that it is worth 1 per cent. more at St Louis, than any paper in circulation in Iowa, (except Missouri Bank,) and will therefore return upon them as fast as issued. Is this the case with Ohio paper ? No! It is usually sent here in greatest abundance just before a failure as all know, who remember the rotten concerns-the bank of Cincinnati-bank of Gallipolis-bank of Norwalk-bank of Sandusky-bank of Steubenville-bank of West Union--bank of Wooster--Farmersbank of Canton--Farmers Bank of New Salem--Farmers and Mechanics bank of Chillionthe-Farmers and Mechanics bank of Cinbank of Wooster-Jefferson bank of New Salem, etc., etc., etc. All of which, Ohio newspapers, called gou. until they were broken, and Iowa footed the bill! In conclusion, we recommend the editors of the Register to abandon the wind-mill operation of one Sancho Panza, and to devote their energies to the Rail Road from Dubuque to Keokuk. Which will be built "if they only have time" !!! Gentlemen, you must tarry in Jericho a little longer I I

9. April 16, 1851 The Spirit of Democracy Woodsfield, OH
Article from The Spirit of Democracy, April 16, 1851

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de Bank of Xenia do Bank of Zanesville do Beltnont Bank of St. Clairsville do Columbiana Bank of New Lisbon Commercial Bank of Scioto, Portsmouth Commercial Bank of Lake Erie, Cleveland do Farmers and Mechanics Bank, Steubenville do Franklin Bank of Columbus do Franklin Bank Cincinnati do Mechanics and Traders' Bank, Cincinnati de Muskingum Bank, Putnam BROKEN BANKS. 10 dis Bank of Hamilton 50 die Bank of Norwalk 70 dis Bank of Sandusky 80 dis Bank of Wooster All other banks either broken or fraudulent. COUNTERFEITS ON OHIO BANKS The following is a list or counterfeits on the vent banks of this State. We have deemed it: useless to publish the counterfeits on those banks whose charters have expired, or which have failed. Bank of Massillon-I's vignette steamboat and railroad cars, which is not on the genuine. 10's, new issue; unlike the genuine; vignette steamboat, s'oop and ship undersail City Bank of Cleveland, Cleveland.-3's, the fig ure 3, across the bill is not distinct. Clinton Bank of Columbus-10'saltered from2's easily detected. Commercial Bank of C'incinnati-3's letter A beautifully executed. and likely to deceive the best judges. In the centre of the nate a large figure 3, the medallion part of which, in the genvine. is beautifully wrought, whilst in the counterfeit, it is faint and but partially tormed. No. tice also, that the female upon the left of the bill in the genuine has a string of beads aronnd her neck, the counterfeit has no beads. The genuine notes of the old bank of this name having been mostly all redeemed, it will be best to refuse all notes dated previous to 1845. Dayton Bank letter A. regularly countersigned by the Register. It is half an inch shorter than the genuine The flourish over the letter A" should be the same as over "No." in the counterfeit it is just the reverse-engraving inferior to the genuine Franklin Bank of Zanesville, Zanesville.--3's, letter A; the figure 3 across the bill is very indistinct Lafayette Bank-1's vignette a steam boat; on the left an Indian holding up his right hand. 5's, letter C., badly executed. Cashr's name engraved whale face of the bill lighter than genuine 5's, let. B., vig signers of the Declaration of Independence, most beautifully engraved, and good paper. Gano, Cashier: Carlisle. President. Observe the head of Lafayette; in the genuine there is flourish or hair stroke, which is delicate and nearly touches the marginal border in which the head is encircled, whilst in the counterfeit it is coarse breaks off abruptly, and lacks the 16th of an inch of touching. Notice also the flourish above the word Cashiet which, in the genuine turos up and nearly touches the word Cincinnati whilst in the counterfeit it turns down. 10's. spurious They have for vignette view of the ocean, and an eagle resting upon a shell. 10's letter vignette an eagle standing in a car, wings expanded. The engraving good, but paper bad. The bank has DO such plates. 10' spurious. The vignette is two children seat ed, on the right end a full length portrait of Gen. La Fayette Payable to H. Peachen, Thomas String and other persons, and of different dates. The medallion head, with the word TEN stamped on it is very rough and indistinct. 10'3, letter B. dated January t 1845. W. w Gano, cash., with pale ink, G. Taylor Prest. Paper rather dark general appearance good. 20's, close imitation of genuine;let. B. dated Jan 4, 1844, pay C. Conahan: the toes of the female in the vignette imperfect, and the right hand of the Indian on the left end of the bill imperfect. 100's spurious. The genuine bills have ared back. Ohio Life Insurance and Trust Co. 5's, spuri. ous. Vignette a drove of cattle and a locomo. tive and cars in the distance. Sandusdy City Bank-3's letter A. Description about the same the description of the counter: feit 3's on the Commercial Bank of (Cincinnati. State Bank of Ohio-5's, engraving coarse. The bill contains the red back: and on the back of the genuine it reads State Bank of Ohio; on the counterleit it reads State of Ohio. 3's. 5's and 10's, alt from l's and 2's; hold them up to the light and the alteration can be detected 100's, none higher than 50's issued. 1's, letter D, imitation of genuine, engraving course; apparently lithographed; signatures lithographed; filling and date very pcorly done. 5's, letter B payable at the Union Bank, Massil lon. Paper and engraving course 5's, poorly done. The head of Franklin.on the left end of the bill is badly engraved and the left ayo is omitted 10's, vignette a man on the left and a female on the right; railroad cars in the distance on the left; large X in the centre of the vignette eagle at the bottom. The words State Bank of Ohio' larger than the genuine 10g, general appearance calculated to deceive, but ou examination and comparison with the genuing, will be found crude, and imperfect in detail. The prominent figures in the counterfeitare lacking in expression and careful minute, ness. Faces, hands, implements, &c., in the central vignette, are blurred and indistinct. Portrait of Gen. Harrison on left hand end, ob. scure and undecided; in the genuine the figure is distinctly relieved from the back ground, the coat showing dark in color against it The dog's head on the bottom part, between the signatures, is rough and coarse, and the scrolls containing the words "Mutual Liabily' on eith. side, are faint. and smaller than the genuine. The figure of Minerva on the right side, perhaps one of the best tests of comparison; in the genuine, the spear in the right hand of the figure, touches the letter T in Ten. above; while in the counterfeit it is midway between the letters T. and E: and on the breast-plate face is distinctly seen in the centre. The word Ten, under the figure, is pale and weak in sbad. ing, but dark and plain in the genuine. 1s, various branches: a good imitation. Detest by the star or_areola (on the back) at the end of the bar enclosing the words "State Bank of Ohio;" being set in the centre asquare block, which is not so in genuine Western Reserve bank-10's letter D. (Murray, Draper & Fairman's plate,) badly executed. Date unknown. The wor is Western Reserve Bank on the left, and 'Ohio' on the right margin; on the genuine notes they are the reverse. Signed Zalman Fitch. ono OTHER BANK PAPER. The principal part of the circulation in this see. ion of the State, in addition to Okio paper, is on he banks of Indiana, Kentucky, Western Penn2 ylvania, and Wheeling, Va., which passes.gener.