First National Bank (Saratoga Springs, NY)

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Episode Information

Episode UID
89300948
Episode Type
Run → Suspension → Closure
Bank Type
national
Bank ID
8930 national
Charter Number
893
Start Date
December 10, 1878
Location
Saratoga Springs, New York (43.083, -73.785)

Metadata

Model
gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
Short Digest
093cac3b6bc99453

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions, Capital injected, Full suspension, Books examined

Other: The bank initially received funds via telegram in response to the run but the directors decided to return the money and close as the panic increased.

Description

The bank suspended following a run triggered by the county treasurer's defalcation; while there were early reports of a possible reopening, later articles confirm it remained closed and officials were indicted.

Events (5)
1. March 14, 1865 Chartered
Source
historical_nic
2. December 10, 1878 Run
Cause
Bank Specific Adverse Info
Cause Details
Defalcation and flight of County Treasurer James H. Wright, with whom the bank had dealings and complications.
Measures
Directors sent telegrams for funds and initially received them, but later returned the funds and stopped business as excitement increased.
Newspaper Excerpt
A run began on the First National Bank on Tuesday and $10,000 were drawn out. On Wednesday it continued until altogether $50,000 had been drawn out.
Source
newspapers
3. December 13, 1878 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Heavy withdrawals during a run caused by the defalcation of the county treasurer and associated losses.
Newspaper Excerpt
The run which was begun on the First National Bank on Tuesday resulted to-day in the closing of that bank.
Source
newspapers
4. December 14, 1878 Receivership
Newspaper Excerpt
The directors of the First National Bank have requested the Comptroller of the Currency to appoint receiver.
Source
newspapers
5. May 20, 1880 Other
Newspaper Excerpt
John S. Leake... cashier... of the First National Bank... indicted by the United States Grand Jury for within abstraction and embezzlement of the funds
Source
newspapers

Newspaper Articles (17)
1. December 13, 1878 Evening Star Washington, DC
Article from Evening Star, December 13, 1878

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Article Text

Defalcation of a County Treasurer and Consequent Run on Banks. SARATOGA. N. Y.. Dec. 3.-The suspension and defaleation of Jame H. Wright, county treasurer, was made public last Monday. There have been serious reports of loss on the part or the banks and others growing out of complications with Mr. Wright as his bondsmen and endorsers. A run began on the First National Bank on Friday, and continued until $50,000 had been drawn out. After an examination of the assets by the directors, they decided them more than sufficient to meet all liabilities and leave a surplus. Telegrams were sent and funds came this morning in response thereto, bat as the excitement was increasing the directors concluded to return them and stop basiness. It is possible the bank may now go into liquidation. The shrinkage in the value or real estate hereduring the past five years has left a proportion of overdue paper, which has rendered this course advisable, A run began on the Commerclal Bank as soon as the First Nath II il stopped, and now that has also stopped.

2. December 14, 1878 New-York Tribune New York, NY
Article from New-York Tribune, December 14, 1878

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Article Text

TWO BANK SUSPENSIONS AT SARATOGA. SARATOGA, N.Y., Dec. 13. -The defalcation of James H. Wright, County Treasurer, was made public last Monday. There have been various reports of losses on the part of the banks. and others, growing out of complication with Mr. Wright. A run began on the First National Bank on Tuesday by the depositors, who drew out $10,000. On Wednesday they drew out $40,000 more. It was decided that the assets of the bank were more than sufficient to meet all liabilities. Telegrams were sent out and funds came this morning in response thereto, but, as the excirement was increasing, the directors concluded to return the funds and stop business. It 18 possible the bank may nov go into liquidation. The B rinkage in the value of real estate be Le during the past five years has left n proportion of overdue paper, which has rendered this course advisable. A run began on the Commercial Bank as soon as the First National stopped, and now that has also sropped.

3. December 14, 1878 The Sun New York, NY
Article from The Sun, December 14, 1878

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Article Text

e GREAT PANIC IN SARATOGA. DISASTERS FOLLOWING THE COUNTR TREASURER'S DEF ALCATION. The Last Two Banks: the Town Doors-One of Them Believed to be Hope. lessly Insolvent-Business at a Standstill. SARATOGA, Dec. 13 A perfect panic prevails here. The suspension and defalcation of James H. Wright, County Treasurer, was made public last Monday. Since then there have been various reports of losses on the part of the banks and others growing out of the complications with Mr. Wright as his bondsmen and endorsers. which have led to disastrous consequences. The run which was begun on the First National Bank on Tuesday resulted to-day in the closing of that bank. When the fact became known depositors swarmed into the Commercial National Bank, and the officers. knowing that they could not stand the drain. decided to suspond. The banks had a capital of $100,000 each, divided into 1,000 shares of $100 each. The First National Bank was generally considered sound. its stock selling at $120. The institution. however, is hopelessly insolvent, the directors admitting that the capital stock will be used up in making good the deficiency. The appointment of a receiver has been asked for. The Commercial Bank has not been considered extra strong since the Congress Hall failure, by which it lost $60,000. The officers claim that the bank is solvent and can resume if the people will attempt to restore confidence. The general opinion prevails. however, that the bank must go to the wall. Business is at a standstill, all of the merchants having deposits in one or the other of the banks. They are unable to purchase drafts or exchanges. and have no funds to meet maturing obligations. The town and village authorities are in a sad predicament. The Receiver of Taxes is required by law to make a deposit every twenty four hours. and consequently all the funds exceeding aretied up. There is not a banking institution left. every one of the four banks having closed in a little over a year. It is generally believed that the failures will cause several of the leading citizens to suecumb. Startling developments are promised. It is said that one of the directors of the Commereial Bank recently confo ssed judgement in favor of his wife for several thousand dollars. The most suspicious circumstance connected with the failure was the filing to-day of a bill of sale and chattel mortgages. amounting to $20,000. by Jacob H. Farrington and John S. Leake, directors of the First National Bank, in favor of John L. Barber, the First National Bank. Isane H. Farrington, Luteretia E. Farrington. and others. These instruments were dated Dec. 9 and 10. It is rumored that others of the directors have put their property out of their hands, and it is feared that there is good ground for the rumor. Ex-Congressman Marvin is President of the First National Bank, and will sustain a heavy loss. The receiver of the broken Union Savings Bank was to have sold a lot of securities to-morrow. but, as the funds of persons who could purchase them are tied up. the sale was postponed. Theamount due depositors in the Commercial Bank. at the closing of the bank to-day. was $163,305.68. to meet which there was a cash balance on hand of $19,196.18. At the First National Bank the amount due depositors is $145,640.34. and the cash on hand $6,843.07. The First National has paid out $68,000 since Tuesday, and the Commercial $31,000. The bank officials attribute the failures to the great shrinkage of values since 1873. There is reason to fear that some of the directors have been the best onsto;ners of the banks.

4. December 14, 1878 The Cheyenne Daily Leader Cheyenne, WY
Article from The Cheyenne Daily Leader, December 14, 1878

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Article Text

CONDENSED TELEGRAMS. The first national bank of Saratoga, N. Y., suspended. The crisis in the Italian cabinet not yet settled. The ministry of new South Wales has resigned. Spain proposes retiring d number of 'my officers on half pay. John Ruskin, the artist, will decline reelection to the Ilade professorship of fine art in Oxford university. The pension. bill appropriates $29,366,000. Admiral Jaurez is appointed ambassador from France to Spain. Russia will leave 50,000 men in Bulgaria, and concentrate the remainder of its army at Adrianople until a definite treaty with Turkey is arranged. Lieut. James H. Holbert, U. S. A., and author of several beautiful poems, died last Sunday night at Freeport, Ills., in his thirty-ninth year, of consumption. DATE

5. December 14, 1878 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, December 14, 1878

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Article Text

NEW YORK Death. NEW YORK, December 13. George W. H. Hopkinson, formerly superintendent of the first horse railway in Boston died yesterday. Gordon Grant, acting United States consul at Basle, Swizerland, died Tuesday, suddenly. Court Matters. General Butler announced the close of the plaintiff's case to-day in the suit of Whalen against General Sheridan. Butler objected to the admission of defendant's amendment to answer a complaint, having been amended two days after the trial commenced, but Judge Waliace, after a long argument between Butler and Beckworth, United States district attorney of Louisiana, decided to admit. Sentenced. In the court room previous to sentencing Dr. Bradford on charge of performing an illegal oper ation on Sarah Victoria Connors, a woman sprang to her feet and confessed she was the guilty party. The Judge paid no attention to this confession and sentenced Bradford to 14 1-2 years in State prison. Bank Matters. Owing to runs on the First National and Com mercial banks of Saratoga, caused by the alarm consequent upon the complications arising from the defalcation of county treasurer Wright, both closed their doors to-day. Personal. Stokes, Jim Fisk's murderer, is in New York, looking hale and hearty. He is interested in a patent pavement that is being laid in St. Louis, but is chiefly interested in a mine at Columbia, Nevada, and is going out there in January to live. Crops. A correspondent gives a gloomy picture of the condition of the Southern planter. He says that the cotton crop will not realize the cost of produc. tion, and that many of the large planters who purchased provisions, etc., to supply their colored laborers are unable to meet the demands for payment, and will be compelled to go into bankruptcy. Financial. It is reported that Representative Felton of Georgia wants the Mexican dollar made a legal tender equal with the dollars of the fothers. Mexice would rejoice in consequence, because it would then have an opportunity to pass off a bad ly stamped piece of silver, worth only eighty five cents for a hundred cents.

6. December 14, 1878 The New York Herald New York, NY
Article from The New York Herald, December 14, 1878

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Article Text

MORE CRIPPLED BANKS. SARATOGA, N. Y., Dec. 13, 1878. The suspension and defalcation of James H. Wright, County Treasurer, was made public last Monday. There have been various reports of loss on the part of the banks and others growing out of complications with Mr. Wright as his bondsmen and indorsers. A run began on the First National Bank on Tuesday and $10,000 were drawn out. On Wednesday it continued until altogether $50,000 had been drawn out. In the meantime Cashier Leake sent for his brother, for many years cashier of a bank in Troy, and had him make n thorough examination of the assets with the directors. They decided that the assets of the bank were more than sufficient to meet all liabilities and leave a surplus. Telegrams were sent and funds came this morning in response thereto, but as the excitement was increasing the directors concluded to return them and stop business. It is possible the bank may now go into liquidation. The shrinkage in the value of real estate here during the past five years has left a proportion of overdue paper, which has rendered this course advisable. A run began on the Commercial Bank as soon as the First National stopped, and now that bank has also stopped.

7. December 15, 1878 The New Orleans Daily Democrat New Orleans, LA
Article from The New Orleans Daily Democrat, December 15, 1878

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Article Text

Suspension of Saratora Banks. ALBANY. N. Y., Dec. 14.-The 1 First National Bank of Saratoga, although it claims to be solvent. suspended after a two days' run on it, caused, it is said, by rumored losses by the defalcation and flight of County Treasurer Wright, with whom the bank had dealings. The Commercial Bank, of the same place, has also suspended,

8. December 15, 1878 The New York Herald New York, NY
Article from The New York Herald, December 15, 1878

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SARATOGA BANKS. THE FIRST NATIONAL ASKS FOR A RECEIVERTHE COMMERCIAL WILL PROBABLY RESUME BUSINESS. SARATOGA, N. Y., Dec. 14, 1878. Everything is quiet here to-day. and business men are trying to get along until banking facilities are again to be had. The directors of the Commercial National Bank held a meeting this morning and carefully examined their assets and liabilities, and are satisfied that the bank is entirely solvent. They are making preparations which they believe will enable them to resume at an early day. The directors of the First National Bank have requested the Comptroller of the Currency to appoint receiver.

9. December 16, 1878 New-York Tribune New York, NY
Article from New-York Tribune, December 16, 1878

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TELEGRAPHIC NOTES. ABDALLAH DEAD. MANCHESTER. N. H., Dec. 15.-The well-known stallion Abdallah died vesterday of cancer. CORNELL COLLEGE SHOWS GREAT SPIRIT. ITHACA, N. Y., Dec. 15.-In consequence of what 1s considered discourteous treatment, Cornell withdraws the challenge to Harvard for a race next season. THE TRIAL TRIP OF A CRUISER. Philadelphia, Dec. 15.-The steamship Africa. purchased for the Russian Government. left the ship-yard of Cramp & Sons yesterday on a trial trip. She will return on Monday. INVESTIGATION OF A LIFE-SAVING STATION. LONG BEANCH, N. J., Dec. 15.-An investigation relative to Lite-Saving Station No. 6. at Deal Beach, has been ordered at Washington, on charges of cowardice and neglect of duty on the part of the keeper. HUNTINGTON TO HAVE THE PENITENTIARY. HUNTINGTON, Penn., Dec. 15.-It is ascertained that $10,000. the full amount necessary to purchase all the property required by the State Commission for the location of the Middle Penitentiary at this place, had been raised. THE NEW CAPITOL A PROPER PLACE TO MEET. ALBANY, N. Y., Dec. 15.-Attornev-General Schoonmaker, in a letter to the Clerk of the Senate, reiterates the opinion that no fuit er action is necessary to make the new Capitol the place for the meeting of the next Legislature. SARATOGA WITHOUT A BANK. SARATOGA, N. Y., Dec. 15.-Business men are trying to get along here until banking facilities are again to be had. The directors of the Commercial National Bank are satisfied that the bank 18 entirely solvent. The directors of the First National Bank have requested the Controller of the Currency to appoint a receiver.

10. December 17, 1878 New-York Tribune New York, NY
Article from New-York Tribune, December 17, 1878

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TELEGRAPHIC NOTES. A SARATOGA BANK TO BE REVIVED. SARATOGA, N. Y., Dec. 16.-There 18 a probability that the stockholders of the First National Bank will resolve to make up deficiencies and go on. ORDERED NOT TO USE NICKEL PLATING PATENTS. BOSTON, Dec. .-Judge Lowell granted an injunction to-day in the case of the United Nickel Company. et al., agt. The American Nickel Plating Works, et al. This bill was brought under ten patents taken out by Isaac Adams, jr., and assigned to the plaintiffs. THE CHEERLESS DEATH OF A DRINKING MAN. NEWBURYPORT, Mass., Dec. 16.-The death of Joseph Jones causes excitement in Seabrook, N. H. It is evident the man was murdered. The deceased was a drinking man. His wife. supposing him to be drunk when be reached home, put a pillow under his head, and left him at midnight lying ou the floor. Four hours later he was dead. blood flowing from his mouth and nose, caused by & blow at the base of the brain.

11. December 19, 1878 Weekly Chillicothe Crisis Chillicothe, MO
Article from Weekly Chillicothe Crisis, December 19, 1878

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THE WOMAN WINS. A one hundred mile walking match for $400, between Miss Mary Marshall, of Chicago, and Dan Carroll, of Warren, Pa., was won by the former at Jamestown, N. Y., she being one lap ahead, having held that position since the fifty-third mile. A BIG BUSINESS. The records of the Toledo Produce Exchange show that during the past season just closed 225,000 barrels of flour, 11,000,000 bushels of wheat, 6,500,000 bushels of corn, and 245,000 bushels of oats were shipped from this port. PRIZE FIGHT. All the arrangements are made for a prize fight for the middle weight championship of America and a purse of $2,000. between McClellan and Donovan, the fight to take place January 23, at San Francisco. SARATOGA BEND. The First National bank of Saratoga suspended owing to a run growing out of the defalcation of County Treasurer Wright. A run was then precipitated on the Commercial bank, and its doors closed. DIPHTHERIA. Diphtheria in a very malignant form is prevailing in the vicinity of Springfield, III. Several fatal cases have been reported within the past twenty-four hours. IN THE ICEBERGS. A ship, supposed to belong to the Swedish polar expedition. was seen by whalers just returned from the arctic region, blocked in ice near East cape. PENSION FORGERY. John 0 "Connor, of Cincinnati, has been sentenced to prison for forging certain pension papers. He must pay the costs of prosecution. SITE SELECTED. The commission to select a site for the new Na servatory has reported in favor of Geo rgetown Heights.

12. December 20, 1878 The Cincinnati Daily Star Cincinnati, OH
Article from The Cincinnati Daily Star, December 20, 1878

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THE METROPOLIS. Sensation and Scandal in High Life National Associated Press to the Star. NEW YORK, Dec. -Another development of the Thorp divorce case was made public in the Jefferson Market Court yesterday. Gould H. Thorp, a prominent member of the Produce Exchange, sues his wife for an absolute divorce on the ground of adultery with Lloyd Phonix, a prominent yachtman and Vice President of the New York Yacht Club. The defense to the action is that Mr. Thorp can not bring such an action, as he was divorced from a former wife by the Superior Court four years ago, and ordered not to marry again. Mr. Phoenix was arrested yesterday morning on a warrant charging him with having attempted to shoot Mrs. Thorp. On his being arraigned in Court Mrs. Thorp testified that on Tuesday afternoon Mr. Phonix entered her apartments in the Jex House, corner of Broad way and Thirtieth streets, drew a revolver and threatened to shoot her. She fled to the street, and he followed her and struck her with a cane. Mr. Phonix, on being sworn, stated that he called on Mrs. Thorp to demand an explanation from her in reference to the publication of his name in connection with her marital scandal. He positively denied having used any violence or threats whatever towards her. Justice Atterberg held Mr. Phoenix in $1,000 bail to keep the peace. He gave bail at once, and left the Court. Mrs. Thorp, who is an accomplished and beautiful English blonde, declined to furnish the representatives of the press with any information regarding the divorce suit now pending, but said that in all probability the differences existing between herself and her husband would be amicably settlrd. Fire In a Coffee Mill. The Knickerbocker coffee andspice mills, 156 Chamber street, took fire last evening. Wm. J. Still & Co., who run and occupy the building, estimates their loss at bet ween $5,000 and $6,000. The Red Ball Hoisted. The red-ball signal, so anxiously looked for and hailed with joy by the skaters of all ages and conditions, was hoisted at the Capitoline Grounds, Brooklyn, to-day. Asks Safety from Prosecution. The officers of the First National Bank, Saratoga, have made an assignment. It is said that the County Treasurer, Wright, who is now in the city, proposes to furnish

13. December 20, 1878 The Emporia News Emporia, KS
Article from The Emporia News, December 20, 1878

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The First National and the Commercial banks of Saratoga, N. Y., will not have to resume. They suspended on the 13th, after a lively run.

14. January 17, 1879 Burlington Weekly Free Press Burlington, VT
Article from Burlington Weekly Free Press, January 17, 1879

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A Saratoga despatch savs the failure of Jacob H. Farringham and John S. Leake, partners in the United States Hotel Livery Company, is the probable cause of the recent suspension of the First National Bank of that place, of which they were directors, and Leake was also cashier. Their liabilities are about $75,000, of which $57,000 are notes discounted by the bank.

15. February 16, 1879 The New York Herald New York, NY
Article from The New York Herald, February 16, 1879

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TELEGRAPHIC NOTES. The fourth annual State fair of Florida opens on Tuesday next at Gainesville. A fire Friday night at Enterprise, Miss., caused a loss of $60,000; insurance, $40,000. Ira Stewart, living near Hermon, N. Y., was shot and killed Friday night by George Stewart, his insane son. Six dwelling houses on King and Niagara streets, Toronto, were burned yesterday morning. Loss, $15,000. Aaron Arnold, while chopping wood near Forest, Ohio, Friday, was instantly killed by a tree falling upon him. Governor Fremont is to represent Arizona at Washington to resist the creation of an Indian reservation on Salt River. The oil refinery or J. R. Timmons, at Smith's Ferry, Ohio, was burned yesterday. Loss, $10,000; no insurance. Baxter's block. at Lima, Ohio, was destroyed by fire on Friday. The loss is estimated at $10,000; insured for $2,000. The Licking county, Ohio, Commissioners are investigating the charges against County Clerk S. S. Wells, of overcharging in his cost bills. A fire at Bedford, Ohio, yesterday, destroyed Mar le's grocery, Hine's hardware store and the Post Office. Loss, $10.200; insurance, $4,300. The total loss caused by the sinking of the sixteen houses belonging to the Reading Coal and Iron Company will be between $30,000 and $40,000. The Commercial Bank of Saratoga is in charge of L. M. Price as receiver. The First National Bank will probably resume business with new capital this week. Albany county bonds for $87,000 sold yesterday at prices ranging from 104% to 106 9-16. Comptroller Olcott bought $30,000 worth on account of New York State. A youth named Charles Boyer was detected yesterday at Fredericksburg, Va., taking mail matter from the Post office lock boxes. He was sent before the Grand Jury. The jury in the case of Charlie Woods (colored), on trial at Memphis for the murder of Mrs. W. C. C. Foster. yesterday found a verdict of murder in the first degree. The business portion of Bedford, a suburb of Cleveland, Ohio, was almost entirely destroyed by fire yesterday morning. The loss is from $10,000 to $12,000; insurance, $4,300. The Virginia House of Delegates has made the bill providing for a settlement of the State debt a special and continuing order for Thursday next. The Senate begins the consideration of the same bill on Monday. A mass meeting at Prescott, Arizona, Friday night, denounced the bill just signed by the Governor requiring Maricopa and Varupai counties to furnish money to build a railroad as a job and as ruinoua to those counties. Patrick Smith, one of the four negroes charged with the murder of John C. Lacy, in New Kent county. Va., last month, has been convicted and sentenced to be hung on the 15th of March. Julius Christian, enother of the gang. is being tried, and the two others will be tried next week.

16. February 17, 1879 New-York Tribune New York, NY
Article from New-York Tribune, February 17, 1879

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BARATOGA BANKS. SARATOGA, N. Y., Feb. 16.-The Commercial Bank 18 in charge of L. M. Price, as receiver. The First National Bank will probably resume business with new capital next week.

17. May 22, 1880 New-York Tribune New York, NY
Article from New-York Tribune, May 22, 1880

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BANK OFFICIALS INDICTED. SARATOGA, N. Y., May 20.-John S. Leake and Stephen H- Richards, cashiers, respectively, of the First National Bank and the Commercial National Bank, both of which suspended in this city in December. 1878 have been indicted by the United States Grand Jury for within abstraction and embezzlement of the funds of said banks. Jacob H. Farrington. a director of the First National Bank, and a partner of Leake, was also 111dieted.