The Ottawa free trader. [volume] (Ottawa, Ill.) 1843-1916, 1857-08-29
Bank Panic at the East.

consummatiOn.
Bank Panic At the East.
m The great financial world of Gotham an
all the little territory round and about fror
Maine to the Rocky Mountains has sudden
ly been threwn into terrible Hutt by til
failure Of some heavy Eastern Banks an
Bankers. Among the prominent ones tina
have gone up within the week are, enume
rated: rr-- ..-.
1. John Thompson, the well known wal
Street broker and publisher Of the Banl
Note reporter. His Liabilities are said to b'
about $3.50. 900, and his assets of doubtful
value. as they consist largely Of bank note:
and other securities Of doubtful value in the
present feverish state Of the money market
Thompson has been in the habit of lending
bonds to western stock security banks, tax.
ing their bills as security for his stocks but
as these banks have little credit at the East,
and many Of the stocks by which their
notes are secured are rapidly depreciating,
Thompson can make no use Of their bills.
2. The Ohio Life Insurance and Trust Co.,
of Cincinnati. This was one of the heaviest
banking concerns in the country, having
house both in New York and Cincinnati, and
was regarded as one OF the safest and most
solid of banking Institutions Its liabil ties
are stated variously at from five to 81, 0Go,-
600. Its deposits in Cincinnati were usual
ly counted by millions. 1t controlled the
exchange market of Cincinnati. while the
New York house kept the New York ac-
counts Of most of the branches Of the State
Bank Of Ohio, and also of large number
of private institutions in that State and In
diana
A despatch from Cincinnati, however,
states that up to Thursday none Of the state
banks bad yet been discredited, and the
bankers had agreed not to sort or return
notes OF country banks for thirty days. \
large number Ct New England and Western
banks, doubtless, will be affected by the fail
ure, but the Chicago Pre:s assures its read
ers that no institution in that city, and none,
it presumes, in the State of Illinois, will be
directly injured by the failure
These two heavy failures Of course shook
confidence in everything else, and a regular
panic naturally followed. Everybody began
to look over his bank accounts and the mo- /
ney in his pocket, and started off to "real- |
ize-" Rumors began to fly about in refer !
ence to at least so New England banks that .
were said to be topping, and western banks
were in such bad repute, that western men Z
in New York with pockets full of bills, found
themselves without available funds enough
to get home on. In the end, however, it /.
turns out that comparatively few other fail
ures have really taken place. The notes of
the following banks were refused at New
York on the Goth:
Arcade Bank, Providence; Bank OF Mid
detown Pa; Farmers and Drovers' Bank
Of Waynesburg, Pa; Honesdalc Bank, Pa;
North American Bank, Seymour, Conn.
Ontario Bank, y. Y; Fort Plain Bank y.
Y; The kanawa Bank Of Virginia; Farm
ers Bank of WEXFORD, r. l., Tiverton Bank,
X. l.; Rhode Island Central Bank Farm
ers' Bank Of Saratoga Co, y Y; Wooster
Bank, Conn; Warren Co Bank, Penn. and
the Hancock Bank of Maine.
There are few bills Of any Of these banks
in circulation in this region except of the
Rhode Island Central Bank, in reference TO
which all that is said by the dispatches *,
that it has made no provision to redeem its
bills at the Suffolk Bank, which most other
Rhode Island banks have done. The bills
Of this bank in circulation in this region
were mostly put out by the Gov. Matteson's
banks, and will all doubtless be redeemed
on presentation
Among the minor failures, Jacob Little, 1
stock broker in New York again figures |
E. S. Monroe, y. Y. banker; Chambers & /
Haiser, y. Y, largely engaged in the Cali /
fornia and India trade; Messrs. Benedict & .
Co. aud Fisher & Co, stock brokers, n. v;
James L. Lyle, private banker, Detroit, ard !
o few others
Thus far che panic appears not to have
reached the West. In Chicago, Milwaukee
St. Louis, &c, the bankers keep cool, and
feel strong enough to weather any ordinary
tempest The best thing, doubtless, for
every body is, not to get excited; to hold on
q little; make no rash sacrifices on account
of new rumors. The West is richer ard
financially stranger this day than she ever
was before, and need fear no trouble II she
exercise the least prudence.