BABBAGE, Richard A.

BABBAGE, Richard A. (England, Feb. 22, 1829--Jan. 18, 1906). Babbage's embezzlement of funds led to the failure of the MERCHANTS' NATIONAL BANK. Babbage came to Dubuque in 1856 and sold real estate before opening a private bank that prospered. In 1865 he was bought out and made cashier of Merchants National whose officers included such prominent Dubuque residents as William Boyd ALLISON, Henry L. STOUT, and John T. HANCOCK.

The first clue of the crime came when a Dr. Sprague came running to the bank announcing that Babbage was burning a large set of the bank's books in a stove. Babbage's crime resulted in a loss to the bank depositors of $267,289.

When the news became known, Babbage was guarded at home by an assortment of officials and friends. The directors of the bank made good the losses to the customers for every cent. A savings bank associated with Merchants National, however, was taken over by receivers, and depositors were paid sixty cents on the dollar. Among those concerned were local people with blooded stock horses on his farm. Shorthorn cattle and Arabian horses believed to be owned by Babbage were sold to satisfy the bank's stockholders. (1) Efforts to secure the Babbage homestead to help pay the bank's creditors met with some initial problem. James BEACH to whom it was to be turned over to in trust for the directors posted the following note: (2)

             To The Creditors of Merchants' National--Mr. and Mrs. R. A.
             Babbage have placed their homestead at my disposal, in
             such manner as I may think proper, in justice to you, Mrs.
             Babbage and the children.

Near midnight on October 29, 1873, Babbage, his son, and some friends fled the city. He eventually settled in Argentina and then Europe. When most of the indictments against him were dismissed, Babbage returned to New York.

Years later Babbage accompanied his father's body as far west as Chicago, but dared not go closer to Dubuque where the burial took place. He lived the rest of his life in New York, supported by his son.

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Source:

1. "Caught on the Fly," Dubuque Herald, October 7, 1873, p. 4. Online: https://news.google.com/newspapers?nid=uh8FjILnQOkC&dat=18731007&printsec=frontpage&hl=en

2. "The Bank Troubles," Dubuque Herald, October 7, 1873, p. 4. Online: https://news.google.com/newspapers?nid=uh8FjILnQOkC&dat=18731007&printsec=frontpage&hl=en

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