Farmers Bank - Lexington, MO

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: July 1, 1859
Location: Lexington, Missouri (39.180, -93.869)

Metadata

Model: gpt-5-mini
Short Digest: c87f1027

Response Measures

None

Description

Article (Daily Iowa State Democrat, 1859-07-01) describes a large presentation of notes ($65,000) for redemption by a St. Louis money-dealer and the bank's deliberate slow payment in silver. There is no mention of a suspension, receivership, or permanent closure — only restrictive payment behavior and local agitation. I corrected the bank name punctuation (Farmers' -> Farmers).

Events (1)

1. July 1, 1859 Run

Cause Details: Large redemption demand by a St. Louis money-dealer presenting $65,000 of the bank's notes for redemption; bank limited payouts and paid slowly in silver.
Measures: Paid out slowly and only partly in silver (depreciated currency), directors held frequent meetings, considered registering each redeemed note to delay, employed delaying tactics and restrictive payments.
Newspaper Excerpt: a money-dealer in St. Louis... sent to the Farmers' Bank of Lexington, Mo., $65,000 of the notes of that institution for redemption.
Source: newspapers

Newspaper Articles (1)

1. July 1, 1859 Daily Iowa State Democrat Davenport, IA

Article from Daily Iowa State Democrat, July 1, 1859

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Article Text

How a Missouri Bank Medeems. A money-dealer in St. Louis, a few days ago, sent to the Farmers' Bank of Lexington, Mo., $65,000 of the notes of that institution for redemption. How the messenger was treated, and how the banks of Missouri intend to discharge their obligations to the public, the St. Louis Democrat of Monday, tells us in the paragraph below : The bills were presented in most courteous terms; yet the bank refused to pay in gold, as desired, or in St. Louis or New York exchange, or St. Louis city paper. The bank refused to do anything, except in a slow and aggravating manner to pay out silver, a depreciated currency, to the amount of $5 on each note, the residue in gold. So slow were the payers that it took a whole day to pay out $8,500 in $20 notes; and yesterday, after their silver bad run out, and they were in expectation of more, ($10,000 of silver left this city this morning to succor them), only $2,000 was paid on $10 bills, the "Bank officials" instructing the party paying out to be as slow as possible. Meetings of the Directors were held twice a day; it was even proposed to the Board to register every note as redeemed, to prolong the matter, but the resolution was rejected. Those same "Bank officials" or Directors, instead of trying to "prevent an out. break," were busy in exciting the populace against the brokers, so that hand-bills were posted, calling the people together to take steps for preventing brokers of the State from making such "runs" upon the Farmers' Bank-a meeting was held, and inflammatory speeches made, favoring mob measures, rotten eggs, tar and feathers, etc. A negro was employed to ring a bell, also, which was done for two hours in front of the bank, to frighten the brokers. Some even went into the bank and threatened eggs and tar. It became the town ta!k at dinner tables and elsewhere. There was one exception among the Directors in this ungentlemanly conduct. Mr. J.S. Lightner, acted very cleverly throughout, doing everything in his power to facilitate the redemption of the notes. This whole conduct, it seems to us, is worthy of most severe censure, particularly when it is recollected that, a week ago, the Lexington Expositor boasted of heavy sales of stock in this bank at over $100 per share, and that its profits from circulation must be enormous. This same Expositor has promised to expose the whole proceedings in its next issue. Mr. Chase telegraphed to-day to stop dilly-dallying in the illegal way forced upon his agents, and to demand payment with a notary at once upon the whole sum.