Merchants Bank - Newbern, NC

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: June 16, 1837
Location: Newbern, North Carolina (35.108, -77.044)

Metadata

Model: gpt-5-mini
Short Digest: cdca232efd6428a6

Response Measures

None

Description

Article (Charlotte Journal, 1837-06-16) describes a traveler/agent who redeemed large quantities of Merchants' Bank notes for specie; the directors subsequently ceased paying specie, i.e. suspended specie payments. There is no mention of a permanent failure, receiver, or takeover, so I classify this as a suspension that was likely temporary (common in the 1837 crisis) — no reopening date is given. OCR in the article yields odd spellings (e.g., 'spc. cie' = specie) which have been corrected in this summary.

Events (1)

1. June 16, 1837 Suspension

Cause Details: A traveling agent deliberately redeemed large quantities of the bank's notes for specie (attempt to 'break' the bank), after which the directors ceased paying specie.
Newspaper Excerpt: but, in the end, the .. biter got bit ... he presented his purchase at the counter of the Bank, and demanded specie, which was readily given him. ... when he awoke in the morning the inexorable Directors had ceased paying specie, and he had his fortune in their Promissory cage
Source: newspapers

Newspaper Articles (1)

1. June 16, 1837 The Charlotte Journal Charlotte, NC

Article from The Charlotte Journal, June 16, 1837

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Article Text

07 The victim of a Run.-The Newbern Spec. lator mentions the case of . travelling Agent who undertook to break the Merchants' Bank of that place; but, in the end, the .. biter got bit" Hav. ing purchased two or three hun Jred Dollars of its Notes, at one per cent. he presented his purchase at the counter of the Bank, and demanded specie, which was readily given him. In the evening, he west to work again, and bought as many notes as he could pay for, some two or three hundred dollars' worth-and went to bed rejoicing in the fruits of his honest industry. and the prospect of the ofium cum dignitate which awaited him, in his old age, from his bold and lucky speculation. But, o tempora when be awoke in the morning the inexorable Directors had ceased paying spc. cie, and he had his fortune in their Promissory cage It is a remarkable and highly creditable fact, that no demand has been made for Specie, of the Bank of the State, since its cospension of payment in Coin, with a vica to the exaction of the twelve per cent. interest which the Charter specifies shall be paid whenever the Bank refuses to redeem its payer. - Ral. Register.