10776. Merchants Bank (St Louis, MO)

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: November 28, 1860
Location: St Louis, Missouri (38.627, -90.198)

Metadata

Model: gpt-5-mini
Short Digest: 42a1fdf8

Response Measures

None

Description

Contemporary reports describe a general suspension of specie payments by St. Louis banks on/around 1860-11-28 driven by fears of impending civil war. Merchants' Bank initially stayed open but then joined other banks' arrangements (operating on a bankable fund/legalized suspension) and later resumed operations. No clear discrete depositor run on Merchants' Bank is described in the provided articles; cause of suspension is the macro political/war panic.

Events (3)

1. November 28, 1860 Suspension

Cause: Macro News
Cause Details: Political fears and the looming Civil War after the 1860 presidential election prompted widespread suspension of specie payments by St. Louis banks; Merchants' Bank initially resisted but later consented to join the suspension/bankable fund arrangements.
Newspaper Excerpt: reached an abrupt climax in this State on November 28, when all St. Louis banks but one suspended specie payment.
Source: newspapers

2. August 1, 1861* Other

Newspaper Excerpt: arrival in the city of Major John McDonald ... with $58,650 of coin taken from the vaults of the St. Genevieve branch of the Merchants' Bank. On its arrival, the coin was deposited in the office of the Assistant United States Treasurer. ... by order of Gen. Fremont, turned over to the Merchants' Bank.
Source: newspapers

3. October 1, 1861* Other

Newspaper Excerpt: The Merchants' Bank's certificates have gone to protest, because the holders would not receive them on bankit rates. ... the Merchants' Bank; but of this we cannot speak so positively. ... it is the intention of the Merchants' Bank to resume specie payment at the earliest practicable moment, and the same is said of the Merchants' Bank; but of this we cannot speak so positively.
Source: newspapers

Newspaper Articles (8)

1. December 1, 1860 Daily Nashville Patriot Nashville, TN

Article from Daily Nashville Patriot, December 1, 1860

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Commercial. MONEVARY. We have no material change to note in the money market here. It is, perhaps, alittle easier, and more confidence prevails; but there is yet great pre sure. The effects of the little flire up about the City Bank, have almost is PP a ed, and we doubt not, is a few days more, its notes will pass as currently as ever. We don't believe there is any good reason why they shoul not. The old Banks sell exchange, when they have it, at 1/2c. premium; but they cannot supply the demand, and 2 per cent. ts paid to other dealers. All the banks of St. Louis, excepting the Merchants' Bank, have suspended. That bank rode out the sto m of 1857, without striking her colors., The State Bank of South Carolina, the Bank of South Carolina, the Railroad Bank, the Planters' and the Merch ints' Bank of South Carolina have suspended It is proposed to hold public méetings in Alabama urging the Banks of that State to suspend also. CHEESE-Western Reserve 11@11}c per pound. FLOUR-We quote: $5.00 Superfine in barrels " " 6 50@6 75 Extra, 3 25@3 50 " in sacks, WHEAT--This article is searce, and will sell readily at $1 25@1 30 per bushel. BACON--Shoulders 10}, clear sides 13@ 14; hams 13}@14c per 1b. CORN.-White 80 per bushel; mixed 75c. OATS.-45@59c per bushel. LARD-Supply limited. Sales at 13½ to 15c per lb. according to package. MEAL-Is selling at 80c. B bushel. FEATHERS-We quote at 41@43c. ฿ ₺. GINSENG--40@45c. B lb. GROCERIES.-We quote; Fair sugar 9}@10 B fb.; prime to choice 10@10}c.; in barrels }@1c. advance on these figures. New York Coffee Sugars 10}@11żc. B lb., crushed and powdered 11}@12c.: Loaf 11@ 12c. B Ib. MOLASSES AND SYRUP.-Molasses in barrels 40@45c B gal.; half barrels 45@ 48c; Sugar House 43@45c. Golden Syrup in barrels 75c.: half barrels 80c.; and kegs (ten gals.) 85c. COFFEE.-Rio 16@16}c.; Laguyra none in market; Java 19@20c. B lb. Stock light. TEA.-Imperial 50c@$1; Gunpowder 50 @75c.; Young Hyson 40@60; Black 60 @1 50. SALT.-We quote Coarse Sack at $1 50 and Fine at $1 60@$1 75; and Barrel at 40c. B bushel. COTTON YARNS.-The tollowing are the agents' quotations for Cotten Yarns: 700 and 800, 9c. P doz.; 600, 10c.; 500, Ilc., and 400, 12c. WHISKY.--Rectifled is held at 21@24c B gallon, and country at 50@75c B gallon according to quality. CANDLES.-Star 18c per 1b. for ligh weight; 20c for full weight. Tallow, summer pressed 13c; Sperm 45a50e per 1b, Raisins-Layer $3a3 25 per box; W.R $2 50a2 75. SOAP-Turpentine $2 25a2 75 per box. BRAN-$1.10 per cwt. HAY-$26@27 per ton. RYE-$1 00@1 15 per bushel. BARLEY-$1 25 per bushel.

2. December 4, 1860 The New York Herald New York, NY

Article from The New York Herald, December 4, 1860

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an'ARDSJOUT nouncing the suspension of the banks of that city, ith the exception of the Exchange Bank, remarks:It was by no meane a uninimous feeling, as some were stronger, better able to hold out, or differently situated from others. The State Back yielded to the resolution to suspend, though she had 70 per cent of COID for all her circulation, and the Werchants' Back showed 72% per cent coin Saturday ovening. The Exchange Back, having redected is a more liberal manner all along than the others, and consequently having less notes in the hands of the brokers team the Rters, feels able to weather the gale in the manner who has been dolog. At least, not having missi last evening been in full consultation with the other banks' fffloors, she will take some more time in considering the matter. The St. Louis Republican of the same day says:-This was expected, sad therefore oen stoned no sur prise, 1: meets the general approbation of the business community. As yet 1b nge have not adjusted themselves to this change, and we report the exchange market with. out alteration. The nominal selling rates of the banks are 116 premium ORL New Orlenne, sad two on New York. Sales by the Bostmen's Savings Institution were at the rate of three për dent premium, but the State Savinga was drawing st Gro, are the latter WAS nearer the peo. valling rate Currency 18 not abandant, and with cireaInter as usual through the ordinary chemacia of trade. " 1a received by the institutions dealing in 18, and mgainst to kind Sales are nt from two to three per onct discount from bankable funds. I: to not available for exchange. The Boston Traceller of Saturday says:The money stringency shows DO improvement, and remains without any abatement. The higher FRIOR of In. tereet HIP continue to be paid for loans and discounts in the open market Tue bank specie declared $27,800 soday, leaving $3,486,100 M the Aggregate holding. The bighret GOUBS this year was $6 168,418, in July. the Stock market in heavy and inactive, under a pressure of eel'ers and . sceraity of buyers-the general inspression being that priors with be lower before they are bigner. Same of the purchasers in the early part of the week have since sold at a loss. The Milwaukee Sentinel of Thursday remarks:-There 18 no use in disguising the fact that the money market bero in most close. Esstern exchange is nominally five per ount premium, but " cannot be borght from the banks at any price, because they have hone to scil. Although there is a good deal of ourrenoy to circulation, pork packers and grain desiers duan plate of difficulty in ostableg it to narry on their Dusi. Deas ou such onlisterale M time bills 63 100 Rast and on Europe They could begitiate their paper at Chicago very realtly, trus that world not help them any, 0004000 they could not use Illinois currency here. The Detroit Daily Adcertiser of Saturday says:-As for some weeks past there bas been few or no ship modia of produce from this port, Eastero exchange has been quite source. As yet the rate regmine % per cent, though the market in extremely close and an advance 18 not at all improbable. Currency, having to be remitted so create exchange, has also become scarce. We read in the Philadelphia Doening Bulletin:Recent indications from Pittsburg show that the people of the ony and of Alleghony county are becoming more decidedly in (nvor of the payment of the reilrous bonds, which now weigh an leavily SPOR them. In response to those indications, a meating of the bondholders was called for to-day at No. 90 Exchange. The attradance was very foll. Mr. Howard and Mr. Fry were also very

3. August 23, 1861 The New York Herald New York, NY

Article from The New York Herald, August 23, 1861

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We have received a copy of the New Orleans Delta of the 14th instant. Relative to money and exchange matters it remarks:- Money was in abendant supply throughout, and was freely offered to favorite borrowers, but the demand on the part of the latter class was restricted, owing to the almest total suspension of general business, and capitalists appeared to be indisposed to enter into negotiations of any kind that presaged even triffing losses. A little strictly A 1 paper was taken daily at 1¼ a 1½ per cent per month, and second class names, based upon undoubted collaterals, were dealt in to a limited extent at 2 a 3 per cent per month, but still lower grade signatures, though in ample supply, could not have been disposed of upon any terms whatever. At bank the number of new discomts even for plantation demands, was still further restricted, and only partial ronewals were granted to regular depositors. Exchange has recently declined almost beyond prece- dent, and yet operations have continued limited in both foreign and domestic bilis. Considerable accessions have been made to the supply of sterling and franes by receipts from other Southern States, while the demand has steadity abated for all descriptions, and operations have comprised no round amounts so far, as we have been advised. The disparity between bank rates and sterling, and those of private drawers, is exceedingly striking, but it is ex- plained by the desire of the former to hold on to their balances on the other side. ### The Chicago Tribune of Monday remarks:- There is still a very active demand for currency by produce dealers, and under a limited supply the market for Eastern exchange is dull at part: 3/8 per cent pretainm. Some of the banks were drawing freely at 3/8 per cent premium, while others were so hard run for currency as to sell at par. Among grain dealers there was rather more inquiry for gold, and the rates were steady at 3/8 a 3/8 per cent pre- mium. ### And the Cincinnati Gazette of the same day:- Money matters continue to progress smoothly and quietly. Good paper is taken freely at 10 per cent, with a demand in excess of the offerings Treasury notos have improved materially in value, with a corresponding change for the better in demand. There were siles Satur- day as high as 97, and 96¼ was refused in many cases. ### The St. Louis Democrat of Saturday evening says:- There was some little excitement in bank cireles to-day, in consequence of the arrival in the city of Major John McDonald, of the American Zouave regiment, with $58,650 of coin taken from the vauits of the St. Genevieve branch of the Merchants' Bank. On its arrival, the cola was de- posited in the office of the Assistant United States Trea- surer. It seems that this seizure of coin was at the order of Gen. Fremont, and intended as a mere precautionary measure, to prevent its falling into the hands of the rebe armies now in the southeast. On the same day of its deposit in the Sub-Treasury it was, by order of Gen. Fremont, turned over to the Mer- chants' Bank. ### The Philadelphia Bulletin of last evening says:- The money market is extremely quiet, and as the offer- ings at the banks of good paper are far below their ability to accommodate, but little good paper finds its way among the brokers; six to eight per cent are still the rates for short obligations. There is some little improvement in trade circles, but buyers from the West come forward slowly, and manifest no disposition to purchase beyond their most necessitous wants. ### The Newark Advertiser says:- We learn that Messrs. Nichols, Sherman & Co. are fil- ing a large government contract for barness, halters, saddles, &c., and are working their establishment to its full capacity to furnish the work as the government requires it. Their men are working day and night. A considerable number of saddle trees which had been thrown aside have been put in use. Messrs. Peters & Fenner, D. Demarest & Son, and other firms engaged in this kind of work, are also very busy, employing a large force of men. ### The Boston Daily Advertiser of yesterday thus notices the aspect of business matters in that city:- The opening week discloses no new features in mone- tary affairs or business. Capital continues in abundant supply, without change in prices, but the tendency of the market is toward greater ease and lower rates. The busi- ness movement continues restricted; there are, however, stronger indications of increased action in most depart- ments of trade as the season advances, and the promise for the autumn is more encouraging than it was a few weeks since. ### The Albany Journal of last evening has the annexed encouraging review of the improved position of the canals of this State during the present season:- The present Canal Board entered upon its duties January 1, 1860. The condition in which it found the canals and their revenues may be gathered from the annual message of the Governor of the same date. The receipts from all sources belonging to the canal fund were insufficient by nearly half a million of dollars, to pay for repairs and maintenance of the canals and the interest on the canal debt. The figures were these:- The interest on the canal debt of $26,807,- 684 38... $1,400,000 00 Expenses, repairs, &c 897,858 96 Total $2,297,858 95 Revenue from tolls, &c 1,859,879 63 Deficiency.. 457,979 38 There seemed to be no resort to supply this deficiency but taxation.

4. October 14, 1861 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, October 14, 1861

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FROM ST. LOUIS, [Special Dispatch to the Chicago Tribune.] Sr. Louis, October 12, 1861. Rumera both here and at Jefferson City revive the story that Sigel has routed the rear of Price's army, beyond Sedal'2. A soidier returned from that country furnishes the Evening Democrat with quite's circumstantial account of the affair. Dispatches from Jefferson City state that the belief j6 current there that Sigel has had a fight. The story, how ever, needs confirmation, as the fight, if any, happened several days ago, and would have been heard from before this. An injunction is placed on telegraphing ac. counts of movements from this city, as well as Jefferson City. Secretary Cameron and Adjutant General Themas left for Tipton to-day. A proposition is pending before the State Convention curtailing the power of the banks to suspend specie payments till December 1st crsuing, instead of until next May, as allowed by the Legislature. The Convention did nothing of importance to-day. A spy has been arrested here with maps of the principal fertifications around the city. Letters have gone to Jefferson City implicetirg the loyalty of a certain newspaper correspondent now with Gen. Frement's advance army. Fremont has issued orders to his telegraphic corps to repair the wires between Syracuse and Lexington, or, if that is found impossible, to put up a new line to Lexington from Sedaiis, EO as to place every division of the Na e tional army in Missouri under his immedi ate eye. A telegraph is to be built as the r army advances, but it is doubtful whether it can be kept in repair. of The banks and savings Institutions refuse each other's checks. The Merchants' Bank's certificates have gone to protest, because the holders would not receive them on bank it rates. is

5. October 24, 1861 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, October 24, 1861

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Bays Financial matters are in all respects in a satisfactory condition, there being an adequate supply of currency for all legitimate purposes, and a disposition ou the part of capitaliate to invest freely in good commercial paper, based on current ope. rations. The Exchange market is close, the contraction of shipping facilities restricting the supply of commercial bills, while the demand is somewhat above the average. Gold is quite dull, and round sums could be bought at s prem. The Chicago Journal says: Eastern Exchange is less active, and the market is steady at @ per cent premium. Currency is scarce. The receipts and shipments of Wheat at Milwaukee last week were the largest ever known for a single week at that city, amounting to more than 600,000 bushels received, and over a million forwarded. The receipts were: Barley, Rye, Corn, Oats, Wheat, Flour, bush bush. bush. bush. bush. bbis. 200 1,188 904 4,672 608,338 10,238 Total Same week 1,170 4,442 1,117 1,069 569,969 14,497 in 1860 Total since Jan. 1 376,181 10,615,550 70,118 81,858 35,429 62,235 Same time in 1860..107,860 6,093,329 148,864 107,355 64,253 24,234 Same time in 1359 1.142,871 3,314,290 201,236 137,450 101,178 9,554 The shipments were: 14,394 bbls. Flour, 961,900 bush. Wheat, 2,600 bbls. Beef, 402 Hides, 228 bales Wool. Shipments of Flour and Wheat from January 1 to October 19, in the years 1860 and 1861, compare as follows: 4,794,815 287,550 1860 10,694,586 530,380 1861 5,893,771 242,630 Increase The St. Louis Republican says: MERCHANTS' AND MECHANICS' BANKS.-The misunderstanding between banks, which led to the discrimination against each other's paper, has been, we are gratified to say, removed, and the banks receive each other's paper as formerly, This settles, as it seems to us, the only gap between the State, Mechanics', Merchants' and Southern banks; and the paper of these banks will hereafter constitute our circulating medium. THE FARMERS' AND WESTERN BANKS-Ar arrangement is in progress, we understand, which will probably result in at once placing the Farmers' and Western banks on on equal footing with the other banks- position they should have all the time occupied. The Democrat says: Two of the city banks have been, perhaps, permanently discredited, viz.: The Union Bank and the St. Louis Bank. The other four banks which have been operating on the bankable fund system, and in a state of legalized suspension, have come to an understanding, we are teld, and hereafter the Mechanica', Merchants', Southern and State Banks, and their branches, will constitute the "bankable fund" list, and take and exchange each others' notes as formerly. The Exchange Bank is doing an independent business on a strictly specie basis, it never having suspended. The Missouri State Convention, just adjourned, has authorized an issue of bonds to the amount of $1,000,000, carrying 7 cent, and payable in ten years-the interest to be provided for by setting aside specially for its payment $70,000 from the State revenue yearly. It bas also authorized the creation of Auditor's warrants to the amount of $1,000,000, in sums of $5, $10, $20, $50, $500, and $1,000. These warrants are payable for military services or sup-

6. October 24, 1861 The New York Herald New York, NY

Article from The New York Herald, October 24, 1861

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The St. Louis Democrat of Monday furnishes the following information relative to the present position of the banks of that city:Two of the city banks have been, perhaps, permanextly discredited, viz: the Union Bank and the St. Louis Bank. The other four banks which have been operating on the bankable fund system, and in a state of legalized suspension, have come to an understanding, we are told, and hereafter the Mechanics', Merchants', Southern and State banks, and their branches, will constitute the "bankable fund" list, and take and exchange each other's notes as formerly. The Exchange Bank is doing an independent business on a strictly specie basis, it never having suspended. This agreement by the banks will probably enhance the price of their money, and probably exchange will be furnished ere long at a trifting premium. We are glad to know that it is the intention of the Me. chanics' Bank to resume specie payment at the earliest practicable moment, and the same is said of the Merchants' Pank; but of this we cannot speak so positively. Relative to the Farmers' and Western banks, the St. Louis Republican remarks:An arrangement is in progress, we understand, which will probably result in at once placing these two banks on an equal footing with the other banks-- position which they should have all the time occupied. They are owned and managed by the most wealthy and respectable gentlemen in the most commercial part of this State, and are as sound, we are assured, as any of our banks. A letter from the cashier of the Farmers' Bank, dated at Lexington, Mo., on the 17th inst., states that the bank has burned, of its circulation in that place, $912,680. This is in addition to what has been consumed at the branches and at the office of the Bank Commissioner in St. Louis.

7. November 26, 1931 The Memphis Reveille Memphis, MO

Article from The Memphis Reveille, November 26, 1931

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FINANCIAL CRISIS OF 1860 on Shadows of civil war cast gloom financial conditions of over souri and the United States in the fall of 1860. reaching an abrupt eliSt. max in this state on November 28, when all St. Louis banks but one suspended specie payment. Paradoxically, the financial erisis had come at time when business conditions seemed favorable. But of after the presidential election of early November, fears of the com. of ing war drove the country into financial crisis. by St. Louis November At on officials of all banks met to consider suspension of specie payments, The decision was against suspension, but two days later at another conference, the first action was reversed. The Bank of the State of Missouri, the official state bank, together with the Merchants Bank, had opposed suspension, but finally they consent. insistence of the other ed to the The exchange bank having very small circulation outstanding, the conference, and fused to attend bank in the state which was the only continued specie payment after November 28, Branch banks throughout the state followed the action of the main banks in St Louis, United States had The whole perienced crisis in 1857. but covery comparatively rapid, that was called From the darkest business history had evolved that the country into omparative prosperity. ies of good and had traffic. transportation ly completed a restoration ity The spectre of civil war, the face of good even conditions, so frightened capital that by 1860 another crisis inpended in Missouri of money decreased 000 from alone Even July 1859 to August of the the bank great bank of the State of Missouri always redeem its could lation Financial conditions changing financial condition better than her neighbors, but this unstable condition Missouri's difficulwhere added to banks 1860. ties. Arkansas had no thirteen There and Iowa had but were seventy two in Illinios, but the of that state was currency In Missouri there than chartered banks were forty-three in and thirty two private bank houses, seventeen of which were in St. Louis, specie payments Suspension the busi seemed to approved by editors of the and ness It was generally conceded that the suspension was wise, and would pre vent unnecessary depletion of specie, The Columbia Missouri Statesman said the general opinion was that the financial crisis was caused by political factors, and not by nancial errors or excesses." made on the Demands were soon relieve the banks and legislature to March 18, 1861, semi-suspension law went into effect. removing for and the penalties suspension of the providing for the payment state The July interest on the banks April, 1861, Louis in one anothers agreed to support but the whole war period was notes, periods of susmarked by varying The Expensions and Bank continued its policy change payment. feature Louis One financial in the was the issuing of war Although forbidden tional of St. Louis, in law, the Bank 1861, issued small notes August banks As small and other was scarce, the currency change passed banks, as MisThough Missouri divided by the souri people, were war. they were able to render considerable war service despite their weakness. The close division of shown in report issued timent 1861, showing the sympathies Three were Un the St. Louis Southern, but the ion and four were of the three Union banks ierculation was several dollars han that of the Southern banks. THIEF GETS SURPRISE GAS thief pursuing his gasoline at the Phil Hackarisky business home at 4:30 m. Monday, mack from the tank of drained the gas sedan and them Mr. the back seat of the reached into tool he car to get for further looting of the needed car. his hand came in contact Instead, of Dale Baskett who with the person work by Mr is empolyed in farm Hackamack and was spending part the nights napping of in the car. It's hard to say which suffered Dale was unable the greater lift his voice in protest or to the thief departed in such er, while left behind him the haste he had taken from the of gasoline he car The can, Mr. Hackamack discovwhich had disappearered, was one ed from his place in LaGrange Indicator.

8. November 26, 1931 Perry County Republican Perryville, MO

Article from Perry County Republican, November 26, 1931

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THIS WEEK IN MISSOURI HISTORY (Compiled by The State Historical Societies of Missouri, Columbia Floyd C. Shoemaker, Sec.) Financial Crisis of 1860. Shadows of civil war cast a gloom over financial conditions of Missouri and the United States in the fall of 1860, reaching an abrupt climax in this State on November 28. when all St. Louis banks but one suspended specie payment. Paradoxically, the financial crisis had come at a time when business seemed favorable. But the presidential election of November. fears of the coming war drove the country At St. Louis on November of all banks met to consider suspension of specie payments. The was against but two days later at the first action The Bank of the State State Bank the Merchant's Bank but finally had suspension, they consented to the insistence The Bank, having fused attend the onference, bank in the continued spe payment November 28. Branch banks throughout the State followed banks The United ex a in From condition that = darkest in business history that time the country had prosperity A of river and had transportation completed a restoration of The spectre of civil war, pended by 1860, Circulation in the face of good business conditions, so frightened capital that another im Missouri alone had in $4,000,000 from July 1859 August 1860 Even the bank of the West. the Bank of the State of Missouri, not always redeem its circulation Financial conditions changing rapidly Missouri's financial condition than her neighbors' but this unstable added to Missouri's Arkansas had no banks and had but There in of that In the the to law went bank 1861 to support one The Ex Bank continued its Louis of the War fractional currency Although forbidden by law. the Bank of St Louis, in August of 1861 issued small notes and other banks ed. As small change was scaree. the currency passed freely Though Missouri banks, as Missouri people, were divided by the War, they were able to render