Article Text
The Agricultural Bank at Natchez, suspended specie payments on her issues required by law to be paid, on the 2d. inst.
11080. Agricultural Bank (Natchez, MS)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- state
- Start Date
- December 2, 1840
- Location
- Natchez, Mississippi (31.560, -91.403)
Metadata
- Model
- gpt-5-mini
- Short Digest
34b9e00e
Response Measures
None
Description
The articles (Dec 1840) report the Agricultural Bank at Natchez suspended specie payments on Dec 2, 1840 and has suspended on all its liabilities. No run is described and no reopening is reported; contemporaneous commentary places the suspension in the wider resumption/specie shortage crisis, so I classify this as a suspension leading to closure (articles imply likely liquidation).
Events (1)
1.
December 2, 1840
Suspension
- Cause
- Macro News
- Cause Details
- Suspension occurred amid the wider resumption/specie shortage and regional banking crisis; described as following other Mississippi/New Orleans banks and as part of systemic distress.
- Newspaper Excerpt
- The Agricultural Bank at Natchez, suspended specie payments on her issues required by law to be paid, on the 2d. inst.
- Source
- newspapers
Newspaper Articles (2)
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Article Text
MONEY MARKET. Monday, Dec. 28--6 P. BT. Notwithstanding the scarcity of money, stocks hold their own, and in some cases an advance is manifest. United States Bank 1 per cent; Vicksburg I per cent; De. laware and Mudson I per cent; Harlem 1 per cent. Sales of bills on Philadelphia were made at 1}; Baltimore 11; Mobile 51 a 51; New Orleans 11 discount. Indiana per cents were sold at 74, which is an improvement. The money to pay the interest on the stock of this state is said to be on deposite with the Merchant's Bank here, which, of course, removes any doubt as to the pay. ment of the interest. maturing in a few days. IN regard to the future'poliey of the state, some change will take place. The Treasurer, Mr. Palmer, recommended the setting aside of those stocks, out of the proceeds of which the state had been swindled, such as those issued to the Mor. ris Canal and United States Bank, and those issued to some of the Buffale Banks; he states that these latter will not pay for their stocks; but we are aware that they have been large bayers of the scrip issued by the State of Indi ana, and sold at a low rate in this market, two years to run, and will make this a means of payment. The state will be no loser by the operation, although crippled of her present resources. Mr. Palmer will soon go out of office, and the other commissioner, with a majority of the legislature, are in favor of the states acknow ledging all its outstanding paper, and meeting all losses that may be incur. red through the faithlessness of her own agents. This wants to be followed up by ample provision for future payments of interest and principal, to restore the credit of the state. Illinois must follow in the same tract, or she is lost. At auction this morning, 200 shares of the American M irine Insurance Company were sold at $39 per share to Mr. Faxan. The time for resumption is rapidly approaching, and may, in some degree, cause the growing scarcity of money. The operation of a return to specie payments must create not only a great scarcity throughout the South, but here also The means of remittance under the severe curtailment necessary, will be without the reach of many at any price, who are now paying high premiums. The touchstone of resumption will create great revolutions, when applied to many of the banks of the South The retain to specie payments now must be based on real ability, and not as in 1839, on the bolstering of the U.S. Bank. That institution is now of itself a borrower. Many of the New Orleans banks must give way, and those of Mississippi go into liquidation. The Agricultural Bank of Natchez has followed the Planters' Bank; and has suspended on all its liabilities. The institutions in that section have been leaning on the United States Bank, and are now without support. The banks of Florida and Alabama have not made their returns; but their condition is sufficiently bad, as is also that of a majority of the New Or. leans banks; many of the Georgia banks must also be wound up under the new law, which compels resumption