11993. Bank of Wilmington (Wilmington, NC)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
October 13, 1857
Location
Wilmington, North Carolina (34.226, -77.945)

Metadata

Model
gpt-5-mini
Short Digest
561d9bb2

Response Measures

None

Description

Multiple contemporary papers (Oct 14-17, 1857) report the Bank of Wilmington suspended specie payments as part of widespread suspensions driven by the New York financial crisis (Panic of 1857). Papers emphasize the bank is solvent and will ultimately pay holders, implying a temporary suspension rather than permanent failure.

Events (1)

1. October 13, 1857 Suspension
Cause
Macro News
Cause Details
Suspension driven by contagion from the financial crisis in New York and tightened money markets (Panic of 1857); banks in Wilmington suspended after New York developments locked up resources and specie flows were strained.
Newspaper Excerpt
The Bank of Wilmington, an institution of very high credit, suspended specie payments yesterday.
Source
newspapers

Newspaper Articles (6)

Article from Spirit of the Age, October 14, 1857

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Article Text

# News of the Day. NEW YORK, Oct. 6-P. M.-The Evening Post regards the aspect of financial affairs as favorable, and The Commercial of this afternoon discovers no material change from yesterday. The specie lost by the banks last week went to sustain other cities standing in more need of it than New York. The movement is regarded by cool-headed business men as exceedingly praiseworthy, though the croakers made use of the loss of specie for the renewal of the panic. Stocks were firmer after the adjournment of the second board. The payments at the sub-treasury to-day were over one million and a quarter of dollars, which is a very encouraging feature. NEW YORK, Oct. 8th. The day closed gloomily. Notes of the Central Bank at Brooklyn were discredited this morning. Books and papers of the Milwaukie and Mississippi railroad were issued to-day by the Sheriff at the instance of the President of the Milwaukie Bank. LOUISVILLE, Oct. 7th. Financial matters are gradually tightening throughout the West, and unless the bankers discount beyond prudence or relief comes from other sources, many good houses will fall from the 1st to the 3d proximo. That period is anticipated with terrible anxiety. NEW ORLEANS, Oct 8th.-To-day money is very tight. First class paper worth 2½ per cent. a month. No failures. No movement in the trade is possible until the sterling bills can bring cash in New York. The Banks are extending every facility to factors. All are cheerful. THE SOUTH-CAROLINA BANKS. We learn from one of the Charleston papers that the S. Carolina Bankscannot suspend without forfeiting their charters. They must pay through any run or pressure to the last dollar in their vaults. 'Before this result could be reached, with all its disasters,' says the Charleston News, 'the people of South-Carolina, who were never freer from embarrassment, could and would sustain them with such a large supply of agricultural products equal to specie, and convertible at once into sustaining credits or specie, that the resources of the banks could be realized to any needed extent' It was rumored in the city last evening, that the Bank of Wilmington, and the Bank of Cape Fear, at Wilmington, N. C., refused to redeem their notes yesterday. The Commercial and Bank of the State, however, it is said, did redeem all presented. Petersburg Express of Tuesday. All rumor and nothing else. Wil. Herald. BOSTON, Oct. 7. The steamer Niagara arrived this morning. She brings Liverpool dates to the 26th ult. There is nothing later from India. Harrison, Watson & Co., Bankers in Hull, have failed. Their liabilities are large. The Emperors of France and Russia met at Stuttgardt on the 25th. Mexico accepts the negotiations of France and England. The Emperors of Russia and Austria are to meet at Weimar on the 1st of October. It is rumored that Lord Elgin will soon be appointed Governor General of India. Russia is fortifying the Straits of Euikall. COMMERCIAL. LIVERPOOL, Sept. 26. The sales of Cotton for the week previous to the sailing of 'Niagara,' amounted to 29,000 bales-declined ½ - close quiet. Manchester advices unfavorable. The stock in port amounted to 297,000 bales including 206,000 American. Flour steady-inferior slightly declined; quotations barely maintained; Canal 31 a 32; Southern 32 a 33½s. Wheat dull, having declined 2d on inferior; red 7s6d a 8s2d; choice new 8s6d; white 9s a 9½s. Corn-mixed and yellow 37½ a 38; white 41½ a 43½. Naval stores steady. Spirits Turpentine 38¼ a 39. Sugar and Coffee declined 1d. Rice heavy -Prices easier, but unchanged. Money market active Rates of interest generally unchanged. LATE FROM CALIFORNIA. The Star of the West arrived at New York on the 4th, with 450 passengers and $1,250,000 in gold.-Senator Gwin and Hon. Henry S. Foote were among the passengers. The Hon. John B. Weller, Democrat, has been elected Governor of California. His vote was 40,000--Bowie, Know Nothing about 27,000, and Edward Stanly, black Republican, about 27,000. The people of California had voted by large majority to pay their State debt. Mr. Venable, of Tennessee, U. S. Minister to Gautemala, is dead. The list of lost passengers of the Central America, received by the Star of the West, comprises those only from the Isthmus. The list from San Francisco was expected by the next steamer. ST. LOUIS, Oct. 8th.-A gentleman arrived here to-day from Leavenworth, who left on Monday last at noon. He says that the election was proceeding slow. The Free State men had possession of the polls, and were casting all the votes; the same case at Delaware. It is conceeded that Parrolt, the Black Republican, would beat Ransom for Congress. No disturbances up to noon. AUGUSTA, GEO. It is admitted here that the election yesterday has resulted in the election of Brown, dem., for Governor, from eight to ten thousand majority. The returns also indicate the re-election of Mr. Trippe, American, to Congress; Joshua Hill, American, in the 7th District, and Messrs. Crawford, Gartrell, A. H. Stephens and Wright, Democrats, in their respective Districts. Little has so far been heard from the 1st and 6th Districts. REV. LOUIS SKIDMORE. We have the mournful duty of announcing the death of this venerable servant of Christ. He departed this life at his residence in Charlotte county, Va., on Thursday, the first of present month. Few ministers have been better known in Virginia and North Carolina; or, in former years exerted a great influence, than the Rev. Lewis Skidmore. For some years past he has been in retirement, owing to age and infirmity. But he he has labored for Christ as his strength allowed. He died calmly, trusting in mercy and merits of the blessed Redeemer for rest in the world beyond the grave. Richmond Advocate PRICES OF COTTON. There will doubtless be great disappointment throughout the cotton growing States at the fall of that staple. Here it has gone down from 15½ to 13 cents and the market is very dull. In New York the Journal of Commerce of Monday last (after quoting prices for several days "nominal," there having been no sales,) says there is no current value to this article. A small sale of a quality classed as middling upland, although not strictly full quality, made to-day at 14, which is 2½c below price.


Article from The Daily Dispatch, October 14, 1857

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North Carolina Banks. The Bank of Wilmington, an institution of very high credit, suspended specie payments yesterday. It has no branches, and being the most accessible bank in the State, was subjected to a severer test than any other. It is no doubt perfectly solvent. THEATRE.-The "Marble Heart," a drama of thrilling interest, is announced for to-night. The characters are well cast-Miss Morant appearing as "Marco," Mr. Studley as "Raphael," and other favorites in all the prominent parts. Our citizens have witnessed with unqualified delight, on former occasions, representations of this deeply interesting drama, and we risk nothing in saying that it will now be produced in a style of unsurpassed splendor. It is needless, therefore, for us to say more than to advise our readers to go and see it.The management are exerting themselves to render the Theatre a popular place of resort; and if their efforts are sustained by the public, the best stars in the country will be successively induced to come here during the season.


Article from Wilmington Journal, October 16, 1857

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Article Text

Suspension of the Wilminton Banks. The confirmation of the deplorable financial affairs in New York, where the main resources of the Banks and merchants of this place are located, and now locked up, has been the means of driving three of the Banks of the town of Wilmington into a suspension of specie payments. This event has been anticipated for several days, and has not, consequently, come upon us-without some warning. Our Banks held out as long as it was deemed prudent, and come into the measure at last with great reluctance. The Branch of the Bank of the State, located here, yet stands unsuspended, awaiting advices, we presume, from the Mother Bank at Raleigh. All the rest,-the Bank of Wilmington," the " Bank of Cape Fear," and the " Commercial Bank of Wilmington," suspended this morning. The first named institution had been virtually suspended for several days, only waiting the decision of the other Banks before announcing the fact publicly. We hear this morning that a report is in town that the " Bank of Clarendon," at Fayetteville, suspended yesterday. We do not give this information as reliable. But we think, from the present appearance of things, that there will be a general suspension of the Banks throughout the State. One word of caution to bill-holders. We take this occasion to warn persons holding bills on any of our Banks not to be alarmed. We believe every one of them to be as sound to-day, as any institution of the kind in the Union. They can show as fair balance sheets as may be desired. This we have no earthly doubt about. The only difficulty now is, that every body seems to be afraid of their shadow. There is no necessity for alarm-the bills will all be paid eventually, and in the mean time they will pay debts just as well as ever. We have said this much in defence of the Banks -although we may not approve of all the measures they resort to in order to declare large dividends. We have stated what we believe necessary to do away with, as much as possible, an erroneous impression amongst a certain class who seem to be alarmed about the matter. We would advise all not to submit to a shave on what bills they may hold. Daily Journal, 15th inst. The Peoples' Bank in Charleston, S. C., suspended on Tuesday last. The list of suspensions for that city now stands Bank of the State of South Carolina, suspended October 10th. South Western Rail Road Bank, October 12th. Bank of South Carolina, October 12th. Peoples' Bank, October 13th.


Article from Republican Vindicator, October 17, 1857

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North Carolina Banks. The Bank of Wilmington, an institution of very high credit, suspended specie payments yesterday. It has no branches, and being the most accessible bank in the State, was subjected to a severer test than any other. It is no doubt perfectly solvent.Rich. Dis.


Article from Weekly National Intelligencer, October 17, 1857

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BANK SUSPENSIONS AT THE SOUTH. VIRGINIA.-The "Bank of Virginia" suspended specie payments yesterday. It was the last to yield in the present crisis, though holding out only about twenty-four hours longer than the other banks of this city. We may now say that all the banks in Virginia have suspended specie payments.-Richmone Enquirer of Thursday. NORTH CAROLINA.-The confirmation of the deplorable financial affairs in New York, where the main resources of the banks and merchants of this place are located and now locked up, has been the means of driving three of the banks of the town of Wilmington into a suspension of specie payments. The branch of the Bank of the State, located here, yet stands unsuspended, awaiting advices, we presume, from the mother bank at Raleigh. All the rest-the Bank of Wilmington, the Bank of Cape Fear, and the Commercial Bank of Wilmington-suspended this morning. We have a report that the Bank of Clarendon, at Fayetteville, suspended yesterday. We do not give this information as reliable. But we think, from the present appearance of things, that there will be a general suspension of the banks throughout the State.- Wilmington Journal of Thursday.


Article from The Western Democrat, October 20, 1857

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SUSPENSION OF BANKS. The Wilmington Journal of the 14th, after announcing the suspension of several New York banks, says: While on this subject we had as well state that $7.000 of the " Bank of Wilmington" notes. sent down here by the Bank of Fayetteville," were protested yesterday. We have implicit confidence in all our banks, and persons owing us cannot do us a greater favor than by sending us the amount of their indebteduess. We will give receipts with no little pleasure for bills on any of them." Since the above was in type, the Journal announces the suspension of the Bank of Wilmington, the Commercial Bank, the Bank of Cape Fear, and the branch Bank of the State in that town. The Journal says: We take this occasion to warn persons holding bills on any of our banks not to be alarmed. We believe every one of them to be as sound to-day as any institution of the kind in the Union. They can show as fair balance sheets as may be desired." We learn that the branch Bank of Cape Fear at Salisbury has suspended. And we see it announced in the Petersburg Express that the Banks at Raleigh suspended last Thursday; but we see no notice of it in the Raleigh papers. All the Banks in Richmond, Petersburg and Norfolk have suspended specie payments. The Secretary of the Treasury does not anticipate that the revenue for the fiscal year ending the 30th of June next, will amount to more than thirty millions, from present appearances. This will not be a subject of regret to the Administration, as an empty treasury will be a strong argument in favor of economical legislation, and do away in a great ineasure with that lavish system of appropriations which were so well harvested by Weed, Matteson. Edwards & Co. last Congress. Photograph likenesses are now taken in New York the size of life.