Bank of Whitehall - Whitehall, NY

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: October 22, 1839
Location: Whitehall, New York (43.556, -73.404)

Metadata

Model: gpt-5-mini
Short Digest: 7003f95f

Response Measures

None

Description

Article (Morning Herald, 1839-10-22) lists Bank of Whitehall among banks whose Safety Fund bills had been thrown out (discontinued redemption) by the State Bank. This describes a suspension of redemption (policy/action by the State Bank). There is no mention of depositor runs or permanent closure; I classify this as a suspension with likely temporary disruption (suspension_reopening) but the ultimate reopening is not documented in this article.

Events (1)

1. October 22, 1839 Suspension

Cause: Government Action
Cause Details: State Bank discontinued redemption of certain Safety Fund bank notes; Bank of Whitehall's safety fund bills were refused (thrown out) by the State Bank.
Newspaper Excerpt: The following is a list of the banks, the bills of which have been thrown out, on Saturday and today: Bank of Whitehall, ...
Source: newspapers

Newspaper Articles (1)

1. October 22, 1839 Morning Herald New York, NY

Article from Morning Herald, October 22, 1839

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Article Text

he stock market presented but very little change from the prices of Saturday. Sales were not large U. Bank closed the same as on Saturday. Del. & Hudson receded t per cent; Kentucky 1 per cent; Harlem & per cent; Utica & Schenectady per cent. There was less demand for money today than on Saturday. For several days past, the State Bank has been discontinuing the redemption of certain of the safety fund bills. The following is a list of the banks, the bills of which have been thrown out, on Saturday and odayBank of Whitehall, Chemung Canal Bank, Yates County Bank. Essex County Commercial Bank of Buffalo, Bank of Ithica, City Bank of Buffalo, " Lyons, Commercial Bank of Oswego, " Orleans, Oswego Bank, Madison Co. Bank, Chaulauque County Bank. Sackett's Harbor Bank, These are bou the by the smokers at 5 per discount The prebability is, that all will be discontinued, with the ex ception of such few as have made arrangements for taking up their own paper. The Bank Commissioners are now here and have sent for the committee of the country banks, for the purpose of endeavoring to make an arrangement with the banks of this city, by which Safety Fund money shall be received at par in payment of their debts. Such a measure is very desirable if it can be entered into at this time. The present uncertain mode of redemption operates very much against the ability of the country banks to grant the necessary facilities in getting the crops to market. The policy of holding back produce for a rise laid the ground work early in the spring for the present difficulties. The banks were thereby prevented from remitting drafts agaiust produce to meet their funds here. The same policy checked the export of grain, which would, fleft to its natural prices, have formed the basis for a large amount of sterling bills This led to the discontiauance of the redemption in this city at the expiration of the year, in June last. The committee of the country banks at that time effected a renewal on modified terms, which were, that a sys. tem of internal exchange should be adopted by which the amount thrown upon the city would be redeemed one half. At that time, however, a new cause of Jiffieulty began to manifest itself in the circulation of the bills of the banks under the new system. They were the cheaper currency, and the public had more confidence in them than the Safety Fund. These facts were rapidly driving in the safety fund circulation to an extent which rendered nugatory the effect of the internal exchange, in reducing the amount in the city. The safety fund circulation was rei dered much mere rapid by the agents of the new banks, who exerted themselves in the interior to exchange the new bills for them and send the safety fund notes in for redemption. At the same time the old cause f difficulty, which was the holding of wheat, continued to operate, and prevented the western banks from sending funds here. The transaction with regard to a state loan and the canal funds, which we mentioned a few days since occurring about that time, caused a second sudden suspension of the redemption. The pernicious system of holding back the crop, is the grand evil, and one to which dealers and farmers adhere with a tena. city which amounts almost to a mania The process of a re. duction in prices is going forward with an irresistable force and cannot be prevented. The crops are immense, far greater than Can be consumed in this country, and can find a market abroad only at low prices; holding it back from the market, therefore, has no other effect than to disorder the currency. The following is a table of the leading items of such of the banks as have been refused by the State Bank at their last return, as compared with the same items, at the period of suspension, May, 1837.