17250. Bank of the State of South Carolina (Charleston, SC)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
October 10, 1857
Location
Charleston, South Carolina (32.777, -79.931)

Metadata

Model
gpt-5-mini
Short Digest
1d5684f3c8348529

Response Measures

None

Description

The bank suspended specie payments on Oct 10, 1857 (multiple dispatches). Reports attribute suspension to pressure from other banks demanding specie balances rather than a depositor run or fraud. It later resumed specie payments (resumption reported June 8, 1858).

Events (3)
1. October 10, 1857 Suspension
Cause
Correspondent
Cause Details
Other local banks insisted on constant discharges of balances in specie between them, creating a press on the State Bank and making suspension inevitable.
Newspaper Excerpt
Reliable intelligence from Charleston announces the suspension of the Bank of the State of South Carolina.
Source
newspapers
2. June 8, 1858 Reopening
Newspaper Excerpt
The suspended banks, in Charleston, resumed specie payments on the 8th, the bank of the State of South Carolina leading off.
Source
newspapers
3. * Other
Newspaper Excerpt
The run and excitement which prevailed on Monday was not renewed on Tuesday to any great degree, and seemed to be subsiding gradually. ... The list of suspensions for this city now stands: The Bank of the State of South Carolina, suspended Oct. 10th.
Source
newspapers

Newspaper Articles (13)
1. October 11, 1857 Nashville Union and American Nashville, TN
Article from Nashville Union and American, October 11, 1857

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BY TELEGRAPH. NEW ORLEANS, Oct. 9 - otton sales 1000 hales; prices unsettled, but mostly middling at 12c Sales of the week, 12,700 bales. Receipts 40 000 bales. D crease in receipts at this port, 57 000 hales. Money tighter. NEW YORK, Oct. 9 -Cotton quiet; floursales 85,000; wheat $1,25a1 for white; $1,18a 1.22 for red; corn 67a69c.; pork $23a23, Chicago beef 138141 sugar declined 10. Gallandet & Wetmore, bankers nave suspend d The run on the Park bank has subsided-all de mands were met The Central bank of Brooklyn has been enjoined and 8 receiver appointed. A n eeting of the banks reported that they will provide six millions for forwarding produce. CINCINNATI, Oct 9.-There is great ex C tement at the financial news from New York. Business neglected. Flour $450, unsettled whisky 16c.; oats 33.35c.; corn 40.45c. BOSTON, Oct. 9 Failures reported, Lagwerg & Co., straw goods; Milton Gale, oil and leather; Nash French & Co., shoe dealers. WASHINGTON, Oct. 9.-It is probable that the present Government of Nicaragua will be recognized by the reception of a Minister W th the view of securing the privilege of the transit route. The Post Master General has appointed six agents to attend the through Express mail from Baltimore to Cincin ati to secure more regularity The Secretary of the Interior has received advices that within one month the Minnesota wa. gon road will be completed to Fort Ridgely. The Attorney General is examining the basis on which the banks of the District of Columbia have been transacting business. ST. LOUIS, Oct. 9.-Kansas advices say that the Legislature is doubtful-accounts are conflict. ing. The New Mexico mail left Santa Fee on the 15th of September and arrived at Independence on the7th. Otero is re-elected to Congress by 7,000 ma. jority. The Indians quiet. The Cheyennes are anxious to make peace. DETROIT, Oct 9 -Immense quantities of produce are blocked up here for want of funds to carry it forward. The money excitement has subsided. The utmost confidence is placed in the remaining banks. NEW YORK, Oct. 9.-The Erie Railroad Co did not pay their laborers at Berger tunnel to-day. Grest excitement. The track was torn up. The Bowery bank has suspended. It wasasmallaffair. Its bills are secured. ST.LOUIS Oct -Wheat-white $1,06a1,00; corn-white 75c; tobacco improved; hemp un settled. NEW YORK, Oct. 10.-The Associated Press have decided hereafter to employ a substantial news Yacht at New Foundland, to board Foreign steamers off Cape Race, thereby shortening the time of reception of news to from 6 to 8 days. BOSTON, Oct. 10-A letter from Foster, Ro. gers & Co., at Calcutta, dated August 10, don't mention the news respecting Lucknow, except that Have ock reinforced was marching towards it NEW YORK, Oct. 10-The Illinois Central and Erie Railroads have suffered their notes to be protested. NEW YORK, Oct. 10.-Money depressed. Failurs, Seymour & Co., paper dealers; Coit & Co., sugar dealers; J. W. Corleis, dry goods. BOSTON, Oct. 10.-Money depressed. No new failures. CINCINNATI, Oct. 10.-Flour $4,25a4,50; grain unchanged; Whisky 16c.; Star candles 24c.; Tallow 12a13c. ST. LOUIS, Oct. 10.-According to the estimate of the Free State men. the Kansas Legislature will stand, Council--9 Republicans; 4 Democrats-House 24 Republicans; 15 Democrats. NEW ORLEANS, Oct. 10.-Cotton sales, 3000 bales at 11 to 11}c.; flour $5,624c.; nothing doing in exchangd. The ship Sultana from New York reports passing on the 22d, four corpses in the water, supposed to belong to the Central America. NEW YORK, 10.-Cotton and flour quiet; wheat $1,25a1,39 for white; $1,15a1,22} for red; corn 65 a68&c.; Provisions dull. AUGUSTA, Ga., Oct. 10.-Reliable intelligence from Charleston, announce the suspension of the Bank of the State of South Carolina. C.M. Firmer, President. NEW YORK, Oct. 10.-A run was made on the Brooklyn and Bowery Savings banks to-day-all demands were met. The Park bank stood the run successfully. BOSTON, Oct. 10.-The Michigan Central Railroad have suspended until they realise from the proposed bond subscriptions. On the 10th of Nov. their coupons will be paid as usual Meade, Minister to Brazil sails in the frigate Vincennes this day. f What it is doing for the Sick.-The Editor

2. October 12, 1857 The Evansville Daily Journal Evansville, IN
Article from The Evansville Daily Journal, October 12, 1857

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AUGUSTA. On, Oct 10-PM Reliable intelhgence from Charleston announees the suspension of the Bank of the State of South Carolina. a State instituTOOP I IT

3. October 12, 1857 Evening Star Washington, DC
Article from Evening Star, October 12, 1857

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The Financial Crisis, &c. NEW YORK. October 10.-The East River Bank has suspended. BOSTON, October 10-Financial matters continue much depressed; the merchants, however, are generally meeting the payment of their notes. No new failures are announced. The evening papers of to-day represent money matters as less favorable than yesterday, but there is no apparent excitement Thestock market has again commenced to decline under orders from holders to sell at the best rates offered. Bank stocks also share in the depression, and there are far more sellersthan buyers. The principal decline to-day, how ver, was in the shares of the Merchants' Bank, which fell off three per cent., closing at 95 bid. The report of the failure of the Boston Belting Company-Tappan & McHenry agents-was in. correct, and probably originated trom the fact that they stopped their works for the periodical cleaning of the machines It is said their assets exceed their liabilities $500,000. LOUISVILLE, October 10.-The failure of A. D. Mansfield, clothing warehouse, is announced today. Mr. Smith, the proprietor of Owens's Hotel, also found it necessary to make an assignment this forenoon. HEELING, Oct. 10-The report of the failure of the Manufacturers' and Farmers' Bank of this city is entirely false. That bank had only $25,000 in circulation previous to the suspension, and are now drawing in as fast as possible. The other banks of this city are in a sound condition. RICHMOND, Oct. 10.-The Governor has issued a proclamation prohibiting the notes of the Bank of Kanawha from being received in payment for money due the State, that bank having refused to redeem its notes and removed a large amount of its assets beyond the limits of the State. AUGUSTA, Oct. 10.--Reliable telegraph news from Charleston announces the suspension of the Bank of the State of South Carolina, a State institution, of which C. M. Firman is president. NEW ORLEANS, Oct. 10.-The cotton market has further declined one cent per pound since Wednesday, and middling is freely offered at 12 cents. The total decline within the past ten days has been four and aquarter cents per pound. Sterling has also declined. and the best bills on London are nominally 93a96, or from four to seven per cent. discount. In freights there is no change, and engagements are limited. DETROIT, Oct 9.-Produce is fast accumulating at this port. Very little is going forward, on account of the derangement in currency and the uncertainty of the eastern markets. The stock of flour on hand is larger than at any previous period of this season. The receipts of flour by railroad yesterday amounted to 2,250 barrels, and of wheat to 10,000 bushels. The Michigan Central Railroad boats plying between Detroit and Buffalo will be laid up as fast as they arrive at this port. [SECOND DISPATCH.] NEW YORK, Oct. 12.-Messrs. Corning & Co., bankers, suspended on Saturday. They were large stockholders in the Southern Bank of New Orleans. Kansas Election-Conflicting Reports. Sr. LOUIS, Oct. 10-The Republican has returns from Kansas which put down the Democratic majority in Leavenworth at 244, in Atchison 63, and Doniphan 50. In Johnson county the Democrats are reported to have a large majority, and the Democrats are understood to have been successful likewise in Jefferson. In Douglas county the Republicans are said to have a majority of 1,165, and in Shawnee a majority of 350. The Legislature, according to the same authority, is certainly Democratic, while for Congress, Parrott, the Republican candidate, is alleged to have been successful. Leavenworth advices state that by the returns of the Kansas election, received up to the 8th, only heavenworth county had so far given a Democratic majority. Returns, given as authentic, give a Republican majority in six counties of over 2,000 votes. Later advices from Kansas state that Parrott, (Free State,) for Congress, has a majority of from 5,000 to 8,000. According to the estimate of the Free State men the Legislaturestands: CouncilRepublicans 9, Democrats 4; House-Republicans 24, Democrats 15. Johnson county gives a Democratic majority of 250.

4. October 14, 1857 The Washington Union Washington, DC
Article from The Washington Union, October 14, 1857

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BANK OF THE STATE OF SOUTH CAROLINA. The suspension of this institution is thus noticed in the Augusta Constitutionalist: "Despatches received in this city this morning announce that this institution has suspended. This is, perhaps, owing to the peculiar character of the bank, which is a State institution. Its suspension should create no panic, as the State is liable for its issues, and there is no danger of ultimate loss to the bill-holders. The other banks of Charleston are not injured, but rather, we imagine, relieved by this suspension of the Bank of the State, which they have had to aid and sustain, in some measure, for some time past. A large party in South Carolina have long contended that the Bank of this State should be wound up, and we hope that this will be the result of its present temporary suspension. 'The Bank of the State of South Carolina,' the State institution which has suspended, must not be confounded with The State Bank of South Carolina,' a private corporation, which, as far as we know or believe, is sound and safe."

5. October 16, 1857 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, October 16, 1857

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CHARLESTON BANKS.-The banks of Charleston, S. C., which had suspended up to Tuesday evening, are: Bank of the State of South Carolina, South Western Railroad Bank, Bank of South Carolina, and People's Bank. The last-wamed stopped redemption Tuesday morning, in consequence of, or on notice of, a demand for a balance of some $22,000 due one of the banks of theinterior. The Charleston Courier says: In reference to the first suspension-the Bank of the State of South Carolina-and the peculiar and prolonged character of its issues, we have but to repeat that there is an absolute guaranty of security and indemnity, under any possible and conceivable catastrophe of banking experience or development, which leaves no excuse or pretext for any fear of sacrifice on the part of bill holders. The good faith and financial integrity of the State, may suffer technically a blunder, and the penalty of subjection to banking contingencies; but the State herself, in her own proper attitude and sovereign personality is, has been, and will be, beyond and above all approach or question of contamination. The suspension referred to, has excited some surprise in quarters beyond our State limits, but we are pleased to record, that as yet, we have seen no expression or even intimation of an opinion contrary to that we have confidently reiterated. The bills of this bank, accordingly, were paid and received yesterday.

6. October 17, 1857 Weekly National Intelligencer Washington, DC
Article from Weekly National Intelligencer, October 17, 1857

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SUSPENSION IN SOUTH CAROLINA. Suspension of the Bank of the State of South Cardina. This banking institution o' the State was compelled by unavoidable circumstances to suspend this forenoon. A good deal of excitement, 01 the announcement of the fact, pervades our community. There is, however, no just cause of panic-such a panic as will induce an unnecessary run on the other banks. The liberality of this bank in accommodating the people, when neither funds nor currency could be obtained from other quarters, had so extended its discount and circulation lines that when the other banking institutions, insisting on constant discharges of balances in specie between them-an unwise and incongruous measure at this crisis-made a press upon it, its suspension becsme inevitable. The note-holders and depositors need not, however, apprehend any loss, unless in their panic they choose to sacrifice their securities. The immediate liability on bills and deposites is about a million and a half. This is but a small proportion of the assets of the bank, which are unquestionable. Its discount line of promissory notes, its bonds, its exchange, its stocks, &c., all of which are realizable in a limited period, are nearly treble those liabilities. In addition to the amplitude of the assets and the general soundness of the bank, the State stands as a guarantor of its eventual liquidation of all demands. The rumor of the suspension of other banks is unfounded. We havé reason to believe they will pay on to the last, and that need not come.- Charleston News.

7. October 17, 1857 Semi-Weekly Standard Raleigh, NC
Article from Semi-Weekly Standard, October 17, 1857

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BANK OF THE STATE OF SOUTH CAROLINA.-The Charteston papers confirm the telegraphic reports of the suspension of specie payments by the Bank of the State of South Carolina. A writer in the Charleston Standard (who is said to be familiar with the subject) says "it is not known, nor is it believed that any special cause has occasioned this result.By reference to the monthly Bank Statements, for the last few years, it will appear that the circulation, deposits, and other liabilities of the Bank are about the same they have been; its specie, exchange, for. eign and domestic, and other cash assets, have not been diminished; and the calamity, therefore, is one to which all the Banks in Charleston, and particularly the Bank of the State, must be always liable under the present system of exchange. The Charleston Evening News of Saturday says: This banking institution of the State was compelled by unavoidable circumstances to suspend. A good deal of excitement, on the announcement, pervades our community. There is however no just cause of panic-such a panic as will induce an unnecessary run on the other Banks, The liberality of this Bank in accommodating the people, when neither funds nor currency could be obtained from other quarters, had so extended its discount and circulation lines, that when the other banking institutions, insisting on constant discharges of balances in specie between them-an unwise and incongruous measure at this crisis,-made a press upon it, its suspension became inevitable. The noteholders and depositors need not however apprehend any loss, unless in their panic they choose to sacrifice their securities. The immediate liability on bills and deposites is about a million and a half. This is but a small proportion of the assets of the Bank, which are unquestionable. Its discount line of promissory notes, its bonds, its exchange, its stocks &c., all of which are realizable in a limited period, are nearly treble these liabilities. In addition to the amplitude of the assets and the general soundness of the Bank, the State stands as a guarantor of its eventual liquidation of all demands. The rumor of the suspension of other banks is unfounded. We have reason to believe they will pay on to the last.

8. October 19, 1857 Daily Nashville Patriot Nashville, TN
Article from Daily Nashville Patriot, October 19, 1857

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The Charleston Banks. The "run" and excitement which prevailed on Monday was not renewed on Tuesday to any great degree, and seemed to be subsiding gradually. We have, however, to add one name to the suspended list,-that of the People's Bank,-which stopped redemption yesterday morning, in consequence of, or notice of, a demand for a balance of some $22,000 due one of the Banks of the interior. There was, so far as we observed and witnessed, no general or excited pressure on any of the other er banks, which yet continue, however, to satisfy all claimants. We shall be pleased to note a returo of due and proper confidence, and of such a condition of affairs as may enable us calmly and impartially, to investigate the causes and responsibilities of the late revulsion in our midst, and the lessons to be derived from it. The list of suspensions for this city now stands: The Bank of the State of South Carolina, suspended Oct, 10th. South Western Railroad Bank, Oct. 12th. Bank of South Carolina Oct. 12th. Peoples' Bank, Oct. 13th. It is needless to say that the issue of the question, 80 far as it involves the renewal or continus ance of a panic, rests with the Banks, and with holders of their emissions. Unfortunately, howev. er, the evils and incidental injuries of such a state will not be confined to those previously active or interested in its promoting causes, but will be felt by all in the ramifications of business and daily traffic. Confidence, as distinguished alike from selfish distrust, and from rash presumption, is the great panacea, and we are pleased to hall any symptoms of its re-appearance. In reference to the first suspension-the Bank of the State of South Carolina, and the peculiar and prolonged character of its issues, we have but to repeat that there is an absolute guaranty of security and indemnity. under any possible and conceivable ca astrophe of banking experience or development, which leaves no excuse or pretext for any fear of sacrifice on the part of bill-holders. The good faith and financial integrity of the State may suffer technically a blunder, and the penalty of subjection to banking contingencies; but the State herself, in her own proper attitude and BOVereign personality is, has been, and will be, beyond and above all approach or question of contamination. The suspension referred to, has excited some surprise in quarters beyond our State limits, but we are pleased to record, that as yet, we have seen no expression or even intimation of an opinion contrary to that we have confidently reitersted. The bills of this bank, accordingly, were paid and received yesterday.-Charleston Courier, 14th nst.

9. October 20, 1857 Nashville Union and American Nashville, TN
Article from Nashville Union and American, October 20, 1857

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LIST OF SUSPENDED BANKS. IN GEORGIA. Georgia Railroad and Banking Company, at Augusta. Union Bank, at Augusta. Manufacturers' Bank, at Macon. All the Banks in Savannah. SUSPENDED BANKS IN SOUTH CAROLINA. Bank of the State of South Carolina, at Charleston, with branches at Columbia and Camden. Bank of South Carolina, at Charleston. Bank of Hamburg, at Hamburg. Planters' and Mechanics' Bank, at Charlestsn. Farmers' and Exchange Bank, at Charleston. People's Bank, at Charleston. South-western Railroad Bank, at Charleston. This bank, we believe, has an agency at Tallahassee, Florida.

10. October 24, 1857 The Winchester Home Journal Winchester, TN
Article from The Winchester Home Journal, October 24, 1857

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Suspended Banks. The following is a list of suspended banks in Georgia: Union bank, at Augusta. Manufacturer's bank, at Macon, All the banks in Savannah. The following is a list of suspended banks in South Carolina: Bank of the State of South Carolina, at Charleston, with branches at Columbia and Camden, Bank of South Carolina, at Charleston. Bank of Hamburg, Planters' and Mechanics' bank, at Charleston, Farmers' and Exchange bank, Charles. ton. People's bank, Charleston, South-western Railroad bank, Charleston.

11. October 29, 1857 Fayetteville Observer Fayetteville, TN
Article from Fayetteville Observer, October 29, 1857

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List of Suspended Banks. IN GEORGIA. Georgia Railroad and Banking Company, at Augusta. Union Bank, at Augusta. Manufacturers' Bank, at Macon. All the Banks in Savannah. SUSPENDED BANKS IN SOUTH CAROLINA. Bank of the State of South Carolina, at Charleston, with branches at Columbia and Camden. Bank of South Carolina, at Charles. ton. Bank of Hamburg, at Hamburg Planters' and Mechanics' Bank, at Charleston. Farmers' and Exchange Bank, at Charleston. People's Bank, at Charleston. South-western Railroad Bank, at Charleston. This bank, We believe, has an agency at Tallabassee, Florida. A CANDID ACKNOWLEDGMENT OF AN UNDOUBTED TRUTH-At a meeting of the proprietors and managers of the Western Railroads, held a few days ago in Columbus, Ohio, a debate arose concerning the affairs of the roads, when one of the members remarked "that the milroads of the country never could repay, if they were disposed, the debt due to the newspaper press for its powerful aid when the idea of a. railway had to be explained and popularized-the public benefitsshown, and the people induced to come forward and associate for the purpose of accemplishing the great works that now need no advocate." The same gentleman, in concluding a speech on the subject, said, "he could not forget the amount of unpaid labor performed in the infancy of railway building by the only men who could reach the popular ear and the popular heart in the most effective manner." We believe, (with the Alexandria Gazette,) that in regard to many of the railroads of the country, they owe their inception, progress, and completion, mainly to the exertions of the newspaper.

12. November 10, 1857 Arkansas True Democrat Little Rock, AR
Article from Arkansas True Democrat, November 10, 1857

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NO. 5. List of Suspended Banks. IN GEORGIA. Georgia Railroad and Banking Company, at Augusta. Union Bank, at Augusta. Manufacturers' Bank, at Macon. All the Banks in Savannah. SUSPENDED BANKS IN SOUTH CAROLINA. Bank of the State of South Carolina, at Charleston, with branches at Columbia and Camden. Bank of South Carolina, at Charleston. Bank of Hamburg, at Hamburg. Planters' and Mechanics' Bank, at Charleston. Farmers' and Exchange Bank, at Charleston. People's Bank, at Charleston. South-western Railroad Bank, at Charleston. This bank, we believe, has an agency at Tallahassee, Florida.

13. June 19, 1858 Keowee Courier Walhalla, Pickens, SC
Article from Keowee Courier, June 19, 1858

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Resumed. Thesuspended banks, in Charleston, resumed specie payments on the 8th, the bank of the State of South Carolina leading off. The country banks will follow, it is thought, iinmediately. This makes our bank bills, heretofore good, as current as they were before the suspension.