1787. Patriotic Bank (Washington, DC)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
state
Start Date
September 26, 1857
Location
Washington, District of Columbia (38.895, -77.036)

Metadata

Model
gpt-5-mini
Short Digest
611bc1653cdf7809

Response Measures

None

Description

The Patriotic Bank (Washington, D.C.) partially suspended specie payments on/around Sept 26, 1857 (redeeming only fives and small checks) amid the nationwide panic; by Sept 28 the suspension is reported along with heavy runs on Washington banks. Articles describe a run/crowds and partial then total suspension, but provide no clear evidence of a later reopening or permanent failure, so final outcome is uncertain.

Events (3)
1. September 26, 1857 Suspension
Cause
Macro News
Cause Details
Partial suspension (redeeming only fives and small checks) in response to the wider 1857 financial panic and suspensions in Philadelphia and Baltimore.
Newspaper Excerpt
The Patriotic Bank is redeeming its fives and small checks. There is an unusual crowd at the bank.
Source
newspapers
2. September 28, 1857 Run
Cause
Macro News
Cause Details
Heavy withdrawals and crowds at banks driven by the nationwide 1857 panic and suspensions elsewhere, producing runs on Washington banks including the Patriotic.
Measures
Redeeming fives and small checks; receiving deposits; paying limited specie for small notes.
Newspaper Excerpt
There is a heavy run on all the banks...A heavy run was made on all the banks. ... The Patriotic Bank followed the example.
Source
newspapers
3. September 28, 1857 Suspension
Cause
Macro News
Cause Details
Following escalating withdrawals and suspension decisions by other banks (Metropolis, Philadelphia, Baltimore), Patriotic Bank suspended specie payments (reports indicate suspension became total by Sept 28).
Newspaper Excerpt
The Bank of Washington and the Patriotic Bank followed the example. There is a heavy run on all the banks.
Source
newspapers

Newspaper Articles (13)
1. September 26, 1857 The Washington Union Washington, DC
Article from The Washington Union, September 26, 1857

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Article Text

WASHINGTON CITY. SATURDAY EVENING. SEPT. 26. 1857. BANK SUSPENSIONS IN PHILADELPHIA, BALTIMORE, AND WASHINGTON. By referring to the telegraphic column it will be observed that the banks of Philadelphia have partially, and in some instances wholly, suspended specie payments. As a matter of precaution-it i is 80 alleged-the banks of Baltimore suspended specie payments to-day ; and from the same cause a similar course was adopted this morning by the Patriotic Bank and the Bank of Washington of this city. It may reasonably be expected that a large number of new and irresponsible banks in the North, East, and West, taking advantage of the general panic, will nominally refuse to part with what they really do not possess. The sooner these worthless institutions are out of the way the better it will be for all classes of the community. As a general rule, the southern banks are in a sound condition; and, with large and increasing resources at command, they will be able, with few, if any, exceptions, to weather the present storm with undiminished credit. The condition of the banks in the city of New York is such as to warrant the belief that their resources are fully equal to meet existing emergencies. Their strength will force the suspending banks into liquidation or the speedy resumption of specie payments. Looking at home, we can see nothing in the financial affairs of this city to warrant alarm or distrust. Our citizens are not suffering from the effects of overtrading or over-speculating; and the cash means of our banks are not locked up in protested paper or the depreciated bonds and stocks of "fancy" railroads. At no period in the history of our city was the condition of our merchants, hotel keepers, mechanics, traders, and real-estate owners more prosperous and promising than it is at the present time. Never before were clerks, journeymen, and laborers as liberally and promptly paid as now; and we venture to say that the balance-sheets of our banks show as large net profits for the past year as for any previous year of their existence. Compared with Baltimore, Philadelphia, New York, Boston, Cincinnati, or any other northern, eastern, or western city, the financial condition of Washington should be a source of congratulation instead of a cause for alarm. But still, with all our substantial means at command, with general freedom from debt and general well-paid employment, we are free to confess that a money panic and a money crisis can be soon got up in the federal capital, if our citizens desire such an expensive luxury. Let each distrust the other-let the usual money accommodations be withheld-and let all engage in the confidence-imparting business of withdrawing specie from the banks and the ordinary channels of trade for 'hoarding" purposes, and not many days or even hours will elapse before the business men of Washington are suffering as their brethren of New York and Philadelphia now suffer. Let the citizens of Washington have a true, realizing sense of their really prosperous condition, and the troubles which they invoke by their fears and distrust will not come near them. A "run" was made on the Bank of the Metropolis to-day, but it was met so cheerfully and promptly by the custodians of its well-filled vaults, that confidence was soon restored to depositors and noteholders.

2. September 28, 1857 Worcester Daily Spy Worcester, MA
Article from Worcester Daily Spy, September 28, 1857

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The Washington Banks. WASHINGTON Sept. 26.-The Bank of the Metropolis closed firm. The commercial community is generally satisfied with the course of the others, and all are confident of their stability and resumption at an early day. A considerable amount of deposits has been made in the Patriotic, and Bank of Washington, since their suspension. The Patriotic is redeeming its fives and small checks. There is an unusual crowd at the bank.

3. September 28, 1857 The New York Herald New York, NY
Article from The New York Herald, September 28, 1857

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three of them, and even the most ignorant know them to ve M strong as the mint. The merchants seem to be graditied with the suspension. Money on the street yescreay was at 2½ per cent premium, but has failen 1 per cent to-day. A great deal of surprise is expressed in this oily that the New York banks have been able to withstand the pre sent pressure, and have not ere this suspended. The Farmers' and Mechanics' Bank of this city is cashing all its notes. It is also paying checks upon It in notes of other city barries. The money market is easter, and the excitement appears so be subsiding. The issue of shinplasters has been spoken of, and will, it is said, be resoried to. BANK SUSPENSIONS IN WASHINGTON. WASHINGTON, Sept. 26, 1857. The Bank of Washington suspends specie payments on everything but fives and small checks. The partial suspension of the Bank of Washington is only temporary. The Patriotic Bank is redeeming its fives and small checks. There is an unusual crowd ml the bank. The Bank of the Metropolis closed tirm. The commerotal community is generally satisfied with the course of the others, and all are confident of their ability to resume at an. early day. A considerable amount of deposits has not made in the Patriotic Bank and Bank of Washington since their suspension. The Bank of the Metropelis redeemnd all its notes and paid all its checks up to the closing hour, and they feel themselves abundantly able to meet all demands against them. THE BANKS OF WHEELING. HEELING, Sept. 26, 1857. At a meeting of the citizens of this city, hold this evening, it was unanimenaly resolved that the banks of the city be requested to Immediately suspend specie payment until the business Interests of the community will justify a resumption. This action was taken in consequence of the heavy run that has recently heen made upon the banks by foreign brokers and bankers. The banks are abundantly able to meet their Habilities. No loss will be sustained by note holders or depositors, in consequence of the suspension. THE EFFECT IN CINCINNATL CINCINNATI, Sept. 26, 1857. The Ohio Life and Trust Company has made an anign. ment. The rates of exchange are nominal. Sight checks cannot be bought on New York for less than five per cent promium. There have been no failures among our merchants— they stand firm. END DA WEG.

4. September 28, 1857 Evening Star Washington, DC
Article from Evening Star, September 28, 1857

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Article Text

EVENING STAR. WASHINGTON CITY: September 28, 1857. MONDAY SPIRITOF THE MORNING PRESS. The Intelligencer, discussing the suspension of the banks in various quarters of the country says, with truth and justice, of the two Washington city banks that suspended on Saturday last: The panic on Saturday extended to this city, and two of our banking institutions-the Bank of Washington and the Patriotic Bank-partially suspended the redemption of their notes in specie. In these cases we are inclined to think the panic was with the banks rather than with the public, as we understand there was no serious run upon them when they stopped payment. The Bank of the Metropolis, on which a run immediately commenced in consequence of the suspension of the other banks, met every demand promptly. The holders, however, of the bills of the two banks that have suspended may rest perfectly tranquil, for the means of the two institutions are doubtless ample to meet all claims, and their notes are all available, being a legal tender in payment for debts to these banks, and will in that way be promptly absorbed and taken from the hands of the present holders. The same may be said of deposites; and erefore it will be folly for any one to sacrifice either notes or deposites. A very short time will no doubt restore tranquility and confidence, and people will then wonder how or why such an alarm and panic could have existed.' The Intelligencer also contains a letter from Gen. Scott in reply to that of Gen. Pillow, with which the country is familiar, wherein Gen. S. contents himself for the most part with a quiet denial of the truth of General P.'s statements. The only point essayed to be made by Gen. P. which he argues is that declaring that he (Gen. S.) paid to Santa Anna $10,000. Of this he remarks (in effect) that the fact that Santa Anna was then notoriously worth $3,000,000, and had, as Dictator, the irresponsible control of all the wealth in Mexico, renders it preposterous. He adds that he did pay to two or three un-named (Mexican) individuals $10,000 for secret information necessary for the success of his cam. paign. and presumes that the impression of Gen. Pillow that he had made such a payment to Santa Anna grew out of that fact. He also defends Mr. Trist warmly from Gen. P.'s animadversions. The Union, discussing the financial crisis, says of the business affairs of our own city: " Looking at home, we can see nothing in the financial affairs of this city to warrant alarm or distrust. Our citizens are not suffering from the effects of over-trading or over-speculating; and the cash means of our banks are not locked up in protested paper or the depreciated bonds and stocks of "fancy" railroads. At no period in the history of our city was the condition of our merchants, hotel keepers, mechanics, traders, and real-estate owners more prosperous and promising than it is at the present time. Never before were clerks, journeymen, and laborers as liberally and promptly paid as now; and we venture to say that the balance-sheets of our banks show as large net profits for the past year as for any previous year of their existence. Compared with Baltimore, Philadelphia, New York, Boston, Cincinnati, or any other northern, eastern. or western city, the financial condition of Washington should be a source of congratulation instead of a cause for alarm. But still, with all our substantial means at command, with general freedom from debt and general well-paid employment, we are free to confess that a money panic and a money crisis can be soon got up in the Federal capital, if our citizens desire such an expensive luxury. Let each distrust the other-let the usual money accommodations be withheld-and let all engage in the confidence-imparting business of withdrawing specie from the banks and the ordinary channels of trade for "hoarding" purposes, and not many days or even hours will elapse before the business men of Washington are suffering as their brethren of New York and Philadelphia now suffer. "Let the citizens of Washington have a true, realizing sense of their really prosperous condition, and the troubles which they invoke by their fears and distrust will not come near them.

5. September 28, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, September 28, 1857

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BANKS OF WASHINGTON WASHINGTON. Saturday, Sept. 26, 1857. The Bank of Washington suspended specie payments on everything but fives and small checks. The Patriotic Bank is receiving its 58 and small checks. There is an unusual crowd at the bank. The Bank of the Metropolis have resolved to continue full payments, feeling secure against all demands. The partial suspension of the Banks of Washington is only temporary. 6 P. M. The Bank of the Metropolis closed firm. The commercial community is generally satisfied with the course of the others, and are confident of their ability to resume at an early day. A considerable amount of deposits has been made in the Patriotic Bank and Bauk of Washington since their suspension. The Bank of the Metropolis redeemed all its notes and paid all the checks up to the closing hour, and feels abundantly able to meet all demands made against it.

6. September 29, 1857 Daily Iowa State Democrat Davenport, IA
Article from Daily Iowa State Democrat, September 29, 1857

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WASHINGTON NEWS. Washington, Sep. 26. The officers of the Navy and Marine Corps at Washington, held a meeting yesterday, to give expression to their sympathy for the untimely death of Captain Herndon. Successors of Ministers Dodge, Mason and Dalias, have been designated. but will not be appointed until the meeting of the Se nate. Senator Slidell goes to Paris, some northern man to London, and a southern man to Madrid. Bank of Metrepelis closed firm. The commercial community is generally satisfied with the other banks All are confident of their stability and resumption at an early day. A considerable amount of deposits has been made in the Patriotic Bank of Washington since their suspension.

7. September 29, 1857 The New York Herald New York, NY
Article from The New York Herald, September 29, 1857

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THE WASHINGTON BANKS. W ASHINGTON, Sout 28, 1857. The trustees of the Bank of the Metropolts say that the panic created by the suspension of other bank. baring created much larger demands than were anticipated, ibal that institution is under the painful necessity of suspend ing specte payments for the present The trustees remark that they will make every exertion to resume as speedity as possible, and that the bank paid out about $66,000 in specie on Saturday. The Bank of Washington and the Patriotte Bank, both of which paid small sums on Saturday, have now altogether suspended specie pay ments. The savings banks pay either in the bills of the banine of the city or Virginia money, and demand the six days no tice from:-depositors Virginia money is selling here at a discount of five per cent, and the tendency is still downwart Business is nearly paralysed, and uncurrent money is altogether unsaleable

8. September 29, 1857 Worcester Daily Spy Worcester, MA
Article from Worcester Daily Spy, September 29, 1857

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The Bank Troubles. NEW YORK, Sept. 28, 2 P. M.-Money srringent, and banks are firm. Very heavy failures are reported. Advices from Albany mention a run upon the Savings Department by small depositors. There is no pressvre elsewhere, and bill-holders and banks there are quiet and confident. ALEXANDRIA. D. C., Sept. 28.-There is a run upon our banks this morning. They are paying out small sums only. PHILADELPHIA, Sept. 28 -The Bank of Commerce is repeating the course it pursued on Saturday. The Girard is cashing its fives. The Mechanics' and the Southwark are paying all their notes. The North American suspended at about 11 o'clock today, and the suspension will now become general. 12 o'clock.-The Mechanics' now redeems its fives only, as also the Pennsylvania, Girard, Farmers' and Mechanics', Penn Township, Consolidation, Northern Liberties, Mechanics' and Manufacturers', Commercial and Western, and City. The Philadelphia has no specie, but redeems checks with its own notes. 1 o'elock.-All the banks are changing their course since this morning ; some refuse to certify their checks, but give due bills to deposit in other banks. Business is paralyzed, but there is little excitement. It is impossible to make collections. ASHINGTON, Sept. 28.-The Bank of the Metropolis suspended this morning. It paid out $65,000 on Saturday last. The Bank of Washington, and the Patriotic, which paid small sums on Saturday, now altogether suspend specie payments. The Savings Banks pays either in City Bank or Virginia money, and demonds six days' notice from depositors. Virginia money is at a discount of 5 per cent., and is tending still further downward. Business is nearly paralyzed.

9. September 29, 1857 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, September 29, 1857

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THE WASHINGTON CITY BANKS. WASHINGTON Sept 28.-The Bank of the Metropolis paid about $65,000 dollars on Saturday, hut was obliged to suspend totally to-day. The Bank of Washington and the Patriotic Bank followed the example. A heavy run was made on all the banks.Virginia notes are five per cent discount, with 8 further tendency downward. Uncurrent money is unsaleable. Business is paralized.

10. September 29, 1857 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, September 29, 1857

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TOTAL SUSPENSION IN WASHINGTON. WASHINGTON, Sept. 28.-The Bank of the Metropolis, after paying out $65,000 in specie Saturday, has been obliged to suspend totally to-day. The Bank of Washington and the Patriotic Bank have followed the example. There is a heavy run on all the banks. The Virginia notes are at 5 per cent discount, with a further tendency downward. Uncurrent money is unsaleable. Business is paralyzed. [SECOND DISPATCH.] WASHINGTON, Sept. 28-8 P. M-The merchants here take the notes of Washington banks at par.There is no fixed rate of exchange for Virginia notes.

11. September 29, 1857 The Evansville Daily Journal Evansville, IN
Article from The Evansville Daily Journal, September 29, 1857

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Bank Suspensions in Washington. WASHINGTON. Sept 23-M A notice posted on the Bank of Metropolis savs that the panic causing the suspension of other banks, having caused a much larger demand for specie than was anticipated, that institution is under the painful necessity of suspending specie payments for the present. The Trustees remark that they will make every exertion to resume; that the bank paid out $65,000 on Seturday. The Bank of W ashington and the Patriotic Bank, which paid only small sumson Saturday, have not altogether suspended. The Savings Bank pays either in city bank notes or Virginia money, and demand the six day's notice from depositors, Virginia money is at a discount of 5 per cent, and the tendency is still downward.Business nearly suspended, and uncurrent money unsalcable.

12. October 2, 1857 Wilmington Journal Wilmington, NC
Article from Wilmington Journal, October 2, 1857

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Washington City Banks. W ASHINGTON, Sept. 26.-The Bank of Washington is paying specie only for $5 notes and small checks. The others continue as usual. SECOND DESPATCH. WASHINGTON, Sept. 26.-The suspension by the Bank of Washington is only partial. The Bank of the Metropolis has resolved to continue full specie payments, feeling confident of its ability to meet all demands. The Patriotic Bank is redeeming its fives and small checks. The Banks are all crowded with bill holders and others. W ASHINTON, Sept. 26.-The Bank of the Metropolis closed firm, and every confidence exists in the Patriotic Bank and the Bank of Washington. The merchants express satisfaction, and considerable amounts were deposited in the suspended banks after the suspensions was announced.

13. October 3, 1857 The Weekly Minnesotian Saint Paul, MN
Article from The Weekly Minnesotian, October 3, 1857

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weeks notice. The Banks were besieged before 10 and is transacting business, but paying no specie. The Mechani's Bank is paying specie for tens. The Girard Bank refuses to do any business and renders no satisfaction to depositors and bill holders. The Girard Bank has now come to terms, partially redeeming fives with specie, but refusing to honor checks of dep sitors. Most of the other banks were making checks good. There is no concert of action among the banks ; each is apparently taking a different course. The Bank of North America is paying specie for tens, but issuing no note or check. The Bank of Commerce is refusing specie, but is paying notes for checks. ASHINGTON, Sept. 26. The Bank of Washington suspended specie payments on everything but fives and small checks. The Board of Directors of the Metropolis and Patriotic Bank are now in conference and it is not yet known what action will be taken thereon. THIRD DISPATCH. The Bank of the Metropolis has concluded to continue full payment and are feeling themselves secure against all demands. The Patriotic Bank is redeeming its fives and small checks. There is a continual crowd at Banks. NEW YORK, Sept. 26. Banks are all strong, and the utmost confidence is exhibited in them. The Banks have issued a circular on account of the suspension of the Philadelphia Bank, notifying their customers that all collections maturing out of the city of New York, will, at the option of the dealer, be either recalled or paid.