Bank of West Tennessee

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: August 31, 1861
Location: Memphis, Tennessee (35.150, -90.049)

Metadata

Model: gpt-5-mini
Short Digest: ec981fda283c93bd

Response Measures

None

Description

Article is a semi-annual statement (31 Aug 1861) describing the Bank of West Tennessee and praising the decision of Tennessee banks to suspend specie payments in wartime. No bank run or permanent closure is mentioned; suspension was a wartime policy tied to the national (Lincoln election / secession/war) panic and intended to be temporary. I infer the bank suspended specie payments (temporary) and is expected to resume later.

Events (1)

1. August 31, 1861 Suspension

Cause: Macro News
Cause Details: Panic produced by the election of President (and the outbreak of the Civil War/secession-related monetary disruption) led Tennessee banks to suspend specie payments.
Newspaper Excerpt: The banks of Tennessee pursued a wise policy in suspending specie payment.
Source: newspapers

Newspaper Articles (1)

1. September 17, 1861 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN

Article from Memphis Daily Appeal, September 17, 1861

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Article Text

BANK OF WEST TENNESSEE. We publish below the semi-annual statement of this bank, which will no doubt be gratifying to the stockholders, who are composed almost entirely of the leading merchants and mechanics of our city, together with a number of our most wealthy planters in the adjacent country. The bank was reorganized last year, by large increase in her capital stock, the sub- will scriptions to which, when paid in full, amount to over $800,000. The installments were being called in, on subscription, when the panic produced by the election of President last fall, caused the directors, very prop. erly, to cease collecting subscriptions until & change takes place in the monetary condition of the country. It will be seen that the capital stock paid in amounts to $305,676.11, besides the profits of the past six months, which amount to $26,556 36. The statement will show the great activity with whieb the capital has been used, and that the directors have not been unwindful of meeting the wants of the people, and assisting the Confederate government in means to meet the present heavy expenditures, wi leb is "casting bread upon the waters," to be returned, with independence and prosperity, after many days." The actual liabilities are, circulation and deposits, $427,351.59, while the immediate cash means on band, including the amount due by the government, is $243,723.52 begides the bills of exchange and discounted notes running to maturity, which amount to $441,550.34. This showing must segratifying to the stockholders, as well AS to those who bavet the management of its affairs. No bank in the country is more justly entitled to the confidence of the people, The stock being owned almost entirely here, it CADBO fall of a successful C2reer while in the hands of such gestlemen as the stockholders will select, from time to time, to administer its affairs. The operations of the banks of Tennessee contrast strongly with the movements and policy of the New Orleans banks. There, they have adopted the policy, since the war proof President Lincoln, to extend DO accommodation to clamation almost the have merchants reaped and planters, out of whom they large profits, thereby almost prostrating their best and truest friends, for the sake of having it said that they were paying specie, while other basks were in a state of suspension. They have refused to receive Confederate treasury notes, thereby failing to contribute to the credit and necessities of our government, the prosperity of which is, to some extent, dependent them. It makes but little difference, in times like these, whether a bank has much specie in her vaults or not, while in a state of suspension; for it is only 80 much dead capital, and bad better be contributed in loans to the governor to such merebants and to carry on the ment, are entitled to legitimate planters time arrives trade who of the country. When the propar for a resumption of specie payment, by the banks, the sale of the the will soon bring & suspended country sufficient produce amount of of coin into their vaults to replenish them. Suppose the policy of our banks had been the New Orleans? The result would that our merchants have same been as would of have produce been prestrated, the necessary amount for the feeding of our army and people would not have been in the country, the State and Confederate governments would have been crippled for the want of means, and our army would not be in that comfortable and prosperous condition in which they are now placed, ready to meet our common enemy The banks of Tennessee pursued a wise polley in suspending specie payment. and thereby enabling them to invest their means in good notes and bills of exchange, and government bonds, and determining to receive and pay out the Confedera'e States treasury notes. They deserve the thanks and confidence of the peuple, and will not be forgotten when trade assumes its regular and legitimate channels. They have not only sustained, by their wise and liberal polley, our own people. but have largely contributed to the wan's of New Orleans metchants to enable them to supply their cust with meat, etc. This the banks of that should have done, but of omers city their policy their taking care of themselves, and le ting customers do the same, forbid it. SEMI-ANNUAL STATEMENT OF THE BANK OF WEST TENNESSEE, 31st DAY OF AUGUST, 1861.