18642. Bank of Commerce (Erie, PA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
November 21, 1860
Location
Erie, Pennsylvania (42.129, -80.085)

Metadata

Model
gpt-5-mini
Short Digest
6dc93baf

Response Measures

None

Description

Contemporary newspapers (Nov 21-22, 1860) report the Bank of Commerce at Erie being 'thrown out' and refused by brokers amid a wider panic in 'uncurrent' notes following suspensions of other banks. Articles describe a suspension (notes discredited) but give no evidence of receivership or permanent failure; no explicit run is described. Chosen category: suspension_reopening (suspension with no run; no evidence of permanent closure). Date of suspension taken as about 1860-11-21 based on article datelines.

Events (1)
1. November 21, 1860 Suspension
Cause
Local Banks
Cause Details
Suspension/reputation hit appears driven by contemporaneous suspensions of other banks (South and West) and a panic in 'uncurrent' banknotes that led brokers to refuse Erie notes.
Newspaper Excerpt
The suspension of the Bank of Commerce at Erie has affected the country Pennsylvania Notes. The Bank of Commerce at Erie ... are thrown out at Philadelphia.
Source
newspapers

Newspaper Articles (3)
1. November 22, 1860 Cincinnati Daily Press Cincinnati, OH
Article from Cincinnati Daily Press, November 22, 1860

Click image to open full size in new tab

Article Text

MONETARY AND COMMERCIAL. Financial Affairs. Yesterday was, financially, the most unsettled day yet experienced in Third-street, and Money closer than it had been before this season. The Discount-houses were unwilling to accommodate any but their customers, and they threw out considerable of the Paper offered. The uncertain and troubled feeling affects all branches of trade, and though the city and country-this portion of it, at leastare rich in means and.crops, there is no disposition to operate to any extent until the political difficulties in the South are over. Monetary matters, during the week ending last evening, grew much closer than they had been during any week previous, and the stock of Currency held by the Bankers was much reduced. Rates of interest became higher, and though 10@12 remain the figures of the leading Discount-houses, the best names often go at 18@24 per cent., while long Paper is with difficulty negotiated at any price. Every one hopes for a speedy delivery from the existing condition of affairs, and if confidence were restored, the city would be rejoicing in an excellent and a prosperous trade. There is no reason, as every one knows, for the present commercial disarrangement, but still it has the most unfavorable effects. Eastern Exchange became firmer during the week, and at the close of yesterday rates were stiff at our quotations. The rates here are very low-more so than they should beand would doubtless advance if Money were easy. New Orleans Exchange is very quiet, and rates almost nominal. Gold during the week was in good retail demand, and is still, with some sales to the country Banks. The supply is moderate; dealers supplying themselves by assorting Paper and returning it home for Coin. In Time-bills hardly any thing is doing, though prime Drafts are nominal at 12 per cent. per annum. Uncurrent Money, during the week, underwent various fluctuations and was much unsettled yesterday; the rates, though not reliable, being given as follows, at the close of Bank-hours: Indiana Stock ½; Pennsylvania (interior),%; Virginia (except Wheeling City and branches), 5@10; Missouri, 5; Iowa 5; Wisconsin, 10; Illinois, 10; Maryland (interior), 3/4; Tennessee 1@2; Michigan and Canada 2 discount; Alabama, Georgia and the Carolinas, 10@20 discount. The failure of the Farmers' Bank of Virginia has caused persons to distrust much of the Southern Paper, as the suspension of the Bank of Commerce at Erie has affected the country Pennsylvania Notes. Some twenty-three of the Illinois Banks have been discredited, and they are purchased in. some quarters at 25 discount; while some of the Brokers purchase them as they do the other institutions, at 10 discount. By reference to our New York dispatches it will be seen that a great panic was experienced yesterday, in Wall-street, respecting Uncurrent Money. A plan is proposed in that city to relieve the Banks by issuing Scrip based on undoubted securities. The present rates of Exchange and Coin are:

2. November 22, 1860 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, November 22, 1860

Click image to open full size in new tab

Article Text

266'601$ Increase $3,542,680 $658,360 $1,685,055 Decrease The suspensions of banks at the South and West, announced within a day or two, brought about almost a panic in uncurrent money, and the brokers' offices were crowded to-day with sellers. The rates rapidly advanced, partly from the inability of buyers to meet the rush, and partly from the uncertainty in regard to the future. At the latest, Messrs. Thompson Brothers quote New-York State and Eastern P cent discount; IIdiscount; Ohio, Indiana, and Kentucky, 5 cent linois, Missouri, Wisconsin, and Iowa, 15 ₽ cent disdiscent count; Maryland and Pennsylvania, 1@2 P count; Virginia, North Carolina, South Carolina, cent discount. Land Georgia, and Alabama, 25 Warrants are unsettled, and nominally 60c. P acre. The rush to sell uncurrent money has been 80 great that the brokers have had no time to assort it. Mobile and New-Orleans, if assorted, could be sold at 10 cent. Telegraph dispatches announce the suspension of all the Richmond Banks, and that at Baltimore uncurrent money cannot be sold. The Bank of Commerce at Erie, and the Pittston Bank, are thrown out at Philadelphia, and the weak banks all over the country are shaking in the wind. State and Eastern currency is coming in very freely at the Metropolitan Bank, and that institution, we understand, now requires the guarantee of brokers depositing uncurrent funds. A scheme was incubated yesterday, to seal up these notes of State and Eastern banks, instead of sending them home for redemption, and issue certificates upon them, as in 1857, to be used between the banks in settlement of balances at the Clearing-House. This scheme, however, was superseded by the action of the banks this afternoon. The Exchange Committee of the Banks have bought about £30,000 at about 102, and have negotiations under way for a much larger amount. The offerings of bills to-day were quite moderate. The difficulty of finding the right description of bills, hampers the operations of the Committee, and they will probably be obliged to resort to the bankers to fill up the amount authorized. The true policy of the Committee would be to buy commercial bills of the bankers, with their indorsement, paying a fair advance for the risk thus assumed by the bankers. The object of the movement, we apprehend, is not to make money for the banks on the import of specie, but to relieve the stagnation in the Exchange market. The bankers know the standing of commercial drawers, while the Committee have to make nun erous inquiries, which cause delay, when in mediate relief is needed. To-morrow is the day of payment for the Government loan awarded last week. The speculative lots will not probably be paid for. In the mean time, Treasury notes are going in rapidly for redemption, and we shall not be surprised to see the Treasury bankrupt by Jan. 15, 1861, unless Congress intervenes to save it. There was little or no relief in the money market today, but a rather easier feeling in anticipation of some relief by a more liberal course on the part of the banks. First-class names go at 12@15 cent, and good at 18@24 cent. There is no currency, even at these rates. Demand loans are 7 P cent, and the supply of money is moderate. The managers of our banks this morning became thoroughly awake to the precarious character of their condition, and held a meeting to consider measures for the relief of the mercantile classes, and to prevent a general suspension of specie payment by themselves. A scheme was proposed and adopted, subject to the approval of an adjourned meeting, to be held in the afternoon. This plan contemplates a general and liberal expansion of loans to meet the full wants of the worldcommercial Committee of five to be appointed, to whom any bank which should be drained of its gold could apply, and by the deposit of bills receivable, stocks, &c., in trust, Clearing-House certificates to the extent of 75 cent of the deposits would be issued, which certificates are to be receivable at the Clearing-House in payment of balances. This practically establishes a community of all the specie in the bank vaults, and no single bank can bebroken 80 long as it has good assets. In the present state of our foreign trade, there being no shipping demand for gold, we can see no danger in this expansion of loans contemplated, and if the step had been taken two weeks ago, much suffering would have been averted. The want of a leading spirit in the banking circle has been painfully evident, and the banks, each one for it self, have gone on scrambling for coin until the merchants and banks have together been brought to the brink of bankruptcy. We trust the action of this afternoon has averted the danger, and that the relief to be afforded will be sufficient to infuse new vitality into all the avenues of trade and commerce. No better proof of the thorough fright and earnestness of the bank officers is needed than the fact, that for the

3. December 1, 1860 Sioux City Register Sioux City, IA
Article from Sioux City Register, December 1, 1860

Click image to open full size in new tab

Article Text

New York, Nov. 21. Thompson Bros, state that the currency panic to day has been equal to that of 1857. They quote all bills south of Washington 20 to 25 per cent. discount; Illinois and Wisconsin 15 per cent. Ohio, Louisiana, Kentucky and Canada 3 to 5 discount; Maryland and Pennsylvania 1 to 2 discount; New York State and New England 1 discount. The Post says that the Presidents of the leading banks are discussing a project for releiving the community by issuing scrip based on bills receivable of United States stocks and other approved collaterals, to pass in liquidation of bills to each other. The scrip to bear 7 per cent. interest. The banks thus hope to be soon in a position to meet the wants of their dealers. An expansion in loans of several millions is looked for this week. Norfalk, Va., Nov. 21. The minute men of the city held a meeting to-night and passed strong resolutions in favor of resistance to Northern aggressions. Three cheers were given for the man that hung John Brown. Cockades are plentiful on the streets to dav. Philadelphia, Nov. 21. The Brokers of this city refuse take the notes of the Bank of Commerce, at Erie, and Pittson Bank. Augusta, Ga., Nov. 21. Both branches of the Georgia Legislature have passed unanimously a bill to call a State Convention.