18703. Harrisburg Bank (Harrisburg, PA)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
September 26, 1857
Location
Harrisburg, Pennsylvania (40.276, -76.885)

Metadata

Model
gpt-5-mini
Short Digest
30f11488

Response Measures

Full suspension

Other: Reopening/resumption planned collectively with other PA banks in early 1858.

Description

Newspaper accounts report heavy drafts and a run on the Harrisburg Bank after Philadelphia banks suspended (Sept 26, 1857), prompting the Harrisburg Bank to suspend specie payments the same day. By January 1858 the bank was listed among institutions contemplating resumption (planned around Feb 1, 1858). Classification: run led to suspension, later resumption.

Events (3)
1. September 26, 1857 Run
Cause
Local Banks
Cause Details
Runs triggered by suspension and distress among Philadelphia banks and heavy drafts from the city; panic spreading from Philadelphia.
Measures
Directors suspended specie payments (temporarily) to stop outflows; paid checks in notes.
Newspaper Excerpt
Large drafts were made on the Harrisburg Bank from the city, and some alarm being excited...a general run was inevitable.
Source
newspapers
2. September 26, 1857 Suspension
Cause
Local Banks
Cause Details
Temporary suspension of specie payments in response to the panic stemming from Philadelphia bank suspensions and attendant heavy withdrawals in the region.
Newspaper Excerpt
The Harrisburg Bank suspended on Saturday last ... the banks of this place, Lancaster, York and Reading have all suspended specie payments.
Source
newspapers
3. February 1, 1858 Reopening
Newspaper Excerpt
the banks voting in the majority at this meeting were, with the exception of the Harrisburg Bank, those named ... instructed their Presidents and Cashiers to ... resume on the 1st of February next, provided that the Philadelphia city banks would coöperate. (Jan 1858 report lists Harrisburg among banks contemplating resumption).
Source
newspapers

Newspaper Articles (8)
1. September 28, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, September 28, 1857

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Article Text

LATEST NEWS. THE RECEIVED BY MAGNETIC TELEGRAPH BANK DIFFICULTIES. THE BANKS OF PHILADELPHIA, PHILADELPHIA, Saturday, Sept. 26, 1857. Third and Chestnut streets are again the scene of excitement. Crowds surrounded the Savings Institutions before 9 o'clock 8. m. out two banks deposits, requiring weeks' They notice. decline The paying were besieged before 10 o'clock. The Pennsylvania Bank reopened, and is transacting business, but paying LO specie. The Mechanics' Bank is paying specie for tens. The Girard Bank has come to terms partially, re. deeming fives with specie, but refusing to honor the checks of depositors. Most of the other banks are marking 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 notes on checks. The Bank of Commerce is refusing specie, but is paying out notes for checks. The following banks are paying specie for 5a: Commercial, Manufacturers and Mechanics', and PhiladelThe Farmers and pay The Northern Liberties pay specie phia. 10s. Mechanics' and Western specie for for bills in cases of necessity. The Bank of Penn Township, and the City Consolidation Bank pag nothing. All banks, however, except the Girard, certify checks. The Girard has entirely suspended business. Some of the banke will receive no deposits. 11:15--a. m. The Girard Bank is now paying specie for fives and certifying checks. The Tradesman's Bank pays everything, checks and all. The Bank of North America is paying all its notes. It received specie from New-York last night, and represents that it has more in its vaults than its amount of bills. It is certifying checks. The Board of Brokers passed a resolution this morning to the effect that all settlements in the purchase of stocks may be made by certified checks on any of the city banks current on the day of settlement. The Southwark Bank pays specie for all its bills. The Bank of Kensington pays for fives only. The Pittsburgh, Harrisburg, Lancaster and Reading banks have suspended. 7 p. m. A meeting of the presidents of the banks was hold this afternoon, and it is reported that a for want of concert of action they adjourned without arriving at any determination. It was thought they would determine on a full suspension, as practiced by some of the banks to-day, but which was not general on account of the North America, Mechanics', and some of the other banks receiving a supply of specie. There was also a meeting of the cashiers of the vs. rious banks, but their action is not yet known. 19 p. m. The bank presidents met to-night. They had & conference with the Governor, and asked him to call a special session of the Legislature for October 6, withthe view of affording relief to the banks from the penalty of forfeiture of charter imposed by the law of 1850. Several of the banks, however, as not acting under this law, including the Pennsylvania, Farmers' and Mechanics', Philadelphia and Western. The Governor expresses a desire to consult Attorney-General Franklin, who is not in town. No doubt the proclamation calling an extra session will be issued on Monday morning. PHILADELPHIA, Sept.27,1857. It is understood that the Governor has determined upon calling a special session of the legislature, to as semble on the first Tuesday in October. The prociamation will be issued to-morrow.

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

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Article Text

Philadelphia, 26, P. M. The Pittsburg, Harrisburg. Lancaster, & Reading Banks have suspended. The failure of W B Lovejoy & Co., clothing house on Commercial street, in this city, is announced. A meeting of the Presidents of banks was held this P. M. It is reported that for want of concert of action they adjourned without arriving at any determination. It was that they would determine on a full suspension as practiced by some of the Banks to-day. but which were not general on account of North America Mechanics and some of the other banks receiving a supply of specie.There was also a meeting of the cashiers of the various banks, but their action is not yet known. It is understood application will be made to the Gov. for the call of an extra session of the legislature, with a view of affording relief to the Bankers, from the penalty of forfeiture of charter imposed by the law of 1850. Several of the banks, however, are not acting under this law, including the Penn sylvania, Farmers, Mechanic, Philadelphia and Weston.

3. October 1, 1857 Marshall County Republican Plymouth, IN
Article from Marshall County Republican, October 1, 1857

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Article Text

Later SATURDAY NIGHT REPORT. Philadelphia, Sept. 26, 2 P.M. The Pittsburg, Harrisburg, Laneaster and Reading Banks have suspended. The failure of W. B. Lovejoy & Co., clothing house on Commercial street in this city, is announced.

4. October 1, 1857 Quasqueton Guardian Quasqueton, IA
Article from Quasqueton Guardian, October 1, 1857

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Philadelphia, Sept. 26, 2 P. M. The Pittsburg, Harrisburg, Lancaster and Reading Banks have suspended. The failure of W.B. Lovejoy & Co., clothing house on Commercial street, this city, is announced.

5. October 1, 1857 Holmes County Republican Millersburg, OH
Article from Holmes County Republican, October 1, 1857

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by the Financial Intelligence From the Philadelphia Bulletin of Satevenime: Aupm As might have been foreseen from the of events of yesterday morning, the Banks this city have been obliged to resolve upon suspension of specie existed payments a general time. The excitement that is for a has subsided very much, be and it yesterday that a resumption may not very hoped distant. Most of the banks forfeit their far by a suspension of specie pay- the charters but there is some talk of urging for ments; Governor to assemble the legislature to sake of getting some special action is the relieve them in this emergency. There particular inconvenience resulting as yet no from the suspension. In most of the Banks specie is given for notes of small denominations, and there is an abundance of coin in circulation. The Bank Presidents have been in consultation this afternoon, and although nothing definite has been done, there is reason to believe that they have ascertained the views of the Governor and are about to take some steps which will have the effect to restore confidence. It will be observed that the suspension of specie payments here has been followed The by a like movement in Baltimore. Farmers' Bank of Reading has also suspended. The only other bank in Reading is the Branch of the Bank of Pennsylvania, which of course sdspended with the principal bank. The Union Bank, chartered by the last legislature, has not yet gone into All operation. the places in the interior of the State from which we have any accounts, are following the example of Philadelphia. From the Reading Gazette Saturday The morning suspension of the Pennsylvania Bank became known here about 11 o'clock yesterday morning, and almost immediatecom-to SUM Bank Farmers's offi uodn uni U 4 menced, which continued until about halfpepuadsns 7! when "W d & ased upon its checks and bills. Up to this time, some $20,000 were drawn out. From the Harrisburg Telegraph SaturSep The suspension of specie payments by the Banks in Philadelphia, is already affect ing the Banks in the country. Large drafts were made on the Harrisburg Bank from the city, and some alarm being exAunu 'Mejet's superscript(s)! 10J streets the uo pessond note holders appeared at the counter this morning for specie in exchange, and a general "run" was inevitable. Under these circumstances the Directors deemed it the most prudent course to suspend temporarily, until the panic had subsided, and accordingly declined paying out specie for the present. All checks are paid in notes of their own or other Banks. HARRISBURG, Sept. 26.-The banks of this place, Lancaster, York and Reading have all suspended specie payments. We have no accounts from other places, but the suspension will undoubtedly be general. NEW YORK, Sept. 26,-Despatches have been sent to the South stating that the banks of this city have suspended or will suspended. They are the work of inischiefmakers,"whose "wish was father to the The thought" idea of suspension has not been entertained for a moment. It is believed that the banks are strong enough to stand a still severer pressure. A circular is about to be issued to assure the public of this. The banks are everywhere spoken of with the greatest confidence. They can't suspend and must either break or stand It erect. is believed here that all the banks at the South, except those of New Orleans, will follow the example of those of Baltimore and suspend. From the Baltimo e American, Saturday afternoon: The additional features of panie impressed upon the existing financial pressure by the occurrence in Philidelphia has led 10 what we hoped would be avoided, but still feared must occur-the suspension specie payments by the banking institutions of Baltimore. A general meeting of the Bank Presidents was held this morning, and the result was soon known by announcement to suspend immediately and entirely specie payment. The determination was at once carried into effect, and the result, though necessarily productive of some excitement and alarm, was as a general thing received with a far grater degree of calmness than could have been expected. The immediate effect of the suspension this morning was to brighten the aspect of commercial affairs and relieve the apprehension so constantly prevailing for the past month. The price of money fell from -tud jo uu puu contral per fI 01 17 ces occurred at the stock board. Among the merchants generally the action of the Banks was approved. Althought the suspension, by the terms of the resolution, is entire, some of the Banks continue to sparingly redeem their $5 notes. This however, was only done in peculiar cases and merely to afford change to their customers. The pravailing opinion among the Bank officers is that the suspension will only be From temporary. the Pbiladelphia Press, vester Saturday:

6. October 2, 1857 Bedford Inquirer and Chronicle Bedford, PA
Article from Bedford Inquirer and Chronicle, October 2, 1857

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afternoon. The suspension is designed to be only temporary, and another meeting is to be held this afternoon by the same officers, to devise such further means for an early resumption of specie payments as the exigency may demand. The Harrisburg Bank suspended on Saturday last, and we learn that all of the Pittsburg Banks followed, with two exception, the Pittsburg and Mechanics.' We have no doubt the same policy will be adopted by all the country Banks throughout the State, and the suspension of specielpayments become general.

7. November 25, 1857 Democrat and Sentinel Ebensburg, PA
Article from Democrat and Sentinel, November 25, 1857

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Consolidation Bank, Nov. Bank of Chambersburg, Nov. Reading Savings Bank, Bank of Danville, Nov.1 Western Bank, ,Nove South Wark Bank Nov. Miners' Bank of Pottaville, WE Tradesmen's Bank of Philadelphia, Nov, Farmers' and Mechanics' Bank of Ponasylvania, Nov: Mechanics' Bank of Pittsburg, AGA Bank of Penn township, Nov: Kensington Bank, Nov, Farmers' Bank of Reading, Nov. Lebanon Bank, Nor: Laneaster County Bank, Nov Girard Bank, Nor Easton Bank, Nov, Allentown Bank, Nov, Bank of Lawrence county, Novi Wyoming Bank at Wilkesbarre, Nor, Anthracite Bank of Tamaqua, Nov, Farmers' Bank of Easton, Nov. Doylestown Bank, Nov. Lock Haven Bank, Nor Commercial Bank of Pennsylvania, Nov. Bank of Germantown, Nov. Farmers' Bank of Lancaster, Nov. Merchants' and Manufacturers' Bank of Pittsburg. Nov. Mochanies' Bank of Philadelphia, Nov Harrisburg Bank, Nov. Bank of the Northern Liberties, Nov, Bank of Middletown, Nov. Mauch Chunk Bank, Nov. Columbia Bank, ,Now, Bank of Commerce. Nov Six Penny Savings Institution, of Philadelphia, Nov / Bank of North America, Nov City Bank, (Philadelphia,) Nov Nov Exchange Bank of Pittsburg, Bank 0: Gettysburg, Nov Manufacturers' and Mechanica' Bank of Philadelphia, Nov Nov Citizens' Deposit Bank of Pittsburg, Honesdale Bank, No Bank of Delaware county, Nov. Nov Bank of Montgomery County, Bank of Pennsylvania, NW York Bank, Nov1 York County Bank, Nor] Nor] Philadelphia Saving Fund Society, Lewisburg Bank, Nov West Branch Bank, Nor Not Bank of Choster County, Penn'a Co. for Insurance on Lives and Granting Annuities, Nov.] National Safety, Insurance and Trust Co., Nov Western Saving Fund Society of Philadelphia, Nov. Central Insurance Co., Harrisbarg, Nov War. en County Bank, Not No further notice of acceptance have be received at the Auditor General's office (4 several days past, and it is therefore preus ble that those Banks that have not signition their accaptance, have declined the provi ions of the law. Woobserve, however. fre the newspapers. that the Erie City Back au the Bucks County Bank, bad taken to accept, but no notice to this effect has : been received at the Author's Department The law allowed the Banks thirty days ter the date of suspension, to accept the pr visions, and required them to give notice the Auditor General of the factor acceptant All the new Banks pay specie. Mr. C. McLain, Bank clerk of the depart ment, is entitled to our thanks for his tesy in giving access to the books from which we have derive di our statement We append a list of the Banks and Savings Institutions, from hom no notice of servy tance has been received, as follows :-

8. January 6, 1858 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, January 6, 1858

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126,363 Total bagsand mats The Baltimore Patriot says: Financial affairs present no special change. Confidence is gradually restoring, and we note increasing ease. The annual statements of our banks will be out to-morrow, making, as we have reason to know, a highly satisfactory exhibit. The resumption of specie payments is becoming a subject of more earnest consideration. Our banks are now, as we have just reason for believing, amply prepared to resume, if necessary, at a moment's notice; but, having acted with Philadelphia in suspending, are disposed to unite with her in resuming. It is understood, however, that the banks of Pennsylvania are contemplating resumption at an earlier period than the 1st April, as required by the Legislature. Whatever period this may be, the Maryland banks will meet it promptly in resuming. The time contemplated may be between the 1st February and the 15th of March next-possibly sooner." The aggregates of the statements of a portion of the Philadelphia Banks compare as follows: Nov. 1857. Jan. 1858. Circulation $423,643 $1,179,738 Decrease $756,095 1,232,153 2,021,362 Increase 789,209 Specie 6,337,974 8,165,517 Increase 1,827,543 Deposits From The Philadelphia Press. Though the officers representing country banks, who held a meeting at the Girard House last week, determined to keep their proceedings to themselves, and exclude the reporters, several statements calculated to satisfy public curiosity have found their way into print. Some of these are true and some are not true. It appears that the call for the meeting was not issued at the instance of the State Treasurer, and that that gentleman is not making himself particularly obnoxious to the country banks, as many have supposed. The call was issued by the Cashier of the Farmers' Bank of Reading, inviting those to whom it was addressed to attend for the purpose of considering the propriety of a speedy resumption. A correspondent, who appears to be thoroughly posted up, writes us that the directors of a majority of the banks that were represented at the meeting instructed their Presidents and Cashiers to go into the meeting and vote for resumption at the earliest possible period." Consequently, & majority of the representatives at the meeting introduced and passed a resolution that they would resume on the 1st of February next, provided that the Philadelphia city banks would coöperate. There was an attempt, on the part of some of the representatives present, to stave off this action, by introducing other considerations; but all attempt to recommend a delay of time, or ask for more legislation for the banks, was voted down by the majority. The banks voting in the majority at this meeting were, with the exception of the Harrisburg Bank, those named in The Inquirer, viz.: The Easton, Wyoming, Montgomery County, Allentown, Farmers' and Mechanics' Bank of Easton, Catasanqua, Pottstown, and the Banks of Reading, Chester County, and other near localities. Our correspondent adds that the State Treasurer cannot trouble any except such banks as have been throwing out their notes regardless of their ability to redeem them; and claims that such country banks as usually keep their notes at par in Philadelphia are better prepared for resumption than the city banks themselves. From The New-Orleans Picayune. WEALTH OF THE MEXICAN Mises.-According to the official Custom-House report, the exports of the precious metals from the port of Vera Cruz for the first five months of the present year were as follows, in round numbers: