18777. Exchange Bank of Virginia (Norfolk, VA)

Bank Information

Episode Type
Suspension โ†’ Closure
Bank Type
state
Start Date
October 16, 1839
Location
Norfolk, Virginia (36.847, -76.285)

Metadata

Model
gpt-5-mini
Short Digest
2f8c64cf1a75f3a6

Response Measures

None

Description

Contemporary reports (Oct 1839) state the Exchange Bank of Virginia in Norfolk suspended specie payments on Wednesday the 16th. Articles place this suspension as part of a wider, regional suspension by Richmond/Norfolk banks driven by heavy specie demands from the North and related banking developments. There is no article in the provided set confirming a subsequent reopening, so I classify this as a suspension with closure (no evidence of resumption). The first article includes an inconsistent slip claiming the bank would continue to pay specie; however the Martinsburg Gazette explicitly reports suspension on 1839-10-16. OCR errors corrected (e.g., 'snecie' -> 'specie').

Events (1)

1. October 16, 1839 Suspension
Cause
Macro News
Cause Details
Part of a regional suspension of Richmond/Norfolk banks amid heavy specie demands from the North and wider banking distress in October 1839.
Newspaper Excerpt
The Exchange Bank of Virginia, located at Norfolk, suspended specie payments on Wednesday, the 16th instant.
Source
newspapers

Newspaper Articles (3)

Article from Lincoln Telegraph, October 24, 1839

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Article Text

TELEGRAPH. From the New York Com. Adv. PROGRESS OF SUSPENSION. Since our last publication, positive intelligence has been received of the temporary suspension of specie payments by the banks of Richmond, Norfolk, the District of Columbia, Wilmington, (Delaware) and Providence. At Richmond the news from Philadelphia was received on Friday. Meetings of the directors of the several banks were immediately held, and a like course was agreed upon without loss of time. The Richmond Compiler says: This course by our banks, was one unavoidable; and adopted in justice to the banks themselves, to the trade and interests of Richmond, and to the State, which is a large stockholder in them all. For some time our banks have had to supply heavy demands upon them from the North for specie; and there were in this city yesterday morning, several Northern brokers, awaiting the hour of 9 o'clock, to make large drafts upon them. Our banks did not hesitate, and they ought not to have hesitated. They are justified by our citizens. Upon the annunciation of their determination, all was calm, and there was a general indication of satisfaction at the event. The people in the country may rest assured that our banks have taken their course under circumstances, and in a condition, which should impart the most perfect confidence in them. They will be ready to resume the moment the course of the Northern banks renders that expedient and proper. At Washington there was a considerable run upon the banks on Thursday. A meeting of directors was held in the evening, and on Friday morning the announcement was made. The banks at Norfolk which have suspended are the Farmers' and Virginia.-A slip from the office of the Norfolk Herald says that the Exchange Bank of Virginia has determined to go on paying specie. It is a new institution and has $300,000 of state stock in possession. Its circulation is, probably, not large. The Philadelphia banks issue notes of no less donomination than $10. The fives already issued are called in and redeemed with coin. Also the ones issued by the Girard Bank. The suspension of the Providence banks was agreed on, it isalleged,under the prevalent impression that the New York banks must go down. It is presumed that infornation to the contrary will produce a change of action. The banks at Trenton, New Jersey have not suspended, and the Gazette of that place says they will continue to pay specie so long as they are encouraged and sustained by the liberality and confidence of the public. It is reported that a delegation from the Boston banks has come to this city, for consultation with the officers of our institutions. It is said that their language is full of confidence, and that the Boston banks are prepared to offer assistance if it shall be needed by our institutions. This, however, sesms little probable, as there is no call for specie, and the public confidence appears to be increasing daily. Bank Meeting in Boston. A meeting of delegates from the different banka of Bos-


Article from Vermont Telegraph, October 30, 1839

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Article Text

cumstances, and in a condition, which should impart the most perfect confidence in them. They will be ready to resume the moment the course of the Northern banks renders that expedient and proper. At Washington there was a considerable run upon the banks on Thursday. A meeting of directors was held in the evening, and on Friday morning the announcement was made. The banks at Norfolk which have suspended are the Farmers' and Virginia.A slip from the office of the Norfolk Herald says that the Exchange Bank of Virginia has determined to go on paying snecie. It is a new institution and has $300,000 of state stock in possession. Its circulation is, probably. not large. The Philadelphia banks issue notes of no less denomination than $10. The fives already issued are called in and redeemed with coin. Also the ones issued by the Girard Bank. The suspension of the Providence banks was agreed on, it is alleged, under the prevalent impression that the New York banks must go down. It is presumed that information to the contrary will produce a change of action. The banks at Trenton, New Jersey, have not suspended, and the Gazette of that place says they will continue to pay specie so long as they are encouraged and sustained by the liberality and confidence of the public. It is reported that a delegation from the Boston banks has come to this city, for consultation with the officers of our institutions. It is said that their language is full of confidence, and that the Boston banks are prepared to offer assistance if it stall be needed by our institutions. This, however, seems little probable, as there is no call for specie, and the public confidence appears to be increasing daily.N. Y. Spectator.


Article from Martinsburg Gazette, October 31, 1839

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Article Text

The Exchange Bank of Virginia, located at Norfolk, suspended specie payments on Wednesday, the 16th instant. It was one of those which considered itself "impregnable." - Balt. Chron.