Union Bank - Georgetown, DC

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: May 12, 1837
Location: Georgetown, District of Columbia (38.905, -77.062)

Metadata

Model: gpt-5-mini
Short Digest: 443a028f

Response Measures

None

Description

Article (correspondence dated May 12, 1837) states 'the Union Bank of Georgetown have suspended specie payments; ... the latter permanently.' This indicates a suspension that is described as permanent; no explicit run on this specific bank is reported. The broader panic ('Experiment' operating at home) suggests a macro/systemic cause.

Events (1)

1. May 12, 1837 Suspension

Cause: Macro News
Cause Details: Widespread banking panic and alarm tied to the broader 'Experiment' and collapsing confidence in banks across the region (systemic financial panic).
Newspaper Excerpt: This morning the Patriotic Bank of Washington and the Union Bank of Georgetown have suspended specie payments; the former till it learns what the banks of Baltimore intend to do, and the latter permanently.
Source: newspapers

Newspaper Articles (1)

1. May 15, 1837 The Herald New York, NY

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Article Text

bank suspensions. [Correspondence of the Herald.] WASHINGTON, May 12th, 1837. The whole city is in a state of alarm and confusion. The "Experiment" is beginning to operate at home and the people here have become terrified by the appearance of things. This morning the Patriotic Bank of Washington and the Union Bank of Georgetown have suspended specie payments; the former till it learns what the banks of Baltimore intend to do, and the latter permanently. This IS the second instance of suspension of the Patriotic Bank, and its credit will of course be prostrated. A heavy run has been made on the Bank of the Metropolis today, and one on the Bank of Washington, but to no great amount. The Secretary of the Treasury, in order to sustain the former, being a depository of the Government, has given it a draft OR the Mint at Philadelphia for $200,000, and in one case has become responsible himself, to the amount of $20,000, to an individual of this eity, who made on this bank a demand for specie to that amount. The alarm is nevertheless so great, that the banking house and street in front of it, are crowded with applicants for specie. Both the Bank of the Metrop lis and the Bank of Washington think they can sustain themselves, and have issued printed notices declaring their "ability to fulfil the engagements and liabilities of the banks, having assets to nearly double the amount of their liabilities," and have therefore determined to continue specie payments. The President, Directors and Cashier of the Bank of Washington have, moreover, pledged individually and collectively "their private fortunes for all just claims against the institution." This declaration has restored confidence as to that bank, but the distrust and suspicion in regard to the other still continue, and the rush is unabated. I presume it will be able to sustain itself, aided as it is by the Government, unless a general suspension throughout the country becomes necessary. We are in an awful condition. The notes of the Virginia Banks of the best standing will scarcely be taken at all, and when they are received, even those of the Deposite Banks, they are at from 5 to 10 per cent. discount. Groups of citizens are seen at almost every shop-door, listening to accounts of failures, and awaitthe fate of our city banks.