18850. Bank of Richmond (Richmond, VA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
November 21, 1860
Location
Richmond, Virginia (37.554, -77.460)

Metadata

Model
gpt-5-mini
Short Digest
f158297745763404

Response Measures

None

Description

Contemporary Richmond papers (Nov 21–22, 1860) report that the Bank of Richmond, along with the other Richmond banks, suspended specie payments because of nationwide political disquietude around that date. The articles state an intention to resume specie payments at the earliest practicable day but do not record an actual reopening; I classify this as suspension_reopening because the reports describe suspension as a temporary relief measure with planned resumption rather than an insolvency or failure.

Events (1)
1. November 21, 1860 Suspension
Cause
Macro News
Cause Details
Political disquietude and nationwide distrust in financial affairs related to the national political crisis (pre-Civil War tensions) prompted a general suspension of specie payments by Richmond banks.
Newspaper Excerpt
The Directors of the BANK OF RICHMOND met yesterday morning, and after duly considering the question of suspension, adopted the following resolution: Resolved, That the other Banks of this city having suspended specie payments, this Bank deems it due to itself and to the community to do so likewise.
Source
newspapers

Newspaper Articles (3)
1. November 22, 1860 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, November 22, 1860

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Article Text

Suspension of Specie Payment.-Many of our citizens will no doubt be gia ified to learn that all the Banks in Richmond have suspended specie payment. This result, it is hoped, will give relief to our manufacturers, and enable many of them to continue the employment of their present forces, and thus save the work. ing classes from the many horrors which would inevitably follow a suspension of employmentat this particular season of the year. We append the resolutions adopted by the Board of Directors of each of the Banks, to show that the political disquietude all over the country has brought about a distrust in financial affairs which is truly deplorable to be looked upon. The Directors of the FARMERS' BANK or VIRGINIA, by whom the initiatory step to suspeusion was taken, adopted the following resolution : 'Resolved, unanimously. That, in view of the distrust which prevails. of the suspension of the large money trade with the South usual at this season. and of the pressure of the law requiring the Banks of this city to redeem the circulation of their branches-a law which bears with special severity on this Bank. because of the number of her brinches-specie pa ments be for the present suspended; and that a course of policy be pursued which will prepare for an early resumption." The Directors of the BANK OF THE COMMONWEALTH, at a called meeting held on the night of the 20th irst., adopted the following preamble and resolution In view of the political troubles of the entire country. by which confidence 18 being almost to taliy destroyed in commercial circles: and also of the mercantile distress in our community. which. if it continue. must devolve a heavy loss on the Banking Institutions of this city: Therefore, Res olved. / hat this Bank suspend specie payments until the further order of the Board The Directors of the BANK OF RICHMOND met yesterday morning, and after duly considering the question of suspension, adopted the following resolution: Resolved, That the other Banks of this city having suspended specie payments. this Bank deems it due to itself and to the community to do so likewise." A a meeting of the TRADERS' BANK of Richmond, held on the 21st inst., Hector Da. via, President; John B. Davis, Jos. Brummel, Geo. W. Smith, Franklin Stearns, J Thompson Brown, C. E Whitlock and Thos. Jones being present, the following resolutions were unanimously adopted Resolved. hat the President and Directors of the Traders' Bank, influenced alone by a desire to do justice alike to the stockholders and to the commercial community, determine to suspend, for is e present specie payment. Reso ved, That the will pursue such a policy as to enable them. at the earliest pra ticable day, to resume the usual rouine of business The Directors of the EXCHANGE BANK in this city, held a meeting and adopted the 101lowing resolution: Resolved, Thatthis Bank for the present sus pend special payments. The Directors 01 the BANK OF VIRGINIA also held a meeting, and resolved losuspend specie payments, in consequence of some of the leading Banks having adopted that course.

2. November 22, 1860 Richmond Daily Whig Richmond, VA
Article from Richmond Daily Whig, November 22, 1860

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Article Text

COMMERCIAL. OFFICE OF THE WHIG, November 21, 1860 SUSPENSION OF SPECIE PAYMENTS, The announcement of the suspension of specie payments, by the Farmers' Bank, of this city, on Tuesday afternoon, was received with some degree of surprise by the community, though it had become evident to the more sagacious of our business men, that a general suspension of specie payments was imperatively required as a measure of relief, and could not long be postponed without greatly increasing the embarrassments of merchants and manufacturers, and involving many of them in the ruin which seemed to be impending. The aciion of the public meeting at the Va. Life Insurance office, Tuesday night, evinced & general concurrence in this opinion, and, at the same time, developed the urgent necess!ty of suspension. In accordance with the wishes of this meeting, as expressed in one of the resolutions adopted, the other Banks of this city, viz: Bank of Virginia, Exchange Bank, Bank of Commonwealth, Traders' Bank, and Bank of Richmond, have re solved to suspend specie payments for the present. One immediate result of th's policy is to impart a general sensation of relief to the business com munity. The paper currency will assume a more uniform value, and all in want of bank accommodations will now submit their paper with a more confident hope of realizing the required funds. On the other hand, those having obligations to meet In the Northe n cities are likely to Incur a serious loss by the advance of Northern exchange. The market, to-day, was altogether unsettled, affording no indication of the rates which may be established to-morrow, or next day, but a high rate of premium may be anticipated.

3. November 26, 1860 Daily Nashville Patriot Nashville, TN
Article from Daily Nashville Patriot, November 26, 1860

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Article Text

Monetary and Commerciai, There was no improvement in money affairs Satur. day. The feeling prevalent for the few days previous was rather intensified, and the desire for a suspension of our banks more general, It is thought that this step would enable those institutions to do something to re ieve the screws which are pressing upon all kinds of business. Foreign money continues to depreciate, and some of our banks refuse Alabama, Virginia, Georgia, North Carolina and South Carolina altogether. This state of things must, We think, prove but temporary. We are glad to state that Tennessee bonds improved in New York on the 23d, and sold at 80c. They had be n down as low as 74c. A telegraphic despatch from Baltimore to the Cn. cinnati Enquirer, under date of the 22d inst., informs us that the suspension of the banks of that city has had a beneficial effect. It says: The acti n of the bank has had a tendency to further strengthen both the money m rket The st ck ard Wassing (11) iner to-day. A telegram from New York to day one o'clock, announced a heavy rise there,and it had an immediate ffect on our trade. Our banks disc ounted largely to day, and it is their tion, I unde stand, to expaud 10 a large amount, but not beyond what prudence would diclate. Mo ey is much easier to-day. I have heard of some paper dd asl W as three-quarter per cent. The banks have thus relieved the street, and we may ex eet a more cheerful state of things for some time to come. In regard to the suspension at Richmond, the Whig, of Wednesday the 21st inst., says: The announcement of the suspension of specie payments, by the Farme s' Bank, of this city, on Tues. day afternoon, was received with S me dear e of surprise by the community, though it had become evident to the more sagacious f our b siness men, that a general suspens on specie payments was imperatively r quired as a measure of relief, and could not long be postpo without greatly increasing the embarrassments of merchantsand man facturers, and ivolv. ing many of them in the ruin which seemed to be impending. The a tion of the public meeting at the Va. Li e Insurance office, Tuesday night evinced a general currence in this opi i n, and st the store time deV lo ed the urgent necessity of suspension. In accordance with the W shes of this meeting, as expressed in one of the resolutions adopted, the other Banks of this city, viz: Bank of Virginia, Exchange Bank, B nk of Comm nwealth, Trader's Bank, and Ba k of Richmoud, have resolved to suspend specie payments for he P -ent. One immedi te re ut of this policy is to m. a sensation of Tel ef to the isiness community. The paper currency will as ume a more un form value, and all in want of bank accomo lations will now ibmit th ir paper with a more conndent hope of realizing the required funds. On the 0 her hand, those having oblig tions to meet in Northern ci are likely to incur a serious loss by the advance of North ra exch enge. The market, to-day, was altogether unsettled aff r ing no indication of the rates which may be established to morrow, or next day, but a h gh rate of premium may be anticipated.