18884. Farmers Bank of Virginia (Richmond, VA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
October 12, 1839
Location
Richmond, Virginia (37.554, -77.460)

Metadata

Model
gpt-5-mini
Short Digest
05329344f13e4ddc

Response Measures

None

Description

Articles (Dec 1839–Jan 1840) report the Farmers' Bank of Virginia temporarily suspended specie payments on 12 October 1839 along with other banks (due to suspensions in Philadelphia/Baltimore and interruption of redemption channels). The bank continued to operate (provided change, declared dividends, held annual meeting), indicating it did not fail and resumed normal reporting—consistent with a suspension followed by continued operation (reopening/continuation).

Events (2)
1. October 12, 1839 Suspension
Cause
Correspondent
Cause Details
Suspension was taken because suspensions in Philadelphia and Baltimore cut off redemption channels and specie flows, exposing the bank to loss of specie capital; therefore suspension was a defensive measure tied to correspondent banks' suspensions.
Newspaper Excerpt
This Bank was reduced to the necessity, along with other Banks of the State, of resolving temporarily to suspend specie payments on the 12th of October last.
Source
newspapers
2. January 7, 1840 Other
Newspaper Excerpt
At the annual meeting of the Stockholders ... the President submitted the following report ... the board of the mother bank deemed it necessary to resolve to suspend specie payments, temporarily by the 12th of October last. (Annual meeting & report adopting condition statements.)
Source
newspapers

Newspaper Articles (3)
1. December 10, 1839 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, December 10, 1839

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Article Text

UC increased at such time: and besides that, the payment of deposites would be exacted in coin. The reduction of the outstanding debt and of the liabilities of the Bank, had been steadily looked to ante. rior to the suspension of the Banks in the cities before mentioned It was a policy, however, that had, of course, to modified and limited by a due regard to its effects on the property, business, employments and commerce of the country. Hence the reduction was pursued with caution, and less was accomplished than would have satisfied the judgment of those having the management of the institution, if they had been at liberty to disregard the high claims of the commun ty It must be admitted, that time and great forbearance are necessary to br ng about a change in banking, espemally when, as in this State, it has been conducted through a long series of years upon terms of great indulgence and Liberality At the date of the late sus. pension, the Board was satisfied that the consequences of an incautious attempt to maintain specie payments would have been the loss at least of the specie capital to supply the foreign demand for it, the prostration of business of every k nd along with the price of every description of property, and general embarrassment and discredit The capital of the Bank has been increased since the beginning of the year, nearly 8600,000. and the debt outstand ng has been reduced someth ng more than 8590,000. Within that period, the circulation has been dominished upwards of 8590,000, and the deposites more than $300,000 The circulation and the dstanding debt are less now than they were on the 12th October, when the suspe. sion was resolved o. by which it appears that the Bank has not departed from the course of cautious reduction which it had previously prescribed to itself. The line of discounts and circulation compared with the specie are each within the limits prescribed by the act of As. sembly The last dividend of profits declared was at the rate of per centum, which, on the capital of $2,000,000, amounted to $120,000. The Bank has continued to supply the community liberally with change, and by some of the branches of this institution large demands, made by brokers and others, have been paid in coin, rather than meur the penalties of a protest The course of the Bank has been forced upon it by public considerations, at the risk of serious conse. quences to itself, and of great embarrassment to the of ficers, in the humble confidence that it will be approved by the General Assembly I have the honor be, With great respect, Your obedent servant, WM. H. MACFARLAND President To His Excellency CAMPBELL Mr ALLYN of Norfolk presented a memorial from the Exchange Bank, asking that some protection be granted to the Institution against the demands of bro. kers and money-changers and that permission may be granted the Bank to issue notes of the denomination of five dollars-which, on Mr. ALLYN motion. was or. dered to be printed State of the Farmers Bank, including the Brunches, on Monday, the 2nd December, 1839 Debt outstandingInland bills, 1,212,757 85 Bills discount ed. bonds, and all other debts, & 3,782,594 07-$4,995,351 92 Foreign bills, 6,936 86 4,900 00 Farmers Bank stock, 49 shares, Specie, 531,541 83 Notes of other Banks, 207,528 53 71,033 Due from other Banks, Real Estate, 199,312 8 $6,016,605.32 Capital StockOld stock, 2,000,000 00 New stock, instalmentsand interest, 546,470 91 S 2,596,470 91 Notes circulation, 2,132,523 50 Deposite money, Commonwealth and others, 739,237 09 Contingent Fund, 434,569 44 Profit and loss of the Institutionsix months, 113,503 53 if 6,016,605 37 Farmers' Bank of Via. Richmond, 3d Dec. 1-39 The undersigned, Directors of the Farmers' Bank of Virginia, certify that the foregoing statements have been examine d and are believed to be correct Charles Ellis, Sam Marx A Pleasants, Samuel Reeve, Nicholas Mills, O. Williams, Sublett McGruder Wm. H. Hubbard, James Sizer, (Sworn to by J. G. Blair, Cashier.) Mr. FONTANE offered the following resolution wh was rejected: Resolved, That the Committee on the Militia Laws inquire into the expediency of repealing so much of the Militia Laws revised in 1834, as relates to the training of officers and holding of musters, and in lieu thereof. requiring the field officers and staff, with the commissioned officers and sergeants of each company in every regiment. and the commissioned officers and sergeants of the volunteer companies attached thereto, to assemble once in every year, at some place to be selected by the votes of a majority of said officers, and there to be trained and instructed, agreeably to the mode preser bed by Congress: each officer to be furn shed with muskets and accountrements, at the expense of the State, to be handed over to his successors. And that the General of Brigade be required to attend one such tra It ng in every year with a different regiment. until he has trained with all of the regiments in his command: then commencing with the first and so in rotation. Each officer being allowed the sum of per diem And further, that 90.0 Committee inquire into the expediency of abolish ng all company, battalion and reg rimental musters, except the spring company musters, and in lieu thereof, that each man. between the ages of be 18 and 45, be required to pay the sum of to collected in the same manner that other militia fines are now collected. and to be appropriated to the payment of the per em allowance of the officers aforesa d. This resolution s rejected: but the motion being is cons dered, on motion of Mr Fax, Mr. Tayloe offered the follow n substitute, wh ch was ad ptcd Reso red. That the Committee on the Militia be instructed to inqu re into the expediency of revising or amending the exist ng Militia Laws. On motion, the House adjourned. SENATE 6th 1939 Thousand

2. December 10, 1839 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, December 10, 1839

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THE FARMERS' BANK OF VIRGINIA The following Letter, from the President of this In-stitution, was laid before the House by the Speaker: FARMERS' BANK OF VIRGINIA, December 5th, 1839. Sir-I enclose a general statement of the condition of the Bank, on the 3d instant, with a table showing the denominations of notes in circulation, the dealings in exchange, and the real estate of the Bank, which, with this note, I pray you to lay before the General Assembly. This Bank was reduced to the necessity, along with other Banks of the State, of resolving temporarily to suspend specie payments on the 12th of October last. The resolution was taken under a painful sense of the responsibility it involved; and not until it was seen that thereby alone could mischiefs, the most serious to the community at large and to the Banks, be avoided. The state of the Banks of this Commonwealth has annually been made public; and whilst their condition has been such as to inspire unhesitating confidence in the soundness and security of the institutions, it must have been remarked, that it was not favorable to the maintenance of specie payments in a period of commercial revulsion, occurring unexpectedly, and compelling the Banks of the principal commercial points to suspend. It has been known that their loans have been large, for their capitals, and that they could not be called in, of a sudden; and least of all, at a period of unusual obstruction to the ordinary business transactions of the country. So, also, the circulation has been large, for the specie held by the Banks-usually, it has been redeemed without embarrassment, by drawing upon collections made by other Banks, on account of our own; but this resource failing, as fail it must, in the event of suspension by Banks in other States, the loss of the specie capital of our Banks would be inevitable. For, it will be remarked, the tendency of the circulation to

3. January 18, 1840 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, January 18, 1840

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DOMESTIC. FARMERS' BANK OF VIRGINIA. the Annual Meeting of the Stockholders of the At Bank of Virginia, held the 7th day of JanuFarmers' ary. 1840, the President submitted the following report; whereupon it was resolved, "That the reportsubmitted by the President be adopt- of and as a further evidence of the concurrence ed, meeting in the views therein presented, the said the report this be published, and a copy thereof laid before General Assembly now in session. REPORT It has not been usual to do more, at the annual meet- a of the Stockholders of this Bank, than to present cond. compendious ing yet clear statement of the general of the institution The usage in that respect has tion complied with on this occasion as appears by the been statements now exhibited; high the recent sustabular of specie payments, and the alterations introdaced into pension the of the bank since the last annual meeting. seem to call for an additional report. The board of the mother bank deemed it necessary the to resolve to suspend specie payments, temporarily by of October last. The resolution was adopted 12th directors under a painful sense of their obligations the the institution and to the public, upon full considera- behoor tion to of the weighty and delicate points which it ed them to consider. It must be known to all those any way familiar course of business between this city and the the of Philadelphia and Baltimore, that is suspens. their banks of necessity exposes our own to the are most the serious and perplexing embarrasements They from which 3 large portion of our points returned to be redeem which under ordinary funds stances is effected It our banks are enabled to provide in those cities. the notes be safely assumed that eight tenths of may returned upon our banks for specie, or to be exchanged other funds, come from Deltimore and Philadelphia; that it for demands have of Inte been so frequent as would and the scarcely be an exaggeration to describe their daily It hence appears why a suspension in the Northern our must be attended by serious consequences to cities The funds OF which they are accustomed unavail to banks. for the redemption of their notes become and drafts discounted, with an eye to the than obliof such funds, are made of less value rely ing; lation available accumu- means at home Whilst the the would be thereby greatly gations the banks payable diminished, For the of for specie would be multiplied tend sus. in the cities before mentioned the the circulation of our banks ont, on pension demands to keep back would but not in throw it more rapidly upon contrary When specie is at a premium of S per cent. in Balti- high Philadelphia, and it was for a time as notes more and the strong inducements to the holders of and as 12, depositors to press upon the banks would be generally yielded condition to. of this bank at the date of the resoluThe suspend, was such as to warrant confidence in tion ability to to meet any thing short of an unexpected and it its crisis. Compared with former years dia state of more than ordinary of was had been impressed with the that extraordinary rectory in security. importance itself The strengthening the bank, and had applied to the as carefully as a just regard to its effects upon end interest of the community seemed to authorize. the be great The line of discounts had been reduced since circulation of the year, and along with it the the bank ginning had been brought down. But yet disasand dep not in a condition to abide with safety the was reverse to which it was unexpectedly exposed trous suspension of the Northern banks It as appre- suthe that the unequa! intercourse which would the thereupon, would expose the hended. pervene foreign bank demand to loss of its specie, to supply the circulation speedy hence it would be also lost to the And as the chance of its cut off by the course of for of the it: was and State. effectually replenishing the North coin banks, an impartial regard to the rights of every era creditor, whose claims could not all be in coin, well as urgent considerations of policy, seemed the to as but one alternative. As a suspension was in upon any prudent the atfairs of the bank, resolution leave end conducting unavoidable, and the discreet plan of what, with widely conse- have to the community and did but anticipate the their bank, different must course quences ensued, if events had been left to own that the foregoing view places our state of dependence upon the course of banks banks that exposes them to it is elsewhere, in admitted a suffer by their and mismanagement and indiscretion. The fact is State so; or equally true of the banks of any other acit is connected with other points or places by to be tive relations Its in the laws of trade that regulate commerce sought country, commercial explanation international;- the is whether domestic or of a influence wholly of and arrangements. It may gr every all exert conventional people, controlling State independent be suffer nted by of the banks of our to the that of those of another, is to some from which they cannot condition misconduct the liability wheily banks escape;- degree, were reconcile us to know that if with altogether, the sympathy would still exist, any dispensed but ferent it may communities and between would under cerry dif form of economy consequences of a revulsion the of the country in which it limits conceivable disastrous originated. calamities beyond attendant And the the be hazarded, that the an occurrence, in extent and upon and a recovery from the opinion aggravated, such may intensity pressure bank would of an be time retarded, for the want of that very agen- headcy evil which has been erroneously supposed to be the spring not of the intended mischief. to say that no change can be will made not It is the mode of conducting the bank, which and in to render it more independent of other vicissitudes banks, serve to stand the shock of commercial forcibly recommended by the of A would be to restrict discounts to paper but 2 betterable change years, experience having of recent commercial and business character, to be to run, and which was R It is known that a different from strictly few months maturity. intended practice paid evailed in this and other Lanks of the of has end that it has led to the is to at foundation; such creation State debt their debt. The effect of to the from the ability of the bank to to of an active and expanding if its detract wants largenccommedation commerce, contribute than and the institution greatly more exposed leave were confued to notes to be paid at through the past year, all discounts directory, endeavored maturity. to to conThe course to this suggestion, in respect form for loans: and required the accomnew to be reduced. It would comport modation applications their line with old neither which sound policy, nor the understanding its with debt in "OSTE past was contracted, to insist upon colthis rapid payment; but if due regard be had to time the lection too of it, as it may be expedient from crea- to it in, and care be taken to to time to call consequences avoid the of a similar debt in future, the and discounts be confined tion the institution will be highly salutary. within If this proper policy