18885. Farmers Bank of Virginia (Richmond, VA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
April 6, 1841
Location
Richmond, Virginia (37.554, -77.460)

Metadata

Model
gpt-5-mini
Short Digest
84c946140e38a932

Response Measures

None

Description

Articles (Richmond papers, April 1841) report the Farmers' Bank of Virginia formally suspending specie payments on/around April 6, 1841 as part of a coordinated move by Richmond banks due to strained exchanges and country-wide financial conditions after recent resumption. No bank run is described; the bank publishes statements of soundness and intent to resume when conditions permit, so this is a suspension (temporary) with intent to reopen.

Events (1)
1. April 6, 1841 Suspension
Cause
Macro News
Cause Details
Banks suspended specie payments because continued specie redemption after resumption, strained exchanges with northern cities, and aggravated country-wide difficulties made paying out specie imprudent; coordinated with other Richmond banks (April 1841).
Newspaper Excerpt
whereupon it was resolved, that specie payments by this Bank be for the present suspended; that the Branches be advised thereof; that a general statement of the institution be published
Source
newspapers

Newspaper Articles (3)
1. January 23, 1841 The Madisonian Washington, DC
Article from The Madisonian, January 23, 1841

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Article Text

RESUMPTION. We have entertained and expressed but one opinion on this subject from the beginning, and that has been and is, that, the banks should resume no conto the advice of a trary payment. We have Baltimore had financier, doubt, that, the banks generally, were able to maintain specie payments, and being able, justice and propriety dictated the policy of resumption with as little delay as possible. Events, on nearly every side, are confirming the correctness of oui opinion. The Harrisburg Intelligencer of the 19th, after three days' proof or experience of the effect of the measure, says: "The banks of Pennsylvania resumed specie payments on Friday last. We do not believe there was any serious "run" on any of them." The York Gazette of Tuesday remarks: We believe that the resumption of specie payments on Friday last, was general among the banks of Pennsylvania. We have not heard of an exception. In most instances, so far as we have been able to learn, the demand for specie at the counters of the banks was much less extensive than was expected-and scarcely amounted to what is termed a run, if we except the case of the United States Bank. "The York Bank commenced redeeming its issues with specie some days before the time fixed by lawand on Friday and Saturday was not called upon for more than about $700. The news from Philadelphia seems to leave no doubt of the success of the resumption there. A heavy run was made upon the U. S. Bank by New York brokers, but they seem to have exhausted themselves without shaking the bank. In Illinois resumption took place nearly a month since, and we learn that there has been no run upon the banks sufficient to affect their condition in any way. We learn, too, from Mr. McFarland, President of the Farmers' Bank of Virginia, who has passed through this city on his way to confer with the banks of Baltimore, that Virginia is ready to resume, and that gentleman is now endeavoring to get the Baltimoreans engaged in bringing resumption about. The Richmond Whig says: "If Baltimore is not prompt to name a day, we hope and believe that Richmond will resume without her." The Baltimoreans think this "bold language." It is the boldness of right, and we hope the right will triumph. We have no chartered banks now existing in the District of Columbia; but if we had, we have no doubt they would be ready and willing to pay specie. The Virginia Banks have published the following resolutions: At a meeting of the Presidents of the Bank of Virginia. The Farmers' Bank of Virginia, and of the Exchange Bank of Virginia, at Richmond, and being authorized to act in the premises, by their respective Boards, JANUARY 18th, 1841. Resolved, unanimously, That the Banks will resume simultaneously with the Banks of and that the specie Baltimore; payments President of the Farmers' Bank be requested to report this resolution to the Banks of Baltimore, with a request that an early day be fixed upon for the resumption. (Signed) JOHN BROCKENBROUGH, T

2. April 9, 1841 Daily Richmond Whig Richmond, VA
Article from Daily Richmond Whig, April 9, 1841

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Article Text

G. W. MUMFORD, Sec'ry. FARMERS' BANK OF VIRGINIA. April 6th, 1841. The President repoted the resolution adopted at the conference held this day between the boards of the several Banks of this city-namely, (see resolution published) whereupon it was resolved, that specie payments by this Bank be for the present suspended; that the Branches be advised thereof; that a general statement of the institution be pub. lished, in order that it may be seen the grounds for public confidence and security are wholly unimpaired, and that the public may be assured this Bank will be prepared for specie payments as early as the state of the country will admit of it. Extracts from the Minutes. J. G. BLAIR, Cashier.

3. April 9, 1841 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, April 9, 1841

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Article Text

Reduced $300,242 $295,132 18 Specie 28th December last, 262,092 5th April instant, $33,040 Reduced $40,000 Outstanding debt increased RICHMOND Basks.--Suspension of Specie Payments. Yesterday our Banks determined to suspend specie payments. We refer the reader to their proceedings given below. This movement will meet the general approbation the of curcitizens. It was necessary in order to foster porand avert certain ruin to a large decitizens upon whose active all tion her The Banks (as we pends trade of our of her prosperity. city enterprize alternative have they would do) when the along abandoned the fully predicted presented, ground suspending which they had was faith taken, and by specie have avoided the calamity would have brought upon payments their with determination good which persisting We ad- RichWe commend them for their course. in first resolving to pay they almost alone in that resolve, mond. mired stood their spirit although specie while we with them as to the propriety and expediency if determination; and they have in a sense soulless of differed that political institutions, shown that they beings not altogether to in of the or insensible to the this they terests conducted are city by sufferings blind the of community. The Banks have suffered a considerable draft of spefunds since the resumption, and found it necessary, to meet the continued drain, to curtail their circulation to such an extent as would be ruinous to trade. They have curtailed their circulation to an astonishing amount and are in excellent condition. [Wednesday's Compiler. At: of the Presidents and Directors of the of the Farmers' Bank Bank Meeting Virginia, together and the Branch at the of Bank, assembled Richof the Bank of Virginia, on the 6th April, mond, Banking-house the Exchange Tuesday, 1841- in On motion, John Brockenbrough, Esq., was called to the Chair, and James W. Pegram was appointed Secretary of the Meeting. The following resolution was adopted: Banks of this City did, on of "Whereas the of specie the first paylast, enter upon the resumption ments, and have since adhered to tion of their circulation in coin, or February steadily exchange the redemp- at that the pleasure of the but it becoming the resolution to if press with extreme the country at severity holder; pay specie, upon persisted in, apparent must large, that the difficulties to be encountered are greatly aggravated by of the Banks in the the position adjacent necessity States, of obthat the Commonwealth is under the taining loans of the Banks, and of necessity their is. eues are thereby increased, and that it is not within the power of the Banking Corporations of this State, of to correct the exchanges unaided by the co-operation the Banks elsewhere-Therefore That the redemption of the in coin be and that the Banks "Resolred, suspended, confine circulation them them. selve to a line of policy which shall prepare for resumption at the earliest period it may be attempted with success. BANK OF VIRGINIA The President having communicated to the Board of Directors, the proceedings of a meeting of the three Banks of this City, held this day, the following resolutions were adopted Resolved, That it is expedient, under the circumBlances, for the Bank of Virginia and its branches to conform the resolution adopted at the three in this by present, the of their notes Banks to payment City, discontinuing, in coin. the meeting for the of That a statement of this Bank and its branches be and Resolved, prepared public general published, condition in order has not that may to the that her in the least been That this Bank will be resume Resourced, appear degree impaired during with ready the the resumption. to Banks cecie payments cotemporaneously of failadelphia, or Baltimore, or whenever the balance of tade between this State and the Northern cities will Tender such a measure prudent and safe; and to this end it will be the fixed policy of the mother Bank, and the same is recommended to the branches, to observe the utmost prudence in their discounts, and to proceed to convert into active and available resources their suspended debts and unproductive balances. FARMERS' BANK OF VIRGINIA. April 6th, 1841. The President reported the resolution adopted at the conference held this day between the boards of the everal Banks of this city-namely, (see resolution published,) whereupon it was resolved, that specie paynents by this Bank be for the present suspended; that be Branches be advised thereof; that a general state. bent of the institution be published, in order that it may be seen the grounds for public confidence and security are wholly unimpaired, and that the public may be assured this Bank will be prepared for specie payments as early as the state of the country will admit of it Extract from the Minutes, J. G. BLAIR, Cashier. Office of the Exchange Bank of Virginia, Richmond At a meeting of the Board on Wednesday, 7th April, 1841, the proceedings of a called meeting for conference of the Board of Directors of the several Banks in this City were submitted. Whereupon, the following resolutions were adopted Resolved, That in the view of this Board, these profeedings render it expedient that specie payments be for the present suspended inasmuch, as perseverance on the part of this Board, in a different line of policy from that thus determined upon, would be injuriout to the interests of the Stockholders of the Exchange Bank without producing any corresponding benefit to the community Resolved, That the loans and discounts of this Bank be 80 regulated, and its business generally so conducted, as to on its the position of always to and maintain payments with the other being temporaneously ready maintain, resume part, Banks specie in the city. Ordered, That the Cashier furnish for publication a copy of the state of this office as it existed on the 31s