18887. Farmers Bank of Virginia (Richmond, VA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
November 20, 1860
Location
Richmond, Virginia (37.554, -77.460)

Metadata

Model
gpt-5-mini
Short Digest
ec98c934b48223b2

Response Measures

None

Description

Multiple contemporaneous Richmond and out-of-town papers (dated Nov 20–22, 1860) report the Farmers' Bank of Virginia 'suspending specie payment' on Nov 20, 1860 as a prudential measure amid broad political and money-market distress. No article describes a depositor run or permanent failure; papers state the bank resolved to 'prepare for an early resumption.' Classified as suspension_reopening (suspension with intent/expectation to resume).

Events (1)
1. November 20, 1860 Suspension
Cause
Macro News
Cause Details
Suspension prompted by widespread distrust and severe money-market pressure tied to the national political crisis (Nov 1860 secession-era tensions) and general financial stringency; described as a prudential measure to allow resumption of discounts.
Newspaper Excerpt
The Farmers' Bank of Virginia has suspended specie payment, and resolved to pursue a course of policy to prepare for an early resumption.
Source
newspapers

Newspaper Articles (10)
1. November 21, 1860 The Daily Exchange Baltimore, MD
Article from The Daily Exchange, November 21, 1860

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Article Text

Monetary and Commercial Rebieto. BALTIMORE. Nov. 20, 1860. We notice a much more cheerful feeling here to day in commercial circles, and a decided improvement in the general tone of the Stock and Money markets. The action of the New York Banks yes terday in relation to the purchase of Exchange, and also in relation to extending their discount lines, has had a favorable influence upon affairs here, as well as there. We learn by a telegram from New York that the committee appointed by the banks purchased to-day sterling bills to the amount of $700,000 at rates ranging from 104 to 106, which is a material advance, and that the discounts by the banks were very heavy. Our banks are we are assured, doing all they can to aid their customers and the community, and most of them are discounting up to full amount of their receipts. On the street money is still very tight, but rates are no higher than they were some days ago. An effort was made yesterday to advance the rates for paper and for loans on call, to 2 per cent. per month, but it failed, and to-day most of the transactions which have taken place have been at 1 1/2 per cent. per month, and we quote this as the rate for first class endorsed paper. At the Stock Board to-day there was a large business done particularly in Railroad shares. Of Baltimore and Ohio the sales reached 2,100 shares. It opened at $55, at which figure 1,100 shares were sold, but it dropped to $54, and advanced again to $543, and closed at $54 1/2 bid, $55 asked regular way, these figures being an advance of $1 to $1 1/2 on the closing quotations of yesterday. Northern Central sold at the same figures as on yesterday. There was a good demand for it, and sales of 1,025 shares were made at $14 % 11 cash, and it left off at bid, $15 asked regular way. Northern Central bonds fell off however 1 1/2 per cent., sales of $5,000 1885's being made at from 57 1/2 down to 56% For Baltimore and Ohio bonds there was some-inquiry, and sales were made of $2,000 1885's at so, yesterday's rate, and $10,000 1862's at 54@53, the market for them closing at 50 bid, 53 asked. We note also sales of $1,500 Northwestern Virginia unenuorsed third mortgage bonds at 22. City 6's were 1/2 per cent. lower again to-day. Sales were made of $440 1875's at 94 1/1, and $3,154 1890's at 95.There are but few Bank stocks offering, and the only sale to day was one of 28 shares Bank of Commerce at $24. In the Mining stocks there was but little done, the only transactions being in Springfield, of which there were 1,500 shares sold at $1.95@2 cash, the latter figure being an advance of 5 cts. on yesterday's price. Gardner Hill closed at $31/2 bid, $4 asked, but Guilford was quite heavy, the closing quotations for it being 50 cts. bid, 70 cts' asked. Deep River was stronger to-day, 35 cts. being bid, and 45 cts. asked for it regular way. It will be seen by a despatch under our telegraphic head that the Farmers' Bank of Virginia at Richmond has suspended specie payment, and that the other Virginia banks will probably do so to-morrow. At the first board at New York to-day Virginia 6's ad. vanced 3, and Missouri 6's 33 per cent.; Canton 1/2; Erie $1 1/4: New York Central $1 % Reading 1/2; Cleveland and Toledo $13; Michigan Southern 3/6; Michigan Southern guaranteed $11/2; and Rock Island $1; but at the second board Missouri 6's declined again % per cent.; Erie $1; New York Central $1 %; Reading 1/2; and Galena and Chicago 1/2. SALES AT THE BALTIMORE STOCK BOARD

2. November 21, 1860 The Daily Exchange Baltimore, MD
Article from The Daily Exchange, November 21, 1860

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Article Text

See Fourth Page. FOR SHIPPING INTELLIGENCE. LATEST NEWS. TELEGRAMS. Suspension of Specie Payment by Virginia Banks. RICHMOND, Nov. 20.-The Farmers' Bank of Virginia has suspended specie payment, and resolved to pursue a course of policy to prepare for an early resumption. The other banks will follow this course as a prudential measure, during the present pressure.

3. November 21, 1860 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, November 21, 1860

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Article Text

Suspension of Specie Payment.-The - Board of Directors of the Farmers' Bank of Virginia held a meeting yesterday afternoon, and resolved on a suspension of specie payment from this date The Directors of the Bank of the Common wealth were to hold a meeting for the same purpose last night, and the Traders' Bank will consider the matter this morning. From present indications, we have no doubt all the Banks in the State will suspend, and thus give relief to the business community.

4. November 21, 1860 Evening Star Washington, DC
Article from Evening Star, November 21, 1860

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Article Text

THE SUSPENSION OF THE FARMER'S BANK OF Virginia, OF RICHMOND.-The news of this event occurring yesterday-followed this morning by all the banks there-was unexpected in financial circles here. That is to say, the early suspension of the Virginia banks has not been looked for by the District of Columbia banks. The latter, however, have taken due precautions to g'rengthen themselves as far as possible in anticipation of such an event. We question whether any banks were ever in better condition in such times than all those in our midst. Nevertheless, if bank suspensions becomes general throughout the country, for them to remain an exception to the rule of the times, would simply be to sacrifice their customers engaged in trade, one and all. Sincerely believing every one of them to be in remarkably good condition, we do not hesitate to advise depositors to leave their money in their vaults in any event that may happen. Though it has been some years since we had occasion to borrow a dollar from any of them or from any one, we regard It as being far safer that they shall continue to holdour money in case they, too, may In time deem it wise to suspend with the rest, than that we should essay to keep it hoarded where it can be of no avail in contributing to the general financial interests of the community among whom we do business. As yet the under-current of circumstances resulting in the suspension of the Richmond banks is unknown here, though it is supposed by some to have arisen from a sudden demand for $210.000 made on them by some parties at the North They are, however, from their manner of doing business, rarely prepared for a sudden and heavy return of their notes upon them. To-day, Virginia money was only received on deposit here at a discount of ten per centum. Tomorrow the rate will probably be much less.

5. November 21, 1860 Richmond Daily Whig Richmond, VA
Article from Richmond Daily Whig, November 21, 1860

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Article Text

From the subjoined proceedings of the President and Directors of the Farmers' Bank of Virginia, it will be seen that they have suspended the payment of specie, in redemption of their notes. This action will probably take the public at large by surprise, though we believe it has been under consideration at the Bank, and by bu- siness men in this community, for some days past-and, as the penalty is heavy, we must conclude that the causes inducing it are of an imperative character. The occur- rence may be taken as one of the signs of the times, and is doubtless but the forerunner of similar action on the part of our other Banks, and of that general disturbance in monetary and business matters we are about to en- counter.

6. November 21, 1860 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, November 21, 1860

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has not been felt here for many years.There is a general feeling of apprehension and distrust, proportioned in its intensity to the deplorable nature of the present national exigencies and the uncertainty of their duration, and the extremes to which they will bring the country. It has been for some days evident to all reflecting men that we must submit to all the inconveniences attendant upon a greatcommercial revulsion, aggravated by the nature of the causes which have produced the present Among these, of course a suspension of specie payment by the Banks was to be expected. Indeed, that measure, at a time like this, is regarded by the commercial community as indispensable to the public relief. Under this view, for some days past a sus. pension of specie payments by the Banks has been talked of and advised by influential men. The Banks had been compelled to reduce their discounts to a degree which, at a time like this-when men are unable to pay. or inclined to hold on to what they have, to meet an apprehended calamity-greatly embarrassed the business community. Satisfied that something ought to be done for their relief, the Directors of the Farmers' Bank of Virginia yesterday de. termined to suspend specie payments. The following are their proceedings: At & meeting of the President and Directors of the Farmers' Bank of Virginia, this 20.h day of November, 1860: Present- H. Macfarlind, President; Wm. C. Allen, Joseph R. Anderson, J.J. Waggoner, Sam'1C. Robinson, J-mes DunInp. Theodorick Robertson, Jno. E. Wadsworth. Rd. HaskinsResolved, unanrmousiu, That, in view of the d strust which prevails, of the suspension of the large money trade with the South usual at this season. and ot the pressure of the law requiring the Banks of this city to redeem the circulation of their branches-a aw which bears with special severity on this Bank, because of the number of her branches specie payments be for the present suspended; and that & course of policy be pursued which will prepare for an early resumption. .. J.A. SMITH, Cashier." The news of this act of the Farmers' Bank excited much interest among business men, and there was an informal meeting held at the office of the Virginia Life Insurance Company at 6 o'clock, to consider the subject.HORACE L. KENT was called to the chair, and JAMES L. APPERSON appointed Secretary.After some conversation, it was deemed best, in order to obtain a larger meeting to post. pone any action until 8 o'clock, at which time the spacious room of the company was prowded with merchants, manufacturers and mechanics. The following proceedings then took place: Ata large meeting of merchants, manufactur. ers and others, held at the office of the Virginia Life Insurance Company, November 20th, 1860, H L. KENT was appointed Chairman, and J. L. ApPERSON, Secretary. Aftera few remarks by the Chairman in explanation of the object of the meeting, Mr. JOHN HOWARD offered the following resolutions: Resolved, Asthe sense of this meeting, 1 That in view of the unprecedented political condition of the country, of the present widespread and increasing financial stringency. and of the strong prospect of still gleater difficulties, it 18 the dictate of wisdom and prudence, that the Banks 01 the Common ealth suspend specie payment, in time to diamish or avert as far 8.8 may be done, the existing and anticipated evils conseque t upon this state of things. 2 That in order that such suspension of specie payment shall result in any material relief and benefit 10 the people, it should continue long enough to allow the Banks to discount to an extent in some measure adequate to the great de mand for commercial, agricultural, and general business ascommodation. 3 That the suspension of specie payment this day made by the Farmers' Bank of Virginia, manliests, on the part of its President and Directors, a prompt and intelligent appreciation of the present emergency, and deserves the commendation of this community. The resolutions being read, were unanimously adopted b, the meeting. On motion of Mr. W. GODDIN, the Chair appointed the following gentlemen & committee to communicate to the several Banks of the city the resolutions adopted by the meeting: Messrs. Corbin Warw.ok Thos R Price. W. Goddin. R.B.

7. November 21, 1860 The New York Herald New York, NY
Article from The New York Herald, November 21, 1860

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Suspension of the Virginia Banks. RICHMOND, Nov. 20, 1860. The Farmers' Bank of Virginia has suspended specie payment and resolved ed to pursue n course of policy to prepare for early resumption. Other banks will follow HAS a prudential measure during the present pressure.

8. November 22, 1860 Cleveland Morning Leader Cleveland, OH
Article from Cleveland Morning Leader, November 22, 1860

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BANK FAILURE. RICHMOND, Nov. 20. The Farmer's Bank of Virginia has suspended specie payment, and resolved to pursue a course of policy to prepare for an early resumption.Other banks will follow as a prudential measure, during the present pressure. There is a terrible pressure in the money market and nothing doing in the produce market. Flour is dull and declining with few sales, and the market is overstocked. All the mills have stopped operations excepting the Gallego Mills. W heat has declined 10c a bushel.

9. November 22, 1860 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, November 22, 1860

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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.

10. November 22, 1860 Daily Intelligencer Wheeling, WV
Article from Daily Intelligencer, November 22, 1860

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RICHMOND, V.., Nov. 20.-The Farmers' Bank of Virginia, suspended specie payment to-day, and resolved to pursue a course of policy to prepare for an early resumption. The other banks of the State will follow this plan as a prudential measare during the present pressure.