18904. Bank of Northumberland (Northumberland, PA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
May 15, 1837
Location
Northumberland, Pennsylvania (40.892, -76.797)

Metadata

Model
gpt-5-mini
Short Digest
ac2d58f4

Response Measures

None

Description

Directors announced a partial and temporary suspension of specie payments on May 15, 1837, explicitly attributing the action to wider suspensions by major commercial city banks. No run on the bank is described in the articles; the suspension is presented as temporary with intent to resume when others do. I classify this as a suspension without an associated run and likely reopening (per the bank's stated intent).

Events (1)
1. May 15, 1837 Suspension
Cause
Macro News
Cause Details
Bank suspended specie payments because banks in New York, Philadelphia, and Baltimore had ceased specie redemption and interior banks followed; directors cite contagion from major commercial city suspensions as the reason.
Newspaper Excerpt
partial and temporary suspension of specie payments
Source
newspapers

Newspaper Articles (3)
1. May 20, 1837 The Columbia Democrat Bloomsburg, PA
Article from The Columbia Democrat, May 20, 1837

Click image to open full size in new tab

Article Text

BANK OF NORTHUMBERLAND. The Directors of the Bank of Northumberland, in announcing to the public, the partial and temporary suspension of specie payments, deem it their duty to state the causes that have compelled them to adopt a measure so repugnant to their feelings. It is well known that the Banks in our three great commercial cities-New York, Philadelphia and Baltimore, no longer redeem their notes with specie, and that their example has been followed by all the banks of the interior as far as heard from, and of course this bank cannot at present receive specie for the debts due it. Such being the case, the Directors of this institution have been impelled to adopt the same course as a duty less due to the institution, than the community; as the attempt to continue specie payments under these circumstances, could only result in having it all drawn out by Brokers and others for the sake of the premium which it will necessarily command in jourcities, and thereby deprive the institution of the means of accommodating the district in which it is located, with change, and prevent it resuming at once full payment, when other Banks adopt that measure. The Directors can confidently assert that the Institution was never in a more solvent situation than at present; the amount of specie in the vaults is larger, and the balances due in Philadelphia greater than usual at this period of the year. After declaring the last dividend, a surplus of nearly 20,000 dollars was left, which (as the debts due to are the the Bank business and well produce secured and of the based country, upon unconnected with speculation) is far more than sufficient to meet any losses that could possibly occur; independent of which there is a a capital of $140,000-actually paid in; SO that in no event can the note holders or depositors be losers. The Directors confidently hope that the notes of the Bank of Northumgerland, will sustain the same credit as heretofore in the city of Philadelphia, and answer the same purpose as they have hitherto done as city notes. No exertions shall be spared to continue that credit by which the institution, will preserve its usefulness in the colbe among lection and the first transmission in resuming of funds, specie and payments, when that desirable event shall be accomplished in the city. In the meantime, they feel convinced that an intelligent public will sustain them in an act unavoidable and as necessary for their interests as that of the Institution-And that no doubt may be entertained of our entire confidence in the solvency of the Bank of Northumberland, we do hereby pledge our individual responsibility, for the ultimate payment of all liabilities. Witness our hands this 15th of May A. D. 1837.

2. July 1, 1837 The Columbia Democrat Bloomsburg, PA
Article from The Columbia Democrat, July 1, 1837

Click image to open full size in new tab

Article Text

thirteen directors only three are friendly to the present National administration. In the political integrity of this minority we have every confidence; but self-interest frequently predominates over very sacred principles, (as was instanced in the vote of Democratic Senators on the Mammoth Bank bill,) and we will only consider' them on an equality with that fallible part of the human family, who are prone to the ruling passions in speculating timeslike the present. When we gave approbation to the conduct of the Bank of Northumberland, we done so by ANALOGY; but at that time the Bank was giving SPECIE for its notes, for the purposes of change, and we presumed no more, under existing circumstances, would either be required or needed by the community in this neighborhood. But has the Bank continued to exercise this libéral policy? Far from it. Go to the counter of the Bank now, and you will discover that it has stopped redeeming any of its notes with specie; while it is a known fact, that its vaults contain more specie at present than at any former period of its existence. The reason of this oppressive conduct is certainly best known to the Directors; but as the opponent of all monopolies we are ready to infer from this obvious movement, that they have adopted the policy of all similar instia tutions.-Specie, at present, commands large premium in either of our commercial cities, for the purpose of transmitting the same to Europe; and the charge has never yet been denied, alledging that the Banks are engaged in the traffie, through the intervention of Brokers, who are the employed agents to buy and sell the constitutional currency of our country. In suspending specie payments all Banks have forfeited the solemn pledges given on the face of their notes-they have violated their integrity as chartered institutions-they have disregarded the wants and interests of community-and they have evidently exhibited a soulless determination to thwart the operations, and injure the credit of our prosperous government.-This has been done for effect-done to excite panic and produce pressure-done to force the charter of a National Bank. How then can we excuse the Bank of Northumberland from a participation in those designing mo vements, when we see it carrying out the impotent instructions of the Money King, and when a large majority of its Directors are the most prominent shin-plaster tacticians, and known as the avowed advocates of a Mammoth Bank? It is our duty to point out their faults as well as their commendable acts; and as a faithful Chronicler of events, we shall never be driven from our course by either threats or menaces. They must be their own apologists; and when they wish to have the confidence of the public, they must neither dread their own statements, nor authorize one of their tools to pronounce such a publication as "incendiary." Every tub t should stand upon its own bottom; and if the o concerns of the Bank of Northumberland I are in a prosperous condition, and fairly r conducted, it certainly never authorized the aspersions of the "Register" on account of any publication we have made in this paper. We shall see under what authority our neighbour made his "vile insinuations;" and hence, we shall defer further remarks for a more fitting occasion. With respect to the editor of the "Register" we might retort with more force and truth, by referring to his continued system of vacillation and misrepresentation. His paper has been long and shamefully prostituted in the dissemination of principles, the object of which is to rivet the chains of slavery upon the common class of community, and throw our nation into the vortex of anarchy. We, however, shall abstain from noticing facts so generally known to our readers, and shall only be induced to pursue such a course towards our neighbor when his own conduct demands it in the C defensive

3. July 1, 1837 The Columbia Democrat Bloomsburg, PA
Article from The Columbia Democrat, July 1, 1837

Click image to open full size in new tab

Article Text

ville, 207,565 7,700 TOTAL, $1,132,673 $115,284 Thus, only $115,284 in specie are held by these five neighbouring banks to redeem @1,132,673 of notes in circulation, being ten to one. This state of things exhibits the deplorable condition of the Banks when they suspended specie payments; and their own statement as above shows the cause why people have no confidence in these moneyed monopolies. Give us the METALLIC currency, and if we have but little, we have that little to a certainty. Notwithstanding the liberality of our views, and the general allusions which governed us in penning the article, it seems to have given offence in a particular quarter, and called forth expressions which common sense would have suppressed for a more fitting occasion. The following reply, or rather attempt at smuggling the truth and force of our statement and argument, made its appearance in the Bank organ of this place on Tuesday last. We republish both articles entire, in order to show that we never fear giving the facts in evidence to our readers in a question which may equally affect the rights and interests of every citizen of the Commonwealth. From the Columbia County Register. Rag Circulation.-An incendiary article under the foregoing caption, under the editorial head of the last "Democrat," is evidently intended to create a panic, and thereby introduce "the hard times" into our section of country, which happily for it, has not been much felt, in consequence of the confidence which has hitherto been reposed, in the integrity and capacity of the Northumberland bank, to redeem all its responsibilities. It is only necessary to refute these vile insinuations, and shew with what flippancy opinions can be changed, (at least with respect to the Northumberland bank) to refer to the Democrat of the 27th of May last, only one month ago. Under that date, in a leading article, the Democrat announces the stoppage of specie payment by the Bank, and states "that this course was rendered unavoidable, on account of the adoption of a similar policy by other banks." "It is with pleasure however, that 'we can express an increased confidence in 'the Bank, drawn from the magnanimous conduct of the Board of directors, in pledging their private estates for all its liabilities. The names of the directors are given, and the "Democrat" continues: "These Hemen are known to the community; and feel assured that no Bank in the interior of Pennsylvania can produce so great a combination of wealth and character in a board of directors-such a sure guarantee against losses to the holders of notes. We can also, as a compliment to the directors of this Bank,(which they may appropriate personally if they choose,) add the simple fact, from PERSONAL ACQUAINTANCE, that there is no such precarious personage amongst them as a SPECULATOR. After such a compliment to the Bank and its officers, from such a source, what has occurred since its promulgation, to change the confidence of the people, and the opinion of the Editor in so short a time? Now, if it be incendiarism to publish the TRUTH, then the charge of our neighbor of the "Register" is correet, and we shall cry pecuvi; but we must first be convinced of the genuineness of such logic. The statements of the five Banks are all TRUE, and were testified to, under oath, by the different Cashiers, when they transmitted them to the Auditor General in December last. We did not, in our article, say any thing against the Bank of Northumberland in particular: we published the statements of ALL the neighbouring Banks, and on general principles, accounted for the suspension of specie payments. Then where are the "vile insinuations?" The Bank must be ashamed and afraid of its own statement,