18963. Bank of the United States (Philadelphia, PA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
national
Start Date
October 5, 1840
Location
Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model
gpt-5-mini
Short Digest
28dedb15

Response Measures

None

Description

The articles repeatedly describe the Bank of the United States (commonly called the Pennsylvania Bank of the United States) suspending payments and seeking assistance from other Philadelphia banks to resume specie payments (target date cited as January 15). Causes described are heavy drains on specie tied to Europe (large drafts, shipments to England/Paris and an international money panic). There is discussion of market panic and depressed stock prices, but no article describes a discrete depositor run (people physically gathering to withdraw) triggered by a discrete false rumor; instead the problem stems from foreign drains and general panic. The bank sought cooperative aid and planned resumption, so I classify as suspension_reopening.

Events (2)
1. October 5, 1840 Suspension
Cause
Correspondent
Cause Details
Large drafts and shipments of specie to Europe and heavy foreign demands on the bank's agents/correspondents amid an international money panic (drains to London/Paris and inability of agents to provide funds). Articles also reference European panic reducing available specie and forcing suspension or reliance on assistance from other Philadelphia banks to resume payments on a future date (Jan 15).
Newspaper Excerpt
The United States Bank has, it appears, directly acknowledged suspended ... solicited aid.
Source
newspapers
2. October 8, 1840 Other
Newspaper Excerpt
Resolved, That the President be requested to express to the Presidents of the several Banks the sense... the Bank of the United States has solicited the aid of the other City Banks, to enable that institution to resume specie payments on the 15th January, and it being understood, that without such assistance, it will be unable to effect that object. (Bank of North America circular, Oct. 5, 1840.)
Source
newspapers

Newspaper Articles (10)
1. April 18, 1839 True American New Orleans, LA
Article from True American, April 18, 1839

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s £18,000,000 sterling in 1838. WE DON'T LIKE to see a lady on a bright sun-shiny day, as was yesterday, promenading the banquette when she exhibits such a want of taste as we shall describe. We saw one, who had rather a pretty face, and a passing fair person-some might exclaim in their admiration, quel taille! but the arrangement of her attire was rather outre. Imprimis, she wore a white bonnet and black veil-2dly, a black dress, with black cape, fringed with black lace-3dly, white shoes, and lastly walked under a snuff-colored parasol. Black shoes are becoming with a white dress, but not vice versa. We looked at the lady's face, and hoped she was ugly. We were disappointed, for it had a sweet expression, and as if a better display of taste would have helped it considerably. A heavy black veil is no more fit to accompany a thin, white summer bonnet, than while satin shoes to set off a coarse black bombazet dress. COMMERCIAL AFFAIRS.-Referring to the present condition of commercial affairs, the N. Y. Commercial Advertiser saya: It is not to be denied that the present is a time of severe commercial triel-especially in this city, and also at the South. The banks have been curtailing, stocks are depressed, money is scarce, and there have been a few suspensions. A variety of causes have contributed to this pressure-and among them not a little, the senseless panic that has existed in connexion with the Maine boundary question. Another cause may be found by looking back a few months, in the premature resumption of specie payments by the Bank of the United States. The bank was forced into that resumption by the late executive of Penneylvania. to serve a political object, before, in the sound judgment of Mr Biddle, it ought to have been. Not, however, because of the condition of the bank itself, because, as the event proved, the bank was abundantly able to resume. But it was the desire of the direction of that bank, that the resumption at the south and southwest should be simultaneous, and the Bank of the U. States was then exerting its energies, as it had been for months before, to enable the banks in those directions 10 resuine with it. 'I he consequences of this forced measure are now seen at the south, where the banks are again yielding to the pressure. Yet another cause of the pressure, both in this eity and at the south, is found in the fact that we have too much cotton on hand. The south western banks as well as individuals, have been playing at the hazardous game of monopoly, and in order to effect a rise in the market afroad, tog much of the article has been bought up and kept back at home. Weare informed that there are 90,00 hales on hand. One of two things must take place-either the cotton or the specie must be sent forward.

2. October 29, 1839 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, October 29, 1839

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DE 14 NE / Richmond, Tuesday, Oct. 29. & BANKS. STOCKS. MONEY jejune MARKET, and unsatisfactory Banks of the Manifesto the with along We lay before of Philadelphia, for ments suspending of the veil over specie payments. This Document draws over the lebrated declaration the of ification Glute tory of the late of Mr. Biddle Specie Mr Circular John Q with Adams, that the the way for general the gross misina the enorof had difficult Bank draws of the United States, stocks mous in which State the Globe states cks be to to the the of three amount issuance amount Mississippy five millions, millions. and Illinois veil also of over mil lions to its heavy of Post advances notes for on the Cotton- purpose meet of its rising own the engage. wind that the exportation the of fact specie (says the the Girard Globe) Bank months ments Bank of the United States been and the principal shippers fur have, for Have not the lastsix the English papers. already had of this country or England by the Bank of the pounds glerling which cent sailed more than three week on Did not the Liverpool, carry to England account between of the after the suspension, hundred these dollars vast FUINS have been obliand Philadelphia four Banks: Yes, contempt of the prior of it prating sent the England, community in her? great about portion husband gations while away to England, of Penn hand, sylvania of the be resources for the purpose of deceiving the people Bank that general opinion, There We the the the Whig even from able address of the A Boston Bank Director in be to the York New American and and lligence, not person Banks, high largely character concerned in the in this manufac coun of the proposition all our difficulties believed. the tution, instit single arise from For has Bank that months many United States on London amounts large very their meet been drawing bills funds there stimulate d quale the to importation of left been their greatly only overtade to which has taken of shipment those importa ship Bank bills has due. ments failing has been of ex the course vated that Bank changes An drain. probably rapidly coming abundant the to turn months market-so the the In New men time, exchanges an for supply exchange York Banks have the necessary of detable ship which will the market probably with make any further onsi of the Banks Boston York ments This writer specie urgently stand calls their ground upon He one declares, course that to and "duty, New honor and morality, payments leave events. the That best pursue- specie equally quied by whole interest course, of fully our believe, city, of is the community ,ind the the uon country most interesting point New of view, York The Banks unde 10 pay specie horizon, The now the City The Merchanteare yet us cal reglutions, determine tremendous We relief give by extending their interior dis the Banks for notes the is counts. ing upon and also by receiving We give the the late inceedings said of Safety Fund Banks meetir of the merchants,which heldby the met on of that city chante of the We the journed been of the receiving largest ever the report/f their Comthe answers Banks. theee onlished o:them but ney differ ke find for York prints- with Almost the others) about re of the Safety Fund Notes As the Some Chairman of them POSI the of Banks tively reject the Banks proposition ready will adopt also the doit. measure Eig ht condition "fifteen that not the vet other prepa come consider into this arrange Others on minds made their Banks Some are of them wish for time the subject. and consider inexpedient We confine ourselves aid Bank of the Manhattan Company which (the Y Star institutions he Govern saye) of considered two the fiscal agents of ment 1839 24th NEW Oct., YORK. of the and Directors meeting of the specially President convened at this ue City day, Ho the hereupon resolutions Manhattan Compa meeting of the 23d merchants inst. were prisented and of of this Com the That Board Directors Resulted. all the give most the alleviate intense and unhappi exists this their city, dispo distress now the means to the that make use consistent with their duty their enthe faithful performance of stockholders gagement to the Public. M. GELSTON, President ROBT WHITE Cashier of the Board of Directors of of del the A a special America, meeting held this day for meeting the purpo of Merchants Bank of the proceedings of City Hotelthe betating Traders held the at the careful consideration of Board-it can that they and noeedings having Resolved received that this Board alleviate feeling the an of solicitude commercial all the within the power wants will Bank. extend consistent their with the the partmount duty of main it teining spe the "Resulted, specie That payments the opinion receive of this and Board pay out that the notes of the Safety is inexp present, Fund Banks of this State, as requested by the meeting Oct.24,1839. re Bank America. E. Post of Friday says, very Our much Banks reduced main The firm; the demand for pressure specie the money market We are is interest and the much intensity confined to the dry goods' course which as-ured very that the Banks will take their ability to continue 88 specie payments 89 12 hazard in the slightest Philadelphia degree drafts bid- offered 000 Treasur at offered notes bid, Balumore sold 99 12, $1,000 state 99. of and the more specie market Money to 9878 and Y Commercial this indicates of Wednesday on says. undoubted pa In extreme per cases, The day is worth per cent. month, cent is belie ed to hav of 'The been given. from Philadelphia of the 22d from says Mr. Jaudon ficers A letter of the S Bank that have had receiv made arran gementwi the deta h is and posititeinin Rothschild mation cover the bills on Hottinguer They feel there of S unless, persatisfied that their bills have been the accepted, rumor of their prember Rothschile being un accepted should the 21st have backed out express of his agree great the the by chance, ment Some of consummation the papers. however of the arrangement issued doubts We give i about another column declaring Circular their williagness notes, to Bank of the U S.in N of their claims, their stock post of the receive in liquidation demand, or the capital Novein bills, payable on previous to the 5th of -(Of ber next bank Bank, par, at any course, time not the ordinary notes of the Mother Bank N. in occurred York) is the extensive it owe, Nixon They "The largest failure dry goods (said to jobbing have house is said. of $400,000. Doremus was on l'his Saturday the 19th ) Suydam and shew and assets for $600,000 or There are no more. failures reported dur ing las week

3. November 12, 1839 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, November 12, 1839

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VIEWS on the Bank Suspension. EXTRACTS from a late Letter of an intelligent Observer. "The Banks of Philadelphia would have suspended sooner than they did, but for the election of the 8th Oc. tober. There were various little signs and hints in the Whig papers, which satisfied me the Bank of the U S was waiting for a fair pretence to stop payment, which I thought would be afforded by the return of the Liverpool. But its necessities were so great, that it could not wait for that event. The notes of the Schuylkill Bank had been rejected at the Bank counters, on the 7th or 8th, and great distrust was entertained of the Girard Bank. It was known, that the post notes of the U. S. Bank were falling due, and it was thought by the judicious, that it never would have resorted to such an expedient to raise money, but from the failure of other means to provide for their liabilities in Europe. Hence, R suspen. sion ought to have been anticipated as to that Bank and its affiliated institutions, if indeed the system itself were not so radically vicious as to justify an anticipation of danger from every fluctuation of the money market in Europe. "What sort of a system is that, which its advocates admit may be utterly deranged by a bad crop in England or by the prohibition of the Opium trade in China? The Experiment has now, at least, been fairly tried. The action of the Government has, for the last 12 months, been altogether favorable to the Banks. Its issue of Treasury notes aided the merchants in paying their duty bonds, and prevented the withdrawal of so much specie from their vaults. It has extended credit to the spec ie. paying Banks, and given extraordinary indulgences. It has employed the Banks to a very considerable extent, as the depositories of the public money, in consequence of the neglect of Congress to provide for its security in the hands of the public officers, and it it had not been for the great securities they have taken, it might have incurred serious losses from the confidence it has been forced to repose in them. In short. 88 the Globe save,

4. October 9, 1840 Morning Herald New York, NY
Article from Morning Herald, October 9, 1840

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MONEY MARKET. Thursday, Oct. 8.--P. The Stock market was again heavy this morning, and prices of most descriptions declined. United States Bank I cent; Delaware and Hudson 1 per cent; Stonington Sales of cent. Farmer's Trust avanced 2 per cent. per Illinois 6 per cent, 1860, were made at 801; Indiana Fives, 76 The sales of New York Erie Railroad Stock, advertised for sale at auction this morning, were again indefinitely postponed. The United States Bank has, it appears, directly acknow- from the its inability to resume without assistance solicitledged suspended banks, from which she has directly other ed aid. In consequence of this application, the following notice has been circulated: BANK OF NORTH AMERICA, October 5, 1840. Sir-At a meeting of Directors, this day, the adopted- followDear Preamble and Resolution was unanimously solicited the ing Bank of the United States has Institution to Whereas the City Banks, to enable that and it beaid of the other pay ments upon the 15th January it will be resnme ing understood specie that, without such assistance, unable to effect That the President be to entertained of the several Banks the sense and the Presidents of the necessity of some Atwood by Resolved, this Board, that object, application;andt requested that Messrs. immediate express to and united action Robins be upon a committee the to represent subject, this Bank which in is here- ge neral conference on at the Office of the Board of on by to next, at half past 7 Thursday invited evening be held this importar o'clock. Trade, Pres't. Very respectfully, JNO. RICHARDSON, fourteen banks of Philadelphia wish to the avoid endea the If the of the United States Bank, which was retten institutions, they will usefulness to individual safety. The period forever. chieferror ver bolster of look only En- ex- on to their own the United States Bank, is gone be at the the part of protract her existence, can only the discredit of deavors to stockholders, and redound to of the U.States pense of the generally. The credit resusitated American so securities far gone, that it can scarcely ever be loss, and Bank is at a disadvantage, and consequent successfully It is working National Bank is proposed, the of the new as it is a new wound up, the smoother will be the operation the bank. which have transpired since the nature arrival as of to inEvents from Europe, are of such a the last the probability of the establishment crease steamer since Mr. dissolution Jaudon's of institution. stay.- in It is well known that Bank, he has been its main Europe, Jaudon's as agent first of the arrival in Lendon, those he who was the were object forOn Mr. The petty jealousies of monied of dislike. of the bank, and the powerful there would merly agents imagined his establishment in opposition to interest, who were arrayed In a very short habits, and the gradual him. of conflict with their business interests, time, however, his great urbanity him deve- the manner, strict resources of mind, gained of for Europe.lopement of admiration immense of the mercantile men destruction last respect and saved the Bank from to Phila had occasion to the last year, in delphia, year, His high and he qualities sustained it since. Bank express On for his his late disapprobation return Cowper- which of the management has been of the seconded by Mr. left Biddle, the concern, Mr. and opinion he and other officers, who have new Directors, and serious breach no longer disposed to One of a thwaite, ny has arisen. The investigate. take assertion three ma the Stockholders, and are are determined to satisfaction, spent for Stockholders facts, recently, for affairs his of own the bank, and found every in examining utter the confusion, that satisfied no correct himself decision be arrived at, and the most tion could thing days in such He, however, judicious cents-not applica- that, has Mr. Jaudon with of the the best assets, management, the stock might be worth 80 become more. Under all with these the circumstances, state of things, and the it is institution highly proba- lives a disgusted the Bank. Whether former position as ble he will quit can no longer occupy it this country and Euor dies, of it communication opening between for a new money power, rope. means This construction will leave of an which materials of men with re already large capitals organfor the in this city ;a company of a house, the European Such agent a ising propose the organization Jandon, resident in London. by the of which is to immediately be Mr. fill the space left open powerful concern will the United States Bank, and the form rivalry a of the failure of which will put down which Mr. Jaucombination, other houses. The reputation last year, places him Primes and for himself in Europe the age. Mr. Biddle coming was a don earned first financiers of financier, and among theoretical the rather than Bank a practical at a time of great prosperity for time, into the control magnificent of the theories successfully speculation was a folhe carried out from the task when find Mr. Jaudon's he shrank It is then that we and cool judgment great practical and surmounting a season difficulties Amidst talents, but lowed by revulsion. knowledge no control. obstacles, admiration over of rising of which he he has won causes and discredit, His the other general above revulsion European had world. and representative appearance.on the of and new unembarrassed be two the may and respect side of the now as the concern, agent through which renewed the countries effect. happiest The following of Illinois OF with intercourse a perfect between confidence, is statement will have of the the finances of the State THE STATE ILLINOIS:7,960,500 $ 990,000 00 FINANCES Internal OF Michigan vement Canal. 1,190,049.13 On account of Revenue Illinois and and State House Total $12,140,648 13 Improve. $3,778,500.00 50,000 Available means meantristing belonging Bank to and Internal stock, Reilroad und Iron. debts Available ment that will Fund, meaus proba obably belonging be paid. to Canal Total $3,829,500 first makes the available means. her LandsThis Inst entire account indebtedness deducted of from the state, the above hr $3,812,048 to the 279,192 Her unavailable m Internal means Improve- 40.332) acres. Belon," Belonging ment ing system... to the Canal Total 910,514 acres. $1,047,541 552,000 due 125,000 0 Unavailable debts due Revenue Internal due to the Improve F und Canal for Fund eat State Fund. House.

5. October 23, 1840 The Ohio Democrat and Dover Advertiser Dover, OH
Article from The Ohio Democrat and Dover Advertiser, October 23, 1840

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Some curious movements are taking place ingPhiladelphia. While Mr. Webster is travel ling the country delivering speeches in favor of a national bank, the United States Bank itself 18 not inactive. It has made application to the other banks of the city of Philadelphia, to enas ble it to resume the payment of its notes on the 25th of January. and HH we inter from the fol. lowing circular of the Bank of North America, which has been published in the newspapers its application has been favorably received. Bank of North America, October 5, 1840. Dear sir. -At a meeting of Directors this day, the following preamble and resolution was un. animously adopted : Whereas the Bank of the United States has solicited the aid of the other City Banks, to enable that institution to resume specie payments on the 15th January, and it being understood, that without such assistance, it will be unable to effect that object. Resolved, That the President he requested to express to the Presidents of the several Banks the sense entained by this Board, of the necessi ty ofsome immediate & united action upon the application : and that Messrs. Atwood and Roh ins be a committee to represent this Bank in gen eral conference upon this important subject, which 18 hereby invited to be held at the office f the Board of Trade, on Thursday evening next, at half past 7 clock. Very respectfully. J. RICHARDSON president. The city banks of Philadelphia in fact, are so much entangled in the affairs of that great institution and so much in its power that they cannot refuse to do almost any thing it asks. If Harrison, therefore. should succeed in his canvass for the presidency, we shall see the Penn. sylvania Bank of the United States made, by the solvent banks, as good as new, a perfectly sol. went institution, ready to receive a new charter from Congress. That it will renew its applica tion for a national charter there can be little doubt. That it will -occeed with a whig major ity in Congress there can be as little. That pow erful institution understands how to influence legislatures; it has carried a majority in Con gress before now, and would have been a national bank still, but for the veto of General Jackson, it also carried a majority, in the Penn sylvania state legislature in direct opposition to the wishes of the people of Pennsylvania, and received from that state a charter which ena bled it to run its career of mischief to the pre sent moment. No power overa legislature is so strong as that of corporations. Besides, there is the argument which will be used with great force, that if a new bank a chartered by Congress, it will be difficult if no impossible in the present state of the publi mind to find subscribers to the stock. The co venience of taking an institution already organ ized will be dwelt upon and will doubtless b the pretext by which the friends of the measur will attempt to justify themselves to the public H. Y, Evening Post,

6. November 6, 1840 Morning Herald New York, NY
Article from Morning Herald, November 6, 1840

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Amount, 592,291 1,395,792 3,100,000 The position of money affairs in England, growing out of the recent political state of Europe, is at this time most untoward for the movements of the U S. Bank, and in fact all the suspended institutions. A panic among capitalists, and a disposition to hoard gold was fast increasing, not only in England, but throughout all Europe. This was in no degree checked by the pacific turn affairs had taken. The panic was upon the market, and would continue until the affairs was finally settled. This will not be done until near the middle of November. The French Chambers were to meet on the 29th October. The question would then come under discussion. In all that time effects of the panic will be operating upon the market, and specie continue to become scarce. The Bank of England had but £3,000,000 in her vaults to meet the emergency. Money was worth 6 per cent. in the market and the utmost distress prevailed. This will be much heightened in the course of events, by the time Mr. Jaundon, with the two directors of the U. S. Bank, arrives in London by the President, to commence his arrangements for first allaying the panic among the stockholders of the U. S. Bank, and secondly to provide ways and means for the bank to resume here, and to support a resumption as well as to provide for the dividend which will be payable in London in case of a resumption. In the month of September, a meeting of the stockholders of the U. S. Bank was held in London on the situation of of the Bank. At that meeting a memorial was addressed to the Bank, requiring a full and accurate statement of its affairs, and some explanation as to its movements. This was signed by a large number of the stockholders, and entrusted to Mr. Jaudon in person for transmission. That gentleman on his arrival here instituted, as we have stated on a former occasion, a most rigid instigation, but the affairs of the Bank were found to be in the utmost confusion. By the greatest exertions Mr. Jaudon was not able to get up a satisfactory statement to send out. In the absence of which the following letter was addressed to the London stockholders, and despatched by the Britannia on her last trip. BANK OF THE UNITED STATES, Sept. 30, 1840. StR-By the arrival of our valued friend, S. Jaudon,

7. December 18, 1840 The Ohio Democrat New Philadelphia, OH
Article from The Ohio Democrat, December 18, 1840

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VOLUME2 NUMBER 67. soverign power,in ridding the country, eas far as practicable, of the existing vil. Ite power to act as a regulator is no. more, as is proved by experience, a to induce the as it expands, and 10 than thing expand power local compal banks But them to contract when it contracts the experience proves that it stands full as much in need of a regulator as banks themeelves. And why Its object is should it not? the local its the stock- same make large dividends for Its temptations are & to the same laws holders. -to is subject the firade. same It was organized on the same principles, and subject to the same impulse the with like institutions created by States. It ie, therefore, unreasonable expect, that in its administration there to would be more safety than in similar be state institutione; or, that it would banks capable of regulating the local be beneficially, when it has proved to incapable of regulating itself. THE STATE BANK. The late Bank of the United States, the expiration of its charter in 1836, ou a new one from the centering not received Pennsylvania, equal, State than if the of greater powers and privileges, its former. Its capital was the same; stockholders the same, and its managein the hands of the same It was said, by the officers. ment continued charter President It of the Bank, when the new their was presented 10 the stockholders for e acceptance, that it was then in a safer, r stronger, and in more prosperous con- the dition than it ever was; and that exisconnection which had previously In a ted between the Bank and the General ben Government was an unnatural one, e eficial neither to the Bank or the GovS ernment, The stockholders were pres to accept of the new charter from in on the ground that it was to In more sed the State, respect desirable than the granted by the Yet, every vernment. old charter, no withs anding General Go. all n n these boasted advantages under the new to 80 far from its being able y the exchanges and currenregulate charter, banks the in and to keep the other proin of e cy, check, it is now univereally admit- and ted per to have been one of the leading agents in k under which the most active ficulties producing country the has difD, of been for the last eighteen So far from 118 it months. laboring the first, regulating unhe other banks, it was we former charter, to expand its cirnd and engage in ed culation der its hazardoustrade the firet and speculation. It was among as 11 to suspend specie payments, and the last of to resume. We have seen it, instead pa exerting its power to restore to the coun iniltry a sound currency, using all its fluence to prevent the other banks from its their notes in institution now, after d, redeeming this specie.-We having five see hetween four and al under its new, and, as was e; years been in operation utterly claim- proe advantageous character, al, in a state of sus to from surrounding 'he trated, ed, king aid pension, institutions, and asin order to save it from bankruptcy. id. What reason have we to believe that the ng influence of this institution ere have been different be its corporate powers eal would fate ceived or if and it had privil= re- inis eges from the General Government stead of the State of Pennsylvania As nal before remarked, the source from il. I it derived its charter could neithwhich take ly from or add to its means to meet ing or have it any that course of ion it in its present uch we are the er from its Whether,therefore, involved engagements, pursuing guided b prevented difficultic policy drawn by that the of experience, or by opinions bes critical investigation pative tendencies of a eaa believe United that we are foreed to exwould but add to the ural ligh from an Bank, institution and, of by the the States' such of the curreucy. is a the paper in ate, du specie basis, tend to it rangement ly the out increasing increasingr corresponding circulation, involve ratio, great with de- the whole paper system, eooner or later, in eacommon ruin. It is not, therefore, ren one of a U States Bank o Terthe multiplication of paper money very by by the creation the present that the evils attendaut on its we banking system, are to be remedied. The danger to be apprehended from one all an institution, in a political poin dis is not to be or onIte friends exsuch of view. regarded. overlooked claim, that would possess the power of regulating tate the nine hundred and fifty=four loca ion with their capital of three hun 10 twenty-fou the that it would possess late, dred and banks, ting millions. this Admit power what would be the political consequent ered if it should act in friendly allianc this es, with the National Executive, and wield althis vast money power for political pur. taxthe poses? If is claimed, that the is patron aires of the National Executive bor. subage dy too great and dangerous to publi OZ but tended executive natronage the entir liberty. If we add to the already

8. January 8, 1841 The Pilot and Transcript Baltimore, MD
Article from The Pilot and Transcript, January 8, 1841

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UNITED STATES BANK. We have forborne to comment on the late report of the affairs of the Bank of the United States, because, believing that although wise legislation may recusitate its credit, a premature resumption will be followed by another suspension, and a consequent loss of credit and a sacrifice of its assets. We are aware that the question of resumption depends upon politicians, who may misconstrue our motives, and charge our remarks to hostility to the Bank.We have no desire to injure that or any other institution. We would sustain all, and have therefore awaited the action of public opinion on the report on the money market of N. York and Philadelphia, as indicated by the sale of stocks. We have now re ceived this-a fall of ten per cent. in New York, and of fifteen per cent. in Philadelphia!! And that fall produced by the bank's own exhibit! Does any one believe that, with this demonstration of public sentiment, the bank can stand resumption before she has realised on her asseis in Europe? U.S. BANK.-In New York on Wednesday the U. Bank stock fell? per cent. making, with 3 per cent. on Tuesday, a fall of 10 per cent. since the Report of its condition. The last sales were at 55. In Philadelphia, on Wednesday, a sale was made as low as 502. The Inquirer of yesterday saysOur Stock Market wassadly depressed yesterday, and quite a panic prevailed, especially in the early part of the day. A few shares of United States Bank stock were sold as low as 502; but it afterwards rallied to 51 1/2 bid and 52asked. It is believed that the panic in relation to the U.S Bank stock is already subsiding, and that in the course of a few day saffairs will assume a more cheerful appearance. There is no doubt as to resumption being carried into full effect on the 15th. Money is still scarce, and will doubtless so continue until after resumption. The Philadelphia Standard of yesterday says There is a complete panic pervading the market, attributed to the statement of the U. S. Bank, but it can be with more propriety charged upon the bears in stocks, who before the statement was known, commenced the work of detraction, and have ever since been exerting all their energies to affect confidence in the stock of the U. S. Bank particularly, and thereby depreciate its price. IMPORTANT SERVICE PERFORMED BY THE ICE BOATS.-The sudden breaking up of the ice in the Falls, consequent upon the heavy rains of Wednesday night, caused large quantities of it yesterday to obstruet the mouth of that stream, and so completely choked up the vent into the basin, that the water rose to a considerable height, overflowing the Fish Market Space, filling the cellars in the neighborhood, and threatening extensive danger. "At this juncture," says the American of this morning, "the Mayor, who had been informed of the circumstance, sent to Captain Turner of the steamboat Patapsco, and Captain Sanner of the steamboat Relief, requesting them to make an effort to clear the stream. Both gentlemen repaired with alacrity to their boats, and in a few minutes the Relief was brought to the mouth of the Falls, which she entered with no little difficulty, the ice being piled from the bottom of the stream to the height of several feet above the deck of the boat. A passage however was soon effected, the boat making her way as far up as the bridge. The water, which had now begun to sweep off every thing from the ship yards on the Falls Avenue, immediately fell, and passed off without doing further mischief. The size of the Patapsco did not allow her to enter the Falls, butshe was actively employed in forcing the ice away from the mouth of the stream far into the Basin. The boats did not cease their efforts until noon yesterday. There is no doubt that the services of these boats prevented a very heavy loss of property by the inundation which would have inevitably ensued. The promptness and boldness of the two gentlemen who undertook the performance of a dangerous service, entirely new and in a dark and stormy night, entitle them to the highest meed of praise, and we have no doub our citizens will duly appreciate their valuable exertions."

9. April 27, 1841 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, April 27, 1841

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the that Bank cent. was On On prosperou the the 29th 1st of of with in July, March, all a its surplus 1839, relations. 1839, declaring of asserting more than a dividend four mil- of examinatwo lions fort On per the 15th committees, of Nov., 1839, asserting after a still detailed a surplus of surplus than three tions by millions January, 1840, exhibiting from a makthey On the 1st five of millions, and might abstaining do, merely from Legislature of ing more the dividend considerations, which can in any respect one deny the what in March, pro1839, prudential After this exhibition that when I left the condition: Bank of by posed it to prove, was in safe and what causes the prostration hole of the Some Bank. that It scene remains is changed to show of into them the are present unhappily total too obviowas of 1838-9, ous. have just stated abundance that and the winter ease in but monied England crop and deficient, season of England great and in this discovery country that the grain export with some of both soon after in startled by demand the arose continental for specie loans, to that The Bank was for grain, the combined whole surface of ten affairs. millions drained of dollars for England changed itself, of after France, borrowing was still severe so much restrictive mea- or from that the Bank it was forced the into interest very of money to twice effec country, sures, coin which its raised usual rate. The most which injurious were no longer These three was times the stocks of this except great sacrifices. producing convertible in England reacted on this country, community immediately embarrassment in troubles, the such causes usual effects of Banks. These and overthe alarm among the which had been met perhaps, have and they were, like many by the Bank, might of the means come in former times by an exertion circumstance which been again surmounted the Bank, but for late Cashier of the and the described credit of in letter from information the to the answer causes follows which Bank, is thus to had whom brought applied on these for misfortunes. His MARCH 23, 1841. to N BIDDLE, Esq. The Philadelphia. queries you have my thoughts. propounded The My Dear occupied Sir- no small share of the U. States passes, out of me have prostracomprehension; of the Bank may, however, have point mainly the confess, utter my the causes that, in my its present judgment, painful and preina- hu miliating payments of U the some contributed condition bring about The after the first of suspension S. to ture mption and of the efforts of the required Bank in the expe:t admifinance-a by the that Banks, resumption universal, the utmost wisdom measure and adopted prominent nistration make of affairs, in alluding to a its management motheir by ence those in gentlemen retirement, most do not merit. mean to impugn After the feverish to to cash after your or detract from their on this too speedy effort subsided, anticipated to excitement tives, consequent payments had in and a good was degree feared that the suspend another turn generally crisis would be soon obliged to be again realized, of meeting for the This Banks was unhappily ready too to burst: but best instead to make it fall storm full was force then at once, of was New deemed York. To effect procure this these, purThe its first upon the banks were necessary, foreign and to exchange accounts abroad, resort was had to the sale of of the Bank drafts with upon its agents them, of the that thought state of did the not warrant Messrs. any large Hottinguer might in be Paris.- avoid. York especially difficulty, however, coin it to was be drawn from Accordingly, the N. ed, This by shipping the to meet the bills. bills on Paris, Banks, immediate of exchange demand, particularly were sent to N. signed York large masses then in great Indeed the bills were large was which be sold were without limit. to N. York; and although a exhausted, and to the a drew in to bank, and thus so forwarded, sent it Agent was soon of the Paris conside- House book application York was for made a further supply, proceeds who of these immense against rable in New amount besides. created The very heavy all, balances signally failed sales of exchange York Banks, w hich, after effect. The bills as had not the New the contemplated even regularly advised, were dishoin being producing provided for, the not custom of the Bank, London did every uniformly been although the agent in mplish, the the nored, which and skill and judgment and from that day been to more !th-the credit thing, of the effects Bank was upon gone, the institution causes might have be adverted over present, and more its disastrous with Other the Common and various matthus have hastily estimate to-the connection of the value subordinate of the charter- to the particular brought to unhap your de myself equally the notice, py measure that immediate Mr Jaudon cause and of the disasters which have plored as afflicted the Bank respectfully, of Very COWPERTH HWAIT J. secret cause about is revealed the Now, real and without meaning drafts, and Here, disasters then, of the Bank the object of these of any one, say the single intending word the slightest in this censure single of the Bank is without impossible not many to sec, of the difficulties suddenly draws an & Co., imhaving heasolution Bank, as of 1 understand, Messrs. Hottinguer hands-will to draw mense The amount of dollar bills of on funds for in their of and extent that out without Laving explanation any authority as to the without nature even the drawn. usual as line of unexpected drafts-and, such bills has been prudent men, very commercial these Hottinguer notice, & Co. could these not, bills and thus, was sud- the all of this do otherwise Messrs. than fullness protest of its high Europe. credit, The talents dis. denly Bank, disgraced in the repaired, in the eyes to order certain to protect extent, the drafts & of Mr. Jaudon it obliged him, well in as Messrs. Hottinguer which were aster: drawn but on himself, loans as and to pledge locked stocks up to await And the now deCo., to instead make of being since sold, overtaken them. secret woundthus, preciation which has fairness, whether omission-c it Hot- by jet me ask, in all inadvertance, or apprize Messrs this neglect, name or you choose- drafts- thing which be belonged charged whatever tinguer interior & Co. of details these of which the Bank-can had ceased long see before in the upon to the my administration Yet these two "as officers, the immediate we cause of the and above that time letter, regard have that afflicted the the Bank. vitality of no that have Bank, fatal the late but for the Even disasters after which this shock, doubt such it was might resumption have of specie and lawful by prospered, payments true, that of the specie. only But the where time resumption is banking is the once takes place, depending it. the the proper any cause suspension question of position expediency of the Bank of other position health of on many circumstance of its neighbors, country just accident as we self-the other position sections of of men the but if by may venture of the without banks natural in condition must decide when we The Bank are the sick, prudence danger of lapsing for twenty-five years, resumpt neiout England and if had continued certainly been forced fallen into of Philadelphia, Now, Philadely nor would ther the have banks nor communities the community with for whom resumption, were and my judgment phia the banks principally nor the deals, the project were ready and execution of it as merely though equally in I was unfortunate in town during and it that seemed period, to the me Bank that was the the this true U a position private and spectator, the only safe of policy the Government of of March with of very to at The new will administration find itself policy on the will 4th be, if possible, of a National not If its be small States funds, and once its the debateable disposition question hereafter. position to do the public encounter Bank, what may the U. States is in will a from its ex. then the Bank business of temporarily, it

10. June 12, 1841 The Madisonian Washington, DC
Article from The Madisonian, June 12, 1841

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sent that it should be held as a conspiracy to defraud the United States? Mr. HUNTINGTON admitted that it was very desirable to prevent such frauds, but the courts were open, and he thought would provide a sufficient remedy. At all events, he could not consent to declare a fraudulent conveyance felony. The amendment was rejected. Mr. BENTON moved the following amendments: And provided further, That the following sections and parts of said bill shall be excepted from this repeal and shall remain and continue in force, to wit: Sections 19 and 20, section 21, section 25, section 2, and so much of the 19th section as makes it felony in disbursing officers and persons connected with the Post Office Department to use the public money for their own or other purposes; and a neglect or refusal to pay over public moneys on demand or to transfer or disburse them shall be prima facie evidence of an embezzlement of the same. Sec. And be it further enacted, That the Bank of the United States, commonly called the Pennsylvania Bank of the United States, and its branches and the local banks and agencies owned by it, shall not be entrusted with the collection or safe-keeping or transfer or disbursement of the public moneys or any part thereof. And he asked that the question be divided, and that a vote be taken on each question by yeas and nays, and they were ordered by the Senate. The item with regard to the Bank of the United States at Philadelphia having been read, Mr. CLAY said that he had no hesitation in declaring, after all the disclosures that had recently been made, that he should deprecate as much as any gentleman could do the employment of that bank by the Government as a depository for the public funds. He had intimated the opinion as much as three years ago that the Government was cut loose from that institution from the period of its charter by the State of Pennsylvania. But still he could not consent to the adoption of such an amendment as that proposed. If the Senate was to declare its disapprobation of the management of a particular bank, there were many others, such as the Owl Creek bank, &c., which might, with equal justice, be included in the denunciation. He did not, however, consider it as comporting with the dignity of the Senate to enter upon any such course of discrimination, and he hoped the amendment would not prevail. Mr. BENTON admitted that other banks had behaved very badly, but the case of this bank stood distinguished from all others, because it had originally come into existence under a charter from the United States, and the eyes of foreigners were in a peculiar manner fixed upon it. Mr. B. proceeded to speak with much warmth against the course of the bank generally, and especially on its bringing upon itself the last suspension by an underhanded and swindling endeavor to break the New York banks. He accused it as having plotted the suspension in 1837, and as being in effect the only obstacle to a resumption of specie payments by all the banks of the South. They had recently made an effort to resume, but this bank had instantly run upon them and forced them to return to a suspension. The question being now taken on Mr. CALHOUN'S amendment to the amendment of Mr. CLAY, it was decided by yeas and nays, as follows: YEAS-Messrs. Allen, Archer, Barrow, Benton, Berrien, Buchanan, Calhoun, Clay, of Alabama, Fulton, Kerr, King, McRoberts, Merrick, Nicholson, Pierce, Preston, Rives, Sevier, Smith, of Connecticut, Sturgeon, Tappan, Williams, Woodbury, Wright, Young-25. NAYS-Messrs. Bates, Bayard, Choate, Clay, of Kentucky, Clayton, Dixon, Evans, Graham, Henderson, Huntington, Mangum, Miller, Morehead, Phelps, Porter, Prentiss, Simmons, Smith, of Indiana, Southard, Tallmadge, Walker, White-22. So the amendment to the amendment was adopted. The question then recurring on the amendment as thus amended, it was decided by yeas and nays, as follows: YEAS-Messrs. Allen, Benton, Buchanan, Calhoun, Clay, of Alabama, Fulton, King, McRoberts, Nicholson, Pierce, Sevier, Smith, of Connecticut, Sturgeon, Tappan, White, Williams, Woodbury, Wright, Young-19. NAYS-Messrs. Archer, Barrow, Bates, Bayard, Berrien, Choate, Clay, of Kentucky, Clayton, Dixon, Evans, Graham, Henderson, Huntington, Kerr, Mangum, Merrick, Miller, Morehead, Phelps, Porter, Prentiss, Preston, Rives, Simmons, Smith, of Indiana, Southard, Tallmadge, Walker, Woodbridge-29. So the amendment, as amended, was rejected. Mr. CLAY said that the effect of the last vote was, to leave the bill in the form in which it had been reported. If it should in this form pass both Houses of Congress, and become a law, the State Bank system, as regulated in 1836, would be revived and continue in force until a substitute should be adopted by Congress. Mr. C. took it for granted that a substitute of some description would pass; but if, unfortunately, Congress should be unable to agree upon any substitute, whether in the form of a bank or other fiscal agent, then he presumed that Congress would set about discharging the duty of rendering the State bank system as efficient and perfect as possible After the gallant course pursued by the honorable Senator from Mississippi, (Mr. WALKER,) Mr. C. considered it as proper for him, also, to state that he would vote for that system under no circumstances-none whatever-none. He had ever been opposed to the plan, and would not have given his vote for the law of 1836 on any other ground than that that law contained the principle of a distribution of the surplus fund among the States. No, if gentlemen on the other side choose to put themselves in command of such a miserable fleet, he did not care under what Commodore, Mr. C. and his friends were ready to meet them upon any sea, and he doubted not that the encounter would result in such a victory as Perry had achieved on one of our great lakes, or the brave McDonough on another. Mr. CALHOUN would say to the Senator from Kentucky that he was fighting against an imaginary flag if he supposed that the gentlemen on that side of the House meant to contend for the State bank system. No. They intended to go into battle under the noble flag of the sub-Treasury. He was glad that the Senator had been compelled to say that if the sub-Treasury should be repealed, the law of 1836 would be enforced. If that law as it now stood should in practice be found impracticable, the difficulty would fall chiefly in the South and Southwest. Mr. CLAY said he had never doubted that the law 1836 would revive; but, when he had introduced his bill to repeal the sub-Treasury, he had given notice that that was the first in a series, and had avowed, openly, his preference for a Bank of the United States. If, then, the law of 1836 did revive in its present form, he hoped it would be but for a very short time. But, if otherwise, it must undergo a complete revision. Mr. BAYARD admitted the culpability of the bank, but opposed the amendment as unnecessary, because the law of 1836 expressly prohibited the Government from employing any bank which did not pay specie. Mr. WOODBURY, in reply to this, explained the construction of that law by the Treasury Department. When that Department had funds to deposite, and no bank could be found which conformed to the provisions of the law of 1836, the Department considered itself as thrown back on the previous law, and under that law at liberty to place the deposites in non specie-paying banks. What else could it do, unless it threw the money into the streets? Mr. DIXON said he should vote against the amendment, both because be thought it improper to refer to individual banks, and especially because this bank assigned as one cause of its suspension the hard treatment of the United States Government. The question being taken, the amendment was rejected as follows: YEAS-Messrs. Allen, Archer, Benton, Buchanan, Calhoun, Clay, of Ala., Fulton, King, McRo-