18974. Banks in Philadelphia (Philadelphia, PA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
October 2, 1857
Location
Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model
gpt-5-mini
Short Digest
8097b63e

Response Measures

None

Description

Multiple contemporary articles (Sept–Oct 1857) report that banks in Philadelphia suspended specie payments during the Panic of 1857. A New York Herald chronology (Feb 3, 1858) states Philadelphia banks resumed specie payments, so this is a suspension with subsequent reopening. Cause attributed to the nationwide panic/pressure on specie (macro news).

Events (2)
1. October 2, 1857 Suspension
Cause
Macro News
Cause Details
Part of the wider Panic of 1857 and pressure on specie payments across major cities; banks suspended to protect liquidity and debtors.
Newspaper Excerpt
BANKS SUSPENDED. The Banks in Philadelphia, Baltimore, Providence, R. I., some in Pittsburg; all Wheeling, Va., and many in other places, have suspended specie payments.
Source
newspapers
2. February 3, 1858 Reopening
Newspaper Excerpt
3. The banks in Philadelphia resumed specie payments....
Source
newspapers

Newspaper Articles (8)
1. September 30, 1857 The Daily Gate City Keokuk, IA
Article from The Daily Gate City, September 30, 1857

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The bills of the Hopkinton Bank of Rhode Island are refused at the Suffolk Bank. Philadelphia, Sept. 28.-The Governor has not decided between the banks, and there is a pressure for and against calling a special session. The silk house of Messrs. Curtise & Co., on Chestaut street, has been robbed of eight thousand dollars. There is still no concert of action among the banks. They commenced paying five dollar bills, but at 11 o'clock the North American Bank, which had previously redeemed all notes, suspended specie payments, and the course will now become universal. NEW YORK, Sept. 28.-The money market is very stringent, but the banks remain firm in their position. Some very heavy failures are reported. Advices from Albany mention a run upon the Savings Department by small depositors. There is no pressure clsewhere, and the bill-holders and banks are quiet and confident. Rumored Failures.-Clarke, Dodge & Co. and Phelps, Dodge & Co., entirely untrue.Exchange on Philadelphia 10 per cent. Rates for money on street, some cases 6 per cent. per month. The Metropolitan, Republic and Merchants Bank of New York, Mechanic, American, Exchange, Union and Poenix banks have issued circulars assuring the public of their ability and determination, to maintain a specie basis for their circulation, and exp: essing the opinion that the tendency of specie and produce to this point will soon relieve the banks of the present pressure. NORFOLK, Sept. 28.-Some feeling is manifested here about the Baltimore and Philadelphia suspensions, but the banks so far have remained firm. CINCINNATE, Sept. 28.-The excitement consequent upon the continued unfavorable advices from the east paralyze business and the attention of business men is entirely turned from the ordinary routine to the all absorbing question of the latest news from the East. The paper of an iron and shoe and leather establishment went to protest, and J. H. Holmes, Manufacturer, has made an assignment. None of them, however, are insolvent. J. J. Anderson & Co., and Darby & Barksdale, Bankers of St. Louis, have suspended. The Nashville Bank, of Nashville, Tenn., has also suspended. The Bank of Washington and Patriots Bank, which paid only small sums en Saturday, have now altogether suspended. The Savings Banks pay either in City Banks or Virginia money, and demand the6 days notice from depositors. Virginia money is at a discount of 5 per cent., and the tendency is still downward.

2. October 2, 1857 Fremont Journal Fremont, OH
Article from Fremont Journal, October 2, 1857

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BANKS SUSPENDED. The Banks in Philadelphia, Baltimore, Providence, R. I., some in Pittsburg; all Wheeling, Va., and many in other places, have suspended specie payments. Our Ohio banks remain firm. There is much excitement in the country. It is the opinion of men best informed that nearly all the old and well established banks will soon resume again. Our advice to persons holding any of the suspended money is to "possess their souls in patience" for a while. Their money will undoubtedly be good again.

3. October 16, 1857 Evening Star Washington, DC
Article from Evening Star, October 16, 1857

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# THE BANK SUSPENSIONS IN BOSTON. The bank presidents, at their meeting on Wednesday afternoon, adopted the following preamble and resolutions: In considering the course taken by the banks this morning, in suspending specie payments, we are led to the conclusion that it was not a matter of mere expediency, growing out of the fact that the banks of New York, Philadelphia, Baltimore and other important cities had set them the example, but a measure of irresistible necessity—a necessity imposed on them not merely or principally on their own account, but most especially for the protection of their numerous debtors. It is obvious that the banks could not continue specie payments without calling on their debtors to pay in specie; and, although the great mass of them are in possession of a large property, their inability to pay in specie is certain, and an attempt to enforce it would end in ruin. In their fall, all the laboring classes of the community must be involved. They would be thrown out of-employment, and their families thrown out of daily bread. It is to avert these consequences that these measures have been adopted. The committee recommend, therefore, the adoption of the following resolutions: "Resolved, That the present system of daily settlement between the banks in the clearing-house shall be continued under such modifications as the clearing-house committee shall deem advisable. "Resolved, That there shall be a return to specie payment at as early a period as possible." The resolutions were unanimously adopted.

4. October 17, 1857 The Cecil Whig Elkton, MD
Article from The Cecil Whig, October 17, 1857

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The Banks of New York and Boston have followed the lead of those in Philadelphia and Baltimore and suspended specie payments. The Legislature of Pennsylvania has legalized the suspension of the banks of that state up to the second Monday of April next.

5. October 21, 1857 Nashville Union and American Nashville, TN
Article from Nashville Union and American, October 21, 1857

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COMMUNICATED WHAT SHALL BE DONE? In the present deranged state of the currency, resulting from the suspension of specie payments by the Banks generally, and particularly in our own S ate, we often hear the question asked: What shall be done?" True financial policy consists in adopting our me isures to our means and to the circumstances with which we are surrounded. The suspension of the Banks in New York, Boston, Philadelphia, Charleston and New Orleans, left no alternative to the Bank of Tennessee, consistent with her duty to the people and the State, but to suspend also. No one doubts her ability to resume whenever the Banks at the large commercial ports shall return to specie payments. Then let the Legislature sanction the suspension for the present, but prohibit the Bank from charging more than half to one per cent. in the sale of exchange on any place in the United States. This would prevent exhorbitant rates being demanded for exchange, during the period of suspension and compel them to resume cash payments with the Banks of our sister States. The Bank should be required to pay specie on all its notes under five dollars, and, after resumption, to issue no note that is not payable at the place of issue. Extend the benefits of the act to all the Banks in the State, Stock as well as Free. Provided that no Bank shall be entitled to any of the provisions of the act, that does not pay to its depositors on demand in current funds, (such as are received by the Bank of Tennessre,) and make satisfactory arrangement with that Bank for the reception, and short periodical redemption of its notes. No difficulty, it is confidently believed, would be experienced by the solvent Stock and Free Banks, im making such arrangement. Of the Union and Planters' Banks it is useless to speak. Their circulation is small and they are in strong positions. In the daily exchanges they are usually the creditor Banks. The Banks of smaller capital might make the arrange ment by a deposit of State Bonds or other collaterals by the discount of a portion of their Bills of Exchange, of which it is said they all have plenty, or by the deposit of a portion of their coin. The ability of the suspended Banks would thus be tested. Uniformity in the currency of the State, in ordinary transactions, and with the Banks produced, & large amount of Bank notes now uncurrent would enter into immediate circulation. Confidence, to a great extent, would be restored, and pecuniary embarrassment alleviated. The Banks that failed to pay depositors, or make the required arrangement with the Bank of Tennessee, in - days (15 or 20 would be sufficient,) should be put into liquidation. No time should be fixed by the Legislature for resumption. Desirable as is that event, it must depend upon circumstances beyond the limits or control of the State, which no man now can foresee. The produce of the country must besent to market, and the indebtedness, to a considerable extent, not only in this, but in other States, paid off before that should be attempted, or can be safely accom plished. The provision in regard to the sale of exchange will compel them to pay specie when the Banks of the other States resume. The right to Legislate in regard to all the Banks, or to wind them up, should be expressly reserved to any subsequent Legislature. This would give time for discussion and reflection, and for 8 thorough reformation of the Banking sysA MERCHANT. tem of the country. TAINSON

6. January 23, 1858 Nashville Union and American Nashville, TN
Article from Nashville Union and American, January 23, 1858

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COMMUNICATED. # THE BANK OF TENNESSEE AND ITS MANAGEMENT. As there has been much said against the Bank of Tennessee and its present able and distinguished head, and little or nothing in favor of them, something on that subject, it is hoped, may not be considered improper. The suspension of specie payments by that bank has been condemned by some. To this it may be replied, that most of the best managed and soundest banks int he United States have suspended-banks over which men of the highest grade of mercantile integrity, honor, and punctuality, preside; men whose whole lives, public and private, like that of the head of the State Bank, are examples of justice and good faith to all men. Every well-informed man in the community knows that the suspension of cash payments by the State Bank was a matter of indispensable necessity, resulting from surrounding circumstances, and not a matter of choice, with a view to make a profit thereby to the State, by the injury to the holders of its million and a half of notes. A suspension by the State Bank, singly and alone, would, in most conceivable cases, have brought disgrace on its managers; but the State Bank is only one of 400 in the United States, the largest portion of which, and all at the great commercial centres, New York, Philadelphia, New Orleans, &c., have suspended. It is not necessary here to attempt an elucidation of the causes which have led to this result. A succession ef good crops and the high prices of our staples, Australian and California gold, and a general spirit of speculation and extravagance, engendered by a variety of causes, and aggravated by multiplication of banks, and by injudicious and indiscriminate loans, and the arbitrary displacement of masses of specie by the Eastern wars, must be regarded as amongst the most prominent causes which have produced the present difficulties throughout the whole commercial world. Under the operation of the general spirit of the times, the Legislature of Tennessee (an interior agricultural State, the trade of which consists almost entirely of the purchase of dry goods, groceries, &c., and the sale of raw produce) has put in operation upwards of forty banks, competing with each other for business, and pushing their notes into circulation-the pittance of specie required by the statutes not being sufficient, even if on hand, to meet an unfavorable state of exchanges, much less a panic. The banks at the great commercial centres, New York, Charleston, Savannah, New Orleans, and Philadelphia, in this state of things, had suspended. What was the State Bank to do under such circumstances? It was bound to pay near $100,000 in gold in the city of New York, on the first day of January last, either directly or contingently. A previous legislature had authorised a sale of the State stock in the Union and Planters' Bank, withs a view to increase the capital of the State Bank and to pay a debt of $125,000, due on matured bonds. That stock was not sold and the bank had to meet the debt out of its profits. It was paid. It had to pay interest on State bonds ($150,000.) It did pay it. It was responsible on endorsed bonds of railroad companies. It had to be in readiness to meet that interest to save the State from dishonor in the contingency of a failure of any railroad to meet the demand. One company did fail and the bank paid $12,000, and did save that road and the State from dishonor. The bank furnished gold in the city of New York for the whole of the railroad payments in lieu of State paper. All these liabilities, direct or contingent, it was bound to be prepared to meet in discharge of duties imposed on it by previous legislatures. To meet these and other liabilities, the bank had $2,000,000 in bills falling due at the commercial centres in suspended banks. The door by which it was expected to obtain gold was closed, and the only resource left was to collect in gold a portion of the notes discounted for the citizens of Tennessee, to wit: $1,600,000, to meet the metallic demand in New York and elsewhere. Just so certain as the bank had continued to pay specie in the midst of the circumstances by which it was surrounded, just so certain would every dollar of its cash have been drawn from it by brokers, as an article of traffic, shipped and sold where banks had suspended, and where it would have commanded a sufficient premium to make its shipment a profitable speculation; and just so certain would the bank have been left without the means of doing business, the people in some measure without a circulating medium, the State dishonored, and the president of the bank declared unfit for the position he occupies. Although suspended, it has paid out in gold $200,000 to those who needed it, yet did not obtain it as an article of traffic. It has furnished a large amount of exchange at one per cent, when it could at the market rates have exacted larger amounts. It has discharged all the obligations imposed on it by the State. It has been enabled to sustain its circulation, so as (like the Bank of England) to lighten the blow on the debtor interest to some extent, inflicted by a sudden reduction of the currency from, say $3,000,000 to $4,000,000; and its notes will now pay all domestic debts at par, and purchase all property, real or personal, at cash prices. It may be asked, did not the Bank of Tennessee contribute, by its management, to the suspension which now exists? To this, it is replied, that there is nothing to be found in the conduct of the bank to sustain in the slightest degree such a charge. It is evident from the past history of the bank for the four years under which it has been under the direction of its present vigilant directory, and its present condition, that there has been a consistent effort to avoid such an increase of its circulation and such injudicious loans, not based on the produce of the country, as would lead to imprudent and heedless speculation and indebtedness. It is well known to the author of this communication, as well as to many other persons, that the sagacious President of this bank has been predicting the present state of things, and that he has held the bank in a condition to meet the crisis which has come, as well as it could readily be done consistently with the duty imposed on it of supplying the community with circulation and answering in other respects the purposes of its creation. The amount of its circulation for the last four years, since Colonel Johnson has been at its head, is as follows: irculation 1st July. 1854 $2.471.830

7. April 6, 1858 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, April 6, 1858

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crisis. The suspension of specie payments in Baitimore, Philadelphia and New York, has just shut out Virginia capitaliste from their own specie, and, in the teeth of this recent experience, a large additional Amo nt is to be sent, by legislative authority, the vaulte of Baltimore, there to await another drop of e dead-fall. Again. If there be any advantage to be gained for Virginia, by thus stocking Baltimore with our specie, why does the General Assembly discriminate between the two sorts of Banks? Why are the independent Banks alone permitted to enjoy this pre cious immunity of choice between Richmond and Baltimore? Is it intended by this means to enable them to supplant their competitors? Or, is this scheme nothing more than a decoy duck, employe, to Jure the independent Banks to certain bankruptcy, by breaking down their credit at home, while it of fers the promise of enhancing their credit abroad? Another question. Is the State of Virginia to take the notes of these independent banks n payment of taxes? Is the State Treasury, as well as the citizen, obliged to send drafts to Baltimore, there to collect specie for public diabusements? So we interpret the late act of the Legislature. A previous Legislature degraded State credit by establishing a Virginia State Treasury brokerage at New York. The present act establishes another at Baltimore. We beg leave to explain to our readers, that we were not advised of the obnoxious features of this act, previous to its passage. Had we been so advised, we would not have failed to warn the public of the impending stroke. The bill was hurried through without mature consideration-scarcely - with an attempt at debate. In the House of Delegates, it pass. ed without 8 division, and many members of the House were ignorant of its provisions. The evil is now past present remedy. We have nothing left us but to regret an act of unwise legisla tion, and endure the consequences of another effort to provincialize Virginia. This is all. But this all is more than enough. It is noxious to State enterprise. It is degrading to State credit. It is bitter 88 gall to State pride.

8. January 1, 1859 The New York Herald New York, NY
Article from The New York Herald, January 1, 1859

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A. D. 1858. Twelve Months Memoir of the United States. # CHRONOLOGY OF EVENTS. Religious Revivals-Results of the Panic Atlantic Cable-Yellow Fever in the Seth-Mount Vernon Fund-Right of Search. # LOSSES BY FIRES. # LIVES LOST BY FIRES IN BUILDINGS. # REVOLUTIONARY PATRIOTS DECEASED. # THE CENTENARIANS. HERALD ALMANAC, &c. Annual Chronology of Events in the United States. JANUARY. FRIDAY, Jan. 1. Sun rose splendidly, at peace with all the world. Magnificent weather; never surpassed in the metropolis. All male New York in the streets. New Year's calls numerous and full of mirth and joy, although the panic of the previous October oust a tinge of sadness here and there. A. D. 1858, nevertheless, came in bril- liantly and hopefully. 2.-U. S. ship Saratoga arrived at Norfolk from Grey- town, having on board 155 of Gen. Walker's filibusters in a sad plight. 3. James P. Donnelly, under sentence of death in New Jersey, for the murder of Albert S. Moses, at the Sea View House, escaped from prison, but was captured and sent back. 4.-Daniel F. Tiemann was inaugurated and took his seat as Mayor of the city of New York, and Fernando Wood retired from the office.... Congress, after twelve days' recess, reassembled in Washington. Mr. Pugh, of Ohio, introduced a bill in the Senate for the admission of Kansas as a State, under the Lecompton constitution, with a reservation re-submitting the slavery clause to a vote of the people. Mr. Quitman, of Miss., introduced in the House a bill for the repeal of certain sections of the neu- trality laws.... The New York city banks had in their vaults $28,561,946 in specie.... A comet was discovered from the observatory of Harvard College. 5.-Mayor Tiemann transmitted a long message to the Common Council of the city of New York. 6. The message of Gov. King published in the New York papers....A meeting was held in Petersburg, Va., to express indignation on the act of arresting Gen. Walker and his band of filibusters in Central America by the United States naval forces. 7. The President sent a message to Congress justifying the conduct of Commodore Paulding in arresting the fili- buster Walker in Central America. 8. James P. Donnelly, who was convicted of the mur- der of Albert S. Moses, at the Highlands, N. J., on the 18th August, 1857, was executed at Freehold. He made a long speech on the gallows, and protested to the last that he was innocent of the crime A large meeting was held in Mobile which authorized a committee to expel from the city Mr. Wm. Strickland, a bookseller, who was charged with being an abolitionist and having the book called "Uncle Tom's Cabin" for sale. 9.-Advices were received from Salt Lake that the Mor- mons were determined to stand their ground against the United States troops and open a bloody war. 10. The Sea View House, at the Highlands, N. J., where Albert S. Moses was murdered by James P. Donnelly, was set on fire and burned to the ground. 11. The annual statement of the New York Commercial Agency showed that from December 26, 1856, to Decem- ber 25, 1857, a period of one year, there occurred 5,123 failures in the United States, involving liabilities to the amount of $291,750,000, produced by over trading, and resulting in the "panic" of Sept. and Oct., 1857 12. The most intense excitement was manifested in California against the Mormons, and thousands of volun- teers offered to join the army and march to Utah Terri- tory. 13. The new Treasury notes, $10,000,000, were issued by the general government.... All the banks of Rhode Island resumed specie payments. 14. There were one hundred and thirty failures in San Francisco during the year 1857, with liabilities amounting to $2,719,497, with only $271,507 of assets. A deplorable result of over trading and wild speculation. 15.-A slight shock of an earthquake was felt at Lock- port. N. Y. 16.-A terrific tornado swept over the city of New Or- leans, doing great damage to the shipping and destroying a number of buildings. Three persons were killed. 19.-Thomas W. Smith, who was charged with the mur- der of Richard Carter, President of the Tamaqua Bank, in Pennsylvania, was acquitted by the jury on the ground of insanity. Carter had seduced Smith's wife previous to marriage. The murder was committed at the St. Law- rence Hotel, in Philadelphia.... The public school build- ing on the corner of Concord and Navy streets, Brooklyn, was destroyed by fire. There were 700 children in the building at the time the fire broke out, and in their at- tempt to escape six small boys were suffocated or trampled to death, and a number of others were severely injured. 20. The jury in the case of Mr. Robertson, charged with an attempt to poison his wife, at Rochester, N. Y., brought in a verdict of "Not guilty." 25.-A public meeting was held in Mobile to honor the return of Gen. Wm. Walker to that city. The General delivered a long speech upon Nicaraguan affairs and the course the United States government had taken in arrest- ing his filibustering movements. 26. The flags of the shipping in the harbor of New York were hoisted half-mast in consequence of the death of General Sir Henry Havelock, of the British army, in India. 29. The steamboat Fanny Fern exploded her boiler about eighteen miles below Cincinnati, on the Ohio river, and thirteen persons were killed and seven injured. 30. The specie in the New York city banks amounted in the aggregate to $31,273,023. SUNDAY, 31. An extraordinary mild winter thus far, the thermometer not having been below twenty degrees in New York, and most of the time ranging between forty and sixty. FEBRUARY. MONDAY, Feb. 1. The steamtug Ajax, belonging to New York, was run ashore in a gale, at Long Branch, and became a total wreck. All hands saved. 3. The banks in Philadelphia resumed specie pay- ments.... The Grand Jury of the United States Court at New Orleans found bills of indictment against Gen. Walker, Col. Anderson and other filibusters for violation of the neutrality laws. 4. The steamboat Col. Crossman exploded one of her boilers on the Mississippi river, near New Madrid, took fire and was entirely destroyed; twenty-five persons lost their lives and $100,000 worth of property was destroyed. 5.-All the banks in Baltimore resumed specie pay- ments. 12. The shock of an earthquake was felt in the western part of Pennsylvania. 16. The steamboat Magnolia exploded her boilers at Whitehall, N. C., killing some twenty persons and wound- ing a number of others.... The wrecking schooner B. Drummond foundered off Long Branch, N. J., and eight persons (being all on board) were lost. 29.--Severe snow storm in New York.... A gas explo- sion occurred in a Methodist church in Cincinnati which nearly demolished the building and seriously injured se- veral persons. 20. First sleighing of the season in New York.... The Pacific Hotel, in St. Louis, a large establishment, was des- troyed by fire, and twenty-one of the boarders who were unable to escape perished in the ruins. SUNDAY, 21. Five steamboats were burned at the wharf in New Orleans, embracing a loss of $70,000.... The large ship John Milton, over 1.400 tons burthen, commanded by Capt. Ephraim Harding, from Chincha Islands, loaded with guano, ran ashore in a snow storm near Montauk Point, Long Island, and became a total wreck. She had on board between twenty and thirty persons, not one of whom was left to give an account of the disaster. Most of the bodies of the unfortunate crew were washed ashore. 22. The anniversary of the birth of Washington was celebrated in Richmond by the inauguration of the eques- trian statue of Washington in that cityIn New York the weather was warm and clear, and the day was observed by the usual display of the military.... The ship Howard arrived at New York from Hamburg, and reported having lost thirty-seven of her passengers from a disease resem- bling cholera. 24.-Hon. James B. Clay, son of Henry Clay, and mem- ber of Congress from Kentucky, and Wm. Cullom, late Clerk of the House of Representatives, left Washington to settle certain difficulties in accordance with the "code." Before meeting, however, mutual friends interfered and the dispute was amicably adjusted. The affair created considerable excitement. SUNDAY, 28.-Religious revival meetings were held, creating a great sensation throughout the country. Prayer meetings sprung into existence in private houses, stores, shops, theatres, and even in lofts and cellars. MARCH. MONDAY, March 1. The steamer Eliza Battle was burn- ed on the Bigbee river, in Alabama, and forty persons lost their lives, most of whom were frozen to death. 6. The Grand Jury of the District of Columbia, under the law of Congress to punish for contempt of the autho- rity of either house, found a presentment against J. W. Wolcott, the recusant witness in the case before the inves- tigating committee of the United States House of Repre- sentatives.