18978. Banks of Philadelphia (Philadelphia, PA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
October 11, 1839
Location
Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model
gpt-5-mini
Short Digest
21de0c9e

Response Measures

None

Description

Multiple articles (Oct 1839) describe the coordinated suspension of specie payments by the banks of Philadelphia, explicitly blaming a foreign/specie drain tied to failure of the British grain crop (macro_news). Later articles (Feb 1841) report a resumption on Feb 15, 1841. No evidence in these clippings that the banks permanently closed or entered receivership; therefore classify as suspension with later reopening. Bank name reflects the collective group rather than a single chartered bank; bank type set to unknown.

Events (2)

1. October 11, 1839 Suspension
Cause
Macro News
Cause Details
Drain of specie caused by failure of the British grain crop and consequent large English demand for specie; premature/resumption and foreign-specie outflows weakened banks leading to coordinated suspension in mid-October 1839 (meetings cited Oct. 11 and Oct. 23 statements).
Newspaper Excerpt
The Banks of Philadelphia having decided to suspend for a time the payment of their notes in specie
Source
newspapers
2. February 15, 1841 Reopening
Newspaper Excerpt
Resumption in Philadelphia-'The banks of Philadelphia resumed on the 15th.' (article dated 1841-02-06 and 1841-02-18 discuss resumption and subsequent difficulties).
Source
newspapers

Newspaper Articles (18)

Article from The Columbia Democrat, May 20, 1837

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SUSPENSION OF SPECIE PAYMENTS. We learn by our last mails, that the banks of Philadelphia, New York, Baltimore, Harrisburg, Middletown and Northumberland, have suspended specie payments. It is supposed, however, that the adoption of this course was a measure of persecution only, and that the suspension will be of temporary duration. While the Banks in the commercial cities generally, refuse specie payments, the Northumberland Bank deems it advisable to pay out for the If purposes of change.' This course will preserve the institution safe and sound, and accommodate the public with change, until the present excitement blows over which will, we are confident, be in a short time.


Article from Columbus Democrat, June 2, 1838

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"To William Lemon, Dr. &c &.c." We take the following Items of intelligence from the Nashrille Union, received by Express Mail, May 25. We learn by a slip from the Louisville Advertiser, that the Treasury Note bill passed the House of Representatives on the night of the 16th inst., and was sent to the Senate for concurrence. The banks of Philadelphia are redeeming all their notes of five dollars and under, and it is stated by the New York Whig that they will resume by the middle of next month. Exchanges on the South and South West had greatly improved. Five hundred Seminoles left New Orleans on the 20th inst. on the steam boat Renown, for their homes West of the Mississippi. Mr. Johnson, one of the whig candidates for Governor in Louisania, has declined. The Governor of South Carolina has called an extra session of the Legislature, to take into consideration such measures as may be required by the late conflagration in Charleston. The Secretary of War has placed the Barracks at Charleston at the disposal of the Mayor of the city, for the use of the sufferers by the fire. The Federalists in Congress, are trying to leave the government without means to pay the claims upon it, by neglecting to pass the laws providing for them. They did the the same during the late war, and received the reward which awaits them now-THE CONDEMNATION OF THE COUNTRY. The Boston Bank has "expunged" its vote to suspend specie payments, and has resumed in full. Two thousand copies of Democratic Magazine and Review are circulated in New York city. A YANKEE BOUQUET FOR THE QUEEN OF ENGLAND--Among the small articles of freight Western carries out is one which be a in England. is a of flowers, culled from at Hallet's Cove, and is garden, bouquet will which the novelty Great tin intended It Mr. Thorburn's beautiful herme- for the It was enclosed in a case, sealed, with plate cover. was at the of and so that it is prepared trically Queen. prepared, suggestion hoped glass Lieut. it will be Carpenter, preserv- It ed with freshuess to be presented next week to he Queen, at Windsor Castle. The Louisana State Bank has resumed specie payments on all its bills. There are now five banks in N. Orleans that redeem their circulation, and it is expected that others will follow their example in a short time. Another smell blow steam boat Yafrom Mobile to New Orleans burst one of on the 7drinst., off a by the name was which her zeo, boilers passenger Britton of Keeler Island, min- by severely injured, that he survived but a few utes. The Yazoo was towed into the North East pass of the Mississippi rivor, by the Columbus. Public lands in Louisana.-The quantity of lands within the bounds of this state,istwenmillions of acres, according to public ty the returns of the commissioners of the land office, made to Congress at its present session. Only half of this has been surveyed, and one sold, quantity millions tenth still which leaves a balance of eighteen remaining the property of the government. Agricultural Wealth of Ohio.-The Cleve. land Herald and Gazette of the 28th ult. states has been from port that there shipped that the 27th within inthe past five days, or from the 23d to clusive, four thousand nine hundred and eightytwo barrels of flour, and forty-nine thousand two hundred and thirty-nine bushels of wheat, of Ian estimated value exceeding one hundred thousand dollars. Right of a bank to sue during the suspension. -The New Orleans Commercial Herald of the the following important item:-have been lately in Court the right and Union Banks to sue, it laya District 12th Two inst exceptions contains involving of institutions. being the been Atchafay- alleged tried that are paying Judge they non-specie the The has not yet decided exceptions. We shall inform our readers of the result." The pay to Congress amounts to$2,181 67 per. day. Vermont Banks.--We learn from the Vermont papers that the bank of Montipolier has resumed specie payment, and that the bank of Burlington has resolved to resume to-day.


Article from Morning Herald, October 14, 1839

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and if a confidence is w of things will good well, and the esleis pese will over with little dificulty, w far at least, as this is concerned.-Beston Centinel, October 12. FAILURE a THE Banks AT PHILADELPHIA.-The accounts from Philadelphia confirm the melancholy anticipations of yesterday, of a general suspension of specie payments by the banks of that city; and it is said that the example has been followed at Baltimore. It is anticipated also, that the same course will be pursued at the more remote southern and western cities. Strong assurances are given that the example will not be followed in New York, and we trust there will be no thoughts of such a course here. It must be a mistake to suppose that a suspension at the South creates a necessity for suspension here. It may indeed subject merchants and bankers here, to embarrassments and losses, some few of which would be avoided by following the example set them, by violating their own faith. But to follow that example, instead of obviating or diminishing the evil, is to increase it, and to render it more permanent.Of this we believe our community are satisfied, and we have reason to believe that they would not submit to the expedient of another suspension.-Boston Daily Advertiser, Oct. 12. RHODE ISLAND. As to the banks in our own state, we have already stated our candid opinion of them, and have not the shadow of a doubt, that that opinion will be borne out by the facts They must, however, like all other institutions, submit to the force of circumstances which they cannot control, and it is possible, that they may find it necessary to suspend specie payment in self defence. Should such a necessity be forced upon them, the measure will be as much for the protection and safety of the community as for themselves; and the public will no doubt, as they should, heartily acquiesce in the measure, and sustain the banks in its prosecution; for it would be folly to suffer their own vaults to be drained of specie, either to be transported to Europe, or to strengthen other institutions which refuse to pay. We hope for the best; and believe our bank officers will do all they can to sustain the public and themselves. P.S. Since the above was written,a meeting ficitizens has been held at the Washington Insurance Office, in this city; at which it was resolved, as we are informed, to recommend to the banks to suspend specie payments.-Providence Cour., Oct. 12 On the receipt of the intelligence at Boston on Thursday, that payment was refused at New York, for liabilities of the U. S. Bank, a run was made on some of the banks in State street, and about $80,000 drawn out. Yesterday's news created considerable sensation, but as far as we learned, confidence in their own banks was unshaken, and very little, if any, de. mand was made on them for specie.-Providence Jour., Oct. 12.


Article from Richmond Enquirer, October 15, 1839

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# THE SUSPENSION THE SUSPENSION -- The Banks of Baltimore have followed the lead of those of Philadelphia, and suspended specie payments also This was to have been expected They issued the following notice on Thursday morning: "Whereas information has reached this city that the Banks of Philadelphia have suspended specie payments, therefore. Resolved. That under the circumstances this meeting deems it advisable that the Banks of this city forthwith suspend specie payments for the present, and recommend the same to the boards of the several banks." Remarking on this resolution of the banks, the Baltimore American of yesterday says: "It was adopted before the regular hour for opening the Banks, and its propriety is shown by the fact that when the doors were opened, drafts and demands for specie were presented by several brokers from the Eastern cities, who had arrived the night before by the late railroad train. The city yesterday was exceedingly quiet; here and there, some two or three or more were to be seen talking over the news of the morning, but at the bank counters there was perhaps less than the ordinary business transacted -the citizens generally regarding the measure of suspension here as an inevitable consequence of that event in Philadelphia."-Nat. Int. After the suspension by the Baltimore Banks, announced above, preceded as it was by the suspension of the Philadelphia institutions, it might be anticipated that the Banks of this District would necessarily yield to the force of circumstances, and suspend likewise. They therefore met and came to the following resolution: At a meeting of delegates from the Banks in Washington and Georgetown, October 11, 1839, the following resolution was adopted, viz: Whereas information is received that the Banks in Baltimore and Philadelphia have suspended specie payments for the present, and it being the opinion of the delegates of the several banks in the city of Washington and Georgetown here represented, that the safety of the banks and the interest of the community will not be promoted by an attempt to sustain specie payments while a suspension of the Northern Banks shall continue: and whereas, although the banks here represented have abundant means to meet all their liabilities, yet as a considerable part of their means have become unavailable for the present as specie funds by the suspension of the banks in Philadelphia and Baltimore: Be it therefore resolved, That it be, and is hereby, recommended to the several banks here represented to suspend specie payments for the present, with a pledge on the part of said


Article from Morning Herald, October 16, 1839

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Important of United States Bank. evening, the we received from Philadelphia are the Last document, which, we of the production of the following is important President consider the sured, States Bank; and, therefore, may be Bank for United manifesto or apology of the U. States Europe ed the of specie payments, both in of anher suspension America. Whether it be the production evident and not, as some surmise, it is very it conother or the emanation of the bank, and that other susthat it all is the reasons which that, and the second tains institutions, can give for this their morals, violation pended of all sound principles in backing, and commercial integrity. this document well-it contains the of most the Read argument for the mism unagement reason plausible that can be furnished. Not a single the New bank, however, applies to with some slight exceptions; on which the New York York therein banks, assigned, banks have because been We the policy is not liable to the same censure. Rathbun conducted, doubt, if Dr. Dyott or Benjamin following, have no as well as he who wrote the on the plea of the public good, a case for their insolvency either could write would, and roguery. present of as plausible manifesto will, no doubt, be the rallying It is cry even This irredeemable gentry of Wall street the Seward and the whole whig for a suspension of the said that Governor go election. banks. Many party We will now this-at least till after the doubt leaders of the whig party may be in favor of a suspenbut not by any means the great body of the finance, whig sion, who are sound in their principles of currency, party, and morals. Let the side of insolvency, however, be heard. we shall examine this singular docuTo-morrow length, and open the sophistry of the reasonerrors in many of the facts, and the whole paper principles ing, ment the at pervading banking the throughout. unsound and time now to have correct views on by It is We are now in a position to benefit curreney experience. Let us do so. For the present, read the following:- SUSPENSION OF SPECIE PAYMENTS. This slep on the part of the Banks of Philadelphia, that step ne- calls for full exposition of the causes which have rendered Decessary. causes and their operation will be treated in a national either These of view, merely, and without special reference to To point political parties into which the nation is divided. of this the end it will be necessary to take retrospective glance. of 1815 found the country involved in a national The peace one hundred and twenty millions of dollars, some but by far the greater portion at of it as burthen, and the policy of the debt regarded Held of about abroad, To accomplish home. government This was directed to itsextinguishment. of was a revenue, derived wholly this commerce and the proceeds of the the foreign strenuously object, surplus public from lands, the fruits was to the reliance Credit, which has contributed so largely ex. sole of the prosperity of the country, was greatly advancement the Banking Institutions fostered, and the whole policy of tended, General Government seemed directed to the expansion into her coffers. of commerce and the the increase of the tribute which it should pour of the year 1835 exhibited to the world the un The first day spectacle of a nation free from debt. That proud paralleled to these United States. The heavy obliga- sucbeen incurred by the prosecution two been estinguished, chiefly tion cessful distinction belonged which wars had had through of the enriching instruof the credit and commerce of the country, well ca mentality the nation and individuals. Such an epoch was it did both to cause a jubilee to be held on the occasion, as culated at the Metropolis, by the diguitaries of the government. the extinguishment of the public debt a new eraw With the accumulation of revenue beyond the diminution wants opened, but didnot cease nor diminish with the ad the government wants. The stimulus that had been so abundantly in ex of these the revenue to continue to increase an when it was no longer called had used. Under the encouragement of traordinary ministered. legitimately caused ratio, for, from which and sales could not be for the purpose of raising revenue derived from thus been given domain and from imports, the amount $6,099, the public increased, between 1834 and 1836, from from the former $23,983,102 and the amount of foreign imports 981 to to $169,980,035, and the surplus revenue accruing little $126,621,232 in the short space of two years amounted to but therefrom forty millions of dollars. That surplus, distributed Congress. less with than the sauction of the Executive, directed to be the States. among 1936, measures were commenced by the head Of of the the July, Department to carry the law into execution. E Treasury which this was done or of the skill or judgment offe manner in the occasion, it is deemed unnecessary here to of that ercised on but, with the beginning of the execution existed an opinion; previously seeming prosperity that had and embar re. law, the and sudden check. and difficulties sucrassments, ceiveda severe both to the government and people, rapidly coeded affairs of the whole country were every convulsed- direcThe monetary millions of coin were intransitu was going up and down the East and West at the same Specie tion. millions and upon come North, quently and withdrawn the same from river useful natural and employment. from channels, and time; to the South and withdrawn from their usual and fulfilment of millions were the curent of trade in literal had previously and forced against law, to points where public money very limitdistribution either collected or expended, exceptte and inevitable. ed extent. were imposed ON the Banks, ACTIDE that as never The duties been which The consequences wire become obvious so over ou agents many of the government at that of . tittle more than of them were to the Treasury Department upon for them. the which the banks performed the daties months, fulniment to appeal obliged the in requisitions the time. space imposed circumstances, enjoine indulgence three upon The adelity with occasion, under the most trying of public mothem on transfer that of nearly six millions of dollars months, elicited from in the period of in his annual message of the award of highest had befallen It wa not these which the banks had to contend. ney. and cember, the 1836, magistrate against different of little the Union, more alone than which encomiums as and which The the had De country, which and had been given to enterprise had led to an ex. impulse produced spirit of improvident speculation exports in the year 1835, cess of foreign and 1836, of making of $99,519, of over the exports in medium created direct demand on the In and draft on the varils of the the $21,202,165 of the 160 excess country This imports imports beyond two metallic years banks. an on aggregate COUR their operation these difficulties became oppressive sought to give business, and the banks, that the iatter 1837, which relief by try, a susprasion of specie payments in May, without any simeltance throughout the Union, of ae over the interregnum between of specie payments. which took most and 1838 That period, it is well known. was nearly We concert resumption now pass tion whatever the place suspension general. early of ly. in in Philadelphia believed at the time to be the successful resumption with to to have confirmed the justice of that view. public opinion seemed strongly in favor of the meanure try. undertake banks Events August, benefit the too and the coun- But


Article from The Madisonian, October 30, 1839

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# THE PHILADELPHIA BANKS IN EXPLANATION OF THEIR COURSE. At an adjourned meeting of the Delegates from the Banks in the city of Philadelphia and adjoining districts, held on Wednesday evening, Oct. 23d, 1839, the committee appointed at a previous meeting to prepare and report an address to the citizens of Pennsylvania, presented the following, which was read, unanimously adopted, and directed to be signed by the Chairman and Secretaries, and published in all the daily papers: To the Citizens of Pennsylvania, The Banks of Philadelphia having decided to suspend for a time the payment of their notes in specie, deem it their duty to explain to the citizens of Pennsylvania, the reasons of that measure. This they will do frankly and briefly. In May, 1836, the Banks in New York suspended payments in specie, and the rest of the Union followed their example. This just and necessary measure was required by the commercial relations between this country and Europe; and all the Banks of the United States immediately directed their efforts to assist the country in the honorable discharge of its foreign debts, and to prepare for the resumption of specie payments. These operations were proceeding in a manner easy for the country and satisfactory to its foreign creditors, when their progress was disturbed by a premature effort for a general resumption of specie payments. The Banks of New York were unfortunately constrained by law to resume on a given day, whatever might be the state of the country; and they naturally endeavored to induce all the other Banks to do voluntarily what they were compelled to do. This purpose was effected, aided as it was by the impatience of the public, by the competition of political parties anxious to appropriate to their respective sides the popularity expected from hastening the resumption, and by feelings of local pride, which prevented many from declining to do what in reality they disapproved, and accordingly a day of resumption was named. The banks of Philadelphia were quite as ready to resume as those who were most anxious to begin, for they had greatly reduced their liabilities, and one of their number had no less than $7,357,000 in its vaults. But they believed that the country at large had not yet sufficiently recovered from that violent shock to be ready for resumption. They recollected that under similar circumstances the Bank of England had continued her suspension for upwards of twenty years, and they avowed their apprehension that a resumption in the unprepared state of the country must be followed by a relapse. Overruled in this judgment, and obliged at the hazard of greater evils to unite in the resumption, they sincerely co-operated in it, and, being satisfied that the measure in order to be useful or permanent must be general, they made great efforts and large advances to the Southern and Southwestern States, who were thus enabled, almost exclusively by the assistance of the Philadelphia Banks, to unite in the resumption. But the inefficacy of the measure soon became obvious. The Southern and Southwestern States placed by the resumption too much in advance of the crops, which alone could sustain them, gave way at the earliest demand for specie, thus breaking the general line of resumption, and weakening the Atlantic Banks by the amount of the advances made to support them. Nor was this all. The delusive appearance of the resumption worked injuriously on both sides of the Atlantic. In this country it caused the belief that all the danger was over, and individuals rushed into new enterprises, and States undertook new improvements, relying on the enjoyment of the old facilities of credit. Abroad, the extraordinary and honorable efforts made to discharge its debts, exalted the character of the country; and merchants hastened to sell on credit, and capitalists to lend on the public securities of a people who had been thus faithful to their engagements. It was then that the anticipations, under which the Philadelphia Banks gave their reluctant assent to the measure, were realized. Ar.d now, after little more than a year of nominal resumption, the Southern and Southwestern States are more embarrassed than ever. The Atlantic Banks are weakened by their fruitless endeavors to aid those States-the commercial debt to Europe is larger than at the resumption-the debt of the States in Europe much larger, and the specie means of the country much diminished. The premature resumption of specie payments therefore has left the country in a state of exhaustion, which has prevented its being able to stand the new shock which forms the more recent and direct cause of the present suspension, and drain of specie to Englond. In our relations with England, she is largely and habitually a creditor. Like all other creditors, she is willing to buy more and lend more while her AWA pressed, she ceases to lend, ceases to buy, and proceeds at once to exact payment. Thus in ordinary times she receives payment for her goods in our own produce, or in our own funds, and rarely requires, because she rarely needs, specie. But a sudden trouble has come upon England, which reverses the whole of our relations. Her crops have failed, and she is forced to protect her people against famine by purchasing food, and this not from our own country, which might furnish a market for our crops, but from her neighbors who can furnish it cheaper than we can and as these are comparatively small consumers of her products, she must pay with specie for her food. Accordingly the Bank of England alone has been obliged to furnish more than thirty-five millions of dollars in specie to be shipped abroad-a drain that has threatened that institution with suspension. By the latest statement of her affairs, it appears that with immediate demands for which she is liable, of £25,742,000, the whole stock of specie is only £2,800,000, and this after borrowing from the Bank of France £2,000,000-so that without this extraordinary aid, her position would have been extremely critical. The consequence is that money has risen to twice or three times its ordinary value-that the staples of this country are unsaleable except at ruinous sacrifices that the stocks of this country sent by the States, or by the banks, or by individuals, are wholly unconvertable, leaving as the safest and the favorite mode of payment, the exportation of specie. The demand for this article is still further increased by the efforts made in England to produce relief at home. The manufacturer, pressed by some urgent want, empties his warehouse into the packets, and selling his goods here at a small sacrifice, for notes which are discounted at a second sacrifice, he ships the specie, which reaches England in time to relieve him, leaving this country flooded with goods without any regard to its wants or its coasumption. The result is, that the coin of this country is wanted in England to send to the continent for food-that a very large portion of it has already gone, and that the rest will probably follow. The banks of Philadelphia have already contributed many millions-one single bank of their number having since the resumption in August, 1838, paid out no less than 8,712,000 dollars, in this city alone, and the demand seems to increase, instead of subsiding. Under these circumstances, they have had to adopt one or two alternatives-either to force the community by sacrifices of its property to pay its debts to the banks, in gold and silver, to be shipped forthwith to England, or else to resort to a temporary suspension until the community as well as the banks could have time to recover from the effects of these foreign troubles. They have not hesitated to prefer the latter, as being the most conducive to the true interests of the State; and they confidently rely that their motives will be duly appreciated by the public authorities of the commonwealth. To that commonwealth they owe their existence, and they regard her prosperity as a paramount consideration, to which they have always sacrificed their own merely pecuniary interests. Every loan wanted for the service of the State, every great improvement for the development of its resources, has always found a constant and


Article from Herald of the Times, October 31, 1839

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nent for food. that a very large portion of it has already gone, and that the rest will prob ably follow. The banks of Philadelphia have already contributed many millions, one single bank of their number having since the rein 1838, paid out no less in slumption than $8,712.000. August, this city alone, and the demand seems to increase, instead of subsid ing. Under these circumstances, they have had to adopt one of two alternatives-wither to force the community by sacrifices of its property to pay its debts to the banks, in gold and silver, to be shipped forthwith to England. or else to resort to a temporary suspension until the community as well as the banks could have time to recover from the effects of these foreign troubles. They have not hesitated to prefer the latter, as being the most conducive to the true interests of the state; and they confidently rely that their motives will be duly appreciated by the publie authorities of the commonwealth. To that commonwealth they owe their existence, and they regard her prosperity as a paramount consideration, to which they have always sacriticed their own inerely pecumiary intereats. Every loan wanted for the service of the state, every great improvement for the development of its resources, has always found a constant and liberal contributor in the banks: nor is it an exaggerated statement that four fifths of the funds for the internal improvements of the state, have been contributed by the be kk. On the whole, the views which the banks of Philadelphia wish to present are these. That they were reluctantly obliged to unite in the restimption last year, declaring if it were postponed for further preparation it would be general and permanent. That events have proved the resumption to have been premature, weakening the banks and the country. That in this exhausted condition they have to encounter a fresh demand for specie, to buy food for the people of England, which threatens to drain the last dollar from their vaults. That every motive of prudence which caused the suspension of 1837, applies with much greater influence at the present moment; and that the banks of Philadelphia have thought temselves justified in resorting to it, as the only remaining protection for the interests intrusted to their care. In adopting it. however, the banks would not east the remotest censure on those institutions which pursue a different course.They desire only to explain themselves, not to criminate others. They think that it was impracticable for them to continue specie payments without sacrificing the community around them. Their own proceedings they thus submit to the people of Pennsylvania, who are the best judges of their correctness; but the banks confidently pledge themselves for the sincerity of their views in adopting it. their honest anxiety to protect the interests of the state, and to husband its resources from being swept away by this current to England, and they now respectfully but anxiously wait the opinion of the Legislatore of Pennsylvania. JOHN WHITE, Chairman. WILLIAM WELSH, JAS. S. NEWBOLD, } Secretaries.


Article from Maumee City Express, November 2, 1839

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FREDEICK, MD.-The Banks in this place, says the Philadelphia U. S. Gazette, have suspended. NORFOLK, VA.-The - Norfolk Beacon says: 'The Branch of the Bank of Virginia at this place suspended specie payments yesterday, as also did the Farmer's Bank, on the receipt of the intelligence of the suspension of the banks of Philadelphia and Baltimore. The Exchange Bank of Virginia, in this place, did not suspend, and will, we trust, be able to sustain itself against the severe current which is setting in against cur banking institutions' RICHMOND, VA.-.-We learn from the Richmond (Va.) Compiler, that the banks of that city have all suspended specie payments.--Cin. Buckeye.


Article from The Charlotte Journal, November 7, 1839

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# Causes of Suspension The Banks of Philadelphia have published an Address to the Citizens of Pennsylvania, showing the causes that led to their suspension, which are—That they resumed against their better judgment and before a real resumption was prudent; that a new demand for Specie, in consequence of the failure of the Grain Crop in Britain, would soon drain their vaults; and that every motive of prudence, which justified the suspension of 1837, exists now in a far greater degree. —Raleigh Register.


Article from Southern Argus, November 19, 1839

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From the Philadelphia American Sentinel. # SUSPENSION OF SPECIE PAYMENTS. The following paper, which has been handed us for publication, embodies, we understand, the views of many of those connected with our banking institutions, as to the causes which operated to lead to a suspension of specie payments. It has been prepared by a gentleman fully versed in the past and present condition of our monetary affairs, of which it bears internal evidence, and will, we doubt not, be read with deep interest throughot the country. Suspension of Specie Payments.--This step, on the part of the Banks of Philadelphia, calls for a full exposition of the causes which have rendered it necessary. These causes and their operation will be traced in a national point of view merely, and without special reference to either of the political parties into which the nation is divided. To this end it will be necessary to take a retrospective glance. The peace of 1815 found the country involved in a national debt of about one hundred and twenty millions of dollars, some of it held abroad, but by far the greater portion at home. This was regarded as a burden, and the policy of the Government was strenuously directed to its extinguishment. To accomplish this object, a surplus revenue, derived wholly from the fruits of foreign commerce and the proceeds of the public lands, was the sole reliance. Credit, which has contributed so largely to the advancement of the prosperity


Article from Baton-Rouge Gazette, February 6, 1841

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Resumption in Philadelphia-'The backs of Philadelphia resumed on the 15th. The run was almost exclusively upon the US Bank of Pennsylvania The demand for specie, though constant, was generally for small same. They were all promptly met and instantly fulfilled.


Article from Staunton Spectator, and General Advertiser, February 18, 1841

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From the National Intelligencer. # THE PHILADELPHIA BANKS. Our worst apprehensions of consequences from the forced resumption of specie payments by the Banks of Philadelphia, before they were in a state to justify the measure, have been realized. Not only the bank of the United States has been obliged again to suspend specie payments, but the other Banks of Philadelphia have been compelled to follow suit. It can hardly be expected, under such circumstances, that the Banks of Maryland and Virginia will be able to hold on; so that the suspension of specie payments in all banks south of New York, it is probable, will again become general. An effort (most laudable for its honesty, it must be acknowledged,) has been made by the Philadelphia Banks to regain and maintain their footing on the specie level; the bank of the United States especially having acted with a good faith and steadfastness of purpose which entitles its misfortune to respect. "It is the general sentiment," says the Pennsylvanian, a leading organ of the present Administration, "whatever differences of opinion may exist in other respects, that the banks, in the very face of an almost overwhelming panic, have made a manful and highly commendable effort to discharge their obligations to the Public." In this opinion, it seems to us, there must be a general concurrence. The effort, however, has been in vain. Six millions of dollars had the bank of the U. States, single-handed, counted out in satisfaction of the demands accumulated against it from all quarters; and still the demands poured in upon it. We are not sufficiently acquainted with the particulars of the understanding existing, in view of resumption, between the banks of Philadelphia and the banks and bankers of New York, Boston, &c. to say how far it may have been observed in good faith by the latter; but it looks, at this distance, as though the Philadelphia Banks had been overreached in the affair of resumption; by which we mean that they had been induced to believe in promises of aid and professions of forbearance which have not been kept, or, if kept to their ear, have been broken to their hope. The Philadelphia Gazette, of Friday, indeed, intimates as much in announcing the suspension. "The co-operative generosity and indulgence of the North and East," says the Gazette, "so abundantly promised and spoken of in case of the resumption of the Philadelphia Banks, and especially of the United States Bank of this Commonwealth, having already drawn to N. Y. from the latter institution between five and six millions of dollars in specie since the 15th of last month, it has been compelled to resist the constant and overwhelming tide of demand, by a temporary suspension of specie outlays." The New York Journal of Commerce, a keen adversary of the Bank, almost admits the imputation suggested by the Philadelphia Gazette, in announcing the suspension, when it says "Bills of the United States Bank are bought at 10 per cent. discount. There are but few of them here; the resumption having been actively used in sending everything home, by which New York and the Eastern cities have realized a very large sum in specie and available funds." Great activity, it appears, has been displayed, as the Journal quaintly expresses it, "in sending everything home," that is, in collecting and placing in the hands of brokers every demand that could be raised in "New York and the Eastern cities" against the bank of the United States. The New York Times, not inimical to the bank, corroborates the facts stated by the Journal of Commerce, saying, "Upon the banks of this city, and of the North and East generally, this suspension will exercise little, if any, evil influence, as their funds have recently been nearly all withdrawn from Philadelphia." Of the perfect right of the New York and Eastern holders of the paper and credits of the bank of the United States to send them on to Philadelphia, and demand payment for them, we make no doubt. The question which occurs to our mind is, whether this great activity in extracting from the bank all its specie was entirely conformable to the expectations which the bank of the U. States was led to entertain, and upon which it was induced to resume specie payments when it did? Be that as it may, however, if any individual engaged in business had, under similar circumstances, made such an effort and sacrifice as the Philadelphia banks have done to resume payment after being obliged once to suspend, he would, instead of being followed with the yells of vindictive adversaries, as the Bank of the United States now is, have attracted, as he would have deserved, the general sympathy. For ourselves, apart from considerations connected with the business and the currency of the country, which, however, are not to be wholly disregarded in the present emergency, we cannot but feel for the misfortunes of the innocent stockholders in these banking institutions, whose property is thus melting away under the influence of a series of disastrous circumstances, every one of which is referrible for its origin to mal-administration in the General Government. Had the Executive of the United States not transgressed its rightful province in undertaking to "manage the currency," nor afterwards set at defiance the effort of Congress to regain possession of its constitutional authority in this respect, these things would none of them ever have happened. We shall look with a good deal of interest to Harrisburg, where the Legislature of Pennsylvania is now in session, to see what course the State Government will pursue in reference to the Philadelphia Banks. Those banks are, we understand, upon short notice, liable to a forfeiture of their banking privileges in consequences of their suspension of specie payments. A result so ruinous to the interests of the Commonwealth, as well as of a large class of its citizens, will hardly be permitted either by wisdom or by humanity especially when it is borne in mind that the effort lately made by the Philadelphia banks to sustain the credit of the State may have con-


Article from Richmond Palladium, February 27, 1841

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I tell you. I and the Gineral was a drifting along down from the west, and bowing and shaking off the everlasting crowd of folks all the way from the Ohio, till we struck along the edge of old Pennsylvany, when we heard folks beginning to talk about hard money, and poper money, and resumption, and suspension and things of that natur, when says I, "Gineral, you may depend there is trouble brewing somwheres along here, and if you say so," says 1, "I'll jist quit you for a spell and take a turn down to Philadelfy, and look into the matter a little, and jine you at Washington." "Well," says he "Major, seeing as how folks begin to thicken amazingly around us, my calklation is vou won't be much mist, but see that you git to Washington as soon as possible, and in the mean time let me know all you meet with worth hearing," and so I quit, and as the Gineral never wants to know nothing more than the people know themselves, I send you this letter to print, and you will please send a copy on't to the Gineral, so that he will know as much as other folks do about it. I got here last evening, jist arter lamp lighting, and took a run round to most all the Banks to see if I could find any on 'em open, but I found 'em all locked up and bright lamps burning afore the doors, and good strong broad shouldered watchmen standing at their posts with clubs and rattles jist for all the world as tho' the Banks was as full of specie payments as ever, and not a mite of differ once. I stopt and had a leetle talk with one of these watchmen, and says I, "stranger, is there no gitten in here to see folks?" "Not to-night," says he, "all the Banks are shet up." "How you talk," says I, and I streak'd it round to Squire Eiddie's premises, for I had a notion if I could only git a fair talk with the Squire, I would larn pretty much all about the matter. I found the Squire to hum, and he was amazin glad to see me; and he and I went right up into a room alone, where I found a good warm Lehigh coal fire burning, and a table kivered with papers; and he took one chair and I another, and we went at it straight off "So," says 1, "Squire, you are all suspended agin, I larn." "Yes," says he, "Major, the folks who wanted hard money have got all the Banks had to give them; and as the Banks can't coin hard money, and can only git it from the folks who owe them, it turns out that, as the Banks have not got the same power by the law to make folks pay them as fast as the other folks want it, the pond must run dry for a spell." "But," says I, "Squire, how on airth is it that things work so that one set of folks keep drawin out of the spiggot faster than other folks pour into the bung hole? Things warn't so in Mr. Adams' time," says I. "Now, how is it?" This set the Squire scrateinn his head and thinkin,--and to give him time to answer, I took the poker and began poking up his Lehigh coal fire, to see if there was any blaze in it; and to rights savs he, "Major, what are you poking that fire for? Do you expect to make it burn brighter? If you will take my advice," says he, "you will let it alone. Aint the room warm enuf?" "Yes," says I, it's warm enuf, bat a little poking wont do any harm, will it?" "Well," says he, "you go on poking, and you will see."--and sure enuf, the more I poked, the darker the fire and coal got; and bime by it all went out. "Well," says 1, "Squire, this is a plaegy odd kind of fire of your'n," says I. "Yes," says he, "it's Pennsylvany coal; it wont stand poking, Major, if you let it alone, it will burn slowly and surely, and give out comfortable heat,--but if folks go to poking at it, it turns and looks black at them, and gives them a shiver." "Well," says I, "Squire, I want you to answer and explain to me now about this Bank matter.--How is it," says I, "that all your Banks have suspended specie payments--all broke--all gone to everlasting and eternal smash? Now, how has all this come about?" says I. "Well," says he, "Major, I'll tell you. In the first place, when you first entered this room, didn't you find it warm and comfortable, and a good fire burning? didn't you take up that poker and begin to poke with it? didn't I give you a civil hint to let it alone?--didn't you continue poking and poking, till at last the fire went out?--and aint this room now cold and dark, compared to what it was? Now come here,"--and he took a candle and went up to the fire place; and says he, "There is the coal yet, -it att burnt up,-the fire has only gone out; i can put a little kindling under it, and clap on the blower, and in a little while you will see as bright and warm a fire as before,--but where is the use of kindling up again, unless folks will see the folly of poking at it. It is just so in Banking matters. I tried it, for sixteen years and over, and no people in creation ever saw a warmer and better fire than I kept up; it warmed all kind of folks, too: the circle around it was wide enuf to admit every living critter in the country, and all equally felt the warmth. But then began the poking system. 1 tried every means to prevent it, but it was no use,--and then 1 quit, and Mr. Dunlap he tried it; but the pokers were still ready, and no sooner was it kindling up, when at it they went, poking and poking,--and the result you see; and now, Major, the plain question is, Shall we have a new fire kindled, and what shall be the fuel? Shall it be Lehigh Coal, or English Coal? Old Pennsylvany has a word to say in this matter, if she chuses to speak, -for there is just difference between her Coal and all other kind of Coal: it wont stand poking, but if let alone, will burn steadily and surely to the last,--whilst other Coal may blaze up with poking, and the sooner go to ashes. The Coal is in the grate yet, Major," says he, "though by poking, it has ceased burning"


Article from Staunton Spectator, and General Advertiser, December 16, 1841

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# Governor's Message. EXECUTIVE DEPARTMENT, December 6th, 1841. Fellow-citizens of the Senate and House of Delegates: By the resignation of our late Governor, Thomas W. Gilmer, the chief Executive Power of the Commonwealth has devolved upon me as Lieutenant Governor. I proceed, therefore, under the requirement of the Constitution, to invite your attention to such subjects as, in my opinion, deserve your consideration. It is a source of gratification, to be able to offer the representatives of the people continued congratulations for the success which has attended the industry and enterprise of all classes of our citizens, for the abundance of our harvest, the beneficial operation of mild and equal laws, the enjoyment of peace with foreign nations and tranquility at home, and the preservation of our republican institutions. A proper appreciation of these blessings should stimulate us to submit cheerfully to any burthens which the public good may require, to yield a prompt obedience to the laws, and to practise those virtues without which no Republic can long preserve its existence. If we would merit a continuance of these benefits, we should render grateful acknowledgments to HIM to whose kind providence we are so especially indebted for so liberal a portion of his bounty. Since the last session of the Legislature our nation has been deprived by the dispensation of Providence, of their late President, Wm. Henry Harrison. The sudden death of this eminent citizen, after having been so recently elevated to the highest office within the gift of his countrymen, strikingly displays the uncertainty of human calculations, and admonishes us of the vanity of human honors. It furnishes the first instance in our history, of the transfer to the Vice President of the important functions of the Federal Executive. The quiet and ready acquiescence of the whole nation in this transfer, happily illustrates the wisdom of our Constitution, and the disposition of our people to yield obedience to the government of law. The act of the 22d March last, contemplating a deficiency in the Treasury of the Commonwealth, authorized the Executive to cause such sums to be borrowed as the public exigencies might require. In pursuance of its provisions, the Treasurer from time to time, under the orders of the Executive, has obtained on loan from the Bank of Virginia, the Farmers' Bank of Virginia, and the Exchange Bank of Virginia, the sum of $245,000, which, with the sums previously loaned to the State by those Banks, amounts to the sum of $345,000, being a charge upon the Treasury, payable on the 15th day of the present month. The responsibility incurred by the Commonwealth to repay these loans, together with the amount of her funds, temporarily unavailable, by the refusal of the Deposit Banks to receive the notes of the Wheeling Banks on general deposite in payment of taxes as is hereinafter explained, present a less favorable exhibit of the state of the Treasury than might otherwise have been expected. On comparing, however, the resources of the Commonwealth with her engagements, her finances will be found in a sound condition, especially, when we consider the resources of the Literary Fund and of the fund for Internal Improvement, which, after meeting existing pledges, might be regarded as affording, if necessary, an additional guarantee for the redemption of the faith of the State in any unforeseen emergency. But so long as our country shall be blessed with a continuance of peace, there can be no necessity, with prudent management, for diverting these resources from the valuable objects to which they have heretofore been applied. There can be no doubt that the people will cheerfully submit to such increase of taxation as the exigencies of the Commonwealth may require. Impressed with this belief, I most respectfully suggest for your consideration, whether sound economy in the administration of our finances would not be promoted, by imposing such taxes as the ordinary current expenses of the State require, instead of anticipating the public revenue by a resort to loans. The system of borrowing, if continued, will insensibly, but assuredly, lead to such an augmentation of the public debt as may be seriously felt at no distant day. It may not be advisable to discontinue it at once, but its gradual abandon-ment may be easily effected by such an imposition of taxes as will annually redeem the amount to be borrowed, and ultimately render the revenue amply sufficient for current demands. The reports of the Treasurer and First Auditor will exhibit a full statement of the condition and prospects of the Treasury, to which your early and particular attention is respectfully invited. In submitting a view of our financial concerns, it is proper that I should call your attention to the present condition of our Banks, with whose operations the fiscal affairs of the State are necessarily and intimately connected. By an act of the Legislature, our Banks were exempted from the penalties imposed upon them for failing to redeem their notes in specie. Notwithstanding the relief thus afforded them, the Bank of Virginia, the Farmers' Bank of Virginia, and the Exchange Bank declared their readiness to co-operate with the Banks of Baltimore in resuming specie payments. A resumption was accordingly effected almost simultaneously by these Banks and the Banks of Philadelphia. In a short time, however, the Banks of Philadelphia again suspended, and their example was speedily followed by those of Baltimore. The Banks of Virginia above specified nevertheless continued to redeem their notes in specie in the sanguina k


Article from Richmond Enquirer, February 3, 1842

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or fund, firth to rather of Bank The Banks fund. by daily the to of the the the to comdepositein arrangeme its the down, rules with ply have neglecting to conform entitled any Bank of the fail fund is be sold to ave been of the are project Such outlines for 10-day is It agitated. also evening will final action probably of specie the that added plan it that has of Rumor on first payments to invitation received not the Banks Latest of Philadelphia the vesterday of and Phila City County the North We all learn the Banks by of Bank the Pennsy and the evening, Kensington, and, been after having that delphia (except the Bloyamensinsturday on agreed upon de- an to the following arrangement at the Boards special respective assembled ern n Liberties, by delegates properly effect, oranized, subject meetings to the to be held own notes 1. to The their cision of on Monday morning Banks exclusively of of the denomination with each to 2. The Banks other at the to be 3. oftener, settled Balances or, up of bank; the specie, creditor option not of 1st to having the March, to March, 1st of forty than five more the by not thirty approved exceeding bank. and debtor The thus created, of banks largest and smaller those to of each bank choose trustee, trustees; creditor safety bank, fund capital is also are $50,000 deposite in the and hands the be in to form whole Board. or cie, security notes, Treasury the have of any On powe the bank, default the to pay the convert the and thereafter defaulting defalcation, the cluded of arrangement. the 1st 5. Augus specie resume It that the was supposed and the which above outline, unanimously if and would, ed ratified the by Banks represented, into execution, and thus have which Banks, fidence united Of learnt Int. ried recent occurrence the of the of yet of what trans pired courtion ("he two Houses LEGISLA 3d Mr. In the MISSISSIPPI inst. on the House, duly organized An to chair the was election Leake called protem. in the of choice which held, resulted then In the of Scott, sterling Major Speak Roberts and much after several Democracitement Senate, balloting Gen. Jesse President. Speight of on the Gen. are The Speight being elected of my tender Senators: Gentlemen and unex for this acknow the not of mark pected suff that nity presume enable cient your requisite affect any tions, shall, to dismy by declaring modesty the chair. the duties thought charge some them small should extent, office. the have accept Respect for me as well those here, myself, me limitfrom such restrain me ed as has that deliberaserved are each best when assemblies matter rather member will the and than to of reflect its honor on by That politiadvanced principle, all an that inheeconomy, applied of old the but world, it ours, rent monarchies of self-prot and despotisms like its unto powers but to the opinion, to a and no powers sys government founded can on public people- artificial. our Our comple two traits, to, adhered US direct rectly from such the are strictly is distingushed can never by in fail, the when way being tem of if strictly polar star, to Governing do nothing which, referred to as truth The Federal powers, can compact while the all of eternal expressly delegated set forth Government the gentle can of the the are presentatives the are State, but what other specially hand, not the forbidden State sovereignty We, of of liberty the watch-tower the sentinels. shall the central and the usurp Constitution, to our duty sound right served the the that people standard alarm, in the of stitution Constitution Whenever the hounds of of the the States, then may rush of to the their rights beer their and rights Whether liberty. it in this not me or not, speak becomes to or not, whether enquire, of the system the nues, Federal to the and that from subject place. vaded It of for find Government you and the has injury not of transcended the people fraugh of the our with sketch outlines of Ours, home duty Government in those except its To barrier. Mississippion powers, enormous Turning evil, let I have said, is cases where con- the which Constitutione and columnted power has of those enjoyment principles of existing life, liberty, laws not answer it our acted, imperious fided the the citizen the therefore, which the they were proper enIf into have abuses corrective be cures property all Should, the ends for duty to apply the Governme the nefound them. duty reform of that that econo system cessary, my which republican institutions, most rigid institute of The expect people all our to In that me remark permit conclusion, of of differ however, am sure there and State, both Federal that and and shall unite the the and reverence profound made thereof. pursuance the into THE will law, r the Senate Bankrupt of be who voted Some passed. probably the repeal against postpone operation of with the law, 31 Jan. will Funeral January of take WASHINGTON arrange place paper; ments to-day's announced of and, Congress consequence the that any upon business Funeral, be of will .day done Int. N.A. to in that learn We glad ConGen. by States Combs, with that sul had Kentucky hushua, with (a that his place, ninety others) prisoner on their (six Santa Feto miles from hundred he in that was and good wards health; Mexico) from been Gen by Combs had that a received letter at of the United States Minister Mexico, ven had that been by assurances to Mr the Tornel) (Gen. as far S. the every Mayer, in his power, ed the ing Mexican Gen. Combs Secretary Secretard Julgence of War of Legation, should that, be extendFe at have Santa arrived of city The his Texan son Mexico. prisoners taken They treated as prisoners


Article from The New York Herald, February 22, 1842

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# MONEY MARKET. Monday, Feb, 21--6 P. M. The downward tendency of the stock market was apparent at the board this morning, in the general disposition to sell, even at falling rates. Delaware and Hudson went down ⅛ per cent; Indiana 5's ⅛; Illinois 6's ¼; Mohawk ½; Long Island ¼. Bills on Philadelphia 6; Baltimore 2½. The following is a return of the Banks of Philadelphia, in Nov. 1841, as compared with the aggregates of Nov., 1839, shortly after the suspension :--


Article from The New York Herald, March 14, 1842

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MONEY MARKET. Sunday, March 13-6 P.M. For the benefit of the creditors of the United States Bank in this country, we annex the following from the London Bankers Circular, of February 4, 1842. Even the circulating bills of that concern, are selling in the hands of the poor holders at home at 50 cents on the dollar, while millions of dollars are going abroad to pay in full the accomplices of the bank officers in London :We intended to mention last week a fact which we be lieve has not yet been communicated to the public. It is that the United 5 ates Bank has remitted a sum to this country of about £300,000 in discharge of a portion of their last loan; the remittance is in bills on English merchants of unquestionable solidity. This loan was confined to four or five firms, who took some of the best State stocks as security. The money was raised principally by the sale of Ohio bonds, which the issuers re deemed on better terms than could be obtained for them in the market. Our motive for making known this circumstance is, that it throws some little light on the disposition of American borrowers to fulfil their obligations. Their credit it this respect is at present lamentably low, and, we think, agressonably so. Well-informed men just arrived from the United States express a strong opinion that the doctrine of repudiating pecuniary obligations will be so emphatically discountenanced by the prineipal operators with money in that country, as to confine it to a solitary case so. With time these persons think that all will be acknowledged and the dividends punc. tually paid. The banks of Philadelphia, as if bent upon their own destruction, have some of them, now that they will pro bably be compelled by law to resume, entereed into an arrangement with their depositors, by which one fourth of the sum due them is to be payable in specie funds, and the balance in two, four and six months. Thereby conessing their inability to pay their debts, and shaking confidence in their resumption. Their outstanding circalation is very small, and they can pay but 25 per cent o their deposites after all their contraction. How SCere then must the curtailment for the next six months t enable them to meet the remainder. The Bank of Pennsylvania being about to make a general assignment, has asked the aid of the Legislature. Governor Porter has issued a message in relation to it, and the preservation of the stock owned in it by the State. The banks of Baltimore are making preparations for is. suing the small notes authorized by the act of Assembly relative to resumption. The amount of their notes authorised to be issued is five per cent on the capitals of the banks which will give about five hundred thousand dollars. The banks last summer lent the State about and the State four hundred thousand dollars, has not author- being able to repay it at this time, the Legislature ised the banks to issue orders on the Treasurer in amounts not less than one dollar, which said orders are to receivable in pay ment of State tax. This will give the banks four hundred thousand dollars more of small notes, making with those authorised by the Resumption act, eight hundred thousand. This extra issue may be fatal to their resumption. The Treasury orders will probably be dishonored, and become as unmanageable a burden as the Raildead orders of the city. The Legislature of Ohio have passed a law to provide, for the payment of the temporary liabilities of the State the interest on the State debt,&c, the substance of which is to borrew the money. For this purpose a six per cent stock, interest payable semi-annually in New York, and redeemable after 1870, is to be issued to the extent of $500,000, to pay the temporary loans contracted in the city of New York. $1,300,000, 6 per cent stock interest, payable at the State Treasury, to pay the contractors, and to complete the Wabash and Eric Canal; all other works to be suspended. $300,000 of the certificates of this latter loan to be receivable in payment of the Wa bash and Erie Canal lands, and $200,000 in payment forthe Miami extension lands; none of the stock to be sold or disposed of under par. This appears to be the only provision made to meet the State debts, and as the prespect of negotiating a new six per cent stock at par, while the old ones are selling 50 cents on the dollar, is rather small, the State of Ohio may be classed with Indiana and Illinois. The States are following each other in rapid succession to insolvency and dishonor, and what can be expected while the federal Congress, under the control of the factious partisans of an ambitious` po litical gambler, court national disgrace as a means of individual aggrandisement. As an instance of the description of paper which is cireulated at the South as a substitute for the constitutional currency, we give the following fac similie of one that has come to our hand :-


Article from Lynchburg Virginian, April 11, 1842

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117111 second hand.' The question of Peace or War will now, probably soon be settled. THE BANKS. We continue the statements embodied in the Reports of the committees of the Senate and House of Dele gates, during the last session of the Legislature, for the information of our readers, but few of whom, from the limited number printed, can otherwise have access them. In deciding upon the ability of the Banks, in extraor dinary times like these, to resume and maintain specie payments, it is essential that their immediate means and liabilities should be correctly ascertained and by the application of this test to the Virginia Banks, it will be at once perceived that, although in periods of gene ral confidence, they have maintained specie payments when the disproportion between their resources and their debts was much greater than it is now. yet that when distrust and suspicion so universally prevail as at present. it would be a hazaidous, if not an impracticable at tempt. When the chartersof the Banks were granted. giving them permission to issue an amount of paper much than the amount ofcointhey were required tokeepon hand, it was of course never intemplated would be prepared on occasions to redeen their notes, n spe cic, on emand, notw ithstanding the 1" mise so do on the face of each one of those notes. It was known that ordinarily no such demand would be made upon them. and we think it doubtful whether it was ever even suspected that a period would arrive when their issues would be returned upon them in such equantities as dangertheirsafity In this vie of the subject, it seems to us that the Legislature imposed upon its 11. by the terms of its own enactments, an obligation to protect the Banks from the consequences of a general rush of their notes for redemption in specie, when, from revulsions in trade or other causes, a panic should seize the public mind. by which the very existence of those institutions might be jeopardized. It may be proper to observe here, that the Tesuning Banks in Philadelphia, as well as these of Baltimore, which are to resume on the 1st of May. are in a much better condition, SO far as their circulation and their specia is concerned than those of Virginia-the Banks of Phil adelphia having about twodollars of specieforone of circu lation. while those of Baltimore haveabout dollar for dut lar. The condition of our Banks shown by the follow ing statements, madeup to January last: Immediate liabilities. Immediate means $3,967,063 Bank of Virginia, $1,288,884 Farmers' Bank, 3,536,755 1,094,305 Exchange Bank, 385,549 452,966 Valley Bank 970,407 479,397 N. Western Bank. 601,711 288,385 600,628 M. M M R of Wheeling, 206,321 In the term "immediate liabilities" is included notesin circulation, due other banks, due to other depositors, dividends and bonus- in the term "immediate means.' is included specie, treasury notes, due from other banks, and non. of other banks. But in order to render the subject still more intelliging, we subjoin a statement showing at a glance the relative proportion of liabilities and means. and also of the circulation and specie, in each wit: In the Bank of Virginia, the proportion of immediate means to immediate liabilities is as $1 to $3 21 ; and of coth to ciro ulation is as I to 3 07 Farmers' Bani -Proportion of immediate means to immediate liabilities is as e. to $3.23 and of coin to circulation as I to 3.39. Exchange Bank- Proportion of immediate means immediate liabilities is as $1 to $3.05; and of coin to eir culation as to 2.95. Bank of the Valley Proportion of immediate means to immediate liabilities is as $1 to $2.02; and of coin to circulation as I to 2.72. (From the available means should probably be deducted $32,313. it being the 3 per cent. dividend on the 4th of January, 1842, which would make the means to liabilities as $1 to 2.17.] Northwestern Bank.-Proportion of immediatemeans to immediate liabilities $1 to $2.08; and of coin to circulation as I to 2.31. Merchants' and Mechanics' Bank of 11 'heeling. Proportion of immediate means to immediate liabilities is as $1 $2.91: and of coin to circulation as $1 to 4.02. From these statements the people can judge, as well as ourselves, of the ability of the Banks to maintain spe cie payments under existing circumstances. I is, indeed an historical fact that, even in specie-paying times, they have been in a much worse condition than they are now , but it was because there was no want of confidence. and they knew that specie, to any large amount. would not be demanded, the holders of their notes being content to know that they could obtain it by asking. Now, how ever, the case is different-and the probability is that it the Banks were to open their vaults, they would be 11 drained of a large amount of the either to timid or to be by be brokers; hoarded and by the the necessary precious speculated metals, upon a the effect would be rapid curtailment of their issues, and a discontinuance of loans, while the channels of circulation would not be filled with the hard money abstracted from their vaults. The Banks would so crippled as to be compelled to cease business, while the cry of **hard times" would be a thousand times londer than it now is -and a thousand times more la just. If a coercive resumption of specie payments would have the effect. as all menbelieve it would. of compelling the Banks, in self defence. to withdraw its notes free m circulation, both in exchanging them for coin and by the reducI tion of their outstanding debts, one of its most injurious effects would fail upon the stockholders, in the discontin uance of their yearly dividends ; and as the Common I wealth would be an immense loser by that operation. it may not be improper here to show to what extent it would involve the necessity of additional taxation. The State owns: In the Bank of Virginia 13.756 shares. Farmer's Bank 9.609 ** .. Bank of the Valley 4,830 " .. Northwestern Bank 4,814 205 Merchants' Mechanics' Bank, Exchange Bank, 8,712