19026. Consolidation Bank (Philadelphia, PA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
September 26, 1857
Location
Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model
gpt-5-mini
Short Digest
28d6976d

Response Measures

None

Description

The articles (late Sept 1857) report the Consolidation Bank suspended payments (paid nothing / totally suspended) amid the wider 1857 panic sparked by Baltimore and other bank suspensions. No reopening or receivership is mentioned in these clippings; many Philadelphia banks only temporarily suspended in this episode, so the most likely classification is a suspension without an associated depositor run and (likely) temporary suspension. If later evidence of permanent failure or receivership is found, the classification should be revised.

Events (1)
1. September 26, 1857 Suspension
Cause
Macro News
Cause Details
Widespread financial crisis/panic in Philadelphia following news of Baltimore bank suspensions and general specie-stringency during the 1857 financial crisis.
Newspaper Excerpt
The Penn Township and Consolidation Banks have suspended.
Source
newspapers

Newspaper Articles (4)
1. September 26, 1857 Evening Star Washington, DC
Article from Evening Star, September 26, 1857

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Article Text

TELEGRAPHIC NEWS. FROM THE ASSOCIATED PRESS. The Financial Crisis in Philadelphia. Philadelphia, Sept. 26.-The corner of Third and Chesnut street is again the scene of excitement this morning. Ciowds of alarmed and interested persons surrounded the Savings Institutions this morning before 9 o'clock. These declined paying out their deposits, requiring two weeks notice to be given. The Banks were besieged before 10 o'clock by anxious and excited crowds. The Bank of Pennsylvania re-opened, doing its ordinary business, but paying out nospecie. The Mechanics' Bank paid specie for its "10's." The Girard Bank refused to do any business, and gave no satisfaction to its note holders and depositors. LATER.-The Giraid Bank has come to terms, and is redeeming its "5's" with specie, but refusing to honor checks. Most of the other banks are taking checks. ANOTHER Dispatch.-An additional excitement has been produced by the news of the suspension of the Baltimore Banks. The Tradesman's Bank pays checks and all. ADDITIONAL-There is no concert of action among the Banks, each apparently taking a different course. The North American is paying specie for its ten's, but is issuing no notes on checks. The Bank of Commerce is refusing specie, but is paying notes on checks. STILL LATER-The Bank of North America is paying all its notes, having received specie from New York last evening, and is now represented to have more in its vaults than the amount of its Mils in circulation, but is certifying its checks. The following Banks are redeeming its fives: The Commercial, the Philadelphia, and the Manufacturers and Mechanics The Farmers' and Mechanics' Bank are paying specie for "ten's." The Northern Liberties, and Western, Banks are redeeming its fives in cases of necessity. The Bank of Penn Township, the City, and Consolidation Banks pay nothing. Allothe Banks, how. ever. certify checks except the Girard, which is suspending business entirely. Some of the Banks WILL receive no deposits. 26th p. m.-Private advices say that the Banks of Reading nd Pittsburg have suspended. The Southwark Bank pays all its bills. The Kensington Bank pays its fives only

2. September 29, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, September 29, 1857

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Article Text

BANK DIFFICULTIES. THE PHILADELPHIA BANKS. PHILADELPHIA, Monday, Sept. 28, 1857. The Banks are pursuing the same course to-day that they pursued on Saturday. The Girard Bank is paying out specie on five dollar bills, and the Mechanics' and Southwark on all their notes. The Bank of North America suspended about 11 o'clock, and the suspension will now probably become general. PHILADELPHIA, 12 M. The Mechanics' Bank now redeems notes of $5 only. The following banks also redeem fives only: The Consolidation, the Northern Liberties, the Mechanics' and Manufacturers', the Commercial, the Western, and the City. The Philadelphia Bank pays out no specie, but redeems checks with its own notes. PHILADELPHIA-1 p. m. The Pennsylvania Bank is now paying out its own notes for checks, but refuses specie. The Mechanics' and Manufacturers' Bank is paying no specie. All the Banks of the city have changed their course since the opening hour. Some of them refuse to certify checks, but give due-bills to deposit with other Banks. It is just rumored on the street that the Governor refuses to issue a proclamation calling the Legislature together, unless the Pennsylvania Bank is placed OR & par with the other Banks, and her notes received on deposit. All is confusion and disorder, but it is not attended with the excitement that has existed in former days of trouble. Every kind of business is completely paralyzed, and it is impossible to make collections. 9 P.M. The Board of Trade have determined to call a meeting for & public expression of the various business interests of the city, with reference to the proposed legalization of the suspensions, believing that the best interests of the community and the State will be subserved thereby. It was suggested at the meeting of the Board this evening that where parties have notes protested only because they refuse to pay other than in par currency, it is the duty of the collecting bank or agency to have that fact made as public as the protest. The Presidents of the Banks have agreed to rectore the Bank of Pennsylvania to & position at the ClearingHouse and to receive its notes and discount liberally for their customers. Had this been sooner done there would have been no suppensions. SPECIAL SESSION OF THE LEGISLATURE. The proclamation of the Governor to convene an extra session of the Legislature will be published to. morrow morning. The proclamation saye: Whereas & perious financial revulsion resulting in the suspension of epecie payments by the Backs of this and other States, and wheresa, the fatlure of many long established commercial houses is leading to the destruction of confidence and to a general embarrasement and deprese on in trade, and is threatening to affect, disastrously. the credit of the Commonwealth and the great industrial interests of the people, and it requiring prompt and efficient action to relieve the alarmed and suffering community, therefore, I convene the Legislature, to meet on the 6th of October, and adopt such measure as the present exigency requires." The Governor has not yet determined what course to pursue regarding a special session of the Legisla. ture. Two Committees-one from the Banks-are now in private conference with him. Much feeling is said to exist between the banks-some, which are incorporated under the old law, and do not forfeit their charter, opposing the call of the Legislature. It is stated that if the Governor does not countermand his order, the proclamation will be issued to-morrow morning.

3. October 2, 1857 The Athens Post Athens, TN
Article from The Athens Post, October 2, 1857

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Article Text

have reached us, in relation to the panie in commercial circles and the Bank suspensions at the East: Philadelphia, Sept. 26.-The financial exeitement continues. The Bank of Pennsylvania pays no specie-the Mechanies bank redeems its ten dollar notes-the Girard its $5'm, but refuses payment for checks. The majority of the Banks pay checks. The M.V. ing Institutions require two weeks notice be fore paying checks. Ballimore, Sept. 26.-A meeting of the Presidents of all the Banks took place this morning, and they resolved upon 12 total susP. nsion of specie payments. Philadelphia, Sept. 26.-The news of the suspension of banks in Baltimore has caused additional excitement. The Tradesman's Bank as well IIM the North American pay eve. rything. The following banks pav everything. The following banks pay their five dollar notes: The Commercial, Philadelphia Manufacturers and Mechanics, and Farmers and Mechanies-and the followi pay their $10's-the Northern Liberties and Western, and $5's in cases of necessity. The Penn Township and onsolidation Banks have sus pended. All pay certific d checks, except the Girard. Some banks refuse to receive deposits, The Washington Bank, Washington, pays only $5's and small checks Other Banks are hold ng conferences. Philadelphia, Sept. 25.-The Bank of Pennsylvania h N suspended specie payments. in conse quence of a heavy run. There is :1 general alarm ns to the solvency of the banks. The Girard Bank has temporarily refused pay depositors' checks. Busin NS is nearly suspended in consequence of the punie. Philadelphia. Sept. 25:-A conference of the Presidents of the Banks of this city was held today, and they resolved on a temporary suspension of specie payments on the checks of depositors, DN well as on all bank bills over the denomination of ten dollars. This arrangement goes into effect tomorrow. The Presidents desire the public to discredit al exaggerated reports in regard to anything like total failures in Philade lphin. The Brokers are highly excited. Washington, Sept. 28 -Several CANCE of yellow tever have occurr d at Key West. St. Johns, N. B.. Sept. 28-The screw steatner Jura arrived with London dates of the 15th. Consols 901: Money more stringent; Wheat active and firm; Corn active and steady: Flour buyyant. Philadelphia, Sept. 28.-There is still no concert at action among the Banks. They paid specie on five doll- bills till 11 o'etock. when the North American Bank suspended. The suspension iN now exp eted to become universal. The "Philadelphia Bank" has sus pended. Alexandria, Va., Sept. 28.-The Banks are paving on small notes only. Washington, Sept. 28.-The Metropolis Bank suspended. The "Washington" and "Patriotic" Banks are still paying small bills. Savannah, Sept. 28.-The Banks demand the six day's notice from depositors, Virginia bil 8 five per cent. discount. New York. Sept. 28.-There is a panie in the stock market. Philadelphia, Sept. 28.-Business is de r ng. d by the vacillating coursed the Banks. St. Louis, Sept. 28.-.. J. Anderson & Co. and Darby & Co., and Barksdale, Bank. ers, have suspended. New York, Sept. 28 -There is no truth in the reports of the failure of Clark, Dodge & Co. and Phelphs, Dodge & Co. The Metropolitan Republic, Merchants', Mechanics', AmerieanExehange,Union and Phoenix banks have issu d cirentars,stating their intention to maintain a specie busis, The Norto 1. and Richmond Banks are firm. The Staudon Bank and Bank of the Valley of Virginia have suspended. New York. Sept. 28 -Money very strin. gent. The Banks are firm. Some very heavy failures are reported. Albany, Sept. 28.-There has been a run upon the Saving bank by sm ill depositors. Boston, Sept. 28 -The Suffolk bank re. fuses to redeem the bills of New Engl and country banks. New York, Sept. 28.-Cotton dull, flour 5 to 525, whest decline 6 to 10 cents, e.rn offered at 70, mess pork declined 10c. Chiengo beef declined 25c, bacon 12 for hams, 11 for shoulders, whiskey 24, coff. e quiet, sugar heavy. Pittsburg, Sept. 28.-Every bank except the Pittsburg bank had suspended. The ..ffi cers of the bank adopted a resolution that temporary suspension of coin was necessary to protect business men. The excitement has nearly subsid d. Cincinnati, Sept. 28.-Business is paralized Exchange on the East of sums of $5,000. five per cent. N. gotiable P per unsaleable. Flour unsettled, wheat nommal. J. B. Holmes, manufacturers, have assigned. 0 her failures are reported, but names not disclos d. Boston, Sept. 26.-The banks have increas et their specie four hundred th insand dollars during the past week. and are stronger than they were a forthight ago, No panie. 11. B. Lovejov, clothier, has failed. The bills of the Hopkinston bank were refused by the Suffork bank. Trenton, N. J. S pt. 28. -J mes S. Sterfing h N miled. His assets are a ple. A he VV run was made on our banks,Th ir liabi ities were met. All are in good condition. WHAT A NEWSPAPER OUGHT To BR.....

4. October 2, 1857 Wilmington Journal Wilmington, NC
Article from Wilmington Journal, October 2, 1857

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Article Text

Bank Suspensions in Philadelphia. PHILADELPHIA, Sept. 26.-The excitement in this city continues. The Bank of Pennsylvania is paying no specie. The Mechanics' Bank is redeeming its ten. The Girard Bank is redeeming its fives, but refuses to pay checks. Most of the other banks are taking checks. The Savings Institutions require two weeks notice before paying checks. [SECOND DESPATCH.] PHILADELPHIA, Sept. 26.-The news of the suspension of the Baltimore Banks has caused additional excitement: The Tradesmen's Bank pays everything, also the North American. The following Banks pay fives : Commercial, Philadelphia, Manufacturers' and Mechanics', Farmers', Farmers' and Mechanics'. Species is paid for tens of the Northern Liberties and Western fives in cases of necessity. The Pennsylvania Township and Consolidation Banks have totally suspended all payment of certified checks except on the Girard Bank. Some Banks will receive no deposits.