19037. Farmers & Mechanics Bank (Philadelphia, PA)

Bank Information

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

Metadata

Model
gpt-5-mini
Short Digest
31d9f92d

Response Measures

Accommodated withdrawals, Partial suspension

Description

September 1857 panic in Philadelphia: crowds beset banks and many institutions (including Farmers & Mechanics Bank) paid small notes initially but banks collectively suspended specie payments on Sept 26, 1857. Articles show an initial run and then a coordinated suspension; there is no article here confirming a later reopening or permanent closure, so outcome is unsure. OCR errors in source texts corrected (e.g., 'Mechanica'' -> 'Mechanics').

Events (2)
1. September 26, 1857 Run
Cause
Local Banks
Cause Details
Run triggered by news of suspension/cessation of specie payments at other Philadelphia banks (e.g., Bank of Pennsylvania) and suspensions in Baltimore, producing crowds demanding specie.
Measures
Initially paid small denomination notes (tens) in specie; marked checks good and limited specie payments.
Newspaper Excerpt
The Banks were besieged before 10 o'clock by anxious and excited crowds... The Farmers' and Mechanics' Bank are paying specie for ten's.
Source
newspapers
2. September 26, 1857 Suspension
Cause
Local Banks
Cause Details
Collective decision by bank officers to suspend specie payments in response to widespread runs and the suspension/cessation of specie at other banks to protect the banking system and preserve liquidity.
Newspaper Excerpt
At a meeting of Bank officers held yesterday afternoon it was resolved that the payment of specie for the notes or other obligations of the Banks should be suspended this morning... coin will not be paid out.
Source
newspapers

Newspaper Articles (3)
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 28, 1857 The New York Herald New York, NY
Article from The New York Herald, September 28, 1857

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Article Text

THE STATE FINANCES [From the Philadelpais times, sext. 25 In the midst of our Associal difficult illes, we sun painful facts record the last Legislature passed appr reprissing $60.000 or upwards to the of certain class canal claims These claims have perfected by the and prepared legally for soltle ment. They have also been preser ted to the Oanal Board, whom they must be One day last week the Casal dis to met charge ithe duty thus upon them law Much one, to the surprise every they suddenly without any action, started from Harrisburg to Phills delphia, in company with the State Treasu What was the cause of this sudden Had they board financial news which alarmed them? Had funds of the which they had been speculasing been swamped some of the financial failures berngoing on Were the funds of the State deeply volvedthat would the there get ry to have issued for the $60,000? funds loabed to banks in this olly no- be contrary to law? Are those Institutions unable refund once, and must the honest redkors of the State awais one banks' the of payment of their just claim Will those 450 have patiently years have still to longer, because tiemen intrusted with the danneise of the choose to peoulate upon them? This question that demands and must answer the will go up from all parts of th State. become of the funds in the treasury! to have another operation? Let the people look well We are already taxed heavily enough without having to pay future defl ciencies that may ariae from mismanagement. Look to lt THE MONEY PANIC RUN UPON BANKS. the [From Philadelpic Ledger fever The of yesterday owing specie of Bank the sylvania, the very gener that banks would do likewise At an early hour in the morn Ing. crowd gathered in the vicinity of many these Ine. not doora their were totions, and before open long became apparent that there would be run upon them The ann of ouncement specie of suspension by the Bank of Pennsy Ivania as made, and the policemen stationed at the gales prevent the en trance all who had not busines with the officers The following. signed by the cashier, complouously displayed at different points along the railiz g surrounding the buildin Resolved That this bank suspend specie payments until further The crowd that gathered about the Pennsylvania Bank soon there was Hule or there of reat of during the the the day rard Bank, different Groupe of persons, die cursing the all exciting topic were gathered there from ially the time of the opening to the close off) in the announced the course checks morning would that not be paid until after o'clock We learn the they were the not to notes the redeemed though paid, up of closing In the course of the day there was CITY the in banks, though many holde the made five more In the mo ning. one o'slock. the the and Mechanica' Farmer very heavy continual going late the back, and line room long the paying from are sons. Before o'clock the excite had abated and but persons the At the Philadely his and the estern Bank almost al bio rush the day and Bank of Commerce understood that these heir and paid upon Bank The the deprestions. City probably greater than upon any of the others day there line desk from reaching into saying two street aftern from which, yards long twenty be of bank persone entering step lled line. While being en check, lady her push must that and told had back he the The considerable but Pena Liberties Manufacturers and Houthwark the and had Township. for demand the than ordinary specie. The upon the banks the the stores cousting rooms and market workshops about all croeds the In places the others and banks bamble men circum laboring in ances could be seen who were there evidently for the purpose of aining specte gle note two The panic reemed, to have affected other classes. broughout the day notes of the banks held la bad repate ererefused by shopkeepers,and the specie instated upon in payment of purchases made SCENER IN PHILADELPHIA. From the Philadelphia Bulletin, Sept 26. The excitement about the city monetary institutions. do earnest good eaterday. is whichcommenced and veloped itself f in general FUD on the bank. this morning but the terror to this morning belonged to a different class from that which promineal and took a run about The Friday esterday half of dollars out of the vaults of the different institutions. and the presidents of the various banks met yesterday afternoon and determined to redeem their small notes only, 0.day This determination vas 1000 ally last night and to-day is was announced in all the papers. This morning the people w ho do not road the afternoon newspapers first learned of the run. and every Individual e of this class who bad five dollar bill stowed away for rainy day, became uneasy for fear of the consequences. they rushed down bright and early to the neighbor hood in which the backs located THE THE BANK DOORS ABOUT SCRE Long before business hours crowds persons gathered upon the steps of the principal banks and leaned up against the doors as though they were funds thatthere were conviction sufficient to harely their demands, and unless they quick getting inside, some fortunate individual would obtain she ouve.ed gold. Most of these eager Individuals were either Irish or Ger mans, and the latter. carticularly. appeared terrified at the fear of meeting with los Among the throng were numerous women, too, who were alar ned the reports which were flying about thick and fast. several the doors the banks were opened before their usual and females and Infirm persons were invited Inside efficers of the insus ations When ten o'clock arrived and the doors were opened to the public, the oene was amuing: the described rushed up pell mell to he paying teller counter. and patielly awaited their turns. As the great majority of the redeemed their smaller bills, these frightened note holders soon relieved of their paper and their fears, they went their rejoicing. All this was a complished without much cost. for very few of theme early birds had more than single five dollar billtooffar, and avery little specie went great way in sathfing their claims. BANKA 11 the banks day checks. but they all marked them "good and checks were then used in of bil and taken deposit by the banks The Mechanica' Bank paid all its notes In there was little to the teller's door of this Institution the following notice 'MECHANICS' BANK PHILADE 26.b. 1857 This bar will pay adida Depositors obecke not be paid. but will be marked "good, so ked by other banks will celved.in payment of debts this institu ion The Bank of North America. sae Tradesmen's and the Southwark Bank also paid all their notes large or email The Farmers and Mechanica' Bank paid all Its notes within the mination of $10 The following redeemed their five dollar bills specie. they decilined to change larger notes mercial. Commerce. and Mechaning' Northern Liberties, 'biladelphia, Giard and Kensington. WILL Rome of the note holders who privately assured friends their of the bank being pleasantly asked they while others wanted who These small silver, desire who expressed accommo and their to much dalling course the note holders in immensely good The course by the banks had the excite During onteideo building banks police strong duty during the day to prevent the streets being blocked up by the of lotterers LINE LINE GIFT IN Early in the day there line of say afteen or twon ty persons at the South wark Bank Twopollcemen were stationed the door ardeously laboring to keep the "queue" right. One of the "stare, however, created more trouble than every body else, by seizing each person

3. September 30, 1857 Staunton Spectator Staunton, VA
Article from Staunton Spectator, September 30, 1857

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Article Text

# THE SUSPENSION IN PHILADELPHIA. A letter from Philadelphia, written on Saturday, says: The excitement produced by the Bank suspensions yesterday has been extensive. Almost immediately upon the announcement that the Bank of Pennsylvania had ceased to pay specie, the Girard, Mechanics', Commercial, Farmers' and Mechanics', Western, Philadelphia and other Banks were beset by anxious note-holders, demanding specie. In an incredible short period of time, the tide of emigration flowed into the buildings of all these concerns, and the panic became general. The police were stationed about in the different Banks, to prevent any regular outbreak. Speeches, arguments, exclamations, inquiries and denunciations were rife upon the prevailing topic. Some funny scenes were enacted in the crowd. One rough and powerful looking fellow, evidently from the rural districts, went about flourishing a bag of gold which he had just obtained for some notes which he happened to present in time. At a meeting of Bank officers held yesterday afternoon it was resolved that the payment of specie for the notes or other obligations of the Banks should be suspended this morning, and that it is therefore understood, that whilst all our Banks will be open for business as usual, coin will not be paid out. This course has very wisely been determined on, with a view to sustain and, indeed, to save the business community. Properly viewed, it is a measure of self protection in which our citizens are all interested. # THE SUSPENSION IN BALTIMORE. The Baltimore American of Monday, referring to the Bank suspension in that city, says: The immediate effect of the suspension on Saturday was to brighten the aspect of commercial affairs and relieve the apprehensions so constantly prevailing for the past month. The price of money fell from 2 1-2 to 1 1-2 per cent. and an advance of prices occurred at the stock board. The disasters that threatened the business community have thus been arrested, and the general feeling among the merchants was one of approval of the course adopted by the Banks. According to a rigid construction of the charter of our Banks they forfeit their corporate franchises by the suspension, but inasmuch as it has been general and was invoked by an unavoidable necessity, to disregard which would have produced the worst results, there will be no hesitation on the part of Legislature in taking any action that the contingency may require. # RAISING THE CENTRAL AMERICA. The New York Post says that negotiations are going on between the Boston Submarine Armor Company and the underwriters of the Central America, to raise her hull, which is supposed to lie in about 28 fathoms water. The specie in her alone would furnish ample inducement for the experiment, if her position can be accurately fixed, and that it can, is probable, from the fact that Captain Herndon was reported to have given her position to the vessel which refused to come to his relief. Should the work be undertaken promptly, there is thought to be a reasonable chance of success. It is now positively known that Dr. Tate, of Virginia, has been appointed Sixth Auditor of the Treasury, in the place of Col. Phillips; and James Madison Cutts, father-in-law of Senator Douglas, has been appointed Second Comptroller vice Mr. Brodhead removed.