Farmers & Mechanics Bank - Philadelphia, PA

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: May 21, 1880
Location: Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model: gpt-5-mini
Short Digest: 9846d314

Response Measures

None

Description

Article (New-York Tribune, May 22, 1880) reports that Farmers' & Mechanics' Bank was unable to meet $420,000 of drafts presented at the Clearing House and 'refused payment', and the paper states the Philadelphia and Reading and the Coal and Iron Company suspended payments; the bank suspended to protect funds. The article does not describe a depositor run or a receivership in this excerpt, nor does it state permanent failure. I therefore classify this as a suspension (no run) with uncertain long-term outcome; I chose suspension_reopening as the most consistent category because the text describes protective suspension measures rather than assignment to a receiver or an explicit permanent closing. Bank type is set to unknown (no explicit National/State/Trust in name).

Events (1)

1. May 21, 1880 Suspension

Cause: Local Shock
Cause Details: Large unexpected floating indebtedness and heavy drafts tied to the Philadelphia and Reading / Coal and Iron Company suspensions produced a $420,000 demand the bank could not meet; suspension enacted to protect assets and revenues of companies and bank operations.
Newspaper Excerpt: the Clearing House of the ... Farmers' Mechanics' Bank drafts the necessary $420,000: the bank had not the funds to meet them. Notice ... refused payment.
Source: newspapers

Newspaper Articles (1)

1. May 22, 1880 New-York Tribune New York, NY

Article from New-York Tribune, May 22, 1880

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Article Text

$420,000 yesterday, caused the Philadelphia suspension of Company, and also of the There was of the Coal and Iron Company. stock and Reading excitement in Philadelphia, There and the is much great the railroad declined to 13. two comof as to the future of the the two uncertainty The news of the suspension of circles panies. caused a great stir in financial Stock companies city. Stocks fell sharply at the but there in this amid much excitement, except Exchange panic, and most of the shares of their was no recovered the greater part of the Reading It is not believed that any losses. New-York banks are seriously affected. CAUSES OF THE SUSPENSIONS. FLOATING UNEXPECTED DRMAND-THE PHILADELPIIA-MR. ALLEGED INDEBTEDNESS MOSTLY IN GOWEN'S MISTAKES. TELEGRAPH TO THE TRIBUNE.1 [BX May 21.-The Philadelphia Philadelphia and PHILADELPHIA, Railroad Company and the suspended Reading and Reading this Coal morning. and Iron Although Company the for three crash years was expected, payment and has been prophesied sensation. Philadelpast, phia it has produced not been a so profound much excited over a failure sluce the Jay Cooke affair. the except particulars in regard to the event, the mornAll fact of the suspension, were. of speculation. during The mere ing and afternoon. were a in matter circulation, but with sub- the wildest evening rumors the excitement has somewhat known. it cool of the facts are becoming better suspension, sided, and the cause of the ReadAs to that the Philadelphia and Readis stated Railroad and the Philadeiphia have and for some ing ing Coal and paid Iron for all Company purchases of Such supplies, notes time past interest notes at ninety days. the 20th of etc., with taken up by sight drafts ou sight drafts have been Yesterday the usual with some every issued, month. and the amount of these, matters. This were indebtedness, precipitated presented to the other the Clearing House of the commorning and Mechanics' Bank drafts the necessary Farmers' $420,000 : the bank had not Notice pany for meet them. and refused payment. Gowen, who, funds immediately to seut to Mr. mornwas time, 9 o'clock this that up to had that not the slightest idea money ing, " not be the necessary is his of the case. to there meet would the monthly demands." At least such statement Gowen was given until 1 o'clock by A few the President House to make good his paper. stopped Clearing before 12 he announced payment unexpected porminutes $420,000. The large and $300,000. sent of the amount was one note of The rest is tion of the by New-York parties. is about held for collection here. The total floating indebtedness at $5,000,000. of the Coal and Iron Company suspended was A meeting and the company formally having called. The Reading Railroad Company Company, payment. the debts of the Coal and Iron at the concluguaranteed had now to meet the same conference storm, the and directors. who ing official notice: BION are the of same a two in hours both companies, issued the follow- 1880. PHILADELPHIA, May Company 21, and The Philadelphia and Reading Reading Coal Railroad and Iron Tue Company manthe Philadelphia compelled and to suspend measures payments. to protect intact the agers property of both companies, the revenues of wages will be and supplies. By have For this been will required, purpose take immediate to the payment Managers. and continue the President. applied, so business. far as order of the Board o FRANKLIN B. GOWEN, banknews spread rapidly, reaching Exchange the shorty The bad brokers first and the Stock board. ers and at the close of the first at 23, during after noon, opened in the morning uncertain dropped rumors Then The stock the first session, owing to it fluctuated at of coming 22, trouble, 22 14, to 21 st 2258. under embarrrsement pressure of a bear sent 22, 227g, Reports of the a sharp movement. and their confirmation precipitated the afternoon, the it to lasted till late into it had stock by panic, which reached 13. By 6 o'clock 6 it half-past touched when 1212 on the street, and and bears to 13. rallied among the weary were bulls in their offices until near be Many of the brokers the closing price can be said will to open midnight, and it is expected the stock will touch 13. To-morrow and it is predicted that it enterat 1112 during to the 12, day. No fears sales of to-day a panic were are based 10 to-morrow. as all of rumors. tained chances of the confirmation known facts. upon the will be made upon near as Sales The transactions to-morrow to-day aggregated, as 143,000 shares. known. A prominent broker am glad said it to happened, THE TRIBUNE as company I cor- exrespondent relief. Everybody said the a collapse, perience great and everybody expected date. Now we was rotten, was not named as the more panic, though to-day nuch lower, there will be mend." no cannot go will have a chance to by and the stock persons are losers Some the an- of 1 Of course outsiders, however. unloaded brokers many mostly failure largely nouncement; who held Reading was known. the and to-day before the widely distributed, effect, the losses are of the road. yesterday As to the generally among the friends paper. The a and pretty not hold much of the In for The banks did the brokers naturally came the losers are bulls among trouble. First among relatively, share of the bondholders, and then, the scrip the stock employés and and tradesmen holding company over next the which tided the the merrecently issued, last Winter: after these supplies. some bad of whom places the companies to purchased day were held by chants of the checks protested were held in Most merchants. and quite two-thirds is, along the line of and the around Philadelphia; New-York that parties are said to hold to the road. Some protested paper amounts and the balance. While floating the indebtedness, over above bonds only $420,000, and the stocks, is said to be a vastly greater sum. Said a prominent lawyer future, to THE under TRIBUNE the receiver. law, corre- the spondent: " As to put the into the hands of a Holders It company must go cannot into the be charge upon of an them, assignee. obtain judg- by of checks must then to sue execute the judgment to save ment. and This proceed will give the In company all probability time it will itself, seizure. if that is and possible. the holders of stock will be ad- exto stock be mitted reorganized, as stockholders be taken in at the a value new corporation, of one-third or " it has glad isting one-fourth its present worth." at happened enlosion This An officer of last. the company We had to said carry will am two anabia worlds- the