Mechanics' Bank - Philadelphia, PA

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: February 16, 1841
Location: Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model: gpt-5-mini
Short Digest: 8de0968f

Response Measures

None

Description

Article (Richmond Enquirer, 1841-02-16) discusses an ongoing suspension of payments by Philadelphia banks including Mechanics' Bank and calls for legislative relief. No specific depositor run is described. Given the contemporaneous push for relief and re-enactment measures, I classify this as a suspension with likely eventual reopening; however the article does not state a reopening date.

Events (1)

1. February 16, 1841 Suspension

Cause: Macro News
Cause Details: Widespread specie withdrawals and a general financial emergency leading banks in Philadelphia to suspend payments; legislative relief sought to legalize suspensions.
Newspaper Excerpt: Resolved, That the Bank of North America, the Philadelphia Bank, the Farmers' and Mechanics' Bank, the Girard Bank, the Commercial Bank, the Mechanics' Bank, ... are believed to be in a condition which will enable them beneficially to receive and to render available to the people the contemplated relief and assistance.
Source: newspapers

Newspaper Articles (1)

1. February 16, 1841 Richmond Enquirer Richmond, VA

Article from Richmond Enquirer, February 16, 1841

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Article Text

# THE BANKS. The meeting of citizens held at the United States Hotel on Tuesday evening, was well attended by merchants and business men, as well as by a goodly sprinkling of legal gentleinen. The Hon. Geo. M. Dallus presided, and Joseph R. Chandler, Esq., acted as Secretary. The Hon. Joseph R. Ingersoll reported the Resolutions, as Chairman of a Committee appointed at a previous meeting for that purpose. When the second of these resolutions was under consideration, John Miles, Esq., moved as an amendment, to strike out the names of the several Banks therein particularized, and insert the words "the Banks of the City and County of Philadelphia," which gave rise to considerable discussion, but, though adopted as an amendment on the first vote, was eventually negatived, as it evidently included the United States and Schuylkill Banks in general terms. Mr. John M. Kennedy made another motion to amend, by offering a resolution requesting the Legislature "to legalize the present suspension and allow the Banks to issue small notes;" but this was negatived by a decided majority. Pending the discussion of these amendments, and when it seemed probable that Mr. Miles' amendment would be adopted, Mr. Dallas stated that if any action was made by the meeting in favor of the United States Bank, he should ask to be excused from a further participation in the proceedings, as he could not and would not in any way sanction or excuse the conduct of that institution. He said that he was willing to unite in an effort to relieve the business community, and such Banks as had acted in good faith to the public and the law, although he made some sacrifice of political views in doing so; but he could not so far transcend his general princi-ples as to yield or ask any indulgence to a bank which proved itself utterly unworthy of such considerations. This was highly commendable and gave Mr. Dallas great credit. Josiah Randall, Esq., addressed the meeting very eloquently in favor of the amendment, and endeavored to persuade the gentlemen that, unless they yielded their partizan objections, the effort to relieve the community would be futile, from a want of harmony of action; but he was followed in an able and irresistible address by Mr. Ingersoll, in favor of the resolution as reported by him, showing that the Bank of the U. States was lost "past redemption," and that, therefore, any attempt to seek indulgence for it, in common with the rest, could result in no good to that institution, and might prejudice the claims of the others by its connexion with them. He stated in proof of its utter inability to sustain itself, and the impossibility of reviving it, that its notes were repudiated by the Banks, as well as by the community, and that there was not the slightest possibility of re-establishing confidence in its solvency. A by-stander interrupted Mr. I. by saying he would take its notes at par; "Then, said Mr. Ingersoll, pulling out a well filled pocket wallet, "I'll trouble you to change off my U. S. bills, for the notes of any other Bank in the Commonwealth." Quite a lively sensation was produced by this appeal; but there was no exchange of paper, and Mr. Ingersoll resumed his remarks. He clearly proved, while he said he regretted, that the U. S. Bank was a total failure, and that it would therefore be impolitic, as well as useless, for the meeting to encumber their proceedings with its wreck. After several other speeches were made, the resolutions of the Committee were adopted without amendment. Thefollowing resolution s were adopted: Resolved, That this community, in its financial concerns, stands at this moment in need of legislative assistance and relief. Resolved, That the Bank of North America, the Philadelphia Bank, the Farmers' and Mechanics' Bank, the Girard Bank, the Commercial Bank, the Mechanics' Bank, the Western Bank, the Northern Liberty Bank, the Moyamensing Bank, the Manufacturers' and Mechanics' Bank, the Southwark Bank, the Kensington Bank, the Penn Township Bank, and the Germantown Bank, are believed to be in a condition which will enable them beneficially to receive and to render available to the people the contemplated relief and assistance. Resolred, That the requisition of the Act of Assembly of 3d April, 1840, and the policy of the Commonwealth, as made known by the Executive, were met and carried out on and after the 15th January, 1841; and a large amount of specie has been withdrawn in the abortive effort to give permanence to the same. Resolved, That the following measures of relief and assistance are called for by the present emergency: 1st. A suspension of the penalties, provided by any statute of this Commonwealth, for the omission of any of the above named Banks to pay their deposites and other obligations in gold or silver coin. 2d. A re-enactment of the provision of 1840 relative to dividends, &c. 3d. An arrangement by which each bank shall be required to pay out its own notes and not the notes of any other bank. 4th. Such other measures of relief and assistance as the Legislature, in its wisdom, may enact 5th. That a committee of seven persons be appointed to proceed to Harrisburg to obtain the necessary relief and assistance.