Southwark Bank - Philadelphia, PA

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: February 1, 1841*
Location: Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model: gpt-5-mini
Short Digest: 8ac3347e

Response Measures

None

Description

Articles (Feb–Dec 1841) describe a general suspension of specie payments by Philadelphia banks (including Southwark) amid wider banking distress tied to the U.S. Bank controversy and withdrawals; courts actions versus Southwark are noted in Aug–Dec 1841. A March 1842 notice lists Southwark among banks that resumed/specie payments. No specific run on Southwark is described in the provided excerpts.

Events (4)

1. February 1, 1841* Suspension

Cause: Macro News
Cause Details: General suspension of specie payments among Philadelphia banks amid wider financial disturbance related to the U.S. Bank controversy and heavy specie withdrawals in early 1841 (citywide banking panic).
Newspaper Excerpt: as a general suspension of specie payments by our Banks has taken place
Source: newspapers

2. August 10, 1841 Other

Newspaper Excerpt: The Governor of the state had ordered the Attorney General to bring suits against the Kensington and Southwark Banks, in consequence of their refusal to comply with the demand made upon them for a proportion of the loan which the Governor required of them at 5 per cent, and which under their charters they were bound to furnish.
Source: newspapers

3. December 22, 1841 Other

Newspaper Excerpt: The case of the Southwark Bank, to show cause why its charter should not be forfeited for refusal to comply with the requisition of the Governor, has been decided against the ... The matter will be carried to the Supreme Court.
Source: newspapers

4. March 29, 1842 Reopening

Newspaper Excerpt: The resuming banks are the Philadelphia, Commercial, North America, Farmers and Mechanics, Southwark, Northern liberties, Western, Kensington, Germantown.
Source: newspapers

Newspaper Articles (5)

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.

2. February 16, 1841 Richmond Enquirer Richmond, VA

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Article Text

MEETING OF CITIZENS. An adjourned meeting of citizens without distinction of party, was held last evening at the United States Hotel, to take into consideration the present embarrassed condition of monetary affairs. The Hon. G.M. Dallas presided, and Joseph R. Chandler, Esq., acted Secretary. After considerable discussion, the following resolutions were adopted: That this community, in its financial concerns, stands at this moment in need of legislative assistance and relief. That the Bank of North American, the Philadelphia Bank, the Girard Bank, the Mechanics Bank, the Bank of the Northern Liberties, the Manufacturers' and Mechanics' Bank, the Kensington Bank, the Bank of Penn Township, the Bank of Pennsylvania, the Farmers and Mechanics Bank, the Commercial Bank, the Western Bank, the Moyamensing Bank, the South. wark Bank, and the Bank of Germantown, are believed to be in a condition which will enable them beneficially to receive and render available to the people, the contemplated relief and assistance. That the requisitions 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 of January, 1841, and a large amount of specie has been withdrawn in the abortive effort to give permanence to the same. That the following measures of relief and assistance are called for by the present emergency 1. 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. f 2. A re-enactment of the provisions of the act of 3d April, 1840, relative to dividends, &c. 3. An arrangement by which each Bank shall be required to pay out its own notes, and not the notes of any other Banks. a 4. Such other measures of relief and assistance as if the Legislature, in its wisdom, may enact. 5. That a Committee of seven persons be appointed to proceed to Harrisburg for the purpose of obtaining the necessary relief and assistance. The following persons were appointed on the Committee. Two others were selected, who, we learn, have declined serving: Josiah Randall, Isaac Roach, T. M. Bryan, Robert Allen, John K. Kane. At a meeting of the Democratic citizens of the City county of Philadelphia, held at Holahan's Hotel, Ches. nut street, on Feb. D, 1841, at half past 7 o cleck, P. M., Henry Florn, Esq., was called to the Chair, and W. L. Hirst, and B. 11. Brewster, appointed Secretaries. The following Preamble and Resolutions were offered and unanimously adopted From the present defective and vicious Banking System, and the ignorant if not dishonest management of some of the Banks of the City and County of Philadelphia, and their suspension of specie payments, has been inflicted upon this community; and Whereas it is our duty as good citizens to guard as much as lies in our power against the many evils consequent thereon, by suggesting remedies for the present, and preventives against all further calamities of a similar nature hereafter-therefore, Resolred, That as a general suspension of specie payments by our Banks has taken place, the Governor be earnestly requested to issue his proclamation calling upon the prosecuting officers through this Commonwealth rigidly to enforce the laws against the issue d notes of less denomination than $5, and to refuse his 11 sanction to any bill legalizing their issues, or to any s bill suspending the penalties now existing against the Banks for a refusal to pay their liabilities. Resolred, That the Governor be requested to recommend to the Legislature the immediate passage of a law f inflicting a heavy penalty for the circulation, or offering for circulation, notes of a less denomination than $5, issued by Banks out fithis State. Resolved, That these resolutions be published in the Democratic papers, and that a copy of the resolutions t be addressed to the Governor of the Commonwealth. e HENRY HORN, Chin. W. L. HIRST and B. H. BREWSTER, Secretaries. NEW YORK BASKS.-"This city is perfectly easy in money matters.-Our Banks, by the official report, d show a strength which is unusual, and greater, indeed, than is required. The offerings are small, and the Banks really want good paper under 90 days. [.N" Y. Express. "The banks here and at the East stand perfectly firm and at ease. They have long since cut adrift from In the fictitious movements of the South, centering in the United States Bank, and are and have been steadily curtailing their movements, and Bringing them into a d smaller compass. in accordance with the spirit of the o times."- Y. Herald. y THE McLEOP AFFAIR.-The New York Commercialstates, that the Lockport Courier extra of Saturday is furnishes an official statement of the recent proceedings touching the bailment of McLeod, by which it appears of " excitement.

3. August 18, 1841 Mobile Daily Commercial Register and Patriot Mobile, AL

Article from Mobile Daily Commercial Register and Patriot, August 18, 1841

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COMMERCIAL t 5 The sales of cotton in New York on the 9th, before 2 1 o'clock P. M., were 100 b, without any new feature in the market. 8 In Flour, good brands of Genesee were selling at $6. Exchange, sterling is quoted at 8 a 81 prem. Mobile I 81 a 8f. N. Orleans 4g a 41. On the 9th, the sale of stocks by the Comptroller, on < account of the suspended banks, took place. Among them were 6000 Alabama £ sixes, 1842, sold at 93 a 94; 8 10,000 do $ Aves 1865, at 61 a 62g. t U.S. Bank stock improved 4c, while the bills were sele ling at a discount of 28 per cent. The Journal of Commerce, in accounting for the fact, that the New York State Loan for three millions does not succeed, says-"Capitalists prefer 5 per cent at 8H to 6 e per cent at par; for the 5 per cent in the end yield some I 15 per cent more than the 6 per cent." The Journal then urges the issue of State Treasury notes, which it says are preferable to State stocks, for the reason that "in transferring Treasury notes, you have only to hand over the note; but in transferring stock, you must go to the office and sign your name, and the parties must both be recorI ded for all the world to see. The interest on stocks is also paid at the office, and requires some labor, besides I signing of receipts. But the buyer pays the interest on a Treasury note up to the time of the purchase, and at the end principal and interest are paid together. Treasury notes are capital for remittances or pocket money.1 They can be enclosed and sent by mail any where, but , stock cannot change its locality without much more trouble." I : On the 10th there was more activity in the market. At 2P. M. the sales were 1200 b, among them 350 fine Upland at 11tc. Exchange on Mobile 8t a 81. N. Orleans 4 per cent. There was a great fluttering among the Wall street men in anticipation of the veto. In Philadelphia, there was a slight improvement in U. S. Bank stock. The Governor of the state had ordered the Attorney General to bring suits against the Kensington and Southwark Banks, in consequence of their refusal to comply with the demand made upon them for a proportion of the loan which the Governor required of them at 5 per cent, and which under their charters they were bound to furnish. CHARLESTON, Aug. 14. There was an increased inquiry in the market for Uplands, and holders more easily obtained their prices. The sales of the week amounted to 1042 b, viz : 40 b at 8; 59 at 81; 97 at 8₦; 45 at 81; 17 at 9; 70 at 94; 51 at 97; 127 at 10; 113 at 101; 100 at 10g; 166 at 10); 93 at 101; and 63 bags at 11c per lb. At a Bank meeting, held in Talladega recently, resolutions were passed, asserting the invidious distinction made by the Montgomery and Autauga meetings in selecting the settled debts of 1840 and '41, to the exclusion of those in previous years. One of their resolutions asserts that "if the settled debts of 1840 and '41 should be raked up and published, those of 1833, '34, '35, '36, '37, 38, and '39 should also be raked up and published." What the precise object of all this is, is rather obscure; but we presume it means that if the debtors of 1840 and '41 are to have publicity and credit given to them for settling their debts, the debtors of previous years should be placed in the same category. A committee of the same meeting to examine into the bank liabilities of the county of Talladega. reported that there is not the least appearance of fraud committed upon the bank by any of its citizens, except in the signature of Felix G. McConnell, which he declared, and the meeting believed to have been forged to a bill of exchange.

4. December 22, 1841 New-York Tribune New York, NY

Article from New-York Tribune, December 22, 1841

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$46,000 New Orleans City Six per cent. Stock, redeemable in 1850, interest payable in this City, was offered at auction to-day. Only $5000 were sold at 58, when the sale was stopped. Bicknell's Reporter states that money matters were without much change in Philadelphia. Fair paper in the street was selling at 10 or 12 per cent. Most of the Banks were cutting dow n their discount lines, anxious to be preeared for the action of the Legislature. The aggregate amount of deposites in the Banks is said to be several millions larger than the active capitals of these Institutions. United States Bank Notes at 38 per ceat. discount. The case of the Southwark Bank, to show cause why its charter should not b, forfeited for refusal to comply with the requisition of the Governor, has been decided against the Prink on every point excepting one. The matter will be carried to the Supreme Court. The Bank of Buffalo is now in progress of liquidation. A parcel of bonds and mortgages assigned by the St. Lawrence Bank to the Canal Bank of Aloany, are adver tised to be sold at Albany on the 31st inst. They were pledged to secure $9,763 54.

5. March 29, 1842 Democratic Standard Georgetown, OH

Article from Democratic Standard, March 29, 1842

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# MONEY AFFAIRS IN PHILADELPHIA.- More bank failures.-Resumbtion.-Re- sumbtion has fairly commeced in Philadelphia. At a meeting of the Officers of the different Binks on Thursday evening a resolution was paased to commence in full yesterday some of them paid out specie on Thursday. The failure of the Bank of Penn Township caused a run on Thursday on several others, which ended in the stoppage of the Mechanics Bank, the Manufactures and Mechanics' Bank, and a considerable pressure on the Moyamensing Bouk. We copy the following account of the state of affairs from the money article of the Ledger: Yesterday was a day of great bustie and excitement with the people and two or three of our banks. The run on Wednesday against the Penn Township Bank, though it closed at the usual hour that day, with the ssurence of its officers that it would open and meet ail its demands the follo ving moroins trenched so deeply on its means that it filed to fulfil this promise, and, instead of meeting its demands, it remained closed. The announcement of the failure of the above Bank soon spread throughout the city, and the consequence was a general distrust of the Mechanics Bank, the Manufacturers and Mechanics Bank and Moyamensing. A run commenced on all these soon aftor opening, by their note holders and deposi ors. The Mechanic's yielded to this run a few minutes before one o'clock, and clossed its doors. Though two or three hundred persons were present at the time of this occurrence, those who were inside as well as those who were in front of the builaing. quietly dispersed. The run here was so short that unless the demands were for deposits, the iustitution must have stopped full handed or else was very poorly supplied with means. At the Manufactures and Mechanics' Bink the demand was almost entirely from note holders, and it was kepet up unceasing pressure at all sides of the counter, from the opening of the bank until some time after usual hour of closing. In the evening the D rectors met and come to the conclusion not to open the bank, for "the present." At the Moyamensing Bank the run was later commencing, it creaditors being tolerably quiet uutud about the time of the stoppage of the Mechanics. From that time until about 1 o'clock there wisa heavy press about its doors, and though the demands were numerous, the amounts appeared to be generally light, and almost entirely from note holders. Scarefly a depositor drew out any money - Here, at the manufactures and Mechanic's Book payments were made in funds that the brokers have been dealing in for some weeks, at a discount of from 10 to twenty per cent. This kind of currency tended considerably to check the demand as a numner refused it altogether. It wis a profitable operation for the bank, and its officers seemed disposed to make the m stof i instead of discouraging the run, they rather courted it, and closed the doors only when there was no further demand. Although there were collections around all these institutions, and many held notes on which they expected to be losers, there was no where visible ill feeling or noisy dissatisfaction. All seemed to look up you these failures as in some measure necessary to reach a purer and more wholesome state of things. Around the brokers offices there were clusters of people, but these gentlemen pretty generaliy refused to do much basiness. They, too, evine red much distrust and several of them having been losers recently to considerable amounts, chose to forego seeming profis to incurring the risk of further loss. The resuming banks are the Philadelphia, Commercial, North America, Farmers and Mechanics, Southwark, Northern liberties, Western, Kensington, German-town.