19226. Western Bank (Philadelphia, PA)

Bank Information

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

Metadata

Model
gpt-5-mini
Short Digest
2d80cc44

Response Measures

Partial suspension

Other: Banks collectively ceased specie payments, certified checks, issued due-bills; police stationed to control crowds.

Description

During the Panic of 1857 Philadelphia banks (including Western) were besieged by crowds seeking specie; banks then suspended specie payments and limited redemptions (e.g., redeeming $5 notes only). No article indicates a permanent closure or receivership for Western Bank, so episode classified as run → suspension with later reopening (typical outcome). Dates taken from contemporary newspaper reports (Sept. 26–28, 1857).

Events (2)
1. September 26, 1857 Run
Cause
Macro News
Cause Details
Panic stemming from wider financial crisis and news of suspensions in other cities (Baltimore, Reading, Pittsburgh) creating heavy withdrawals.
Measures
Banks restricted specie payments (requiring two weeks' notice for deposits), limited redemptions (redeeming $5 notes only or specie in cases of necessity).
Newspaper Excerpt
The Banks were besieged before 10 o'clock by anxious and excited crowds.
Source
newspapers
2. September 26, 1857 Suspension
Cause
Macro News
Cause Details
Collective suspension of specie payments by Philadelphia banks in response to the financial crisis and runs following reports of other banks suspending (Baltimore, Reading, Pittsburgh).
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...
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 28, 1857 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, September 28, 1857

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Article Text

Mechanics Bank, Western Bank The of Bulletin Saturday afternool Philadelphia in been consultat has done. says Bank Presidents although have believe that definite they some and reason to have theed this aftern fternoon, there is steps which will of spect about take confidence. that the suspension by like Reading move here has been The followed Farmers Bank bank in Read course Baltended Baltimore The other of Pennsy bank of the Bank with the prit pincipal Levislature, the Branch chartered by the last from which Union Bank petterior of the State The yet gone into the interior are allowing the doubt the have places any account accounts. and the in the can state be of Ponn which we Philade "serv Iphia, every bank pa ements stand this time nded specie compt by to with The , a have been brough and price nominal money panic, comp etely Reading Railroad by the are were in The rate York in exceptions. transactions sixes at si little effect cities rates only and but City this had very beth between the Exchange black there are no quence of the anything nears to be lost The Money mark et, Confidence Adence fo the of the have than the Banks Banks aspect run upon rated Baltimore out and has the been of the generally are paying notes The that Banks but not for receiving wilver They nothing exempended for $0 notes, notes. also else. The hr but city higher checks on scount deposit paper and are for current efuse for exchange aging specie New York EX funds heavy shave that appeared in or the more Philadelp The report into one of the suspe untru and was to of the this causes city is entirely by the fact heav that & Co. solely are very to Levy October utterly impos impossible things That susper notes maturing it would be condition of suspend their they money found in the giet liabilities, things they here, very raise than incur hea all familiar with of the house Exp Rather Every aware oue at that the liabilities. assets The ess very should incious, taken we make and it up here must creatly baseless quite exceed rumors is to the like that of gretted the that they much tisfac tion to annout be times eagerly like the present, have.and Pollock and has issued hi Juction whatever since good that Gov that the Comm the State source of the the last three thousand thousand Sinking Fund report years, through eight that hundred cents of debt one for million, forty-to dollars and sixty-fou by th by of fifty weven This has been the market price the laws rehase 042,85 of State stocks relief at notes, under all its the cancellation 1852 and 1853. America is paying New York last than the The Bank of North specie from now more jo their are having received having bills They evening notes, and conresents amount of their for Aves: Com vaults certifying checks banks pay facturers specie and for Mechan tens here ties and Libert Inhia, Mant paying specie fives, 1: Philade Mecha West paying necessity and Ivanis City Pennsy Consolidator All except checks is which The Bank nothing. certify ing their business en Bank the Banks are now suspending deposits th a tirely the Girard, are refusing has to receive been produced by Safe Additional Banks itement this morning The Tradesman and all counts from Baltimore Bank is paying dvices the that say of Bank Readi Private adv nded. have suspet to all pay continues bills. The only THE IN SUSPENSION and The Pittsburg Sout Kensington wark Bank Bank MALTIMORM. pays The of the by specie ayment enspension Banks and other banking institutio it cert vania rendered Pennsy be demand th made would upon for and banks coin, called would to meet upon draf and the where, without The of the Farmers The Patriot meeting was due adopt in the perte the They that the object their on their no other under expect the good deal of change, could suggest at value the par be want small again put remedy There sienced for that Spanish coin This would the extent. of bank the We of the den This would add evil to the greatly in checks. notes dollars. esidents of the issuing and nine sums and in the substat volution morning passed by states in The this momand specie of the Banks enspend COD viction ability their decision bsolute of their that under of our Banks, and which end the Implic who sume will be day carefully upon this banki inst submit safe and are fectly therefore should they the Banks be play hold the notes to Josees, our and sure feel inves tations easy that of will our banks in to It is It what length are of unable time to act say ivitately sections AS suspension we they will not and other hoped, in howe giving cantage others, over them. now at ease. resuming thus ad men may they look justly our whilst with forward restoration with the count merchants undue and toration business fulnesss to th an intr. banks involves of future suspension of ference our to institution. the violation This. The suspended in new the respected. protect cate question Hoder the have assume med which greated, them 80 charte would seem, but they the same power and sustain much for the doing; are confide and in hazard rding community. speal cause, of out entire column, just welfare in its says Balt general same paper, of the suspension, by the is ing The of the effect of specie payment has complete unset ful seems in The banks suspethis suspension morning market The move, All ability have prudence run more tled the to meet set mone their universal entire approval whindness may dictate. and upon them approved was very by our decidedly infidence crume at little any community excitellite time ment. fully and and banks tirely afford mo The business course adopte and has given generally Money rates relief bate the all round, to affairs to riveany exact on the Nort has advance cheer ful aspect we are unable Exchange for discount anced, but but no promium, easier. but or street prices. greatly regular rates D commands have been fixed. PANIC IN WASHINGTON has the foll to th The Star of THE Saturday afternoor, was that city ink This morning all the banks creating in Baltime ras upon those pay ment, informs information ore had suspe in th mecie

3. 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.

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

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# 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.