banks in Philadelphia - Philadelphia, PA

Bank Information

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

Metadata

Model: gpt-5-mini
Short Digest: 0d027d57

Response Measures

None

Description

Newspapers from late Sept 1857 report heavy runs and the suspension of the Pennsylvania Bank and other Philadelphia banks during the Panic of 1857. Sources describe a run on banks and an ensuing suspension viewed as a necessary temporary measure; no article here documents a permanent failure or receiver assignment, so I classify this as a suspension with eventual reopening implied. Dates are from contemporaneous dispatches (late Sept 1857).

Events (2)

1. September 26, 1857 Suspension

Cause: Macro News
Cause Details: Banks in Philadelphia suspended payments as part of the wider monetary crisis/panic and in response to runs and suspensions elsewhere (Baltimore, New York).
Newspaper Excerpt: the suspension of the Pennsylvania Bank spread like a prairie fire
Source: newspapers

2. September 28, 1857 Run

Cause: Macro News
Cause Details: Widespread money panic of Sept 1857 and contagion from suspensions in other cities triggered heavy withdrawals from Philadelphia banks.
Measures: Banks suspended payments shortly after heavy withdrawals; tellers coping with incessant clamor for gold.
Newspaper Excerpt: a heavy run prov all the other banks In Philadelphia
Source: newspapers

Newspaper Articles (4)

1. September 29, 1857 Worcester Daily Spy Worcester, MA

Article from Worcester Daily Spy, September 29, 1857

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Article Text

Money and Business. There never before were two such weeks as closed up. on the business of Providence last Saturday. Money continues at unmitigated rates, although the demand slackens under the impossibility of obtaining discounts. There is hardly any cotton in the market, and the manufacturers are working down their stocks, with no dispo sition to renew them under present circumstances. It is impossible longer to raise money to pay the labor; and 8 dreavy winter is before us. Until the news from Philadelpbia and Baltimore arrived, there was a hope that the survivors of this week would goon with an eagier money market; but these suspensions at off a third of the col. lections upon which our banks were relying to their own engagements, and to extend relief to their custom ers. Providence stands now a creditor city. but our collections on New York will not much more than balance the demands upon us from that city, and those further south are cut off by this suspension. It is impossible to till what the result will be, but it is plain that things cannot remain 80 much longer. In one respect the suspession of the banks in Philadelphia and Baltimore will have a good effect They will prevent any further failures of solvent houses, and will enable us to receive in a currency depreciated, yet avail able at its market value, the debts that otherwise would not be raid at all. The immediate effect in both cities was relief; stocks rose, and the rate of interest fell from 24 and 36 per cent. to 12. In Philadelphia, the suspensions appear to have been postponed to the latest possible moment, and the banks gave in only when they could hold out no longer. In Baltimore, the event, although equally inevitable, seems to have been antici pated, by which doubtless solvent parties have been saved, and the paper in which the banks have invested their capital will be maintained. In both cities the suspension has met the approbation of the merchants, not as a remedy. but as a necessity. It was plain that in Philadelphia the 1 anks even after the merchants had broken, could not save themselves, and a postponement would only have made worse when it came, what could not be prevented. Great embarrassment is experienced in forwarding the crops to market from the west. The want of exchange and the lack of confidence are piliag up the wheat, and toreaten to retard it till the close of navigation. This is a very serious concern. The private accounts from New York are less favorable than the published reports. The most serious apprehen sions prevail in commercial circles, and failures are an nounced of houses that have been regarded as beyond the reach of any conlingency.-Providence Journal.

2. September 29, 1857 Evening Star Washington, DC

Article from Evening Star, September 29, 1857

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Article Text

The Monetary Crisis. The money panic continues to be the absorbing topic. On yesterday the principal suspensions were those of the Delaware and Rhode Island banks. The New England banks continue firm. The Boston Journal learns from an authentic source that the net gain of coin in the Boston banks for the week ending Saturday morning was $375,200. The Philadelphia papers of yesterday all comment upon the bank suspension in that city and the effect it is likely to have upon business. They are, however, at variance as to the propriety of an extra session of the Legislature. The Richmond Dispatch of yesterday says : The news of bank suspensions at the North, which came by telegraph last Saturday, created quite a stir in our city, and caused the price of specie to run up to high rates, some of the brohers holding it ten per cent., while others were selling for five." On Friday last, a run was commenced on the Farmers' Bank, of Laneaster, Pa., and was only stopped on Saturday by the suspension of all the banks there. The St. Louis papers of Friday announce that the Bank of Missouri had commenced discounting again, to a large extent, much to the relief of mercantile business. A despatch from New York city yesterday says: Terror seized upon the stock exchange this morning, and the whole list went down from one to twelve per cent. The most extravagant and groundless rumors are affoat, discrediting houses known to be beyond casualty. The presidents of the city banks have issued the following circular: The undersigned having been called upon to give their opinion as regards the effect likely to be produced upon the banks of this city by the suspension of institutions in neighboring cities, reply that it is their decided opinion that the banks of the city of New York are in a safe and secure position. and that they can not only sustain themselves as specie-baying banks, but, from the natural flow of coin and produce to this point as the common centre, soon be enabled to furnish further and more efficient aid to the mercantile community. Signed by the presidents of the Phenix, Merchants', Mechanics', Metropolitan, Union, and other banks. quiet." At the clearing house to-day everything was

3. September 29, 1857 Daily Nashville Patriot Nashville, TN

Article from Daily Nashville Patriot, September 29, 1857

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Article Text

From the Louisville Journal. The Money Paule, The telegraphic dispatches announce the suspension yesterday of the Bank of Pennsylvania and 8 heavy run пров all the other banks In Philadelphia, and some other suspensions of large business houses in the Eastern cities.When this news was first announced here yesterday considerable excitement was manifested in orr mercial circles, We-most earnestly hope that our merchants and business men will not for 8 moment countenance or encourage any exciement on account of these Eastern failures and suspensions. Whatever may be the result in New York or Boston or Philadelphia, there is no occasion whatever for any panic here. Our banks were never in a sounder condition than at the present moment, and, if all the banks in the Eastern States were to fail, the Kentncky banks, and we believe those in Tennessee also, would not be seriously affected. Within the last sixty days the Kentocky banks have all contracted their circulation and liabilities very considerably. They have no specie balances in the Eastern banks that may be jeopardized by the failures there, and although they may not be able to extend accommodations as liberally as the exigencies of our business men might make desirable, yet They are fully prepared to meet and to sostain all the calls made upon them without any apprehension of being weskened by the disasters in monetary affairs in the East. Nearly all the failures and suspensions that have occurred may be attributed directly or indirectly to stock gambling or loans ostock. The banks that have failed have almost with out exception been engaged in speculating in stocks or have been loaning to a large extent to individuals and corporations that have been thus engaged to 8 ruinous extent. Such is not the case here. Our banks are entirely secure from such causes of trouble, and not even our brokers have had anything to do with stock speculations. Our merchants have not overtraded, 88 was the case with those who have been compelled to suspend in the Eastern cities, and consequently not one of the causes which have produced failures and suspensions there can operate here. We repeat it emphatically, there is no necessity for any panic here, and ith a little patience and prudnce we are sure we shall have none. It is true that for some time past the money market has been stringent, more so than it has been for years, but the very causes which have produced this stringency are the sources of our safety now. It has been produced by the contraction of our banks and the entire absence of Eastern exchange. This contraction has strengthened the banks, and Eastern exchange will soon be abundantly supplied by transfers of exchange on New Orleans, now rapidly maturing. We have large balances in New Orleaus; the cotton crop is ing for ward with great rapidity and is immediately taken up by foreign buyers. This will furnish foreign xchange, which issent to New York, and will 8000 furnish an ample supply of Eastern exchange, with which our merchants will be enabled to meet their Eastern indebtedness. Our banks owe it to their stockholders and to the community to convert their Ne Orleans balances as fast as possible into sight exchange on New York. By this course they ill not only do a safer business but will be enabledthe more readily to afford relief the existing pressure. Any other course, under existing oircumstances, would be unsafe and a wanton violation of the of jects for which the banks were chartered. We are glad to learn that all except one of our banks are conver ing their Southern exchanges into sight exchange on the East as rapidly as they OaD. There is another source of relief; but we cannot Xp 0 much fromit immediately. The money panio in the Esst is partly the cause of the holding back of the vast amount of Western produce. When this be gins to go forward it will be amply sufficient to meet the indebtness of the West to the East, and will afford great relie f. While we assure our readers that there is not the slightest occasion, any panic here, We must most earnestly caution them against any course that might produce a panic. If a run is made upon our banking institutions and our brokers are by any run up on them compelled to make unusually heavy demands for specie, a paric may very easily be created without cause, and suspensions may ensue. In this case the public alone would be the lose rs. This has been the case to a great extent in the East. Many of the suspensions there of extensive firms have been thus forced, while the assets largely exceeded the liabilities, all of which will in time be promptly met; but meanwhile public confidence is lost, a panie is created, and the public and not the banks nor the large reantile houses become the losers. We earnestly hope that more prudence will be manifested here, and while we give assurances of perfect safety we call upon our e:tiZOLB to assist each other in maintaining perfect quietness and confidence, by which our present security can alone be maintained.

4. October 7, 1857 Semi-Weekly Standard Raleigh, NC

Article from Semi-Weekly Standard, October 7, 1857

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Article Text

Years. Expenditures on ac't. Gross expenditures. of public debt. $24,336,380 66 $75,354,630 26 1854, 9,844,528 24 66,209,922 04 1855, 12,776,390 38 72,948,792 02 1856, 5,947,796 94 70,826,624 85 1857, 285,339,969 17 52,905,096 22 Total, 52,905,096 22 $232,434,872 95 Expendit'rs exclusive of debt 58,108, 18 23 Average annual expendi'trs, A PANIC ON 'CHANGE-HOT EXCITEMENT-MONEY MINUS.-Ten o'clock, a. m -The intelligence of the suspension of the Pennsylvania Bank spread like a prairie fire. Third street-never exactly a deserted highway-was in a firce state of hubbub. Nothing has ever been seen like it. We had a personal interview with the next to the oldest inhabitaut. He assured us it beat all. Crowds-crowds-crowds! Men zigzagging, twisting, winding, and rushing ahead in impetuous and irresistible currents. Faces long, stern, and as troubled as a mill pond in a gale. We observed one man with a slight smile on his countenance-he disappeared swiftly-he had drawn all his money in golders of the denomination of ten. Noon.-Excitement steadily on the increase.Street a seething mass of humanity. Everybody afraid of everybody. No positive knowledge in any quarter concerning who's who. Terrible time at the banks. Incessant clamor for gold. Tellers in a perspiring condition-individuals in strings long drawn out, with determined visages and checks tightly clutched in their hands. The man who said he rather thought there was "a better feeling" this morning, took an omnibus and went home, avowing his intention of staying there till things took a better turn. His coat was buttoned all the way up-his face was as elongated as his cane. One, p. m.-Things getting no better very fastFever spreading through the city proper and suburbs. A broker became so worked up, that he covered his shirt-cuffs with numerical calculations, asked a beggar-woman after her family, and fadedrunning to coat-tail. Immense number of policemen make their mysterious appearance-terribly important and business-like-charge on some apple women--harrow the souls of omnibus drivers-and irrigate at short intervals. One and a half, p. m.-A wan, although intelligent lazarone-a small boy, tattered and slimy-absolutely has the sublime impudence to request of our reporter the loan of ten cents, to go to Germantown! Our reporter glares, and makes a note with a redlead pencil. Two, p. m.-A dispatch asserts positively that Red Bank is in a sound condition, despite of any malicious rumors to the contrary. Two and two-thirds, p. m.-A very little bit easier. Parties who have money aer advised to keep it; parties who have not, are advised not to spend it. Run, boy of short coat, run ! Our task is truly done. The Very Latest.-Our reporter has sixteen cents. He means to get it changed into gold, and put it in a stocking-not in a stock ! Go thou and do likewise !-Philadelphia Evening Journal.