19241. banks of Philadelphia (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
4b7b3be5

Response Measures

Full suspension

Description

Newspaper accounts describe heavy withdrawals (a run taking about $1.5M) on Sept. 26, 1857, followed by coordinated suspension of specie payments by Philadelphia banks the same day. Later sources (Feb 1858) report formal/virtual resumption of specie payments. Multiple individual banks are discussed (e.g., Mechanics' Bank) but the articles treat the event as a city-wide suspension and later resumption.

Events (3)
1. September 26, 1857 Run
Cause
Macro News
Cause Details
Part of the nationwide Panic of 1857 (failures such as Ohio Life & Trust and general financial panic) produced heavy withdrawals from Philadelphia banks on Sept. 26, 1857.
Measures
Many banks redeemed smaller notes only; officers opened early and paid small note holders; banks declined to cash depositors' checks but marked them 'good'; some banks (e.g., Mechanics' Bank) paid their notes in specie.
Newspaper Excerpt
The run yesterday took about a million and a half of dollars out of the vaults of the different institutions
Source
newspapers
2. September 26, 1857 Suspension
Cause
Macro News
Cause Details
Coordinated suspension as a precautionary/defensive measure in response to the financial panic and heavy withdrawals; Baltimore and Washington banks followed suit.
Newspaper Excerpt
the banks of Philadelphia have partially, and in some instances wholly, suspended specie payments
Source
newspapers
3. February 4, 1858 Reopening
Newspaper Excerpt
The banks of Philadelphia have virtually resumed specie payments. No difficulty is experienced in obtaining gold and silver at any of them. It is probable that a formal and general resumption will be announced in the course of a day or two.
Source
newspapers

Newspaper Articles (14)
1. September 26, 1857 The Washington Union Washington, DC
Article from The Washington Union, September 26, 1857

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WASHINGTON CITY. SATURDAY EVENING. SEPT. 26. 1857. BANK SUSPENSIONS IN PHILADELPHIA, BALTIMORE, AND WASHINGTON. By referring to the telegraphic column it will be observed that the banks of Philadelphia have partially, and in some instances wholly, suspended specie payments. As a matter of precaution-it i is 80 alleged-the banks of Baltimore suspended specie payments to-day ; and from the same cause a similar course was adopted this morning by the Patriotic Bank and the Bank of Washington of this city. It may reasonably be expected that a large number of new and irresponsible banks in the North, East, and West, taking advantage of the general panic, will nominally refuse to part with what they really do not possess. The sooner these worthless institutions are out of the way the better it will be for all classes of the community. As a general rule, the southern banks are in a sound condition; and, with large and increasing resources at command, they will be able, with few, if any, exceptions, to weather the present storm with undiminished credit. The condition of the banks in the city of New York is such as to warrant the belief that their resources are fully equal to meet existing emergencies. Their strength will force the suspending banks into liquidation or the speedy resumption of specie payments. Looking at home, we can see nothing in the financial affairs of this city to warrant alarm or distrust. Our citizens are not suffering from the effects of overtrading or over-speculating; and the cash means of our banks are not locked up in protested paper or the depreciated bonds and stocks of "fancy" railroads. At no period in the history of our city was the condition of our merchants, hotel keepers, mechanics, traders, and real-estate owners more prosperous and promising than it is at the present time. Never before were clerks, journeymen, and laborers as liberally and promptly paid as now; and we venture to say that the balance-sheets of our banks show as large net profits for the past year as for any previous year of their existence. Compared with Baltimore, Philadelphia, New York, Boston, Cincinnati, or any other northern, eastern, or western city, the financial condition of Washington should be a source of congratulation instead of a cause for alarm. But still, with all our substantial means at command, with general freedom from debt and general well-paid employment, we are free to confess that a money panic and a money crisis can be soon got up in the federal capital, if our citizens desire such an expensive luxury. Let each distrust the other-let the usual money accommodations be withheld-and let all engage in the confidence-imparting business of withdrawing specie from the banks and the ordinary channels of trade for 'hoarding" purposes, and not many days or even hours will elapse before the business men of Washington are suffering as their brethren of New York and Philadelphia now suffer. Let the citizens of Washington have a true, realizing sense of their really prosperous condition, and the troubles which they invoke by their fears and distrust will not come near them. A "run" was made on the Bank of the Metropolis to-day, but it was met so cheerfully and promptly by the custodians of its well-filled vaults, that confidence was soon restored to depositors and noteholders.

2. October 1, 1857 The National Era Washington, DC
Article from The National Era, October 1, 1857

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THE BANKS.-The suspension of the banks of Philadelphia caused quite an excitement in Baltimore. The Sun of the 28th says: "The fact that the banks of Philadelphia would suspend specie payments on Saturday, was announced in the Sun on Saturday morning. The effect of this news was anticipated with wonderful promptitude by the banks of Baltimore, the principal officers of these institutions having assembled at an early hour on that day, for the purpose of deciding on a uniform course of action. The process of deliberation was brief and decisive; but we have only the following report of proceedings furnished for publication: "Baltimore, Sept. 26, 1857.-At 8 meeting of the Presidents of all the banks of the city of Baltimore, this day"On motion of Mr. John Hopkins, the follow. ing resolution was adopted : "Resolved, That the banks of Philadelphia having suspended specie payments, it is necessary for the protection of the interests of the city of Baltimore, and of this State, that our banks suspend also. "This decision is made under an absolute conviction of the entire soundness of our banks, and of their ability to resume at an early day, to which end the business of the banks will be carefully conducted." As a matter of course, the banks of Washington followed suit, and stopped specie payments temporarily. No one, we believe, doubts their soundness, however.

3. October 2, 1857 Cooper's Clarksburg Register Clarksburg, WV
Article from Cooper's Clarksburg Register, October 2, 1857

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Siturday last throughout the country reader the day memorable. The monetary storm which for weeks had been impending reached its crisis on that day. It had long been anticipated by many whose interests were likely to be seriously affected, and preparations to meet it had been made far as it was possible to do so but the turn which affairs have since taken through the suspension of the banks has warded off the calamities to mercantile and mechanieal interests which othwise might have ensued ere long. The banks of Philadelphia, as agreed upon at the meeting of the several officers held on Friday evening, suspended specie payment on Saturday morning. This was followed on the same morning by the several banks of Baltimore-not because of any extraordinary run on them or exsitement in the community, but purely from motives of defense, as the occurrences at Philadelphia the previous day had already influenced a simultaneous movement from the East and the West, and to some extent from the South, for A withdrawing specio from Baltimore. very large amount of drafts, it is understood, were there from New York and Philadelphia on Saturday morning, in the hands of parties with the instruction to obtain coin, while the western balance still here was being called for in the same way through the aid of the telegraph as well as by letter. The suspensions here and in Philadeldelphia were soon followed by banking Institutions in Washington city, and Pittsburg, Reading, Harrisburg, and various other cities and towns in Pennsylvania. In New York and Boston, how. ever. the banks continue specie payment. The Philadelphia Bulletin, of Saturday afternoon, has the following account of the "doings" in that city on Saturday The excitement about the city monetary institutions continued this morning but the terrorists belonged to a different class from that which was prominent on Friday. The run yesterdy took about a million and a half of dollars out of the vaults of the different institutions, and the presidents of the various banks met yesterday afternoon and determined to redeem their smaller notes only to-day. This determination was genenally known last night, and to-day it was announced through all the newspapers. This morning the people who do not read the afternoon papers first learned of the run, and every individual of this class who bad a five dollar bill stowed away for a rainy day became uneasy for fear of the consequences, and they rushed down bright and early to the neighborhood in which the banks are located. THE SCENE ABOUT THE BANK DOORS. Long before business hours crowds of persons gathered upon the steps of the principal banks, and leaned up against the doors as though they were impressed with the conviction that there were barely funds inside sufficient to meet their demands, and unless they were quick getting inside some fortunate individual would obtain the coveted gold. Among the throng were numerous women, too, who were alarmed at the reports which were flying about thick and fast. In several cases the doors of the banks were opened before the usual time, and females and infirm persons were invited inside by the officers of the institution. When 10 o'clock arrived the doors were opened to the public, the scene was amusing the people described rushed up pell-mell to the teller's paying counter and impatiently awaited their turns. As the great majority of the banks redeemed their smaller bills, these frightened note holders were soon relieved of their paper and of their fears, and they went upon their way rejoicing, All this was accom plished without much cost, for very few of these early birds had more than a single five dollar bill to offer, and a very lit the specie went a great way in satisfying their claims. WHAT THE BANKS ARE DOING. All the banks decline to-day to cash depositors' checks, but they all marked them "good," and their checks were used in payment of bills and taken in deposit by other banks. The Mechanics' Bank paid all its notes in specie, and there was little or no rushing to the teller's desk. At the door of this institution the follownotice was posted : MECHANICS' BANK, Philadelphia, Sept. 26. 1857. This bank will pay all its circulation. Depositors' checks will not be paid, but will all be marked "good," and checks so marked by other banks will be received in peyment of debts due this institution.

4. October 6, 1857 Arkansas True Democrat Little Rock, AR
Article from Arkansas True Democrat, October 6, 1857

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The Philadelphia Banks In another column will be found an account of the suspension of specie payments by the banks of Philadelphia. The subject is a momentous one. While New York is the chief importing, and New Orleans the chief exporting, Philadelphia is the chief distributing city of the United States. Its connections with the south and west are numerous, and, on all previous occasions, a suspension of specie payments by the Philadelphia banks has been the signal for a suspension through a large part of the Union. What will be the result, on the present OCcasion, we shall not attempt to predict. We see by a still later dispatch that the Baltimore Banks have also suspended, and that the banks of Washingron City are in no better condition. A few weeks more will show how far the calamity will extend. How far the south will be able to hold up under this general crash at the north, it is impossible for us to predict. The south, we think, is in a solvent, healthy condition, and the banks of New Orleans, we trust and believe, will be ablesuccessfully to weather the storm. The people of Arkansas, having no bank of their own, will suffer less than the people of any other State, but yet will feel sensibly the effects that will follow from a general derangement of business in other parts of the Union. The losses men are made to bear in the shape of a discount on bank notes, though great, are among the smallest losses inflicted on a community by a suspension of specie payments. Such an event deranges all the relations of supply and demand, checks enterprise, and puts an end to all the operations of legitimate credit. Twice already has our country passed through this dreadful ordeal. This is the third time; but it will not be the last, unless an effective remedy be applied, by putting an end to the issue and circulation of all bank notes of a less denomination than twenty dollars. Even in this amendment, our factitious banking system would inflict great evils on the community; but we should then escape that peculiar class of evils which flow from a general suspension of specie payments.

5. October 9, 1857 The New York Herald New York, NY
Article from The New York Herald, October 9, 1857

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001 38 vesant Stuyesant Fire Insur sace Insurance Etna Fire Insur Insurance ance Co. 93a 100 At the second board the market was lower throughout. Virginia 6's fell off one per cest; Illinois Central bonds, 2; American Exchange Bank, 5; Park Bank, 9; Pennsylvania Coal Company, 2; Illinois Central Railroad, 3; MIT vankie and Mississippi, 1; Reading, 3 Date ware and Hudson, 1; New Haven and Hartford, 2; Erie, 1/4. The principal feature of the market to day was the great decline in bank stooks. The fall has been enormous The banks must be heavy losers by the umerous heavy failures. The Sheriff walked into the office of the wankie and Mississippi Railroad Company this morning. seixed all the books and papers, looked them up in the safe, put the key in bis pocket and walked off, leaving a net or astonished individuals to find out at their leizure what 11 all means The company appear to be just now in a bad way The failure of Bower, McNamee & Co., silk merchants. was *** unced this morning. Having a large ospital, and immense nominal reson resources, this house has struggled along, determined to go on If possible, at any sacrifice; but the country collections from 000 $10,000 a day having run do to just about DO bing at all, It was found utte dy impossible, under the present state of the money market to pay both sides of the bill book any imger, and . day or two since II became apparent to the connarn that it mus. sus suspend. temporarily The house shows. we understand asurpius of 1,200,000, and proposes paying in Tall, to oligi and interest. The immediate and direct cause of this suspension is the atter confusion in which the do mestic exchanges of the country are at this moment in volved. Their customers at the West write that they they have the funds in hand to pay their notes due here, but that " is impossible to get exchange at any price. We understand that Mesurs Harper & Brothers, book publishers, finding, in consequence of the disorganized state of the domestic exchanges, that they could not effect collections from their country customers without a ruinous loss, decided to day to suspend pay ments until the internal commerce of the country shall be again on such a footing that debis due in the distant cities can be made available at New York. We have reason to balieve that the assets of the firm exceed its liabilities by upwards of a million of dollars. Proposals for a loan of $1,700,000 were advertised for by the Water Commissioners of Brooklyn in August last, pursuant to an not of the New York Legislature, passed February 11, 1857. The bids were to have been opened to day at o'clock P. M., at the office of Corning & Co 63 Wall street; but no bids at all were forthcoming. The terms of the loan were six per cent bonds of the city of Brooklyn, and the terms of payment cash for the whole amount offered, or twenty per cent in cash-twenty per cent, payable November 2, 1857; twen'y per cent, payable December 1, 1857; twenty per cent, payable January 2, 1858; and twenty per cent, payable February 1, 1853-the purchaser to pay all accrued interest on the bonds to 1st of October, and the first payment to be reserved as coliate. ral security for the fulfilment of the contracts. The merchants of Bost n and Philadel have held meetings to take into consideration the condi ion of financial and commercial affairs, and to devise ways and means to alleviate, and if possible remove, the pressure At each of made of were these the reral : lead meeting speeches by ing merchants, and a general opinion excressed that the worst of the revultion was over. There the matter was ended. The pressure goes on, the banks pursue steadily the policy first established, failures take place daily, the scarcity of money is not relieved, and we are steadily pro gressing towards the point where all financial revulsions avariably land us. All sorts of remedies are proposed for the immediate removal of all our difficulties, but none seem to be popular, even in theory. Pablic meetings of the mer. chants do not amount to much in such times as these. A careful examination of the list of directors in our banking institutions will show that these m. neyed concerns are managed by our leading merchants. There is hardly a prominent merchant in the city who is not a director in some bank, and their best judgment is brought to bear upon the most important questions of the day, connected with the present revalsion, in daily consultation in the different bank pariors. The course of the banks is the result of the private consultations of these men, and when this is considered, we must take the speeches and the suggestions of the same parties, when in public, with a great deal of allowance. As acts speek louder than words, the action of these very men in the bank pariors should be taken before their speeches at public meetings, which really mean nothing, and are in. tended to allay for the moment any undue excilement As for the banks, we do not see how any sensible man-how any man not utterly regardless of the real interests of the city, and of the vast importance of sustaining these great interests-can for a mcment find fault with the conserva Ive policy these institutions are cow pursuing. We have only to look at the city of Philadelphia and the city of Bal timore to are the withering, biighting, terrible effects of a suspension of specie payments on the part of the banks, to learn such a lesson as can never be forgotten. Every sound business man, every man having at heart the true welfare and presperity of his native or adopted city, every man having the least pride in the prospertiv, credit and growth of the city in which he lives. must be willing to submit to the most serious sacrifices to preserve the fair fame and good rame of that city. We have no doubt that the people of Philadelphia and Baltimore to day would will lingly have sacrificed one half the commercial com munity to have preserved the public credit and the character of their banking institutions. They #00 now how much they have lest, and what a long, tedious, difficult matter It wi be to restore them again to their former position. It will, at the best, take years, and never again can the banks of Philadelphia recover what they ap parently so indifferently parted with. They must here after rank very low in the scale of credit, and have lost all power wer and influen ce in the financial world. The people of that city keenly feel the effect of the bank suspension, and are justified in the expression of such sentiments as were ultered at the public meeting of citizens a few days since There is class of people in this State who would gladly see our banks suspend-who are selfish enough to look solely to their individual pockets, perfectly regardless of public character or public credit. They are too narrow contracted in their views and ideas to look beyond the bearing upon private interests, and do not seem to under stand that the prosperity, growth, strength, wealth and position of the city, as great financial centre, will be sus tained and guaranteed more by preserving the credit of our banking institutions than in any other way. No saori fices are too great to accomplish this great object. We are now in the position of a besieged city, and the question is whether the city and the great bulk of people and proper ty in It shall be preserved by the sacrifice of a few lives, or whether the whole shall be given up to pillage and des true iom. The few that fall in defence of our character and our credit, M the fisancial and commercial metropolis the to = must be cause. will martyrst the of general Union, be 10 in all contests and struggles for great principles, whether of a political, financial or commercial nature. We have no particular regard for the banks. Our sympathies de not take that direction. Upon the contrary, we look upon them M useless, dangerous institutions; and any com. munity is much better off without them. We have op posed time and again their policy, and at the proper time shall doubtless do so again. M mths and m withs age, when they were expanding at the rate of one and two millions a week, upon a stendily decreasing specie reserve, we were loud in our denunciations, and predicted just what has since been realize i. We are not as all friendly to the banking

6. October 23, 1857 The Daily Gate City Keokuk, IA
Article from The Daily Gate City, October 23, 1857

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Affairs South. At the commencement of the pressure, the Southern papers werefull of exultation that their portion of the country had escaped the shock, and was sailing along 80 grandly and serenely in the midst of a sea of difficulties. The reason was attributed to their peculiar institution. Commercial affairs were steadied by it. Industry and all things dependent upon it were preserved in steady equipoise by the conservative influence of Slavery. They had little of the bustling industry of the North, it was true, but they had also little of the unhealthy excitement and reckless speculation consequent upon the display of such boundless energies, and the rapid development of material resources and enhancement of values. Their progress was slow, but uniform and certain, The non-excitable character of their population, and the unvarying amount and value of production, secured them against the consequences of feverish excitement and commercial disaster. In the midst of danger, more than ever did Cotton prove itself King, and, sitting upon their big bales, the lords of a servile race could laugh to scorn the perils that surrounded them. This sort of thing had some plausibility to a superficial thinker and a hasty observer, though it never was supported, in fact, by even temporary evidence, and its sole foundation was local vanity. If Baltimore, Washington, Richmond, and St. Louis are Southern cities, the argument is certainly fallacious, for they were among the first to feel the pressure of the times,-Baltimore and St. Louis being among the very first, and among the number that have been the most severely distressed. If it be replied that they are in some sense Northern towns, observe how rapidly the troubles spread to the extreme Southwest, to the very midst of the profoundest repose with which a brutish industry has blessed the land. Quick upon the suspensions of Philadelphia, while yet the banks of New York continued to pay specie, followed the bank suspensions of Charleston, Savannah, and all the chief Southern cities; and the banks of New Orleans and New York closed simultaneously. Three weeks ago New Orleans was wallowing in gold. Now money is worth two per cent. a month in the Crescent city, and Savannah and Charleston are almost as "hard up" as a paper town OR the Western frontier. The South, as a section, taken together, felt the pressure as soon and as severely as the North. It will feel it for a longer time, for it has not the recuperative energy that the North enjoys in its unfettered industry, in its Intelligent and skillful laborers, free to change the charaeter of their employment and to flock to any any field that promises remuneration. And they have yet one blow to feel, the first force of which will be spent upon them, and which will affect us only through their distress. Cotton is a good crop. It commands a certain market, specie funds, and a high price. But the South lives full up to the average value of its great staple, and cannot afford to see the demand diminished or the price reduced. It has got to see both. Wait till cotton falls, and the demand is cut off one-quarter to one-third, and you will see sights." CONCERT POSTPONED.-In consequence of the inclement weather, the concert of the

7. October 24, 1857 Worcester Daily Spy Worcester, MA
Article from Worcester Daily Spy, October 24, 1857

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CALEB CUSHING IN DEFENCE OF CRINOLINE. Mr. Cushing, who has so many titles in so many departments of public honor, that we omit them all and call him simply Caleb, in a speech before the Massachusetts Mechahio Association, came to the defence of the ladies in the following gallant style, as reported in the Boston Transcript "For example, it is quite common to assail the ladies, and to ridicule and reproach their taste for dress, personal ornament, custom of life, as one of the responsible causes for the present commercial crisis. I utterly deny it. I would like to break a lance with any gentlemen in that quarrel. I will go further, and run the risk of paradox, in saying, that, in my judgment, the prevailing female costume is not only graceful, but, relatively, to other fashions which have preceded it, convenient, and therofore justified by considerations of utility as well as beauty. Apart from that, I confess I have been amused to observe how much of undue importance, in the great sum of our wealth, industry, and commerce, has been attributed to the extra flounces and furbelows of the ladies. It is, in truth, a matter which enters for a mere bugatelle into the complex questions of imports and exports, and that is all. Did the silks worn by the ladies produce the failure of the Ohio Life and Trust Company? Did their superfluous laces and muslins break down the IllinoisCentral Railroad? Did their voluminous skirts stop the wheels of the Erie road? Was it a fancy of theirs for cakes and sweetmeats which raised up or pulled down the speculative prices of sugar and flour in the United States? Was it their kid gloves, and Lilliputian bonnets, and slippers, which occasioned the embarassment ot the great dry goods commission houses of Boston, and the suspension of the banks of Philadelphia and New York ? Absurd ! I confess it shames me, as a man, to hear so much of the profusion of ladies, in view of our own way of life. Most assuredly, Mr. Fitz Fivol, with his champagne, his cigars, his fast horses, his yachts, and his other fancy pastimes, has no right to complain of the fine robes, the broidered kerchiefs, and the bijouterie of Miss Flora McFlimsey. She will discover that she is in want of nothing to wear quite as soon as he will find anything useful to do; for even she has a warm woman's heart beneath all the point lace and moire antique, in whose mysterious volume her fair form is draped and if he did but know how to reach that heart, he would see her as prompt to please by frugality as by luxury, and proud to make any sacrifice of fashion at the voice of duty and of love, But all the follies of all the Fitz Fivols and Flora McFlimseys in the land, are as nothing, in effect, on the financial condition of the United States; compared, 1 will not say, with a war in the Crimea or in India, for that we do not and cannot have-but, as compared with a few cents per pound or yard of rise and fall in the price of the cotton of Carolina, the corn and wheat of Illinois, or the freights and manufactures of Massachsetts and their follies have had no appreciable influence in producing the actual break down of the credit system of the United States."

8. October 30, 1857 Wilmington Journal Wilmington, NC
Article from Wilmington Journal, October 30, 1857

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# Caleb Cushing on Crinoline and Hard Times. In Faneuil Hall, on the 14th inst., ex-Attorney General Cushing delivered an address before the Massachusetts Charitable Mechanics Association, in reference to the sentiment:"Our Country--Glorious for its science, glorious for its arts, and still more glorious for its public men." In the course of his speech, Mr. Cushing said: I doubt at any rate in the breadth of its ordinary statement, the truth of the current doctrine of assumed profusion of living as the evil of the times, or contracted retrenchment as its remedy. I think both the evil itself, and its remedy, lie deeper in other causes and acts, which it would be out of place to attempt to unfold here at the festive board. For example, it is quite common to assail the ladies, and to ridicule and reproach their taste of dress, personal ornament, and custom of life, as one of the responsible causes of the present commercial crisis. I utterly deny this. I would like to break a lance with any gentleman in that quarrel. I will go further, and run the risk of paradox, in saying that in my judgment the prevailing costume is not only graceful, but, relatively to other fashions which have preceded it, convenient, and therefore justified by considerations of utility as well as beauty. Apart from that, I confess I have been amused to observe how much of undue importance, in the great sum of our wealth, industry and commerce, has been attributed to the extra flounces and furbelows of the ladies. It is in truth a matter which enters for a mere begatelle into the complex question of imports and exports, and that is all. Did the silk worn by the ladies produce the failure of the Ohio Life and Trust Company. Did their superfluous laces and muslins break down the Illinois Central Rail Road? Did the voluminous skirts stop the wheels of the Erie Rail Road? Was it a fancy of theirs for cakes and sweetmeats, which raised up, or pulled down, the speculative prices of sugar and flour in the United States? Was it their kid gloves and lilliputan bonnets and slippers, which occasioned the embarrassment of the great dry goods commission houses of Boston, and the suspension of the banks of Philadelphia and New York? Absurd! I confess it shames me, as a man, to hear so much said of the profuseness of the ladies, in view of our own way of life. Most assuredly Mr. Fitz Frivol, with his champagne, his cigars, his fast horses, his yachts and his other fancy pastimes, has no right to complain of the fine robes, the broidered kerchiefs and the bijouterie of Miss Flora McFlimsey; she will discover that she is in want of nothing to wear quite as soon as he will find anything useful to do; for even she has a warm woman's heart beneath all the point lace and moire antique in whose mysterious volume her fair form is draped; and if he did but know how to reach that heart, he would see her as prompt to please by frugality as by luxury, and proud to make any sacrifice of fashion at the voice of duty and of love. But all the follies of all the Fitz Frivols and Flora McFlimseys in the land are as nothing, in effect, on the financial condition of the United States, compared, I will not say with a war in the Crimea or in India-for that we do not and cannot have-but as compared with a few cents per pound or yard of rise or fall in the price of the cotton of Carolina, the corn and wheat of Illinois, nor the freights and manufactures of Massachusetts; and their follies have had no appreciable influence in producing the actual breakdown of the credit system of the United States. At such a time as this, at any rate, when so many thousands of industrious men and women in Massachusetts are deprived of occupation and of means of support, by the curtailment or suspension of work in the great manufactories of the State, although for them retrenchment is necessary as well as duty, yet it is not so for those who, with wealth, possess assured means of subsistence. Why should they retrench, when every article they consume is of diminished price? It would be especially unwise for them to do so, at a time when every item of personal expenditure which they may cut off will but serve to aggravate the evils, by contributing to impede the circulation of money, by increasing the superabundance of unemployed labor, and by multiplying the causes of poverty and crime, and in the long run subject them to larger expenditures of almsgiving and taxation. At a time like this, in France, for instance, there would be succor to labor by great public works of the Government, such as the addition of a new quadrangle to the Louvre or the Tuileries. We cannot in this way combat the effects of a stricture, as it is called, in the money market. But we can, so far as we possess the means, continue our accustomed train of life; persevere in well devised and well directed enterprises; keep so far as possible, our ships and our looms in action; preserve, unmoved, the great landmarks of our industrial prosperity; and stand ready to start anew when proper time comes, as come it soon must, all the great movements of production of commerce throughout the Commonwealth.

9. February 3, 1858 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, February 3, 1858

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Money Matters. The dullness in our stock market is unrelieved, but prices continue steady. While there continues to be decided activity at New York, with some enhancement of prices, the market here was never more spiritless. The accumulation of capital at New York is such that it seems they must need employ it in some way, it only in speculative operations, in many instances to actual values. Such is not the case in Baltimore however. Here the banks continue in a suspended state, and may not generally resume, as far as we can learn. for a month yet. Until this step is accomplished, there will be little change for the better in our midst. Things must remain in statu quo until resumption takes place, as all move cautiously in reference to that event. The banks of Philadelphia, we see it stated in a New York journal, have virtually resumed specie payments, and receive large amounts of specie over their counters, and pay every one in specie who demands it. There the money market is easy, at 8@9 per cent. on prime paper. Here in Baltimore it is 10@12 per cent. on the same class of paper The facts speak for themselves. The present minimum rate of discount, 5 per cent., to which the Bank of England reduced on Jan. 15, is just one half the figure which ruled previous to Dec. 24, and the lowest point touched since the 6th of October, 1856, a period of more than fifteen months. This is a striking change in the money market to occur within the brief space of about three weeks. Large amounts of bullion have been flowing into the coffers of the bank, for which there was very little demand, and it was evident that the position of the institution was strong enough to warrant the reduction, which was precipitated, too, by the fact that good bills were being discounted in the open market at 41@5 per cent. while the bank was charging 6 per cent. A further reduction is anticipated, but this will depend upon the continued influx of bullion for a few weeks-a result. however, which we may count upon with certainty, taking shipments from this side of the water as an indication. The importations at New York. since January 1st, amount to $5,085,644, against $15,090,801 in the same time last year. The export (exclusive of specie) amounts to $3,323,728, against $3,213,725 in the same period of 1857. Decrease of imports thus far this year $8,200,187. Increase of exports thus far this year $110,004. In favor of this country $8,310,191. We have besides shipped about $4,400,000 in specie last month more than in January last year.- Bult. Sun.

10. February 4, 1858 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, February 4, 1858

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on the arrival of Judge Burnett from his gest at Sie Jose, in the county of Santa Clara. By this decision the last and only remaining question relating to the strupption of the debt, viz: mode adopted has been defin bely set led and no further doubt or cavil is possible. That he peoples by a majority vote, could fegalize the debt was never questioned in any quarter entitled must be to clear consideration: and plain, and but as in the,point financial was matters raised all . judicial opinion was reudered necessary. From the con mencement we were confident that the Court would decide just as they have. The new write will non be immediately issued. Mr. Pbilander Welle, for forty-three years connected with the Farmers' Bank of Troy, has resigned his post as Cashier. Mr. Chas. P. Hartt, Cashier of the Mas. ufacturers' Bank, has been elected his successor. The Philadelphia Inquirer thus confirms our state. ment made somedays since: " The banks of Philadelphia have virtually resumed specie payments. No difficulty is experienced in ob. taining gold and oilver at any of them. It is probable that a formal and general resumption will be ss. counced in the course of a day or two. There is, 5. deed, no practical impediment in the way, and the public are fully prepared for such a movement. There is a moderate demand for Treasury notes at 101 per cent discount. A proposition is before the United States Senate to prevent the Issue and circulation of bank bills in the District of Columbia. There are at present so ohar. tered banks in that District; and those banks doing business as such have no privilege of circulation. The Norfolk Argus states that the mission of the Hon. Wm. Ballard Preston, in behalf of the Virginia and Western Railroad, has been successful. Mr. Preston has succeeded in making arrangements with the Paris and Orleans Railroad Company to run four steamers between the ports of Orleans, France, and Norfolk Va. The Boston Post says: The present call for credit is light. Such paper as is considered A No. 1 goes readily in the street at 6@7 ₽ cent. The Banks do not lend all their receipts, and they manifest & decided disinclination to bury for ward an expansion. But there is DO difficulty is borrowing of them on prime paper at 6 v cent, as though regular customers, who have been carried through the hard times, with no advance of rates, are content to pay a handsome premium on tboir Now. York paper, real, or made for the occasion. Within a few days large sums have been offered at 6 P ceat in the street, and in several cases we learn of a yet lower figure, for 3 to 6 months' loan. When real liquidation has begun in force, it may well be questioned if the banks can lend the greater portion of their receipts, and if they will not be forced o accept very low rates for money. It seems as if a period must occur in which their loans will fall away, and their large specie holdings press heavily uponthem, in. volving the choice of & systematic expansion at low prices, or a diminution of dividends. The statement of the Boston Banks for the past two

11. February 6, 1858 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, February 6, 1858

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COMMERCIAL. (onetary. We have no actual change to note in monetary affairs, though we think the prospect for an improvement is brightening. Our Banks are awaiting the action of the Baltimore Banks, to resume specie payment, and upon this subject, the Baltimore Sun of yesterday says: "It is generally understood that our banks are in a condition to resume, and that they are consequently paying out coin generally where it is needed or desired, and, also, receiving considerable sums over their counters. Yet they do not resume-and one reason assigned therefor is that it IS desirable first to effect some arrangement with the Virginia and North Carolina banks, whose issues so largely enter into our currency in conducting an extensive trade with those States, by which their notes will be lifted to a more near approximation with those of the Baltimore banks. The discounts charged yes. terday on Virginia money by the brokers was 3@3 P cent., the rate having increased as our bank notes approach the specie standard. Relatively, what the one gains the other loses-but we cannot but believe that resumption by the Baltimore banks would serve to assist and hasten like action by the banks South of us. At the regular fortnight meeting of the cashiers of the several banks last evening, for the purpose of settling balances, the subject of immediate resumption was broached, but the majority plead that they had no instructions from their boards which would justify them in taking action on the subject. It was finally resolved to request a meeting of the several boards this morning, to be followed bv a convocation of the Presidents of the banks to dispose of the question at once." [P. S It will be seen by a telegraph dispatch, that the Baltimore banks have resumed] The Philadelphia Bulletin says:-"It will gratify the public to learn that the banks of Philadelphia have resumed specie payments, and are paying all demands in coin. There has really been a virtual resumption for some time, and coin has been more liberally given out by our banks than it has been by the New York banks. But now the resumption is formal as well as actual." The New York Post says:-"The feeling in money matters continues in the direction of amelioration. There is more hopetulness in trade circles, and money circulates more freely. In the discount market there are increased inquiries for money, but lenders step forward with less reservedness. The offerings at bank are larger, but nothing like a pressure. Prime sig. natures meet with but few denials." Exchange is in less active request, though we have no change to note in rates; the tendency, however, is downward. We quote on New York 3@3h; Philadelphia 3@34, and Baltimore 24@3 cent. premium. Stocks are inactive, without change in prices. Land Warrants are dull. We give New York rates as follows: 120 acres 78@82c.; 160's and 80's 88@92c.; 40's 95@100c.

12. February 10, 1858 The Washington Union Washington, DC
Article from The Washington Union, February 10, 1858

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W3R FINANCE AND BUSINE ESS. OY The resumption of specie payments by the suspended banks of the country goes on. During the week, the banks of Philadelphia, Baltimore, and of the District of Columbia have resumed formally and fully. For some time these banks have virtually been specie-paying, although a full resumption had not been announced. The early resumption of the banks of Virginia and North Carolina is now anxiously anticipated. A strong disposition prevails throughout the country to take effective measures to put an end to the circulation and issue of small notes. The subject has been taken up by the legislature of Massachusetts, and a report made in the senate by the committee ou banks and banking, which closes by recommending the passage of a bill prohibiting the circulation of all bills under the denomination of five dollars. A bill is also before the New Jersey legislature for the gradual suppression of all bills under the denomination of five dollars. The following statements present the last weekly reports of the banks of New York, Philadelphia, and New Orleans. At New York the specie reserve has fallen off slightly-being the first falling off in this respect since the suspension of the banks. At Philadelphia and New Orleans the amount of specie continues to increase, although at Philadelphia the week was the first of the resumption

13. February 5, 1859 The Daily Exchange Baltimore, MD
Article from The Daily Exchange, February 5, 1859

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PRICES AND SALES OF STOCKS IN NEW YORK. BY TELEGRAPH. Through WILLIAM FISHER & SON, Stock and Bill Brokers. No. 22 South street. 1st Board. 2d Board. 00 9614 Virginia 6's Missiouri 6's 84 84 1/6 Illinois Central bonds 00 8634 00 1914 Canton Company Erie Railroad 135, 13% New York Central Railroad 821/2 8214 481/4 Reading Railroad 431/2 Panama Railroad 00 00 Cleveland and Toledo Railroad 303/ 00 00 Michigan Southern Railroad 18% Cumberland Coal 00 00 Harlem Railroad 00 13 00 Galena and Chicago 685/ LaCrosse and Milwaukie Railroad 00 1 1/6 Rock Island Railroad 59 00 Market inactive. steady. In New York to-day Virginia 6's advanced ¥: Missouri do., 1/6: Reading and Rock Island Railroads % each; Cleveland and Toledo declined 1/6; but all the other stocks on the list sold at yesterday's figures. The New York bill market is quiet and steady. There being no steamer on Saturday, remitters keep out of mar ket. Sterling is 109@109%; France 5.18%@5.13%. The New York Tribune of to-day says: There is no new feature in the money market. The changing of loans continues, and the movement for the advance in rates is spreading. A leading bank advanced the rate on Thursday to 6 per cent. on demand loans, preferring to have their means in paper rather than at 5 per cent. on call. Other banks and bankers are asking 6 per cent., but the current rate is still not above 5 per cent. to favorite borrowers on desirable collaterals. Paper is less plenty at the enhanced rates, many parcels being held out of market. The range for first-class well-known signatures is 5@7 per cent., with exceptional transactions at 4 1/2 per cent. of very short gilt-edged. The improved rates of interest have brought in private capitalists as lenders, who take the place of the banks, and money is still abun dant. There is a moderate demand for Treasury notes for Custom-House and investment purposes. and all kinds excepting the 5 per cents. are selling at %@y per cent. discount. The 5 per cents. are held at par. The Government loan presents a rather firmer appearance, but the absorption for investment is as yet limited. The movement in it depends almost entirely upon what action Congress takes in regard to supplying the deficiencies of the Treasury. The parties interested in the Bullion Bank had a meeting on Thursday night, but did not fully organise the institution. The Bank Presidents had also a meeting for consultation, but adjourned without any important action. The banks which, by their capitals, are admitted to this Association, are the Bank of New York, Manhattan, Merchants', Mechanics', Union, Bank of America, Phenix, City. Merchants' Exchange, National, Bank State of New York, American Exchange, Commerce, Broadway, Ocean, Mercantile, Bank of the Republic, North America, Hanover, Metropolitan, Market, >hoe and Leather, Corn Exchange, Continental, Importers' and Traders', Park. The receipts of the City Railroad of Brooklyn (Horse) were, in January, $32,529.92, against $26,880.12 in the same month of 1858. The following rather late admission of what was so fiercely disputed by New York, occurred in an editorial article about the banks, the panic, and the currency, published a day or two since in the New York Courier and Enquirer: "The only fault committed by the banks of Boston and New York was, that they did not suspend simultaneously with those of Philadelphia and Baltimore. You may call this conduct heroic, yet it was fruitless."

14. December 18, 1886 The Republican Oakland, MD
Article from The Republican, December 18, 1886

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The Panic of 1857. The cause of the panic of 1857 was mainly the rage for land speculation which had ran through the country like an epidemic. Papercities abounded, unproductive railroads were opened, and to help forward these projects, irresponsible banks were started, or good banks found themselves drawn into an excessive issue in notes. Every one was anxious to invest in real estate and become rich by an advance in prices. Capital was attracted into this speculation by the prospect of large gains, and SO great was the demand for money that there was a remarkable advance in the rates of interest. In the West, where the speculative fever wasatits highest, the common rates of interest were from 2 to 5 per cent. a month. Everything was apparently in the most prosperous condition, real estate going up steadily, the demand for money constant and its manufacture by the banks progressing successfully, when the failure of the "Ohio Life and Trust Company" came, August 24, 1857, like a thunderbolt from a clear sky. This was followed by the portentous mutterings of a terrible coming storm. One by one small banks in Illinois, Ohio. and everywhere throughout the West and South went down. September 25-26 the banks of Philadelphia suspended payment, and thus wrecked hundreds of banks in Pennsylvania, Maryland, and adjoining States. Oc tobec 13.14, after a terrible run on them by thousands of depositors, the banks of New York suspended payment. October 14 all the banks of Massachusetts went down, followed by general wreckages of credit throughout New England. The distress which followed these calamities was very great, tens of thousands of workmen being unemployed for months. The New York banks resumed payment again December 12, and were soon followed by the banks in other cities. The darkest period of the crisis now seemed past. although there was much heartrending suffering among the poor during the winter which followed. The commercial reports for the year 1857 showed 5,133 commercial failures, with liabilities amounting to $291,750,000.-Inter-Ocean.