19398. Banks of Pittsburg (Pittsburgh, PA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
September 26, 1857
Location
Pittsburgh, Pennsylvania (40.441, -79.996)

Metadata

Model
gpt-5-mini
Short Digest
a94836ee

Response Measures

None

Description

Multiple contemporary dispatches (26–29 Sept 1857) report that the banks in Pittsburgh suspended specie payments in response to the wider 1857 financial crisis triggered by suspensions in Philadelphia and Baltimore. Articles indicate most banks expected to resume when eastern banks do; no receiver or permanent closure is mentioned.

Events (1)

1. September 26, 1857 Suspension
Cause
Macro News
Cause Details
Suspension follows the wider financial crisis and suspension of Philadelphia and Baltimore banks (Panic of 1857); action appears coordinated with regional contagion rather than bank-specific insolvency.
Newspaper Excerpt
PITTSBURG, Sept. 26.-The Banks of this city have this morning suspended specie payments.
Source
newspapers

Newspaper Articles (10)

Article from Evening Star, September 26, 1857

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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


Article from The Daily Dispatch, September 28, 1857

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BY TELEGRAPH. BALTIMORE, Sept. 26.-There is a total suspension of business on 'Change to-day. The merchants seem to be gratified with the suspension. Money on Mie street, which yesterday commanded 21/2 per cent, has fallen to-day to one per cent. The Baltimore and Ohio Railroad stock has advanced $5 per sbare. PITTSBURG, Sept. 26.-The Banks of this city have this morning suspended specie payments. The excitement, in consequence, is very great. HARRISBURG, Sept. 26 - The banks of this place, Pittsburg, Lancaster, York and Reading have all suspended specie payments. We have no accounts from other places, but the suspension will undoubtedly be general. NEW YORK, t. 26, 2, P. M.-The - following circular from the nks has been issued: "In consequence of the suspension of specie payments by the Philadelphia Banks, notice is hereby given that all collections for account of dealers, at this bank, maturing out of the city of New York, will, at the option of the dealer, immediately expressed, be either recalled, or if paid, be subject to drafts of this bank payable in funds current at the point of said payment.


Article from Worcester Daily Spy, September 28, 1857

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Latest from Philndelphia-More Excitement about the Banks. PHILADELPHIA, Sept. 26.--Chestnut and Third streets, this morning, were again a scene of excitement. Before nine o'olock, crowds of people surrounded the Savings Institution, but they all declined paying out deposits, requiring the usual two weeks' notice. The other banking institutions were also surrounded by people before 10 o'clock. The Pennsylvania Bank is transacting business, but paying no specie. The Mechanics' is paying specie for $10's. The Girard declines to do business, and refused to render any satisfaction to depositors or note holders. Eleven elock.-The Girard Bank has come to terms partially, and is redeeming fives with specie, but refuses to honor the checks of depositors. Most of the other Banks are making checks good. 11. 30.-The Bank of North America is paying specie for its notes of all descriptions. It received a remittance of specie from New York last night, and asserts that it has no more in its vaults than the amount of bills in circulation. It is also certifying its checks. The following Banks are paying specie for fives, viz : The Commercial, Philadelphia, and Manufacturers' and Mechanics'. The Farmers' and Mechanics' pays specie also for tens. The Northern Liberties, and Western, pay specie for fives in assets of necessity. The Bank of Penn Township, and the City Consolidation Bank, pay nothing. All the banks, however, certify their checks, excepting the Girard, which has suspended business entirely. Some of the banks decline even to receive deposits. 11.40. The Girard is now paying specie for its fives, and certifying checks. The Tradesman's Bank is paying every thing, checks as well as notes. An additional excitement was produced, by the news of the suspension of the banks in Baltimore. LATER.-There is no concerted action among our banks, each apparently taking a course of his own. The North American is paying specie on $10's, and under, but issuing no notes or checks. The Bank of Commerce refuses specie, but pays out notes for checks. Private despatches say that the banks of Reading, and Pittsburg, have suspeuded. The Southwark Bank, (Phildelphia) pays all its bills. The Kensington pays fives only.


Article from Semi-Weekly Standard, September 30, 1857

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The path of the Democratic party, from the days of Jefferson until now, is strewn with the wrecks of apostates and traitors. It is so because it is a party which subordidates men to principles and as long as it does this it willbe invincible. Our friend of the Wilmingt n Journal has some excellent observations touching these things, which We copy below in full. Our friend may have heard more or seen more in this respect than we have. We have much confidence in his judgment, and we have seldom found his sagacity at fault. We join him in his earnest desire to keep the Democratic party on the high ground of principle, and to protect it from the "ambition of seekers" and the rage of disappointed aspirants." And we must all unite in doing this. The old party must be preserved intact. No selfish aspirations" in any quarter, if indeed such aspirations exist, should be allowed to disturb its harmony or interrupt its progress. Principles must not be sacrificed to men. The Journal's article is as follows: " AMBITIOUS ASPIRANTS-DEMOCRATIC STRENGTH. There is no greater evidence of the strength and vitality inherent in the body of the Democratic party strength and vitality which it owes to its princi ples-than its power of maintaining itself in spite of the elements of discord which are constantly presenting themselves through the machinations of ambitions aspirants. It is the party of the country. It holds possession of the great avenues of preferment. On every crisis of danger and difficulty, the country instinctively leans upon it, and is not disappointed. It is not perfect-nothing human is-but it is on the right tract. It follows the right direction, and its errors, whenever they are committed, are those of details and not of principle. But that, like the Church itself, its influence and power may occasionally be seized upon by the wiley and ambitions, by the selfish and designing, for the promotion of their own objects, there can, unfortu nately, be no doubt. This is not the fault of Democracy. It is the fault of human nature, feeble and imperfect as that is. It is one of the painful results of experience that we are too apt to attribute every movement to some motive different from the ostensible one, and it is still more painful to know that our suspicions are frequently correct. What is such an one after What does he want? are among the questions that suggest themselves to our mind, hen we mark the course or listen to the protestations of those seeking prominence in any way. We naturally look the milk in the cocoa-nut," for it is sure to be there, at least in nine cases out of ten. We have seen the difficulties, we have marked the defeats which this constant selfish aspiration has brought upon the Democratic party. Indeed it would not be a very arduous task to show that all our defeats have been due to this cause-that the ambition of seekers-the rage of disappointed aspirants has done us all the injury we have ever sustained. Even now, in Virginia, the harmony of the party is disturbed by the squabbles of individuals. All the newspaper war there, is traceable to personal rivalry-to people who want things for themselves. It is too much the same elsewhere throughout the Union. We watch these movements, we see these squabbles. We are at no loss how to account for the milk in the cocoa-nut. The Democratic party gains ground. It is right, and must gain ground, on its own merits. It gains it in spite of the machinations of half of these squabbling leaders. Its own inherent force carries it on, and carries a heap of burthens with it. We are at times puzzled by the apparently crosspurposes and tortuous movements of politicians.Having ourselves no ulterior ends in view -asking for no office-bowing for no plunder, receiving no favours and few courtesies from the powers that be, we look on calmly, to see what will turn up. It be. comes a study for us-a matter of interest, like the unravelment of a mysterious story. Like an old novel reader, we begin to be rather expert in anticipating the denoument, and take a sort of pleasure in seeing it worked out. The greater strength of the Democratic party draws to it a greater number of aspirants, who watch the turnings and chances, than seek the ranks of any other organizations. But its inherent strength is greater, either to carry the weight or throw it off when it becomes unbearable. It will survive all the aspirants that are arising now to trouble its peace with their squabbles-whet they will survive the manifestations of its awakened wrath is another question." BANK SUSPENSIONS AND FAILURES. Bank Suspensions in Philadelpnia. ADELPHIA, Sept, 26.-The excitement in this city continues. The Bank of Pennsylvania is paying no specie. The Mechanics' Bank is redeeming its tens. The Girard Bank is redeeming its fives, but refuses to pay checks. Most of the other Banks are taking checks. The Savings Institutions require two weeks notice before paying checks. [SECOND DESPATCH] PHILADELPHIA, Sept. 26.-The newsof the suspension of the Baltimore Banks has caused additional excitement. The Tradesmen's Bank pays everything, also the North American. The following Banks pay fives: Commercial, Philadelphia, Manufactures' and Mechanic's, Farmer's, Farmer's and Mechanics.Specie is paid for tens of the Northern Liberties and Western fives in cases of necessity. The Pennsylvania Towsship and Consolidation Banks have totally suspended all payment of certified checks except on the Girard Bank. Some Banks will receive no deposits. More Bank Suspensions. PHILADELPHIA, Sept. 26.-The Banks of Pittsburg Harrisburg, Lancaster and Reading have all suspended. Bank Suspensions in Baltimore. BALTIMORE, Sept. 26.-A meeting of the Presidents of the Banks was held to day. They resolved on a suspension of all specie payments. There has been no run on the Savings Banks.The merchants appear to be gratified with the suspension. Money on the street, which yesterday brought two and a half. has now declined to one per ct. Shares of the Baltimore and Onio Railway Com pany have risen five dollars. The Washington City Banks. W ASHINGTON, Sept. 26.-The Bank of Washington is paying specie only for $5 notes and small checks. The others continue as usual. [SECOND DESPATCH.] WASHINGTON, Sept. The suspension by the Bank of Washington is only partial. The Bank of the Metrono full


Article from Bradford Reporter, October 1, 1857

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THE FINANCIAL CRISIS. The present pressure in monetary affairs reached its climax last week, when very unexpectedly, the Bank of Pennsylvania determined, after a short run, upon suspending specie payments, and its example was necessarily followed by the other Philadelphia Banks, some of them holding out for a few days, but finally succumbing to the pressure in justice to themselves and their customers. The suspension is not, however, total, for the Banks, most of them, continue to pay specie for tens and fives, and to pay checks in their own and the notes of other banks. The announcement of this step produced the greatest astonishment and excitement throughout the country. The Banks of Harrisburg, Reading, Lancaster and Pittsburg, upon its receipt, suspended specie payments, though otherwise conducting their business as formerly. In Baltimore, Washington and Wheeling, a similar course has been pursued. In New York the suspension of the banks is not expected.In New Jersey. they continue to pay specie, and the New England banks are said to be in no danger. The Pennsylvania banks generally will undoubtedly follow the example of Philadelphia, and partially and temporarily suspend. By so doing, most of them forfeit their charters.— Gov. POLLOCK was in Philadelphia on Monday, and a strong effort was made to persuade him to call an extra session of the Legislature for the purpose of relieving the banks from the penalty of their suspension, and to provide measures for their ultimate resumption. At our latest accounts the Governor had not concluded to call an extra Session. We trust he will not put the Commonwealth to that expense. for the purpose of transacting business which will not suffer from postponement until the usual time for the meeting of the Legislature. In regard to the bills of the Philadelphia and State banks, we hardly know how to advise our readers. The brokers themselves are as yet unable to fix any rate of discount, and do not buy. Our belief is that the suspension is a prudential measure, which was inevitable, and will do much towards bringing about a better state of public feeling. That it will be temporary, there can be no question, especially if the banks north and east of Pennsylvania, are not affected.


Article from Wilmington Journal, October 2, 1857

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More Bank Suspensions. Philadelphia, Sept. 26.-The Banks of Pittsburg Harrisburg, Lancaster and Reading have fall suspended.


Article from The Potter Journal, October 3, 1857

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Bank Failures. There is more trouble in financial matters than we have known since 1837.The Banks of Philadelphia, Pittsburg, Reading and Lancaster have suspended specie payments, and the Governor has called an extra Session of the Legislature to take the matter into consideration. We think last winter was the time for legislation; and that there is more danger of doing harm than good by legislating under the pressure of a panic. It is very eyident that the Banking system of this State, is a failure, and that we need something similar to the Free Banking Law of the State of New York. Under that law nearly every Bank continues to pay specie for all paper presented at its counter, while under our system, nearly every bank in the State has, or soon will suspend. And there is a good reason for this difference. Under the free Banking system of New York every bill is secured by a deposite of State Stock or other equally good security with the Auditor General, and the bill holders, knowing that they are perfectly safe though the bank should fail, there is BA such run on the Banks for specie, as there is in this State, where the Banks have nothing but private property for security. Hence the failure of the Philadelphia Banks to weather a storm that has not shaken the New York City Banks in the least, We hope the Legislature of Pennsylvania, when it assembles at Harrisburg next winter will mature a Banking system that will protect the people from another wholesale failure, and that an amendment will be proposed to the Constitution, prohibiting the Legislature from legalizing the suspension of specie payments by the Banks for a single hour.


Article from The Weekly Minnesotian, October 3, 1857

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lieved that come from the East. The market, however, remained firm, and there is no sign of weakness from any one of our banks. The advices from Boston, received at noon, were as unexpected as they were cheering. Our banks have passed the crisis, and the market closed with a quieter feeling. There were rumors of several failures, but nothing definite. Our exchange brokers were at a stand as to their business, and generally declined to fix a rate. There was one offer to sell Philadelphia funds at 1 per cent. discount. At the first board of the stock market there was quite a panic, and stock fell rapid ly. At the second there was a still further, decline, and sixes fell off to 51, at which price, however, all offering was quickly taken. PHILADELPHIA, 26, 2 P. M. The Pittsburg, Harrisburg, Lancaster, and Reading banks have suspended. The failure of W. B. Lovejoy & Co., clothing house on Commercial street, this city, is announced. PITTSBURG, Sept. 26. There is no concert of action among the banks of Pittsburg in regard to future policy. All of them continue to pay coin for small demands. The Merchants and Manufacturers Exchange Bank and Citizens Bank are paying small demands made by laborers, operatives and others, but refuse the demands of banks and brokers. The Bank of Pittsburg has resolvedto pay in full. BALTIMORE, Sept. 26. The Farmers and Mechanic Bank is cashing all its notes and paying checks. Other banks are fully suspended, but still they are promising customers with change. The excitement hasoubsided. The issue of shin-plasters is talked of, and may be resorted to. WASHINGTON, Sept. 26. Bank of Metropolis closed firm. The commercial community is generally satisfied with the course of the banks. All are confident of their stability and resumption at an early day. A considerable amount of deposits have been made in the Patriotic Bank of Washington since their suspension. TRENTON, N. J., Sept. 26. Our Banks had a steady but moderate run to-day, and paid out about $8,000 each, in specie. They are in very good condition, and it is thought they will weather the storm. Jas. S. Sterling, one of our heaviest merchants, has assigned. Ilis assets are ample. CINCINNATI, Sept. 26. Rates of Exchange nominal, Sight checks cannot be bought on N. Y. at less than 5 per cent. Gold held out of market. No failures. The merchants all stand firm. Boston, Sept. 26. The money market presents little variation from the rates ruling during the week. The net gain of coin in the Banks for the week is little short of $400,000. The Banks are considered stronger than two weeks ago, and are believed generally in a healthy condition. Bills of Hopkinton Bank, Westerly. R. I. were refused at Suffolk. PHILADELPHIA, Sept. 26, 6 P. M. A meeting of the Presidents of Banks was held this P.M. It is reported that for want of concert of action, they adjourned without arriving at any determination. It was thought they would determine on a full suspension, as practiced by some of the Banks to-day, but which was not general, on account of the North America, Mechanic's and some of the other Banks receiving a supply of specie. There was also a meeting of the Cashiers of the various Banks, but their action is not yet known. It is understood application will be made to the Governor for the call of an extra session of Legislature with a view of affording relief to Legislature with a view of affording feiture of charter, imposed by the law of 1850. Several of the Banks, however, are not acting under this law, including the Panama, Farmers, Mechanics Philadelphia and Western. WHEELING, Sept. 26. At a meeting of the citizens of this city, held this evening, it was unanimously resolved that the Banks of this city be requested to immediately suspend specie payment until the business interests of the community would justify a resumption. This action was taken in consequence of the heavy run that has recently been made upon the Banks by foreign brokers and their liabilities, and no loss will be sustained by note holders or depositors in consequence of the suspension. PHILADELPHIA, Sept. 26. The Girard Bank isnow paying specie for fives and certifying checks. Additional excitement was produced by the news from Baltimore of the suspension there. The Tradesmans Bank pays everything, checks and all. The Bank of British America is paying on its notes. It received specie from New York last night, and represents that they have more in their vaults than amount to bills, and they are certifying checks. The Commerciel, Manufacturers and Mechanics, and Philadelphia, are paying for fives. The Farmers and Mechanics are paying specie for tens. The North Liberty and Western pay specie for fives in cases of necessity. The Bank of Pennsylvania township of the city and consolidation pay nothing on banks, except Girard certified checks. The Girard has entirely suspended business. Some of the banks will receive no deposition. The Board of Brokers passed a resolution this morning to the effect that all settlement in the purchase of stock may be made by certified cehcks on any of the city banks current on_the day of settlement. A private dispatch says that the banks in Reading and Pittsburg have suspended. The South Ward Bank pays specie for all its bills. The Bank of Kenington for fives only. BALTIMORE, Sept. 26. All is quite about the Banks now. A large number of brokers arrived here this morning. The Banks are now paying the checks of depositors and redeeming notes. A meeting of Presidents will be held at 10 o'clock, when it is thought that they will suspend payment in all sums over ten dollars. There is now no excitement.


Article from Weekly Council Bluffs Bugle, October 7, 1857

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Telegraphic News. PITTSBURG, Sept. 29th All banks except one have suspended, but will resume when eastern banks do BALTIMORE, Sept. 29.-No change in money matters-5s only redeemed. PROVIDENCE, Sept. 29.-The Banks have resolved to suspend specie payment, yet their liabilities are only 25 per cent. of their capital. PHILADELPHIA, Sept. 29.+The Governor has issued a proclamation for an extra session of the Legislature to subserve the financial and commercial interests of the State. Pennsylvania bank has resumed. NEW YORK, Sept. 29.-Owing to a decrease in loans, specie, deposits and eirculation & meeting* of bank Presidents took place and resolutions passed to extend discounts 3 per cent. the coming week, which will make in the aggregate over $3,000,000. St.Lóuis, Sept. 29.-Bogy, Miltenberger & Ga, bankers, closed doors this a. m., assets ample. Banks in general discounting liberally. Anderson & Co., and Darby & Barksdale will soon resame. Bank of Nashville, Tenn. (will resume) Farmers' Bank, Elisabeth City, N. C., (will resume.) Bank of Commerce, Greytown, D. C., (will resume.) Farmers' & Mechanics' Bank, Greytown, D. C., (will resume.) (The Burlington, Cumberland & Salem banks have all syspended specie payment.


Article from Holmes County Republican, October 8, 1857

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Monetary Affairs. We had 1 oped that money matters had ceased to be the leading feature of daily news, and that financial affairs had settled down into their usual quiet spot under "monetary" head. But the unexpected suspension in Philadelphia, Baltimore, Washington and Pittsburg have again thrown this subject to the surface of daily talk. We believe that the storm which has burst upon the cities named above, is the same storm that passed over New England and the West immediately after the failure of the Ohio Life and Trust Company. If that be so, we see no reason why its disastrous effects should re-visit the North, East and West. The determination in New York is to pay out specie let come what may. Such was a private dispatch of Saturday. The last month has enabled the New York Banks, and the Western Banks, to fortify themselves against any contingency, and we believe they will go through. The great feature of New York and Ohio Banks, distinguishing them from Pennsylvania, District of CoJumbia and Maryland money, is the immcdiate security to the bill holder, and this feature has kept down excitement, and kept up confidence, and we predict will continue to do so, and finally, carry us through the storm. So far as many of the Pennsylvania Banks are concerned they have been improperly extended, but on the contrary Ohio Banks have been, for months, curtaiiing. The New York Times says: The laws of Pennsylvania forbid the circulation of the bank bills of other States, and all denominations below five dollars of their own. She has, therefore, no claim on foreign banks to press to liquidation, and so far she may be considered as somewhat isolated from the general banking system of the country. The Pittsburgh Gazette of Saturday says: One word with regard to the Banks of Pennsylvania generally. Those of them that are organised under the law of 1850 are so hedged about with restrictions and securities that note holders are safe in almost any contingency. Whatever temporary inconvenience may result from the suspension of any one or more of them, the interests of note-holders are so amply cared for that the ultimate loss cannot fall upon them. It is worthy of notice, that the pressure in New York first reached the Banks; they fortified themselves, and the business men, to some degree, were compelled to suffer. In Philadelphia the reverse was the case. There the business men first felt the pressure and yielded to it. Then the blow fell on the Banks, but the business back bone being gone, the Banks could not gather up. Any one can see the distinction, and hence there is no valid reason why a suspension in Philadelphia should be followed by one in New York. If New Youk goes through, Ohio and the West can. The latest dispatches show that Boston, too, stands firm, and we hope and expect to be able, in a few days, to chronicle the gratifying fact that New England, New York, Ohio and the West have braved the storm, and with the reappearance of a blue sky will be prepared to continue a voyage of prosperity which these financial gales may, for a time, retard, but in no event can entirely check. Cleveland Herald. Whatare You going to do about It? Last fall the Democratic presses of the Country teemed with articles endeavoring to prove that; John C. Freemont, (because he planted a cross on the summit of the Rocky Mountains, and was guilty of other acts equally conclusive of hisreligious faith) was a Catholic. They circulated this species of trash against him, for and wide, and endeavored to make political capital of it in every section where it was suppos-