19456. Banks of Reading (Reading, PA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
September 26, 1857
Location
Reading, Pennsylvania (40.336, -75.927)

Metadata

Model
gpt-5-mini
Short Digest
cd9c654f

Response Measures

None

Description

Multiple contemporary newspaper dispatches (late Sept. 1857) report that the banks of Reading, PA suspended specie payments on or about Sept. 26, 1857 as part of the broader 1857 financial panic. Articles describe a temporary suspension (no receiver or permanent failure is mentioned); therefore classified as suspension_reopening (suspension with no run and expected resumption). Bank type not specified in the articles.

Events (1)
1. September 26, 1857 Suspension
Cause
Macro News
Cause Details
Part of the nationwide financial panic of September 1857; suspension followed suspensions in Philadelphia, Baltimore, Pittsburgh and other cities and widespread loss of public confidence; banks suspended specie payments as a protective, temporary measure.
Newspaper Excerpt
the banks of Reading . . . have suspended specie payments.
Source
newspapers

Newspaper Articles (10)
1. September 26, 1857 Evening Star Washington, DC
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

2. September 27, 1857 Wheeling Daily Intelligencer Wheeling, WV
Article from Wheeling Daily Intelligencer, September 27, 1857

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Our Banking Interests. CITIZENS' MERTING.-On Saturday evening, after considerable ringing of the bell, a large number of citizens convenen at the Court House, brought together by the street suggestions consequent upon the news published in the extras of the Intelligencer and Times during the afternoon relative to the suspensions of banks in different chies. The run from abroad during Saturday upon the banks had contributed no little to the universal demand for some protective action. On motion of Mr. Hamilton, Wharf Master, Mayor Caldwell was called to the chair and Geo. Baird appointed Secretary. The Mayor announced that this meeting had been called for mutual advisement and recommendation as to our banking interests during the coming week and so long as the money pressure should continue. For our banks to continue specie payments to foreign brokers, merely for purposes of speculation, because they had all confidence in their soundness, when all other banks were suspending, was suicidal to their own and our community's interests. On motion of J.B. Bingham, a committee of five was appointed to draft resolutions expressof the sense of the meeting upon the subject: Messrs. Bingham, Alex. Paxton, W. W. Shriver, M. Warren and J. M. Todd were appointed. (While the committee were out conferring, Mr. Wharf Master Hamilton, begged leave to call the attention of the meeting to the fact, that a species of forestalling was in vogue now in the traffic of marketables, and that it was a difficult matter to get a peck of potatoes, tomatoes or onions at a fair, christian price. He therefore recommended that in case the practice was not brought to a discontinuance, that a suspension of the Market House be decreed, through the instrumentality of a fence round about.) The minds of the people being oblivious to all else save money matters, ignored all thought of vegetables and casting about during theirimpatient waiting for the committee, centered upon Col. Wheat as the inan to edify them with some remarks. The Col. arose, and after a few appropriate remarks excused himself as there were other persons present more intimately connected with the banks. Mr. Sweeny being called for remarked that be had nothing to say now as he had said his say to-day, having advised that the demands of foreign brokers should be refused. The Committee having returned reported as follows: WHEREAS.-The Banks of Baltimore, Phila., and Pittsburgh and Reading, have suspended-and whereas a run has to day been made upon our banks by brokers and bankers from abroad: and whereas a continuance of our banks to pay specie under such circumstances would be disastrous to the community in depriving its citizens of the acconimodations necessary to a protitable transaction of the business, therefore. Resoleed 1st, That the Presidents and Directors of our different city banks be respectfully requested to promptly suspent specie ment; until such time as they can resume with safety to the business interests of the community: Resolved, 2d, That we have the most entire confidence in the solvency of the several banks of our city, and that the history of their management in former years, justities the request made in the foregoing resolutions. The resolutions were carried unanimously and the meeting adjourned with cheers and much 25 Tiple They good feeling.

3. September 27, 1857 The New York Herald New York, NY
Article from The New York Herald, September 27, 1857

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There were rumors aflont during the early part of the day, which we had confirmed by a bank officer at a later hour, of the suspension of Messrs. Garner & Uo., the largest domestic commission house in the city. Messrs. Garner & Co. wereso widely known asone of the wealthiest dry goods firms in the country that we haveserious apprehensions or the effect of their sudden and unexpected inability to meet their engagements. The rumor is that their liabilities, which amount to between two and three million of dol lars, are nearly all to fall due within sixty days, and find ing it impos ible in the present panic to make arrange. ments to go through, they have wisely concluded to ask for time. There are various reports afloat as to the as sets of the house, running up from five to seven million of dollars, but no one will doubt for a moment their ability to pay every dollar they owe and have an immense surplus. No man in America has understood cotton mills so thoroughly, or has turned his knowledge to such advantage in accumulating a fortune as Thomas Garner, with the exception, perhaps, of Mr. Sprague, of Providence, who died at an advanced age one months since, leaving, it issaid, six or seven milli of dollars. In England the large cotton manufacturers, or cotion lords as they are called, are the richest class of men in the land, and their destiny in this country is exempli fied in the career of Mr. Sprague and Mr. Garner. In re gard to this suspension we have no doubt from our know. leige of the position of the house that it will only be tem porary, and we earnestly hope that the thousands of poor men who are dependent upon them for their daily bread may not be thrown out of employment. At the recond board to-day there was a very small busi ness, and all the sales were for cash. Cieveland and Pittsburg declined 1 per cent; ailwaukie and Mississippi, 3½. There were no buyers in Lne street, while every one WABIed to sell. Very few have the disposition and a less number the means to purchase stocks at any price. We understand that about $250,000 in specie went on from this city last nightto Philadelphia, to fortify the banks there, but It was of no avail. The accounts from Philadelphia and Baltimore are just what we expected. A general suspension of specie paymen 8 must be the result of the present temporizing policy. Public confidence has been destroyed, and all banks not suspended will be drawn down to the last dollar. It will be seen by telegraphic despatches under the proper head, that the Baltimore banks have suspended in a body. The suspension is total. The alarm has spread, and suspensions have taken place in Washington, Pitisburg, Reading, Har. risburg and Lancaster. It must become general throughout Pennaylvania, Maryland and the entire West It may not extend any further South than Virginia and Kentucky, but the probability is that the banks of these States are within the whirlpoel of speculation. Beyond that, to the South, all is undoubtedly safe. or the failure of the Yates County Bank in this State, the Pen Yan Chronicle remarks:An event more unlooked for by the people generally could scarcely have bappened This bank and alood 80 long with an unternished credit that It was believed to be equal even to the trying e nergen Yes of the present revol S.O.D in mone-ary affaire. A reselver has be n appointed, or soon will be, and the assets of the bank will be ap lied to the redemption of the bills. Wha: per centage will be paid It is impossible for us to guess. Dorbtless the capital has been 10 a good degree im aired Of sourse there 18 nurelief for the depositors notil the bills are Hquidated. Wishout attempting to palliate anything we will simuly say that Judge William M Oliver, who has osen the chief manager of the Yates County Bank, has long been a useful and bonored citizen of Pen Yan It will be wise to induige him with all the harity and forbearance that the circumstan or will allow. This failure must 14. evilably exert a very injurious effect upon the business in terests of this community The Philadelphia Daily News says:We understand that the Reading Railroad Company last week discharged about three hundred leands from the workshops of the company at Reading and Richmond, and me are informed to-day that he Montour Iron Company, who have extensive works at Duev have deler mined to pay off their hands and closs the rolling will for the present. This will throw out of employmentsome two thousand men, and with heir is eilies at least six thousand people will thus be deprived of the means of support. These, added to the number of persons losing employ.

4. September 28, 1857 The Daily Dispatch Richmond, VA
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.

5. September 28, 1857 Worcester Daily Spy Worcester, MA
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.

6. September 30, 1857 Edgefield Advertiser Edgefield, SC
Article from Edgefield Advertiser, September 30, 1857

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MONETARY PANIC-BANK SUSPENSIONS. AUGUSTA, September 26, 1857. The excitement in Philadelphia continues. Bank of Pennsylvania is paying no specie. She Mechanics' Bank is redeeming its tens, andican Girard Bank its fives, but refused checks. Sost of the others are taking checks. The Savings Institutions require two week's notice before paying checks. A meeting of the Presidents of the Banks in Bakimore resolved on a total suspension of all specie payments. The news of the Philadelphia suspension on reaching Baltimore caused additional excitement among the Banks there. The radesmen's Bank pays everything so also does the North American. The Penn, Township and Consolidation Banks have totally suspended. They all pay certified checks except the Girard. Some receive no deposits. The following Banks are paying fives: Commercial, Philadelphia, and Manufacturers': and the Merchants', Farmer's and Mechanic's pay specie for tens. Also, the Northern Liberties and Western pay specie for fives in cases of necessity. The Bank of the Metropolis at Washington is firm and pays all demands. The Patriotic and Washington Banks pay only fives and small checks, but there is every confidence in their ability and integrity. BALTIMORE, Sept. 26, 1857. Money was lower .on the streets to-day, and railroad shares had advanced. The Savings' Banks are firm; but all others totally suspended at ten o'clock this forenoon. The merchants appear satisfied. PHILADELPHIA, Sept, 26, 1857. The banks of Pittsburg. Harrisburg, Reading and Laneaster have suspended payment. NEW YORK, September 26. A circular issued by the Banks to-day, savs that all collections maturing out of the city, will be either recalled or be subject to drafts on Banks payable in funds, current at point of payment. All the Banks are strong, no signs of suspension. BOSTON, Sept, 26, 1857. There was great excitement here to-day in consequence of the advices from Philadelphia : but the banks having made large additions to their specie, remain firm. All the New England banks are able to stand the pressure. BOSTON, September 26. Mr. Lovejoy, an extensive clothier in this city failed to-day. BALTIMORE, Sept. 26. A.meeting of the Presidents of all the Banks took place this morning, and they resolved upon a total suspension of specie payments. DOUBTFUL Rumons.-The Houston (Texas) Telegraph, of the 11th inst., savs that there is a painful rumor there, brought from Montgomery, and which there was credited, to the effect that in a dispute a few days since, in Rusk, Cherokee county, L. D. Evans, late member of Congress, and killed L. T. Wigfal, Senator in the inture from Harrison county; L. D. Schoolhisq. of Huntsville, then killed Evans: man. name not given, then killed Schooland the inst was killed by still another, us tour violent deaths in the melee. The the Telegraph, is hard to believe, int endorsing it, we tell it as it was in us. The same runior has been published in an Arkansas paper, but neither that nor the Houston Telegraph publishes it upon reliable authority. It has the semblance of those wonderful strange rumors. which sometimes fly through the conntrv without any one to acknowledge who set it off. Another unrouched rumor comes from the St. Joseph's Jourael of the 10th. which states that a report reached that city on the 9th. that General Jim Lane, of Kansas, had been shot and killed in a fight at Lawrence, a few days before. REPORTED SAFETY or CAPTAIN HERNDON AND OTHERS.-A telegraphic despatch from Savannah was received in Washington on Saturday, and announced from the pulpit by the Rev. Mr. Cummins, stating that it is highly probable that Capt. Herndon and a number of others had been picked up by a vessel name unknown. The passengers by the Marine think that there are some hopes of Captain Herndon's safety, as several vessels' lights were seen at it distance on the fatal night, and ke was seen struggling with the waves after the ship went down.

7. September 30, 1857 Democrat and Sentinel Ebensburg, PA
Article from Democrat and Sentinel, September 30, 1857

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The Monetary Crisis. The Philsdelphia Enquirer" of Saturday last says: Yesterday was a day of extraordinary excitement in this city. Soon after the opening of the doors of the Bank of Pennsylvania, it was deemed expedient to close them. Immediately the intelligence spread with the greatest possible celerity, and crowds soon assembled in Second and Third streets. and indeed in the neighbôrhood of all our leading monetary institutions. All sorts of speculations were indulged, and many extravagant reports were circulated. The effect was, to produce a run upon the banks generally for specie All of them. except the Bank of Pennsylvania, paid out, either in whole or in part, until three o'clock, the usual hour of closing. Meanwhile the Presidents of the Banks assembled in council at one o'clock, and after disucssing the condition of affairs, adjourned to meet again at four o'clock. During the day, the specie that was withdrawn from the various institutions, amounted to something like a MILLION AND HALF OF DOLLARS. There was however little or no confusion or disorder, atd those who made their demands, did so in a cheerful and good-natured spirit. At 4 o'clock. the Presidents of the Banks rs-assembled, and renewed their disussion of the condition of affairs. They eat. for nearly two hours, when views pro and con were given, all in a frank and kindly spirit-the object expressed on all hands being to pursue the course best caleulated to protect and assist the community. A resolution was finally adopted, and with entire, unanimity, RECOMMENDING A TEMTORARY SUSPENSIOM OF SPECIE PAYMENTS BY ALL THE BANKS OF PHILADELPHIA. Depositors. note-holders, and stockholders, need not feel the least alarm. The banks have been exerting themselves to the utmost for the last fortnight, to sustain themsolves, and most of them would still be able to pay their entire circulation and deposit, but in doing so, they would be compelled to withhold all assistanoe from their customers, and thus, in fact, to cripple the community and retard the general prosperity. They have perferred the policy of temporary suspension, and in this we think they have acted wisely. It appears by Philadciphia papers received this morning, that the excitement still continues, and the banks are censured for want of concert of action. The Pittsburg Banks, with the exception of the Bank of Pittsburg." have suspended. All the Banks of Baltimore, the Harrisburg, York and Reading Banks have also suspended specie payment. The New York City and New England Banks, with the exception of those of Providence, Rhode Island. still remain open and seem determined to bear up against the pressure. In another column will be found the Proclamation of the Governor, calling an extra session of the Legislature. We are not well enough posted to hazard an opinion with regard to propriety or impropriety of the measure. The members of the Legislature during the extra session, will receive only three dollars per day aud mileage.

8. October 2, 1857 Wilmington Journal Wilmington, NC
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.

9. October 3, 1857 Sunbury American Sunbury, PA
Article from Sunbury American, October 3, 1857

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resumption at an early day. There has been a considerable amount of deposits in. the Patriotic and Washington Banks since their suspension. SUBPENSION OF THE PITTSBURG BANKS. PITTSBURG, Sept: 26.-There is no concert of action am Sigst the banks of this city in regard to their future policy. All continue to pay coin on small demands. The Merchants' and Manufacturer's Exchange, and Citizens' Banks are paying small demands made by laborers, operators, and others, but refusing the demands of banks and brokers. The Bank of Pittsburg has resolved to pay in full. FURTHER SUSPENSION OF COUNTRY BANKS. HARRISBURG, Sept. 26.-The banks of this place, Lancaster, York end Reading have all suspended specie payments. THE TRENTON BANKS. TRENLON, Sept. 26.-There has been a steady. moderate run upon all our banks, each having paid out about $8000 in specie. They are in good condition, and will probably weather the storm. THE VIRGINIA BANKS. RICHMOND, Va., Sept. 26.-No bank suspensions have occurred here yet. There has been much excitement occasioned by the news of the bank crises at the North. AFFAIRS AT CINCINNATI. CIRCINNATI, Sept. 26.-The Ohio Life and Trust Co. has made an assignment. Rates of exchange are nominal. Sight drafts on New York cannot be bought for less than 5 per cent. premium. No failures-have occurred, and our-merchants stand firm. PITTSBURGH, Sept. 28.-The Bank excitement in this city is subsiding. The Mechanics' Bank suspended payment this morning. Business was completely paralyzed during the day. PITTSBURGH, Sept. 28.-Evening.-All the Banks of this city, excepting the Pittsburgh Bank have suspended. At a meeting of the executive officers of the Banks to-day. resolutions were adopted, expressing the opinion that the suspension of the payment of coin, is necessary to protect the business men, in enabling the Banks to continue to discount local paper and exchange and peremptorily instructing the Cashiers of the respective Banks, to resume payment of specie, when similar action has been adopted by the Eastern Banks. The excitement produced by the panic, has nearly subsided. WASHINGTON. Sept. 28-A notice posted on the Bank of the Metropolis says that the panic created by the suspension of other banks having caused a much Targer demand for specie than was anticipated. that institution is under the painful necessity of suspending specie payments for the present. The trustees remark that they will make every exertion to resume. The bank paid out $65,000 on Saturday. The Bank of Washington and the Patriotic Bank which paid out small sums on Saturday, have now altogether suspended. The Savings Banks pay either in city banks or Virginia money, and demand the six days' notice from depositors. Virginia money is h at's discount of 5 per cent., and the tendency is, still downward. Business is nearly paralysed and uncurrent money is upsálable. BOSTON, Sept. 28.-The Suffolk Bank refused to redeem the bills of the country New England Banks for individuals, for the alleged reason that the amount presented was greater than the clerks could attend to. The deposn its of country money sent from other Banks are promptly redeemed. The country Banks generally are well protected, and will retain the public confidence. CINCINNATI, Sept. 28.-The excitement in consequence of the unfavorable advices (rom the East has paralyzed business in this city. New York exchange is quoted at par, but only small smounts will be purchased at this b rate. The paper of an iron house and a shoe and g leather house has been protested. J. B. Holmes, manufacturer, has assigned. al n NASHVILLE, Sept, 18.-The Bank of Nushville suspended this morning. At a meeting of merchants which was held to-day, it: was recommended to the Directors of the Union. Planters', and State Banks to suspend also, d but they refused. Several "free" Banks were thrown out today. Confidence is felt that the Bank of Nashville will pay, and have a large surplus. PROVIDENCE, R. I., Sept. 28.-The banks of this city have resolved to suspend specie payments. Their liabilities to the public are not over one-quarter of their capital. PROVIDENCE, Sept. 28.-An injunction on the Hopkinton Bank has been obtained.

10. October 3, 1857 The Potter Journal Coudersport, PA
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.