19465. Farmers Bank (Reading, PA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
October 9, 1839
Location
Reading, Pennsylvania (40.336, -75.927)

Metadata

Model
gpt-5-mini
Short Digest
f58466f4

Response Measures

None

Description

Multiple articles (Oct 1839) report that the Farmers' Bank of Reading suspended specie payments as part of a wider suspension by Philadelphia banks driven by an international specie drain. No article describes a depositor run on this bank. A later Jan 1840 notice indicates the bank had paid dividends since the suspension, suggesting operations continued (hence classified as suspension_reopening).

Events (1)
1. October 9, 1839 Suspension
Cause
Macro News
Cause Details
Part of a coordinated suspension by Philadelphia banks due to a large drain of specie (exports to pay for foreign grain and effects of international trade/Bank of England pressures).
Newspaper Excerpt
The Philadelphia Gazette announces, at the same time, the suspension of the Farmers' Bank of Reading - a Bank situated in Berks county.
Source
newspapers

Newspaper Articles (4)
1. October 12, 1839 The Madisonian Washington, DC
Article from The Madisonian, October 12, 1839

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Article Text

From the Baltimore Chronicle. SESPENSION OF SPECIE PAYMENTS BY THE BANKS IN PHILADELPHIA. We received, last night, by the Railroad cars, the Philadelphia Evening papers of yesterday, by which we mithat all the Philadelphia Banks, except the Commercial Bank, after full consultation, had resolved to SUSPEND SPECIE PAYMENTS forthwith. The reasons for this important step, which, of course, is destined to exert an important influence upon the whole country, are set forth in the subjoined articles from the Phiadelphia Gazette. We understand from passengers in the cars that the necessity for the suspension was generally acquiesced in by the people, and that, although large crowds assembled in the neighborhood of the Banks, there was no confusion and no manifestation of popular discontent Attentive observers have for some time foreseen this result, which, indeed, in the actual circumstances of the country, could not have been much longer postponed It now becomes the duty of all to counsel as well as 10 practice moderation, forbearance and leniency towards the Banks and towards each other. Whatever may be the action of our Banks upon the subject, our citizens may be assured that it will be dictated by a high regard to the interests of our society. The Philadelphia Gazette announces, at the same time, the suspension of the Farmers' Bank of Reading -a Bank situated in Berks county. It insists that the suspension was the only available measure of salvation for Philadelphia. To postpone it, would have been to drain her of silver in a few months, for the benefit of New York. Two millions of specie must inevitably have gone by the first of Nevember, as one million did from one our institutions within a month Of course the only of past. go, fractional parts of dollars under five, and the change under one dollar, will contique to be paid in silver. This 14 fairly presumable, there being no notes under the first denomination, allowed by statute." From the Phrladelphia Gazette. IMPORTANT MOVEMENT. Welearn that a conference of delegates of the diffarent Banks and of the Board of Trade of this city, was held last evening, at which it was determined, asamatter vitally concerning the safety and prospethe of the community, forthwith to suspend specie payments. This resolution, with one or two exceptions of which we hear rumors not fully authentic, v carried into unanimous execution to-day. as it is to sudan elucidation of this meais of quick sure dealy into his unnecessary, and It sufficient ample to know impracticable, tbat it is great not go one is one of cool desperate immaturity-it of and well descried in can fail of where before there were affiring relief distress relletion. well-weighed any event, facts, scarcely perplexities, and struggling confidence. Of the main momentum to this point, operative in both hemisWe to is not one of the but of paetes necessity-a The attair propose speak choice, briefly. by Banks, necessity not arising out of a lack of power to continue specie payments, but of self prethe from under the form of keeping has its chief cause in the trade with the a trade servation wing This :drained's necessity out of the country. Chinese, specie revulsion of, say The instrument of this trade is known optum. This can no be of with that take the it. Bank of tatte as land article must exchange drug place of longer The people. employed Specie, Engfairly reeled under these tidings from Chinaresforced to make a loan of the Bank of France, re pound notes, viluing of trade being against us, demands over here for specie, and every packet ship out carrying away from a half to a million of

2. October 18, 1839 Cheraw Gazette and Pee Dee Farmer Cheraw, SC
Article from Cheraw Gazette and Pee Dee Farmer, October 18, 1839

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Article Text

SUSPENSION OF SPECIE PAYMENTS. New York, Oct. 14th. There was gre exci ement in Wall street in consequence of an anof the U. S. nouncement on Wednesday, Bank of their coun- Pennsylvania would no longer be paid at ter. Post-notes to the amount of 40 or 50,000 dollars were due on that day, and were for non payment. was Thursday protested morning intelligence Bank receiv- of On from Philadelphi that the the and all the ed U. States, nearly Baltimore, other had banks in that city, and in suspen. ded is in the and the banks specie generally payments. It Middle supposed but South. that that ern States willfollow this example ; those of New York, New England, and some of the Western States will continue 10 fulfiltheir promises. The best account and explanation we able to find of this are contained in movement, have been the morrifying following extracts from Philadelphia letters and p pers. A letter dated Philadelphia, Wednesday, Oct. 9 h "Our Banks specio payments. suspended says, have The has this drain been day them for a few weeks past and is coming enormous, upon nothing held in from the West. A meeting was yesterday at which United and Girard, a upon the States subject, voted five, for including susand nine against it. the U. States notified pension, ing others and This of that course morn- they had to suspend, the who had it, were others, determined into They opnosed for the then forced it. pay present bills. The determined to same their learn, five have dollar Baltimore do the Banks, thing to day. The Farmers' Bank at Reading, in this State stopped payment yesterday. advanced went up to 38; Vicksburg Stocks newhat Kentucky to-day; Penn- 75; to 101. The Bank of extended her sylvania U.S. Bank discount line. all do Now the they have stopped, they must same. The (Philadelphia) National Gazette of Wednesday evening says: "A combination of adverse circumstanceshas reluctan:ly compelled the Banks to resort 10 a temporary The failure suspension of the of payments. in last year, a mand the Bank of more harvest specie upon England En dand caused for dethan millions of pounds about million of dollars, was thirty six which sterling, drawn to and silver from is vaults and exported the continent to pay for grain. This wi hdrawal of so large an amount of at once a in the of cotton and other specie, value produced American depression pro- in and of course lessened our means of for the 20 of duce, England paying merchandize. lar amount importations of foreign has therefore been a drain our Banks for specie to to There upon continued Nothing ship to this deficiency. honorable to the can Europe be more supply sacrifices character they of our merchants, than the to their abroad. In this strughave home made and support honorable credit both at to maintain inviolate of our ceived support which was in powcharacter gle every country, the they commercial have the reer of the Banks 10 render them. There is however a point in human affairs, when self is the That is now arrived ; every servation period first law of nature. effort the has been made by our Banks to stem torrent, but in vain. In support of this declaration it is only to state, that resnmof payments, the necessary ption specie since the Bank late of the Uni States has paid out in specie up. wards of millions of the Bank has twenty made dollars. internal great In sac. im. acrifices to support the cause of rovements, not only in Pennsy vinia but elsewhere. the of our to meet all their no one can The Of engagements, ability Banks doubt. of a Bank does not the amount of idle in its in safety specie holds vaults, consist of its but in debt. the security which it that the Banks to debts due to to ors. collect ample All the require, them, is, enable time them to resume specie payments." The Philadelphia Gazette of the same date says: "The affair is not one of choice, by the Banks, but-a necessity not arising out of & to continue pay. but of self preservation, ments, lack of power specie under the form of keeping the specie from being drained out of the country. This has its chief cause in the revulsion of the trade necessity opium millions! with the The Chin- inese, a trade of, say fifty sarument of this trade is This can no longer be um. drug known to employed be opias article of exchange with the people. therefore must take it. The Bank of England Specie, an fairly the reeled place under of these ridings from China-and was forced to make a loan of the Bank of France, and into the issue of two notes. of trade against us ance being pound demands The packet balcame over here for specie, and every chin went out carriva away from a half io

3. October 24, 1839 The Charlotte Journal Charlotte, NC
Article from The Charlotte Journal, October 24, 1839

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Article Text

# SUSPENSION OF SPECIE PAYMENTS BY THE PHILADELPHIA BANKS. It will be seen from the subjoined article that the Philadelphia Banks, with a single exception, with a view, it is presumed, to avoid the ruinous pressure on the mercantile community which a persevering effort to sustain themselves would render unavoidable, have come to the determination, for the present to suspend specie payments. In this the Banks have only followed the example of the Government, but from motives and causes more commendable and justifiable. It has been for some time perceived to be inevitable that the Banks must suspend and ease the business classes, or that there must be an almost universal stoppage on the part of the latter. This issue was stated in an article in this paper, copied from a respectable journal, yesterday. In that article it was intimated that, in this struggle, the Banks would suffer the merchants to "go to the wall." We are glad, if that was the true issue, that the Banks have genorously taken the responsibility on themselves of stopping, and sparing the merchants. The general inconvenience will have been light, whatever it be, if men shall at last draw wisdom from bitter experience, and, by tracing the distresses of the country to their true origin-the war upon the currency and its derangement and prostration by the Government-apply the corrective. FROM THE NATIONAL GAZETTE OF THE 9TH INST. # SUSPENSION OF SPECIE PAYMENTS. A combination of adverse circumstances has reluctantly compelled the banks of this city to resort to a temporary suspension of specie payments. The failure of the harvest in England last year caused a demand upon the Bank of England for more than six millions of pounds sterling, about thirty millions of dollars, which was drawn in gold and silver from its vaults, and exported to the continent to pay for grain. This withdrawal of so large an amount of specie produced at once a depression in the value of cotton and other American produce, and of course lessened our means, in England, of paying for the large amount of importations of foreign merchandise. There has therefore been a continued drain upon our banks for specie to ship to Europe to supply this deficiency. Nothing can be more honorable to the character of our merchants than the sacrafices they have made to support their credit both at home and abroad. In this honorable struggle to maintain inviolate the commercial character of our country, they have received every support which it was in the power of the banks to render them. There is, however, a point in human affairs, when it becomes necessary to resort to self-preservation as the first law of Nature. That period is now arrived; every effort has been made by our banks to stem the torrent, but in vain. In support of this declaration, it is only necessary to state that, since the late resumption of specie payments, the Bank of the United States has paid out in specie upwards of twenty millions of dollars. In addition to this, the Bank has made great sacrifices to support the cause of Internal Improvements, not only in Pennsylvania but elsewhere. Of the ability of our banks to meet all their engagements no one can doubt. The safety of a bank does not consist in the amount of specie idle in its vaults, but in the ample security which it holds of its debtors. All that the banks require, is, time to collect the debts due to them, to enable them to resume specie payments. We are requested to state that the Commercial Bank of this city has not united in suspending specie payments. The Baltimore Chronicle says that passengers in the cars from Philadelphia state that the propriety of the suspension was generally acquiesced in by the people of Philadelphia. The Philadelphia Gazette announces, at the same time, the suspension of the Farmers' Bank of Reading-a bank situated in Berks county. It insists that the suspension was the only available measure of salvation for Philadelphia. "To postpone it (it says) would have been to drain her of her silver in a few months, for the benefit of New York. Two millions of specie must inevitably have gone by the first of November, as one million did go from one only of our institutions within a month past. Of course, the fractional parts of dollars under five, and the change under one dollar, will continue to be paid in silver. This is fairly presumable, there being no notes under the first denomination allowed by the statute."

4. January 18, 1840 The Columbia Democrat Bloomsburg, PA
Article from The Columbia Democrat, January 18, 1840

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Article Text

The following named banks have paid dividends since the suspension of specie payments and will accordingly have their charters taken from them during the present session if this recommendation of the Executive be carried into effect. The Mechanics Bank, Philadelphia, Manufacturers' and Mechanics Bank, Farmers' Bank of Reading, Carlisle Bank, Doylestown Bank, Lewistown Bank,