19466. Farmers Bank (Reading, PA)

Bank Information

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

Metadata

Model
gpt-5-mini
Short Digest
30d37c48

Response Measures

Accommodated withdrawals, Full suspension

Description

Newspapers from late Sept 1857 report heavy withdrawals at the Farmers' Bank of Reading (about $20,000 drawn) and that the bank 'has suspended' specie payments following the Philadelphia/Baltimore suspensions during the Panic of 1857. By Jan 1858 there is discussion of a coordinated resumption (possible reopening) but no explicit report that Farmers' Bank had actually resumed; therefore classification is run → suspension with reopening uncertain. OCR errors in articles corrected (e.g., 'Farmer's Bank' → 'Farmers' Bank').

Events (2)
1. September 26, 1857 Run
Cause
Macro News
Cause Details
Heavy withdrawals triggered by the broader Panic of 1857 and suspension of Philadelphia/Baltimore banks; panic-induced runs in region.
Measures
Paid checks and bills in bank notes; sparing redemption of small notes reported in region (no concrete special measures by Farmers' Bank beyond suspension).
Newspaper Excerpt
commenced, which continued until about half ... Up to this time, some $20,000 were drawn out.
Source
newspapers
2. September 26, 1857 Suspension
Cause
Macro News
Cause Details
Suspension of specie payments as part of the general suspension following financial crisis centered in Philadelphia and Baltimore (panic of Sept. 1857).
Newspaper Excerpt
The Farmer's Bank of Reading has suspended.
Source
newspapers

Newspaper Articles (4)
1. September 28, 1857 Wheeling Daily Intelligencer Wheeling, WV
Article from Wheeling Daily Intelligencer, September 28, 1857

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Article Text

[Correspondence of the Intelligencer.] Letter from Philndelphia-The Financial Crisis in the East. PHILADELPHIA, Sept. 26., 1857. Eps. INTELLIGENCER.-Money! Money is the only talk here, from morning until night. You who are in Wheeling can have no idea of the real state of financial affairs in this city, New York and Boston. Boston, we believe, is in a worse condition than either New York or this city, however much they may try, to conceal it. Business men here nor in New York have much sympathy with the banks, being generally of the opinion that the present distresses of those institutions have not been brought about by their boasted "commendable efforts to sustain the merchants and manufacturers;" but as leading merchants told me, it all comes from their lending themselves to the gamblers in stocks and produce, a heavy part of which comes out of the attempts to speculate in Sugar. The crowd is so great in Chesnut and Third streets, within about three squares of the banks, as to render the side-walks almost impassable. The news to-day is that the New York banks still hold out with their specie payments, but it i: generally known here that they will come down on Monday or Tuesday, at farthest, unless something unforseen at present should occur. The news of the suspension of the Baltimore banks could add nothing to the excitement that already existed here, so intense had it become. The people are now prepared for just anything that may turn up, no matter what it may be.Those who have money loaned out are about in as bad a fix as those who have none to lend, for they can now neither get principal nor interest. Some of them say that they expect to get their loans back in the course of time, but the more knowing ones having lost sight of time, are patiently looking forward to eternity 18 the only place where their accounts are likely to be squared. If it be in eternity, as some philoso phers say, that men follow their worldly occupations in Satan's department, then I should say that the trade in sugar and railroad stock, is likely to "be a heavy business in that quarter after while. 3 O'CLOCK P. M.-The latest news that I have been able to get hold of before the closing of the mail, is that the Bank Presidents have been in consultation this afternoon, and although nothing definite has been done, there is reason to believe that they have ascertained the views of the Governor and are about to take some steps which will have the effect to restore confidence. The Farmer's Bank of Reading has suspended. The only other bank in Reading, is the Branch of the Bank of Pennsylvania, which of course suspended with the principal bank. The Union Bank, chartered by the last Legislature, has not yet gone into operation. All the places in the interior of the State from which we have any accounts are following the example of Philadelphia, and there can be no doubt that by the time this letter reaches you every bank in the State of Pennsylvania will have suspended specie payments. Stocks have been brought to a complete stand by the money panie, and prices, with one or two exceptions are completely nominal. B. Yours,

2. October 1, 1857 Holmes County Republican Millersburg, OH
Article from Holmes County Republican, October 1, 1857

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Article Text

by the Financial Intelligence From the Philadelphia Bulletin of Satevenime: Aupm As might have been foreseen from the of events of yesterday morning, the Banks this city have been obliged to resolve upon suspension of specie existed payments a general time. The excitement that is for a has subsided very much, be and it yesterday that a resumption may not very hoped distant. Most of the banks forfeit their far by a suspension of specie pay- the charters but there is some talk of urging for ments; Governor to assemble the legislature to sake of getting some special action is the relieve them in this emergency. There particular inconvenience resulting as yet no from the suspension. In most of the Banks specie is given for notes of small denominations, and there is an abundance of coin in circulation. The Bank Presidents have been in consultation this afternoon, and although nothing definite has been done, there is reason to believe that they have ascertained the views of the Governor and are about to take some steps which will have the effect to restore confidence. It will be observed that the suspension of specie payments here has been followed The by a like movement in Baltimore. Farmers' Bank of Reading has also suspended. The only other bank in Reading is the Branch of the Bank of Pennsylvania, which of course sdspended with the principal bank. The Union Bank, chartered by the last legislature, has not yet gone into All operation. the places in the interior of the State from which we have any accounts, are following the example of Philadelphia. From the Reading Gazette Saturday The morning suspension of the Pennsylvania Bank became known here about 11 o'clock yesterday morning, and almost immediatecom-to SUM Bank Farmers's offi uodn uni U 4 menced, which continued until about halfpepuadsns 7! when "W d & ased upon its checks and bills. Up to this time, some $20,000 were drawn out. From the Harrisburg Telegraph SaturSep The suspension of specie payments by the Banks in Philadelphia, is already affect ing the Banks in the country. Large drafts were made on the Harrisburg Bank from the city, and some alarm being exAunu 'Mejet's superscript(s)! 10J streets the uo pessond note holders appeared at the counter this morning for specie in exchange, and a general "run" was inevitable. Under these circumstances the Directors deemed it the most prudent course to suspend temporarily, until the panic had subsided, and accordingly declined paying out specie for the present. All checks are paid in notes of their own or other Banks. HARRISBURG, Sept. 26.-The banks of this place, 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, Sept. 26,-Despatches have been sent to the South stating that the banks of this city have suspended or will suspended. They are the work of inischiefmakers,"whose "wish was father to the The thought" idea of suspension has not been entertained for a moment. It is believed that the banks are strong enough to stand a still severer pressure. A circular is about to be issued to assure the public of this. The banks are everywhere spoken of with the greatest confidence. They can't suspend and must either break or stand It erect. is believed here that all the banks at the South, except those of New Orleans, will follow the example of those of Baltimore and suspend. From the Baltimo e American, Saturday afternoon: The additional features of panie impressed upon the existing financial pressure by the occurrence in Philidelphia has led 10 what we hoped would be avoided, but still feared must occur-the suspension specie payments by the banking institutions of Baltimore. A general meeting of the Bank Presidents was held this morning, and the result was soon known by announcement to suspend immediately and entirely specie payment. The determination was at once carried into effect, and the result, though necessarily productive of some excitement and alarm, was as a general thing received with a far grater degree of calmness than could have been expected. The immediate effect of the suspension this morning was to brighten the aspect of commercial affairs and relieve the apprehension so constantly prevailing for the past month. The price of money fell from -tud jo uu puu contral per fI 01 17 ces occurred at the stock board. Among the merchants generally the action of the Banks was approved. Althought the suspension, by the terms of the resolution, is entire, some of the Banks continue to sparingly redeem their $5 notes. This however, was only done in peculiar cases and merely to afford change to their customers. The pravailing opinion among the Bank officers is that the suspension will only be From temporary. the Pbiladelphia Press, vester Saturday:

3. November 25, 1857 Democrat and Sentinel Ebensburg, PA
Article from Democrat and Sentinel, November 25, 1857

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Article Text

Consolidation Bank, Nov. Bank of Chambersburg, Nov. Reading Savings Bank, Bank of Danville, Nov.1 Western Bank, ,Nove South Wark Bank Nov. Miners' Bank of Pottaville, WE Tradesmen's Bank of Philadelphia, Nov, Farmers' and Mechanics' Bank of Ponasylvania, Nov: Mechanics' Bank of Pittsburg, AGA Bank of Penn township, Nov: Kensington Bank, Nov, Farmers' Bank of Reading, Nov. Lebanon Bank, Nor: Laneaster County Bank, Nov Girard Bank, Nor Easton Bank, Nov, Allentown Bank, Nov, Bank of Lawrence county, Novi Wyoming Bank at Wilkesbarre, Nor, Anthracite Bank of Tamaqua, Nov, Farmers' Bank of Easton, Nov. Doylestown Bank, Nov. Lock Haven Bank, Nor Commercial Bank of Pennsylvania, Nov. Bank of Germantown, Nov. Farmers' Bank of Lancaster, Nov. Merchants' and Manufacturers' Bank of Pittsburg. Nov. Mochanies' Bank of Philadelphia, Nov Harrisburg Bank, Nov. Bank of the Northern Liberties, Nov, Bank of Middletown, Nov. Mauch Chunk Bank, Nov. Columbia Bank, ,Now, Bank of Commerce. Nov Six Penny Savings Institution, of Philadelphia, Nov / Bank of North America, Nov City Bank, (Philadelphia,) Nov Nov Exchange Bank of Pittsburg, Bank 0: Gettysburg, Nov Manufacturers' and Mechanica' Bank of Philadelphia, Nov Nov Citizens' Deposit Bank of Pittsburg, Honesdale Bank, No Bank of Delaware county, Nov. Nov Bank of Montgomery County, Bank of Pennsylvania, NW York Bank, Nov1 York County Bank, Nor] Nor] Philadelphia Saving Fund Society, Lewisburg Bank, Nov West Branch Bank, Nor Not Bank of Choster County, Penn'a Co. for Insurance on Lives and Granting Annuities, Nov.] National Safety, Insurance and Trust Co., Nov Western Saving Fund Society of Philadelphia, Nov. Central Insurance Co., Harrisbarg, Nov War. en County Bank, Not No further notice of acceptance have be received at the Auditor General's office (4 several days past, and it is therefore preus ble that those Banks that have not signition their accaptance, have declined the provi ions of the law. Woobserve, however. fre the newspapers. that the Erie City Back au the Bucks County Bank, bad taken to accept, but no notice to this effect has : been received at the Author's Department The law allowed the Banks thirty days ter the date of suspension, to accept the pr visions, and required them to give notice the Auditor General of the factor acceptant All the new Banks pay specie. Mr. C. McLain, Bank clerk of the depart ment, is entitled to our thanks for his tesy in giving access to the books from which we have derive di our statement We append a list of the Banks and Savings Institutions, from hom no notice of servy tance has been received, as follows :-

4. January 6, 1858 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, January 6, 1858

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Article Text

126,363 Total bagsand mats The Baltimore Patriot says: Financial affairs present no special change. Confidence is gradually restoring, and we note increasing ease. The annual statements of our banks will be out to-morrow, making, as we have reason to know, a highly satisfactory exhibit. The resumption of specie payments is becoming a subject of more earnest consideration. Our banks are now, as we have just reason for believing, amply prepared to resume, if necessary, at a moment's notice; but, having acted with Philadelphia in suspending, are disposed to unite with her in resuming. It is understood, however, that the banks of Pennsylvania are contemplating resumption at an earlier period than the 1st April, as required by the Legislature. Whatever period this may be, the Maryland banks will meet it promptly in resuming. The time contemplated may be between the 1st February and the 15th of March next-possibly sooner." The aggregates of the statements of a portion of the Philadelphia Banks compare as follows: Nov. 1857. Jan. 1858. Circulation $423,643 $1,179,738 Decrease $756,095 1,232,153 2,021,362 Increase 789,209 Specie 6,337,974 8,165,517 Increase 1,827,543 Deposits From The Philadelphia Press. Though the officers representing country banks, who held a meeting at the Girard House last week, determined to keep their proceedings to themselves, and exclude the reporters, several statements calculated to satisfy public curiosity have found their way into print. Some of these are true and some are not true. It appears that the call for the meeting was not issued at the instance of the State Treasurer, and that that gentleman is not making himself particularly obnoxious to the country banks, as many have supposed. The call was issued by the Cashier of the Farmers' Bank of Reading, inviting those to whom it was addressed to attend for the purpose of considering the propriety of a speedy resumption. A correspondent, who appears to be thoroughly posted up, writes us that the directors of a majority of the banks that were represented at the meeting instructed their Presidents and Cashiers to go into the meeting and vote for resumption at the earliest possible period." Consequently, & majority of the representatives at the meeting introduced and passed a resolution that they would resume on the 1st of February next, provided that the Philadelphia city banks would coöperate. There was an attempt, on the part of some of the representatives present, to stave off this action, by introducing other considerations; but all attempt to recommend a delay of time, or ask for more legislation for the banks, was voted down by the majority. The banks voting in the majority at this meeting were, with the exception of the Harrisburg Bank, those named in The Inquirer, viz.: The Easton, Wyoming, Montgomery County, Allentown, Farmers' and Mechanics' Bank of Easton, Catasanqua, Pottstown, and the Banks of Reading, Chester County, and other near localities. Our correspondent adds that the State Treasurer cannot trouble any except such banks as have been throwing out their notes regardless of their ability to redeem them; and claims that such country banks as usually keep their notes at par in Philadelphia are better prepared for resumption than the city banks themselves. From The New-Orleans Picayune. WEALTH OF THE MEXICAN Mises.-According to the official Custom-House report, the exports of the precious metals from the port of Vera Cruz for the first five months of the present year were as follows, in round numbers: