Bank of Washington - Washington, PA

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: December 4, 1818
Location: Washington, Pennsylvania (40.174, -80.247)

Metadata

Model: gpt-5-mini
Short Digest: 4833bed8

Response Measures

None

Description

Article (Richmond Enquirer, 1818-12-04) reports the Bank of Washington (PA) 'has suspended payment till the state legislature has time to act.' Directors claim solvency and suspension appears temporary awaiting legislative action; no run or permanent closure mentioned in the text, so classified as a suspension with likely reopening (uncertainty noted).

Events (1)

1. December 4, 1818 Suspension

Cause Details: Bank voluntarily suspended specie payments pending action by the state legislature; directors assert solvency and frame suspension as resistance to actions of the U.S. Bank and speculators.
Newspaper Excerpt: AlThe Bank of Washington, (Pa.) has suspended payment till the state legislature has time to act on the subject ct. The directors say, they are able to meet their engagements; but they conceive the interest of the country makes it necessary to resist the high-handed course pursued by the U.S. Bank, and the swindling speculations of the brokers.
Source: newspapers

Newspaper Articles (1)

1. December 4, 1818 Richmond Enquirer Richmond, VA

Article from Richmond Enquirer, December 4, 1818

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Article Text

for the suspension of specie payments, and their confidence in their solvency being unimpaired, they will continue to take their paper. We do not blame their great faith; but a writer in the Cincinmati Inquisitor undertakes to show that the debt due to the United States Branch by the city banks is a large one, and has grown almost exclusively out of the publie deposits; that about $ 200,000 of it had been stauding above 18 months, and a large proportion of the balance nearly a year; and that the banks have never evinced a satisfactory disposition to reduce it either by specie, Eastern drafts, or U.S. Bank paper.-Another Ohio paper avers, that 16 of the banks of that state are sunk to such a wretched degree of credit, that their paper is not received in the payment of state taxes. TheLaucaster Gazette (in Pennsylvania) admits that be bank notes west of the monatains will not be taken in Philadelphia at any discount ; and that many of those are legbany between refused the Susquehannah at 20aud 30 per and cent." AlThe Bank of Washington, (Pa.) has suspended payment tili the state legislature has time to act on the subject ct. The di rectors say, they are able to meet their engagements; but they conceive the interest of the country makes it necessary to resist the high-handed course pursued by the U.S. Bank, and the swindling speculations of the brokers."-The Washi ington Examiner also states, that the Pittsburgh banks have come to the determination of suspending specie payments." The dealersin Baltimoreare attempting, by meetings, &c. to banish the country from the of paper banks circulation their city.The country generally, are represented as in a wretched condition. The evil of excessive circulation, is thus cusing itself. The weakest will go to the wall.-To arrest the embarrassments which will flow from these bank rupteies, many crude schemes have been suggested, such as a law to prohibit the exportation of specie ; and the plan of 30 millions of Treasury notes based on 30,000,000 acres of public land, at S 1 per acre. Do all we can, much embarrassment will result; but the monstreus speculation has gone on long enough.-We cannot expect it to pass over without much loss. But if weare wise enough to profit by the lesson, we will make no more banks, nor multiply banking capital, until the storm has passed by. - The Georgia H. of R. have just wisely negatived a bill chartering the " Agricultural Bank"-nees 54, yeas 34-but a bill IS still before.them, for a bank at Darien, of a million capital, with the liberty of adding half a million more-May it too pass to the tomb of the Capul Is !