1972. Exchange Bank (Washington, DC)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
November 13, 1854
Location
Washington, District of Columbia (38.895, -77.036)

Metadata

Model
gpt-5-mini
Short Digest
4abf4c6a

Response Measures

Full suspension

Other: Assets of the Exchange Bank were assigned to Bayne and John A. English (receivers/assignees) on 1854-12-02.

Description

Newspaper accounts show a heavy run beginning Nov 13-14, 1854; the bank redeemed its paper but restricted deposit withdrawals and paid bill-holders in Trans-Allegheny notes. By Dec 2, 1854 the firm's assets of the 'late Exchange Bank' were assigned to Bayne and John A. English, indicating permanent closure/assignment (receiver/assignee). Cause of the run is attributed in some reports to a combination/speculative attack tied to Virginia stocks (portrayed as a malign rumor/combination to 'crush' the bank).

Events (3)
1. November 13, 1854 Run
Cause
Rumor Or Misinformation
Cause Details
Panic attributed to a suspected combination/attack to 'crush' the bank because it maintained the market price of Virginia stocks; reports of general nervousness and speculation in Virginia stocks.
Measures
Bank redeemed paper promptly; depositors were not allowed to remove their deposits; bill-holders were paid in notes of the Trans-Alleghany (Trans-Allegheny) Bank of Virginia.
Newspaper Excerpt
RUN ON THE EXCHANGE BANK. WASHINGTON, Nov. 13, 1854. Much excitement exists in this city in regard to the Exchange Bank, a heavy run on it having commenced this morning.
Source
newspapers
2. November 14, 1854 Run
Cause
Rumor Or Misinformation
Cause Details
Continued heavy withdrawals amid doubts about the bank's ability to sustain itself under sudden pressure; links drawn to speculation and falls in Virginia stocks and distress of other banks.
Measures
Continued redemption of paper; payments to bill-holders in Trans-Alleghany Bank notes; refusal to permit deposit withdrawals.
Newspaper Excerpt
The run on the Exchange Bank in this city continues to-day ... The paper of the bank is redeemed promptly, but depositors are not allowed to remove their deposits, and bill holders are paid in notes on the Trans-Alleghany Bank of Virginia
Source
newspapers
3. December 2, 1854 Receivership
Newspaper Excerpt
Messrs. Selden, Withers & Co., have assigned the assets of the late Exchange Bank of this city to Mr. Bayne and John A. English, merchants, of Alexandria.
Source
newspapers

Newspaper Articles (12)
1. November 14, 1854 The New York Herald New York, NY
Article from The New York Herald, November 14, 1854

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Bank Suspensions. BUFFALO, Nov. 13, 1854. The Farmers' Joint Stock Bank bills are not redeemed at the agency in this city. The bank closed its doors this morning, causing great excitement, as a large amount of its circulation is held here. A card was published in the Commercial Advertiser, of this city, this afternoon, signed by persons interested in the joint stock of the bank, saying that the bills will be fully redeemed in real estate, or other property, at fair prices. WESTERN BANK DIFFICULTIES. CHICAGO, Nov. 13, 1854. The Merchants' and Mechanics' Bank of this city closed to-day. The bills of the Napersville Bank and the Bank of Elgin were refused here to-day. RUN ON THE EXCHANGE BANK. WASHINGTON, Nov. 13, 1854. Much excitement exists in this city in regard to the Exchange Bank, a heavy run on it having commenced this morning.

2. November 14, 1854 Richmond Daily Whig Richmond, VA
Article from Richmond Daily Whig, November 14, 1854

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SUICIDE. WASHINGTON, Nov. 13.-Charles W. Stewart, an officer of the House of Representatives, committed suicide last night in the Speaker's Room at the Capitol by taking poison. Much excitement exists here in regard to the Exchange Bank of Seldeu, Withers & Co., and a heavy run has commenced upon it.

3. November 15, 1854 The New York Herald New York, NY
Article from The New York Herald, November 15, 1854

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The Financial Crisis. RUN ON THE BANKS OF WASHINGTON. WASHINGTON, Nov. 14, 1854. The run on the Exchange Bank in this city continue. to-day, but there were appearances of an abatement at the close of bank hours. The paper of the bank is re. deemed promptly, but depositors are not allowed to remove their deposits, and bill holders are paid in notes on the Trans-Alleghany Bank of Virginía-an institution said to belong to the same firm. Strong doubts are entertained as to the capability of the bank to sustain itself under such sudden pressure. The run on the Trans-Alleghany, the Arlington, the Old Deminion, and the Kanawha banks, and also the Exchange Bank of Selden, Withers & Co., still continues, and each bank is redeeming its notes with those of the others. EXCITEMENT ABOUT THE CANAL BANK OF CLEVELAND. CLEVELAND, Nov. 14, 1854. Dr. Ackley, a special depositor of eight thousaed dollars in the Canal Bank of this city, as State Commissioner for the erection of an insane asylum at Newbury, attempted to get possession of the property of the bank by law, as assignee, bnt was refused the keys of the safe. Thereupon, the Sheriff caused the safe wall to be broken into. Meanwhile, a general depositor of fifteen thousand dollars sued the bank, and summoned the 33signee to give him possession. The landlord of the building then refused to accept the assignee as a sublessee, and the breaking in of the wall was temporarily suspended. It was afterwards resumed, and it was proceeded with amidst the greatest excitement. What was got by the assignee has not yet transpired. SUSPENSION OF THE CITY BANK OF CHICAGO. CHICAGO, Nov. 14, 1854. The City Bank of this city this morning suspended. Its capital was two hundred thousand dollars. STOPPAGE OF GEORGE MILNE & co., PRIVATE BANKERS. CINCINNATI, Nov. 14, 1654. George Milne & Co., private bankers, of this city, stopped this morning. WESTERN BANK DIFFICULTIES. CHICAGO, Nov. 14, 1854. The Union Bank has closed. The bills of the Elgin Bank are again being taken. Great excitement exists here in regard to the continued bank failures.

4. November 15, 1854 Washington Sentinel Washington, DC
Article from Washington Sentinel, November 15, 1854

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# RUN ON A BANK--VIRGINIA STOCKS. The run which was commenced on Monday on the Exchange Bank of Messrs. Selden, Withers & Co., lasted during yesterday. In the beginning there was considerable excitement, but it abated as the bank continued to meet its liabilities. The notes of the Exchange Bank have, for a long time past, circulated freely, and the credit of the bank was firmly established. We were surprised, therefore, to hear that a run had been made upon it, and have endeavored to ascertain the cause that produced the panic. Amongst the various reasons assigned, that which struck us as the most plausible, attributed the panic to a combination to crush the bank, because Messrs. Selden, Withers & Co., had maintained the market price of Virginia stocks, which certain parties wished to speculate in. We do not know whether this is true, but if it is true, it shows that selfishness and avarice will go any length for gain, regardless of the sufferings which may be inflicted on a community. Virginia stocks are as good as any in the Union. A large amount of those stocks have been taken to the Northwest and used as a basis for Private Bank issues. Many of those Private Banks have been hard pressed, and have been forced to realize their securities. This has thrown a great deal of Virginia stock on the market and caused a decline in price. The stock-jobbers understand well enough the cause of the decline, and they know well enough that, the stocks being as good as any in the country, the decline must be temporary. They wish, therefore, to buy as low as possible and as speedily as possible. The resources of Virginia are ample, and the idea of repudiation has never been entertained by the people of Virginia. They have been thoroughly tested in that particular, and they bore without complaint the most onerous taxation, in a time of pressure, rather than fail to pay promptly the interest on the State debt. Since then they have taken security for the future. They have embodied in their State Constitution a clause which forbids the Legislature to create a debt without making a provision at the same time for paying the interest, and for a sinking fund to discharge the principal at maturity. We had occasion a few days ago to express our hostility to the new system of Banking by which stocks are made the basis of paper issues; but we believe that the system, as regulated in Virginia, is much safer than in the other States. There the banks are not only required to deposit stocks to the amount of their notes, but they are required also to keep on hand an amount of specie equal to two-fifths of their circulation.

5. November 15, 1854 Wheeling Daily Intelligencer Wheeling, WV
Article from Wheeling Daily Intelligencer, November 15, 1854

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BANK EXCITEMENT. Cincinnati, Nov. 14.-G:orge Milne & Co., private bankers, stopped to-day. W ASHINGTON, November 14.-The run upon the Exchange Bank continued to-day. Their paper is promptly redeemed, but depositors are not allowe# to remove their deposits. Bill Holders are paid notes on the Trans-Allegheny Bank of Virginia, an institution said to belong to the same firm.-Strong doubts are entertained as to the capability of the Bank to sustain itself under such a sudden pressure. CHICAGO, Nov. 13.-The Merchants' and Mechanics' Bank of this city has closed. Napersville Bank and Bank of Elgin are refused in this city. SECOND DISPATCH. Union Bank of Chicago closed. Elgin Bank cills again taken. Great excitement.

6. November 15, 1854 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, November 15, 1854

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RUN ON THE BANKS. W ASHINGTON, Tuesday, Nov. 14, 1854. The run on the exchange Bank in this city continnes to-day, but there were appearances of an abatement at the close of bank hours. The paper of the bank is redeemed promptly, but depositors are not allowed to remove their deposits. and bill-holders are paid in notes on the Trans-Alleghany Bank of Virginia-an institution said to belong to the same firm. Strong doubts are entertained as to the capability of the bank to sustain itself under such sudden pressure. The soldiers of the war of 1812 held a meeting in this city to-day to respond to the call for a National Convention to be held here January 8, and appointed R committee of thirty-two to make the necessary arrangements for that purpose. The object of the Convention is to take measures 20 procure an increase of the pension rates.

7. November 16, 1854 The Evansville Daily Journal Evansville, IN
Article from The Evansville Daily Journal, November 16, 1854

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TELEGRAPHIC! [Reported expressly for the Daily Journal.] BOSTON, Nov. 14 The Atlas of this morning sums up the result of the election as follows: In 308 towns, which is all but twenty-one in the State, Gardner has 71,845; Washburn 36,135: Bishop 13,195; Wilson 67,758; Walls 313; all others 755 votes, making for Gardner, Know Nothing, 31,925 majority.Simon Brown, of Concord, is chosen Lieut. Governor by a vote essentially as the above. Robt. W. Hall, of Plymouth, Buffalston, of Fall River, Dannell, of Dedham, Collins, of Roxbury, Burlingame, of Cambridge Davis. of Gloucester, Banks, of Waltham, Knapp, of Lowell. Dewitt, of Oxford, M rice, of Springfield, Tratton, of Westfield, are chosen Congressmen, all of whom are Know Nothings. Banks and Dewitt are the only members of present Congress. State Legislature has been swept in a surprising manner by some secret organization which has chosen all, and the probabilities are that every member of the senate, and out of 348 members in the House, 341 are Know Nothings Such a political revolution was never experienced before in this country. NEW YORK, Nov. 14 There was quite a fall of snow in Western New York this morning, and in Dunkirk it fell to the depth of 4 inches and still falling. One hundred and thirty-five passengers have been saved from the New Era to-day and twen'y yesterday from the wreck; 145 were lost, and 3 of the saved have since died. Official returns from 16 counties were taken as a bas's table in the Times this morning which showed 279 majority for Clark.We now fi_ure it out a majority for Seymour of 467. Nearly every return differs more or less from the first received, and the m jurity will therefore doubtless fluctuate from one side to the other until the returns from every county are received. BALTIMORE, Nov. 14. An excursion train left here this morning to go with a crowd of guests to participate in the opening of the Central Ohio railroad to-morrow. They expect to reach Wheeling midnight. CHICAGO Nov. 14 The Union Bank has closed. Elgin Bank bills again taken. There is great excitement. WASHINGTON, Nov. 14. The run upon the Exchange Bank continues to-day; the paper was redeemed promptly, but depositors were not allowed to remove their deposits. Bill bolders are paid in notes on the Trans-Alleghany Bank of Virginia, an institution said to belong to the same concern. Strong doubts are entertained as to the capability of the bank to sustain itself under such a heavy pressure. LOUISVILLE, Nov. 15. L. Bristow Whig elected to Congreas to fill vacancy in the 2d district. caused by the death of Priestly Erwing. NEW ORLEANS, Nov. 14. The vote yesterday resulted in 5,000 maj. in favor of Lyons, and for the Know No. thing ticket. NEW YORK, Nov. 15. The Arabia sailed at noon to-day, with 136 passengers and $282,000 in specie. CIRCINNATI, Fov. 15. The Merchants' and Traders' Bank of this city failed this morning. This is a branch of the State Bank of Ohio. The house of J. H. James, of Urbana, was mobbed last night. He failed last week, and was largely concerned in the M. and T. Bank of this city. CINCINNATI, Nov. 15, M. River fallen 4 inches. Weather cloudy with indications of rain. Flour in demand at 75a7 90. Whisky 29a30c; che se 1 'c; nothing doing in other articles. Provis ins, packers are cutting. Cloverseed 6a7c. NEW ORLEANS. Nov. 15. Deaths from fever for the week 38, weather cold, heavy frost. Interior of Texas papers say that Walker King's deposits consisted in the Stocks of Sussex Iron Co. which the State Treasurer accepted, Governor not yet assented. NEW ORLEANS, Nov. 14. Weather Cold with heavy trost last evening. Pork unchanged, Mess 16,50@17 Molasses declined to 18c. CINC NNATI, Nov. 15. The closing of the Mechanics and Trader's Bank caused great excitement in financial matters. The principal banking houses have failed, and we are now near the bot-

8. November 16, 1854 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, November 16, 1854

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THE WASHINGTON BANK EXCITEMENT. WASHINGTON, Nov. 14.-The run upon the Ex change Bank continued to-day, with appearances of an abatement at the close of bank hours The paper of the bank was redeemed promptly, but depositors were not allowed to renew their deposites. The bill holders are paid in notes on the TransAlleghany Bank of Virginia, an institution said to belong to the same firm. Strong doubts are entertained as to the capability of the bank to sustain itself under such a sudden pressure. We copy the foregoing from the Baltimore American of yesterday. The Washington papers allude to the matter, all agreeing in the facts stated. In commenting upon it, the Globe says: We consider that the notes of the firm are better than the notes with which they redeem them, as William Selden and John Withers are certainly men of means. This community have confided in their ability to meet all the liabilities of the bank; but it is rumored that the former has withdrawn from the concern, and that the latter is in it to a limited extent only, which induces many to take whatever they can get. These men, we think, are bound for all the liabilities of the bank, as they have not publicly withdrawn from it, and their names are still over the door of the banking house. If we had the notes of the bank, we would keep them rather than take Alleghany notes for them. The Sentinel says that the excitement abated 88 the bank continued to meet its liabilities. In regard to the cause that produced the panic, the same pa. per says: Amongst the various reasons assigned, that which struck us as the most plausible, attributed the panic to a combination to crush the bank, because Messrs. Selden, Withers & Co., had maintained the market price of Virginia stocks, which certain parties wished to speculate in. We do not know whether this is true, but if it is true, it shows that selfishness and avarice will go any length for gain, regardless of the sufferings which may be inflicted on a community. The Sentinel and Intelligencer both maintain that Virginia stocks are as good as any in the Union.

9. November 21, 1854 The New York Herald New York, NY
Article from The New York Herald, November 21, 1854

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For the Interior Department... 27,652 70 The redemption of the public debt at the Treasury Department, for the week ending the 18th inst., was as follows:-Loan of 1842, $39,000; loan of 1846, $41,000; loan of 1847, $90,600; loan of 1848, $33,700-total, $204,300. For the week ending Saturday, Nov. 11, 95 boats descended the Chesapeake and Ohio canal, carrying 6,367. 18 tons of Cumberland coal and 151.13 tons of coke. During the same period there were transported over the Mount Savage Iron Company's railroad 6,521 tons, making an aggregate from the Frostburg region for the week, of 6,521 tons, and for the season 404,328.17 tons. Over the George's Creek Coal and Iron Company's railroad there were transported 3,878.15 tons, and over the Baltimore and Ohio railroad from the mines of the New Creek Company, 118.7 tons. Total from Westernport region for the week, 3,997.03 tons, and for the season 161,096.2 tons. Total from the whole coal region for the week, 10,518.2 tons, and since the 1st of January last, 565,758.5 tons, of which 432,081.2 tons were transported over the Baltimore and Ohio railroad, and 133,607.2 teas descended the Chesapeake and Ohio canal. The Washington Star of Saturday, says:- The run on the Exchange Bank of Selden, Withers & Co., by note holders, was this morning merely nominal, it having been found that they promptly redeemed every dollar of their issue presented since Monday morning last, when the rush began. We presume that on Monday morning next they will commence regularly repaying their depositors, inasmuch as by that time they will probably have made arrangements enabling them to do so. Nothing could be more disastrous to the State of Virginia at this time than a suspension on their part. They are the financial agents of that State, and their suspension would necessarily involve a suspension of the work on all the internal improvements in progress in Virginia, the State herself being interested heavily in them, advancing to them large sums of money obtained through Selden, Withers & Co., who are charged with the duty of selling the State stocks to realize the funds so advanced or paid. Wth the suspension of these works must come a stilf greater sweeping depreciation of the Virginia State stocks in question. That in turn can hardly fail to cause an immediate run on all the stock secured banks of the State. We do not know how many of them are able to redeem all their issues on the instant without relying on their hypothecated stock. Such a run on these banks must react on the old banks of the State quite as disastrously. We sincerely believe that there are not sounder banks in the Union than those of Virginia, one and all, so far as we know their condition. Though thus based on stable foundations, and managed as a general thing with most commendable prudence, such consequences as we depict above to nearly all of them, as well as to the progressing internal improvements, could hardly fail to result from the stoppage of the house of Selden, Withers & Co.

10. November 21, 1854 Spirit of the Times Portsmouth, Ironton, OH
Article from Spirit of the Times, November 21, 1854

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THE BANK TROUBLES IN WASHINGTON. Washington, Nov. 14.-The run upon the Exchange Bank continued to-day. Its paper was redeemed promptly, but depositors were not allowed to remove their deposits. Bill-holders are paid in notes on the Trans-Allegheny Bank of Virginia an institution said to belong to the same firm. Strong doubts are entertained as to the capability of the Bank to sustain itself under such a sudden pressure.

11. December 3, 1854 The New York Herald New York, NY
Article from The New York Herald, December 3, 1854

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THE LATEST NEWS. BY MAGNETIC AND PRINTING TELEGRAPHS. From Washington. THE PRESIDENT'S MESSAGE-ASSIGNMENT OF THE ASSETS OF THE EXCHANGE BANK-WHIG AND BENTONITE COALITION IN MISSOURI-THE VIRGINIA STATE CONVENTION, ETC. WASHINGTON, Dec. 2, 1854. A special messenger, with copies of the President's message, left here this morning for Baltimore, Philadelphia, New York and Boston. The messenger for Cincinnati left this afternoon, and the messenger for Richmond, Petersburg, Wilmington and Charleston, leaves this evening. It was the original intention to send it to Richmond only, omitting PetersWurg, Wilmington and Charleston ; but the President was prevailed upon to extend the favor of an advance copy to Charleston. Messrs. Selden, Withers & Co., have assigned the assets of the late Exchange Bank of this city to Mr. Bayne and John A. English, merchants, of Alexandria. The assignment does not cover the property of any parties not already involved in the business of the bank. Intelligenc has been received here stating that the Bentonites in the Missouri Legislature have offered to coalesce with the whigs to defeat the election of Mr. Atchison to the United States Senate. The correspondence of the Richmond Whig states that a high state of excitement is prevailing in the Virginia Democratic Convention, and that the proceedings are very disorderly and turbulent. Henry A. Wise, it is thought, will surely receive the nomination for Governor. ARRIVAL OF CONGRESSMEN-REPORTED NOMINATION OF HENRY A. WISE FOR GOVERNOR OF VIRGINIA. WASHINGTON, Dec. 2-9 M. The city is filling with the members of both Houses, and a full quorum is now present. The hotels are thronged. News has just been received here that Henry A. Wise has received the nomination for Governor, by the State Convention. The annual reports from the heads of the several de partments of the government will be transmitted from here by mail to-morrow afternoon.

12. March 13, 1855 Minnesota Weekly Times Saint Paul, MN
Article from Minnesota Weekly Times, March 13, 1855

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Some mathematician has calculated that the war costs the Allies $300 a minute. # BROKEN AND SUSPENDED BANKS. PRESENT VALUE. Canal Bank, Cleveland, Ohio, 95 cents City Bank of Columbus Ohio, 95 cents Bank of Circleville Ohio, 65 cents Merchants' Bank, of Bridgeton, N. J. 80 cents Wheat Growers' Bank, Newtown, N. J. 80 cents Government Stock Bank, at Ann Arbour, Mich-igan, 40 cents Bank of Washtenaw, Michigan, 25 cents Erie & Kalamazoo R. R. Bank, Michigan, 25 cents Farmers & Mechanics' Bank of Kent County Maryland 65 cents Newport Safety Fund Bank, Kentucky, — cents Stark Bank, Vernont, 50 cents Cochituate Bank, Boston, Mass. 25 cents Eighth Avenue Bank, New York City, 93 cents Lewis County Bank, Martinsburgh, N. Y. 10 cents Union Bank, Chicago, Illinois, 75 cents City Bank, Chicago, Illinois, 75 cents Mechanics' and Farmers' Bank, Springfield, Illinois, 75 cents Farmers' Bank, Chicago, Illinois, 75 cents Ship Builders' Bank, Maine, — cents Trans-Alleghany Bank, Virginia, 90 cents Bank of Milford, Delaware, — cents Exchange Bank of Selden, Withers & Co. Washington, 50 cents