19981. Merchants Bank (Cheraw, SC)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
May 19, 1837
Location
Cheraw, South Carolina (34.698, -79.883)

Metadata

Model
gpt-5-mini
Short Digest
48e9fee3

Response Measures

None

Description

Articles (May–June 1837) report the Merchants' Bank of South Carolina at Cheraw formally suspending specie payments on 1837-05-19. The suspension is described as a response to widespread suspensions by many banks (national and local) rather than a depositor run or bank-specific insolvency. No article mentions a permanent closure, receivership, or reopening; however, given the context of the 1837 panic and that the suspension is framed as temporary, I classify this as a suspension with likely eventual resumption (suspension_reopening).

Events (2)
1. May 19, 1837 Suspension
Cause
Macro News
Cause Details
Numerous banks in New York, Boston, Philadelphia, Baltimore, Norfolk, Charleston, Mobile and within the state had suspended specie payments; bank suspended to avoid being at a disadvantage while others refused specie.
Newspaper Excerpt
Resolved, That this Bank suspend payment in specie, until the further action of this Board.
Source
newspapers
2. June 9, 1837 Other
Newspaper Excerpt
committee... have made a report. After noticing the causes which led to the suspension of specie payment by this Bank... they give the following expose as the present state of the Bank: ... Its assets ... Its liabilities ... Notes in circulation ... Private deposits
Source
newspapers

Newspaper Articles (2)
1. May 24, 1837 Cheraw Gazette Cheraw, SC
Article from Cheraw Gazette, May 24, 1837

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Article Text

Merchants' Bank of So. Ca. AT CHERAW, MAY 19, 1837. At a special meeting of the Board of Direct. ors this day, the following resolutions were unanimously adopted : Whereas the Banks in New York, Boston, Philadelphia, Baltimore, Norfolk, Charleston and Mobile, besides many others out of this State, and the other Banks within this State, have suspended specie paymentsAnd whereas it would be injurious to the in. terest of this Bank to continue to pay specie for its Bills, while the other Banks refuse to do so. It is therefore. Resolved, That this Bank suspend payment in specie, until the further action of this Board. Resolved further, That this Bank will not increase its' issues above what they now are, du. ring the period for which specie payments are suspended. J. WRIGHT, President. if 28 May 24

2. June 9, 1837 The Charlotte Journal Charlotte, NC
Article from The Charlotte Journal, June 9, 1837

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Article Text

"J. McConnaughey, Esq." at The Merchants' Bank of Cheraw.A committee of gentlemen, invited by the Presi. dent and Directors of the Merchants' Bank of Cheraw, to examine into its situation, have made a report. After noticing the causes which led to the suspension of specie payment by this Bank, which they consider not merely as a measure of irresistable necessity, but of imperious, paramount duty to its numerous debtors, they give the follow. ing expose as the present state of the Bank: The capital stock of the Bank, originally one half this amount, has been enlarged as the wants of the community have called for it in about three $400,000 0 00 years to Its assets in receivable exchange mostly on New York and 442,912 70 Charleston, 524,348 39 Notes discounted at Bank, Cash balalances in other Banks & 81,164 00 in the hands of its agents abroad 14,267 50 Notes of other Banks, 61,732 75 Specie, $1,124,425 34 Its liabilities are For notes in circulation 588,805 00 84,323 58 673,128 58 Private deposites