Article Text
CENTRAL BANK OF ALABAMA.-The Montgomery Advertiser states that this Bank, which suspended on Saturday last, has good assets to the amount of more than $700,000 over and above every liability.
203. Central Bank (Montgomery, AL)
Bank Information
- Episode Type
- Suspension → Reopening
- Bank Type
- state
- Start Date
- October 17, 1857
- Location
- Montgomery, Alabama (32.367, -86.300)
Metadata
- Model
- gpt-5-mini
- Short Digest
851a1730
Response Measures
None
Description
The Central Bank of Alabama (Central Bank of Montgomery) suspended specie payments in mid‑October 1857 (around Oct 17) and later resumed specie payments on July 1, 1858. The suspension appears driven by pressures from other suspended southern bank notes and brokers drawing specie for eastern exchanges rather than a depositor run or bank insolvency. No run on the bank is described in the articles.
Events (2)
1.
October 17, 1857
Suspension
- Cause
- Local Banks
- Cause Details
- Suspension undertaken because brokers were drawing out specie to make eastern exchanges and a flood of suspended South Carolina and Georgia bank money left local banks short of specie; the bank suspended to prevent brokers from draining specie for eastern exchanges and because of circulating suspended out‑of‑state bank notes circulating locally.
- Newspaper Excerpt
- The Central Bank of Alabama at Montgomery suspended on Saturday last.
- Source
- newspapers
2.
July 1, 1858
Reopening
- Newspaper Excerpt
- The Central Bank of Montgomery, Ala, resumed specie payments on the 1st inst.
- Source
- newspapers
Newspaper Articles (8)
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Letter from Alabama. [CORRESPONDENCE OF THE RICHMOND DAILY DISPATCH.] MONTGOMERY, ALA., Oct., 19th, 1857. The suspension of the Central Bank of this place two days since, met with the approbation of the citizens. There was a meeting called for 10 o'clock the day the bank suspended, for the purpose of advising it to do so, but the bank suspended before the meeting convened. The bank will redeem all its notes of five dollars, and of less denomination. The press here were warmly in favor of the suspension a week before it occurred. The officers of it are men of the first business qualifications-men of wealth, and of undoubted integrity. By the laws of our State the stockholders are responsible for all the indebtedness of the bank to the amount of stock each one holds. In this instance they are all wealthy, The bank has, independent of all liabilities, assets amounting to over soven hundred thousand dollars; therefore there cannot possibly be any loss to either depositors or bill holders. As an evidence of the confidence the people have in its solvency, the bills circulate as freely as ever. The suspension was caused not by the inability to redeem all its bills in specie, but to keep the brokers from drawing out all the specie to make eastern exchanges, The country is sorely annoyed by a flood of South Carolina and Georgia suspended bank money. In ordinary times this money circulates as freely here as our own. It is circulated by brokers. who act as agents, thus keeping our money out of circulation, our banks out of specie, and substitute a foreign currency, which is almost impossible to turn to account. especially in these hard times. These very fellows who circulate this moe mey, now that the banks are suspended, won't touch it notwithstanding they tell all to whom they have paid out this money, that the banks will eventually redeem it all. It is thought that a bill will be offered before our Legislature, which meets in December, to make them redeem all the bills they circulate. It will be admitted by all, that it would be nothing more than justice to the community at large, to make them responsible. Our warehouses are nearly filled with cotton. it being impossible to ship it, in consequence of the low water in the Alabama river. There is no de mand for it. few having money, and those that have, are holding on to it. Cotton will sell now at : cents, or even lower. Unless England sends over specie, or we can make Eastern exchanges, it will be hard to tell what will be done. Business is perfectly stagnant, except with the dry goods men, who seem to be doing their usual amount of business, but all on a credit. The amount of cotton received here, is less than it was the corresponding period last year. It is a general opinion that the crop will not be an average one. It is dry and cold here-rain much wanted. CLERK.
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The Central bank of Alabama at 10" Montgomery suspended on Saturday last.
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The Central Bank of Alabama at Montgomery suspended on Saturday last, It has, the Advertiser says, $700,000 of means over and above every liability. The Savings Bank of Mobile has suspended. It Was a bank of deposite and discount, but not of issue,and did an extensive business.
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CENTRAL BANK OF ALABAMA.-The Montgomery Advertiser states that this bank, which suspended on Saturday last, has good assets to the amount of more than $700,000 over and above every lia. 11.1 right ONE bility.
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ticular change in the general aspect or condition the money market of that city. That paper says: There is great sluggishness in the business of ps per negotiation, and rates for all notes except of th highest character as to strength are high enough be called nominal. These rates of interest are th unpleasant remnants of the great panic, and seen 80 entirely inconsistent with the real abundance money, that we quote them occasionally with grea distrust as to the correctness of the impression which they convey in regard to the actual condition of money matters. For prime signatures, the figure may be stated at from 10 to 12 $ cent. On call the supply is very abundant. Advices by the America are calculated to excite some conflict ofopinions as to their bearing and general character. Financially, however, there can be no doubt that the news will bear a favorable construction, taking the advance in Consols as one of the surest indications furnished. Money was undoubtedly growing easier, though distrust of credits prevails to great extent as a matter of course. This isprecisely the operation of our own relaxation -its rel of coming to strong houses, but not to those struggling under loads too heavy for their backsall such concerns, one after another, dropping away as distrust and cold shoulders were more plainly dis played. The decline in cotton and breadstuffs is discouraging to ourcommercial matters in its superficial aspect, but it should be remembered that these quotations are but the reflex of our markets, and that we arenow getting sympathetic movements from the other side, as the wave of depression reaches the shores of Europe. The statement of the New York City Banks, of their average condition for the week ending Novem ber 28, shows a decrease of $412,302, in loans, and an increase of $1,185,165 in specie, $237,366 in circulation, and $195,934 (nominally) in deposits. The actual increase in the latter, deducting the average clearings, is $2,128,057. The average in specie is again an advancing one, and with the $2,000,000 just added, the Banks must now hold fully $27,000,000. The shipments of treasure from San Francisco, by steamers, for the month of October, 1857, compared with those of a corresponding period of last year, shows a falling off of $474,707, and for the ten months of this year the decrease is $4,544,792. The coinage at the San Francisco Mint for the month of October, reached $1,595,000. The deposits were only $175. The total coinage at the mint in Philadelphia during November, was $2,824,626, of which there were 174,924 pieces of gold, 2,806,000 pieces of silver, 1,620,000 cents. A committee of the Alabama Legislature, to whom was referred a resolution instructing them toinquire nto the condition of the Central Bank of Montgomery and the Commercial Bank of Selma, which had suspended specie payments, have reported the con. dition of these banks as follows: The principal liabilities of the Central Bank are its circulation, $895,295, and amount due to depositors, $193,245.5 9-againt assets reaching the sum of $1,767,251.11. The liabilities of the Commercial Bank consists of amount due to depositors, $87,304 23; due to other Banks, $35,748 90; actual circulation, $228,976amounting in all to $302,029. 18-whilst the assets, consisting of exchange on the different points, locall discounts, and coin in the vault, sums up to $619,825 Your Committee do not, therefore, hesitate to say that the public mind should not only be at rest as to the present solvency of these institutions, but as to their soundness beyond the reach of probable commercial contingencies. The Bristol (Tenn News, of the 4th says: We are informed by Mr. J. F. Terry, the obliging Depot Agent at this place, that there have been shipped eastward on the Va. and Tenn. road, within the last ten days, sixty four car loads of hogs, numbering 8,300 head. About ,600 will be shipped to day, making nearly 5,000 head in all. We hear of hogs coming forward from every direction, and the prospect is that the number shipped from this point will greatly exceed that of any previous season. There has been quite an active demand for hegs here since our last issue, and the price has advanced to $5,50. During the season of navigation which has just closed, comprising 198 days, the number of steamboat arrivals at St. Paul was 1026-189 more than last year, notwithstanding the shortness of the season and the depression of business resulting from the financial panic. In 1847 the total number of arrivals was but 47, thus showing a remarkable increase of trade. The gross earnings of the Wilmington and Weldon (N.C.) Railroad, for the year ending September 30, 1857, were $494,508.56. and the cost of "operating power," $224,502 23, leaving $270,006.4 as net earnings. During the year, $55,178 was expended in fitting up trestle work, and in the purchase of additional engines and machinery. The Ohio wool-clip is estimated to exceed that of 1856 by at least three million pounds. The counties in the centre of that State are now as famous for their fine wool as they formerly were for their great crops of wheat. The estimated value is $6,000,000. The quantities of butter and cheese produced the present season in the great dairy counties of New York, exceed that of any previous year, by about one-third. It is estimated that in the counties referred to, there have been made at least 70,000 firkins more butter than ever before in one season. The Clarksville Chronicle of the 4th, quotes Tobacco at 5a7c; Wheat at 65a75c, with an upward tendency, and Hogs at 4c. gross, and 5c. nett. At a recent sale at Sparta, Ga., of forty-one negroes, belonging to the estate of Thomas L. Wynn, late of Hancock county, the average price obtained was $840 each, including old negroes, children, and infants. One boy, twenty two years old, a common field hand, sold for $1600; one girl sixteen years old, $1500. The sales were on cash terms. The crisis" does not seem to have affected the prices of negroes in Georgia. The St. Louis Democrat of the 4th, says: Sight exchange on the east is scarce at ! P cent. premium for coin, and 1 P cent. for Missouri paper. Time bills on the east at 60 days, 2 P cent. off; 90 days, 81: banks taking all offerings where the paper is satisfactory. This is an excellent feature, and promotes the forwarding of produce. Illinois currency is depreciating in value, for the simple reason, that the great lake ports being closed by ice, prevents the shipment of grain to create exchange, and it is being sent here in greater quantities, and turned into exchange and gold at from 5 to 6 7 cent discount, while at Chicago. it cannot be converted into either, at less than 8 to 9. The Cincinnati Commercial of the 5th says: Sight exchange on New York continues dull, with increased offerings, and the market is unsettled and irregular. The banking houses seemed unwilling to buy at any thing premium, 1}@2 premium were the selling rates. The demand is quite small. Sight checks on Baltimore continue dull at 21@3 dis. buying rates. The receipts of Flour were quite large the last twenty -four hours, footing up 7,500 bbls., and the market is dull at $3 90@4 for superfine, closing rather steady. Nochange was perceptible in the market for Hogs to-day. The offerings were light, but seemed to be about equal to the demand. Drovers continue to pack on their own account very generally Hogs have commenced arriving from Indiana and Illinois, and we may look for large receipts next week. At Paris, Mo., Hogs were selling at 3@31 cents net, and at Evansville, la., the highest price offered was 41 cents. Nashville Market, Dec. 8. COTTON.-We heard of a sale to day, at 10}c. The offerings are from 10 to 101c, with very light receipts. Товлссо.-Wе hear ofa few transactions in loose, at 3@5c. WHEAT AND FLOUR.-We have no change to note in prices, and repeat our former quotations 656 75: White 75@82bc. Flour-
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New York papers of the 1st arrived in New Or leaus on the 5th inst., by the new mail route. Prof. G. Vidal Was accidentally drowned at Galveston, Texas, 28th ult, while bathing. Pops Pius IX entered on the thirteenth year of his pontificate on the 17th of June. The Central Bank of Montgomery, Ala, resumed specie payments on the 1st inst. Col. James M. Donnelly, chief engineer of the fire department of Chicago, died last week. There were 151 deaths in Baltimore last week 10 of con um; tion. A lager beer pienie is to take place near Newark, N J.. on the 20th ult., and a prize of $500 is to be awarded to the manufacturer of the best lager. Late Texas papers contain accounts of the celebration of the opening of the first fifty miles of the Central Railroad. Canadian papers assounce the death of Hon. Wm. Morris, at the age of 72. He was formerly Receiver General of the Province, and later President of the Executive Council. Michael Cancemi. for the murder of policeman Anderson, is to be hung in New York on the 2nd of September. Douglas Gibson, a young son of Purser Gibson, of the United States navy, was accidentally drowned last Friday by falling off the dock in the navy-yard at New York. Lord John Russell recently, at a public school, after recommending the study of grammar, advised them to read Defoe's Robinson Crusoe, as a model of clearmoss and simplicity of style.
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The Central Bank, Montgomery and Commercial Bank, Selma, having both resumed resumedspecie payments, there are now no suspended banks in Alabama.