20573. Bank of Chattanooga (Chattanooga, TN)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
December 16, 1856
Location
Chattanooga, Tennessee (35.046, -85.310)

Metadata

Model
gpt-5-mini
Short Digest
a615667c

Response Measures

Accommodated withdrawals

Description

Multiple December 1856 newspaper reports describe a run on the Bank of Chattanooga's notes and brokers redeeming them at a discount. No suspension, closure, or reopening of the bank is reported. The panic appears linked to runs on other Tennessee free banks (e.g., Bank of East Tennessee) rather than a discrete misinformation episode.

Events (3)
1. December 16, 1856 Run
Cause
Local Banks
Cause Details
Run on other Tennessee free banks (specifically the Bank of East Tennessee) spilled over and caused loss of confidence in Bank of Chattanooga notes.
Measures
Brokers and other banks redeemed Bank of Chattanooga notes at a discount (reports of redemption at ~1% by some brokers; Union Bank offering to take up notes).
Newspaper Excerpt
The Bank of Chattanooga has been cried down and thrown out of circulation, and others have been affected by the run made upon the Bank of East Tennessee;
Source
newspapers
2. December 18, 1856 Run
Cause
Local Banks
Cause Details
General panic about Tennessee free banks; brokers redeeming Chattanooga notes at discount amid broader redemption pressure.
Measures
Brokers redeemed notes at discounts ranging from 1% up to higher rates; some brokers declined to take the notes.
Newspaper Excerpt
The panic in regard to the Tennessee free banks ... brokers have been and will continue to redeem the notes of the Bank of Chattanooga ... at 2 1/2 per cent. discount
Source
newspapers
3. December 19, 1856 Run
Cause
Local Banks
Cause Details
Broad run on Tennessee free bank notes concentrated on Bank of Chattanooga; likely contagion from distrust of other free banks.
Measures
Different brokers charged or redeemed at varying discounts (some 1%, others 2-5%, some 10-20%).
Newspaper Excerpt
For the last two days there has been a considerable run on the brokers with the notes of the free banks of Tennessee, and especially those of the Bank of Chattanooga.
Source
newspapers

Newspaper Articles (6)
1. December 16, 1856 Nashville Union and American Nashville, TN
Article from Nashville Union and American, December 16, 1856

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Article Text

From the Louisville Democrat. TENNESSEE MONEY. There is considerable interest felt just now in relation to the Tennessee free bank money. It is possible that there may be a wild-cat concern among the number of free banks in that State, but it is also possible that all are sound. The Bank of Chattanooga has been cried down and thrown out of circulation, and others have been affected by the run made upon the Bank of East Tennessee; but it will be seen by the dispatch we copy below, and by the card of Hutchings & Co., in our columns this morning, that Chattanooga money is as good as any in that State, and will be redeemed by them at one per cent. discount, which is the usual rate. They are redeeming the notes of the other free banks secured by State stock, at 21 per cent discont: To Hutchings & Co.: NASHVILLE, Dec. 12, 1856. The Union Bank will take up all the notes of the Bank of Chattanooga you may send us. There is no shadow of & doubt about the bank in any way. Mr. Williams begs that you will in no event receive more than the usual rate of discount on Tennessee paper. J. CORRY, Cashier of Union Bank.

2. December 18, 1856 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, December 18, 1856

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Article Text

TENNESSEE FREE BANKS -The panic in regard to the Tennessee free banks, says the Louisville Journal, is subsiding, the brokers have been and will continue to redeem the notes of the Bank of Chattanooga and other free banks secured by State stocks at2} per cent. discount, and those of the banks not secured by State stock at 5 per cent. discount.

3. December 19, 1856 The Athens Post Athens, TN
Article from The Athens Post, December 19, 1856

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Article Text

The Louisville Journal of Thursday has the following article: Another Bank Excitement.-For the last two days there has been a eonsiderable run on the brokers with the notes of the free banks of Tennessee, and especially those of the Bank of Chattanooga. There is a good deal of Tennessee free bank money in circulation here, but we have heard of no earthly reason why it should be discredited. Of course, the run results in a loss to the masses, while a few reap a rich harvest from it. One banking house was redeeming yesterday the notes of the Bank of Chattanooga at 1 per cent. and those of other banks at 21 to 5 per cent. Others did not take them at all. A third class charged from 10 to 20 per cent.

4. December 19, 1856 The Athens Post Athens, TN
Article from The Athens Post, December 19, 1856

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Article Text

The Louisville Journal of Thursday has the following article: Another Bank Excitement.-For the last two days there has been a considerable run on the brokers with the notes of the free banks of Tennessee, and especially those of the Bank of Chattanooga. There is a good deal of Tennessee free bank money in cireulation here, but we have heard of no earthly reason why it should be discredited. Of course, the run results in a loss to the masses, while a few reap a rich harvest from it. One banking house was redeeming yesterday the notes of the Bank of Chattanooga at 1 per cent. and those of other banks at 21 to 5 per cent. Others did not take them at all. A third class charged from 10 to 20 per cent.

5. December 19, 1856 The Winchester Weekly Appeal Winchester, TN
Article from The Winchester Weekly Appeal, December 19, 1856

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Article Text

BANKS.-The bills on the Bank of East Tennessee are now offered at almost any price. A severe run on the Occoe Bank was reported here a day or two since, and a similar report relative to the Bank of Chattanooga. It is presumed that both of the last mentioned banks are perfectly good.

6. October 29, 1857 Fayetteville Observer Fayetteville, TN
Article from Fayetteville Observer, October 29, 1857

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Article Text

# Bank Notes- Twenty years ago a member of the Massachusetts Legislature profanely observed, in a public speech:- "There is not a bank bill in this good commonwealth which, if it had a voice, could honestly exclaim-'I know that my redeemer liveth.'" Were we as unfastidious in our diction, we could with as much propriety, put the same words in the metaphorical mouth of every bank note in Tennessee--we might almost as well say the Union -at the present moment. There is, substantially, as in 1837, a universal suspension of specie payments. In this State, during the suspension, notes of the old Tennessee banks will be considered, we presume, as the standard, and all notes of other banks redeemable in these notes,and bankable, will pass at par. The following is a list of the banks, whose notes are taken on deposit and in payment of debts at the Bank of Tennessee: Bank of Chattanooga. Union Bank. Traders' Bank. Bank of America. Bank of Commerce. Bank of Memphis. Bank of Paris. Bank of the Union. Buck's Bank. Bank of Middle Tennessee. City Bank. Citizens' Bank. Plarters' Bank. Farmers' Bank. Merchants' Bank. Northern Bank. Southern Bank. Kentucky Banks. New Orleans Banks. Bank of Tennessee. Notes on the foregoing Banks will be received at the Observer office, at par, in payment of debts, or for new subscriptions, job-work, or advertising, until further notice. The notes of the following Banks are purchased by the Brokers of Nashville at from 60 to 80 cents on the dollar: Bank of Claiborne. " Tazewell. " Knoxville. " Trenton. " Shelbyville. " Lawrenceburg. " Ocoee. " Nashville. Seasonable Suggestion-