20587. Bank of America (Clarksville, TN)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
September 6, 1858
Location
Clarksville, Tennessee (36.530, -87.359)

Metadata

Model
gpt-5-mini
Short Digest
cab45103

Response Measures

Accommodated withdrawals, Full suspension

Other: President pledged personal property; referred holders of branch-payable notes to branches for payment.

Description

Newspaper accounts (Aug/Sep 1858) describe a heavy week-long run on the Bank of America (Clarksville) that led the bank to suspend specie payments in early September 1858; later (Aug 1859) the bank and its branches resumed specie payments. Cause appears to be loss of confidence after other banks refused its notes and large redemptions of branch notes rather than a discrete false rumor. I corrected timing by combining reports: suspension occurred in early September 1858 (reported as 'Monday' in Sept. 8–11 accounts); reopening resumed Monday 1859-08-15 per Aug. 19, 1859 report.

Events (3)
1. September 6, 1858 Run
Cause
Local Banks
Cause Details
Other banks (Planters', Union, etc.) and correspondent/agent banks (Southern Bank) refused to receive/redeem its notes, causing depositors to withdraw heavily; concentration of branch notes at the mother bank exhausted resources.
Measures
Referred holders of branch-payable notes to the branches; attempted to redeem notes and pledged private property of officers to cover deposits.
Newspaper Excerpt
For a week, the run upon it had been very heavy, but its friends hoped ... the run closed.
Source
newspapers
2. September 6, 1858 Suspension
Cause
Local Banks
Cause Details
Heavy run driven by other banks' refusal to take the Bank of America's notes and the mother's effort to redeem branch notes which exhausted available funds, forcing suspension of specie payments/suspension of payment to depositors temporarily (President pledged private property).
Newspaper Excerpt
This institution was compelled on Monday to succumb to the extraordinary pressure upon it... the President determined upon the policy of suspension until he could realize upon the assets in his hands.
Source
newspapers
3. August 15, 1859 Reopening
Newspaper Excerpt
Bank of America at that place, and the Branches at Rogersville and Dresden, resumed specie payments last Monday.
Source
newspapers

Newspaper Articles (9)
1. October 2, 1857 Weekly Clarksville Chronicle Clarksville, TN
Article from Weekly Clarksville Chronicle, October 2, 1857

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This community was startled, a few days ago, by the reported failure of several of the Banks of this State. We are satisfied the alarm is prematnre, if not without cause, and lay before our readers the facts, as they have occured. The Bank of Nashville has suspended, and, on Monday, the Bank of Tennessee, the Union and Planters Banks, at Nashville, refused the paper of several Banks, not because they considered those institutions insolvent, but because they had no redeeming agencies in Nashville, and their paper was not immediately available for banking purposes. The Banks, of this place, which are all in the very soundest condition, have been compelled, by the tightness of the money market, to refuse the paper of some other Banks, and solely for the reasons assigned above. The paper of none our Banks is discredited in Nashville, as has been reported, and we believe the Banks of the whole State, with an exception or two, will maintain their credit under any pressure to which they are likely to be subjected. The Banks of Clarksville-the Planters, the Tennessee, the Northern and the Bank of America-are not only willing, but have the ability to redeem their circulation. This we say, advisedly.

2. September 2, 1858 Fayetteville Observer Fayetteville, TN
Article from Fayetteville Observer, September 2, 1858

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LATEST NEWS! BANK OF AMERICA. Rumors unfavorable to the Bank of America were afloat yesterday. Dispatches were received stating that its notes had been thrown out by the old Banks of Memphis. Nothing more is stated. We will have to await our Memphis exchanges for particulars. The news took us completely by surprise. The Memphis papers have seemed lately to be satisfied that the Bank was solvent, and have entirely ceased warring upon it. It has recently redeemed two-thirds of its circulation, and stood the heaviest run that has perhaps ever been made upon a Bank in this State, and met promptly all demands SO long as the run was kept up. On receivingthe above dispatches the old banks have thrown out the notes. The Merchants' Bank, Traders' Bank and Messrs. A. Wheless & Co., continue to receive the Bank of America's notes at par. Letters received from the officers of the parent bank at Clarksville, dated 28th, say nothing of a pressure upon them, as they certainly would have done, if there had been anything gloomy so close upon them. We are therefore of the opinion that the rejection of its notes has originated in some mistake.-Nashville Banner.

3. September 3, 1858 The Athens Post Athens, TN
Article from The Athens Post, September 3, 1858

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MORE BROKEN BANKS.-A letter from Nashville of the 30th ult., states that the Bank of America, Clarksville, and the Southern Bank of Tennessee, Memphis, have both gone by the board. The Nashville Patriot of the 31st contains the following paragraphs: The Southern Bank.-A private despatch from Memphis states that this Bank has suspended. Its circulation is said to be very limited-not more than $30,000, and it has State Bonds to the amount of $55,000. We suppose the run was made by depositors.— Some of the owners of this Bank are interested in the Bank of America. It is probably owing to that fact that the America's notes are discredited. Banks.-While report was going yesterday, it made a general sweep and included the Northern and the Commercial Bank in the list of suspended institutions. There was no foundation for the report se far as these two Banks were concerned.

4. September 3, 1858 Nashville Union and American Nashville, TN
Article from Nashville Union and American, September 3, 1858

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There is very little speculative demand for Flour, buyers being unwilling to pay the prices demanded, say $4.50 for Superfine and @5 for Extra Family, The Memphis Appeal of the 31st contains the following in regard to the Southern Bank: boad The Planters' and Union Banksyesterday refused to receive the notes of the Banket America, located at Clarksville. In consequence of this, the Southern Bank of this city, which has been the agent and circulator of the notes of the Bank of America, issued the following circular to their depositors: SOUTHER BANK, August 30, 1858. I am informed by the officers of the other Banks that they will to day refuse to redeem the notes of the Bank of America. Such being the case, I am unable to pay your deposit, but hope to be able to do 10 in a short time. But I hereby pledgemy individual property for the payment of every dollar due you. W.J. DAVIE, President. The Southern Bank also ceased to redeem the issues of the Bank of America, as heretofore. The reason why Mr. Davie suspended payment on depositors' account, seems to be that he had exhausted everything in redeeming for the Bank of America, & large amount of which has been taken up within the last two months. He pledges depositors to make good their accounts within thirty days. The Bank of America. we learn, has only a circulation of I some $100,000 out, the balance having been forced home upon b them and redeemed since the failure of the Citizens' Bank. The smash up of the latter institution caused a just and wide spread distrust of the issues of the Bank of America, and they were imh mediately sent home or to the agency here. We understand that c Mr. Davie expresses the highest confidence in being able to re. deem every cent of both banks, within a short time, and ultimately of saving their credit and holding noteholders harmless. The Memphis Bulletin says it is understood that the Southern Bank will go into liquidation. Its circulation, which is mostly in in Kentucky and Northern Tennessee, is about $40,000. The Bulletin says: "The amount due to depositors, learn, is something like $15,000, all of which, we doubt not, from Mr. DAVIE'S per. sonal character and property resources, will be made good with o time The Cincinnati papers of the 31st say the Bank of Chattanooga is not taken there because it is discredited at home. The Bank L of Chattanooga is taken by all the Banks in this city and is regarded as perfectly sound. The Charleston Courier of the 31st ult. says the transactions T in Cotton for the three days previous, reached upward of 900 bales, and that the sales were made within the margin of the subjoined quotations, viz: Middling 11½; Strict Middling 11%; Good Middling to Middling Fair 12@12½, and Middling Fair 12½c. The Augusta Constitutionalist of the same date says: ge The market in this city has been inactive for some weeks. in conbe sequence of the limited stock offering and the indisposition of un large buyers to enter the trade. They required time to look over and close up all their business matters for the past season, and be in readiness to enter the trade when the receipts are large enough to attract their attention. We append the following quotations, as the ruling rates today, but there is 80 little offering that the prices may in a measure be regarded as nominal: Ordinary to Good Ordinary 9@10%; Midding, 11@-; Good Middling, 11%@11%; Middling Fair, II%-; Fair, 12@-. The loads of best new cotton command 12 cents, while for the old crop prices range from 9 to 12 cents. The Mobile Register, of the 27th ult., says The total receipts of the new crop at this port for the present season, to date, is two hundred and ninety-six bales, against three up to the same time last year. The Aberdeen (Miss.) Sunny South of the 26th ult., says: FI We regret to announce that the crops the large prairies near this city are almost completely ruined. The boll worm is still at work, and there is no prospect of an abatement this side the de. molition of the crop. Thousands of acres of the richest land in the South will not yield more than a bale to three acres. The prospect is indeed gloomy The Macon (Ga.) Telegraph of the 31st ult., says: "From all sections of the State we hear of set backs to the Cotton crop-in Southern and South western Georgia rust, and in neighboring counties the boll worm. Anticipations in regard to cotton crops have been a good deal modified within the last fortnight." The Augusta Chronicle and Sentinel of the 31st says of the market for Provisions and Breadstuffs: 4 Bacon continues dull-transactions limited to the demand for mmediate consumption-quotations nominal, at 10@10kc for 4 Ribbed Baltimore Sides, for Clear Tennessee Sides, 8c, 4 or Shoulders, and 10@ 12c for good Hams. 4 Theat continues in good deman. owing to its scarcity, especial4 for prime lots. It is, however, beginning to move more freely 500 the up-country, and the market will probably soon be well suplied. There is more than the customary variation in the quality 5,4 the crop this year, and consequently a wide range in prices. We quote good to prime Red 95c to $1 and $1.05; good to prime White $ .05, to $1 10, $1. 5 and $1.20, accordig to quality-the utside figures on y for a prime article, put up in good, new sacks. Corn is only in moderate request, at 65@90c, the principal te ales being at 6dc. re The demand for Flour is notactive as we have reported for some o feeks past, though there is still a fair business doing at unchangthe quotations We quote Tennessee Extra Family $4.75@$6; C ixtra 5.50@$5.75; Superfine $5.25@$5.50. The Cincinnati Gazette reports the market for Provisions as a ood deal unsettled, and adds: Holders manifest considerable irmness, but there are few buyers. The out going of the) season E hich is now drawing to a close, will unquestionably be governed, rece can a great extent, by the weather, inasmuch as the result of the T rowing corn crop will depend upon the latter. The crop is in a chas ritical condition Premature frosts would damage it immensely, JI nd in the event of such a disaster, the next hog crop would be git ffected, and of course the value of old provisions, to be carried with ver to the new season, would be influenced in favor of holders. II the here is, therefore, some inducement to run the risk of holding A tocks through September. There is, to say the least, an uncerA inty about the matter, tnat indnces sellers to await the developeents of the future, rather than submit to the consequences of a II can ressure of stocks upon the market at present. On the other & and, the same uncertainty with regard to corn, operates to render II uyers-speculators particularly-exceedingly cautious Corn the ow promises well, and should the crops escape injury from frost. lish (Ga. eyield will be a fair one-sufficiently large to insure a full, if "Cha a long hog crop. A month of suspense is to be experienced. New (ithout regard to the future of the provision trade, it is to be Disp Litt oped that the fall weather will prove favorable. A greater disster could hardly occur than the destruction or serious injury of he corn crop." Markets by Telegraph. NEW OREANS, Sept. 2.-Cotton sales 100 bales; unchanged; ther articles unchanged. Deaths from Yellow Fever yesterday ?. NEW YORK, Sept 2.-Cotton buoyant; sales 1500 bales; Flour rm 4 9 @5 00; Pork buoyant 17 50@17 60; Sugar advanced %; Inscovado 7@8% CINCINNATI, Sept. 2.-Flour 8505 00; Whisky 21½; Mess ork 16 00; Shoulders 5%@7%; Sides 5X@8. R. B. ANDERSON N. SAVAGE. SAVAGE & ANDERSON, ATTORNEYS AT LAW, Smithville, Tennessee.

5. September 8, 1858 Nashville Union and American Nashville, TN
Article from Nashville Union and American, September 8, 1858

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MONETARY AND COMMERCIAL. We conversed with & reliable gentleman yesterday who left Clarksville Monday evening, and he informs us that the Bank of America did certainly suspend Monday. He says the general impression at Clarksville is that the Bank will be able in a short time to redeem its present outstanding circulation, which is understood to be less than $75.0.0.- A number of the merchantsand business men of Clarksville were taking the notes of the Bank of America at par in ordinary to ansactions, so confident were they of its solvency. We repeat what we said yesterday, that the holders of the notes of the Bank of America ought not to sacrifice them. At the New York Stock Exchange on the 3d thesales of Missouri State Bonds amounted to $37,000 at 84%@84kc. Other State Bonds sold as follows: Ohio 107, California 84, Indiana 89, Michigan 108, Tennessee 90%. The new United States loan of 1874, 5 per cents, sold at 103%. There was a good deal of activity in the New York market on the 3d for Foreign Exchange. Some drawers of sterling were asking rates above the market-to 110@110% without selling; the bulk of sales being at 109%, at which there was a supply equal to the demand. Francs were 5 Hamburg 3514@36; Amsterdam 41%@41%, and Bremen 79%@79% The New York Times of the 3d says: The Hide market continues active and firm. The demand being chiefly for immediate consumption. Our stock is very much reduced. We have an arrival to-day of 18,000 Californiasex Ocean Telegraph, which will command full prices. Sales have been made of 8.000 Buenos Ayres at 27%, 6 mos; 4,000 Buenos Ayres, 28c, 6 mos; 8,0 0 Orinoco, 21%C, 6 mos; 5,000 Orinoco, 25c, 6 mos; 4,500 Bahia, 23½c, 6 m.s. The Mobile Register of the first says: "The total receipts of new cotton todate are 1,088 bales against three bales at the same time last year. Judging from this large majority of new cotton over that of the crop, it is but fair to infer that there is but a very small portion of the latter remaining in the country." The Savannah Republican of the 3d says of the Cotton market: "There was a good enquiry to day, and larger sales would have been made but for the small offering stocks. The demand is for Northern account entirely, and nearly all the purchases will be shipped by the steamers of to-day. Good Middling sold freely at 12½ cents. The following are the particulars of the day's transactions: 8 at 11%, 7 at 12, 44 at 12½; 19 at 12½, 14 at 12%, 57 at 12%, and 4 bales at 12% cents. A correspondent of the Savannah Republican, writing from Columbus, Ga., under date of the 1st instant, says: "Complaints of damage to the crop, fromrust and worm, are on the increase. Many talk about a half a crop, but when they explain themselves, find that they mean half of what the crop promised at one time. Nearly all admit that they will make more than last year. Many say that they have abetter crop already made, which is beyond any contingency. I am firm in the faith that one hundred thousand bales will be received at this point, and that the Atlantic ports will exceed 850,000 bales. With a good dry fall, they may touch 900,00). Cotton is coming in very freely for so early in the season. There must be 150 bales in to day. Planters are free sellers at 11 to 11½c. Principal sales 11½e for strictly Middling to Middling Fair." The Atlanta (Ga.) Intelligencer of the 3d says: We met a day or two since in this city an intelligent gentleman from Thomas county, Georgia, on his return from a visit to East Tennessee. He informed us that the prospect of the hog market is highly favorable. The cholera had not reached that section of the country, and the stock is in fine order and condition. Especially in New Market Valley, the hogs are abundant, and looking exceedingly well. Speculators are paying 5c P ib gross, for a first class article.

6. September 10, 1858 The Athens Post Athens, TN
Article from The Athens Post, September 10, 1858

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THE BANK OF AMERICA. The pressure, says the Nashville Daily News, of the 3d inst, under which the Bank of America, located at Clarksville, has been compelled to yield, it is hoped and believed, will cause no serious loss to the people.The Bank, we learn, continues, and will continue to pay specie at its counters, for all of its notes. The depositors, alone, as we understand the matter, will experience any inconvenience from the present difficulty. Mr. Davie, the President, is a man of honor, and has come forward like a man, and pledged his private property to make good every dollar due to depositors. We copy the following article from the Memphis Bulletin of the 31st ult.: SUSPENSION OF THE SOUTHERN BANK.The Stock Banks having determined on Saturday to throw out the notes of the Bank of America, the Southern Bank on yesterday morning gave the following notice to its depositors: SOUTHERN BANK, Aug. 30, 1858. I am informed by the officers of the other Banks that they will to-day refuse to receive the notes of the Bank of America, Such being the case, I am unable to pay your deposits, but I hope to be able to do SO in a short time. But I hereby pledge my individual property for the payment of every dollar due you. W. J. DAVIE, President. It is understood that the Bank will go into liquidation. It is one of the Free Banks, and has bonds on deposite, with the Comptroller to the amount of upwards of $50,000. Its circulation, which is mostly in Kentucky, and in Northern Tennessee, is about $40,000. The note-holder, therefore, is very well secured, and ought not to make unnecessary sacrifice. The amount due to depositors, we learn, in something like $15,000, all of which, we doubt not from Mr. Davie's personal character and property resources, will be made good with time. The intimate connexion subsisting between the Southern Bank and the Bank of America, at Clarksville, leads the public mind to the conclusion that the last named institution must also stop; though at the time of writing this last night, no information to that effect had been publicly received. We apprehend that it will not be able to sustain the shock. In addition to the above, we find the following in the Patriot of yesterday morning: Bank OF AMERICA.-We are requested to state that the circulation of the Bank of America will be redeemed at the Merchants' f Bank and the Traders' Bank of this city.Note holders need have no fears, as the stock holders of the Bank don't intend to permit them to lose anything. Having gone through f the late crisis without suspending, they can't afford to "knock under" now.

7. September 11, 1858 Nashville Patriot Nashville, TN
Article from Nashville Patriot, September 11, 1858

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n We learn from the Clarksville Jeffersonian that the Bank of America was forced to suspend specie payments on account of undertaking to redeem the notes of its branches by the mother bank, when the funds of the branches were lying idle. The Jeffersonian expresses confidence in the ability and will of the officers to pay all liabilities, at the earliest practicable nroment.

8. September 11, 1858 Nashville Union and American Nashville, TN
Article from Nashville Union and American, September 11, 1858

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ПОЛЕТАВУ AND COMMERCIAL. The Clarksville Jeffersonian of the 8th has the following in regard to the Bank of America: This institution was compelled on Monday to succumb to the extraordinary pressure upon It. For a week, the run upon it had been very heavy, but its friends hoped and confidently expected that would be able This it would probably have been able to do, had not Mr. Davie undertaken to redeem the notes of his branches here We magine that the Bank of America stood a heavier run before it closed its doors than was ever made upon or sustained by any Bank in this State. The President seemed determined to face the storm and fight It out, but the concentration of the circulation of the Bank at this point, and the exhausting process of taking upthe branch notes, while the means provided for their redemption lay idle in the vaults of the branches at remote points, finally compelled him to surrender. The stoppage we understand, is merely temporary. The assets of the institution are represented to be ample to meet all deman ds, and they will be realized upon as fast as they mature and applied religiously to the liquidation of the liabilities. Though a considerable amount of the paper of the Bank is left in the hands of the community, we hear no complaints against Mr. Davie. There appears to be in this place and surrounding country an abiding confidence in his integrity as well as in his ability to pay every dollar the Bank owes. Individual cases of hardship no but we believe the money is so scattered through the community that the present inconvenience is evenly divided. On Friday night last, when the Bank closed for the day, it was reported on the streets that its doors would not be re-opened, and there was no little excitement in consequence, but on Saturday morning when it re-opened, our business men, with a laudible determination to sustain the institution if possible, agreed, one and all, to receive her notes in trade. She then adopted the policy of referring the holders of notes payable at the branches to the branches for payment, and the run closed. On Monday morning. however, the pressure for the payment of the notes of the branches was so great ihat the President deter mined upon the policy of suspension until he could realize upon the assets in his hands, which he believes will be a short time. The present circulation is estimated at sixty thousand dollars, though it cannot be exactly stated until reports are received from the branches. The Milledgeville (Ga.) Recorder of the 7th says: "Last week we referred to the injurious effect of the rust in cotton, and stated that there would be a considerable falling off from what was at one timeexpected. We have since followed up our investigation into the matter, and have come to the conclusion that the prospect is for the crep to be cut off-from a full one, expected a month ago -at least one-fourth or more. Sandy and gray lands suffer the most-whole fields being more or less injured. Red and stiff lands have not been so effected. The plant has generally stopped bearing, but from its having been forced by the rains, is more forward than usual and full of bolls. They are now opening rapidly and the whole crop will be gathered in much earlier than usual." The Columbus (Ga.) Sun of the 8th says: "The past week has been one of considerable activity, especially in the cotton trade. Our receipts have been very large for the season, and far in advance of the same wesk in any preceding year. This may be accounted for by two facts-first, that the season was uncommonly early, and the prices paid were remunerative. It is contended by the planting interest and short crop men, of whom there are a few left, that the rust is causing a premature opening of the cotton, and hence the early receipts. While this may be, and doubtless is true of some portions of our country, especially on sandy soils, we cannot believe that the damage from rust has been sufficient to cut off the crop so as to bring it under 3,000,000 bales. A little observation in the country, particularly on red lands, has displayed to us as fine and promising a crop as heart could wish. We may be deceived, but we anticipate fully large a crop as last year, if not larger. The ru!ing rates in the market are 11/1@11% A correspondent of the New Orleans Picaynne, writing from Yazoo county, Miss., says that the most sanguine de not now count upon more than two-thirds of a crop in the hills. The crop in the bottom he estimates at an average one, deducting the 10°s from overflow, which, for that county, he estimates at seven thousand to ten thousand bales. The hill crop has suffered from boll worms and drought, the bottom crop from worms and rust. Markets by Telegraph. NEW ORLEANS, Sept. 10.-Cotton, sales 1, bales. Advanced ½-12@12%. Sales of the week 9,750 bales. Receipts of the week 14,500 bales-3,359 last year. Stock at New Orleans 41,000 against 11,000 last year. Flour quiet-Superfine $6.00. Corn, White 763/4, Yellow 80 Coffee firm-sales of the week 6,000 5 bags. Stock at New Orleans 30,500 bags, against 120,000 last year. Exchange on London 8% 5 ST. LOUIS, Sept. 12.-Flour dull, $5.70@$5.75. Wheat steady, 95@$1.17. Corn dull, 50@61. Oats dull, 6215@68. Hemp 85 @91. Tobacco $4.60@$9.30. t NEW YORK, Sept. 10.-Cotton firm. Sales 1,000 bales. Corn M buoyant, 66@74 for mixed. Bacon quiet. Shoulders 6%@6%, ti Sugar steady, 7@8½, Coffee steady, 9%@U%, A heavy suspension in the Sugar and Coffee trade is reported. Liabilities $300,000. Assets large. CINNEINNATI, Sept. 10-Flour dull, $4.75@$4.80. Oats dull 56. Whisky 201/4. Other articles generally unchanged.

9. August 19, 1859 Nashville Patriot Nashville, TN
Article from Nashville Patriot, August 19, 1859

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BANK of AMERICA.-We learn from the Clarksville Jeffersonian that the Bank of America at that place, and the Branches at Regersville and Dresden, resumed specie payments last Monday. We trust they may nev: 1.er have cause to suspend again.