20593. Northern Bank (Clarksville, TN)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
October 1, 1857*
Location
Clarksville, Tennessee (36.530, -87.359)

Metadata

Model
gpt-5-mini
Short Digest
f8ce1349

Response Measures

Accommodated withdrawals

Description

During the Panic of 1857 the Northern Bank (Northern Bank of Tennessee) experienced a run but paid off depositors and did not suspend. Articles explicitly state it did not suspend in 1857 and that it 'paid off its depositors' after a run. Cause attributed to wider bank failures/refusal of out-of-town notes (panic/local banks tightness), not to misinformation.

Events (2)
1. October 1, 1857* Run
Cause
Local Banks
Cause Details
Panic of 1857: reported failures of several Tennessee banks, refusal of other banks' notes and tightness of the money market led depositors to withdraw.
Measures
Paid off depositors in full (paid out calls) to restore confidence.
Newspaper Excerpt
It was one of the very few Banks that did not suspend in '57; and ever since it has maintained the high position that it then won. During the panic of 1857, every bank in the State except this and two others ... A run was made on this bank, when it paid off its depositors and established itself thoroughly in the confidence of the people.
Source
newspapers
2. October 2, 1857 Other
Newspaper Excerpt
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.
Source
newspapers

Newspaper Articles (4)
1. October 2, 1857 Weekly Clarksville Chronicle Clarksville, TN
Article from Weekly Clarksville Chronicle, October 2, 1857

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Article Text

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. October 8, 1857 Fayetteville Observer Fayetteville, TN
Article from Fayetteville Observer, October 8, 1857

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Article Text

The Old Banks refuse to Suspend. It was understood generally on the streets yesterday that the Bank of Tennessee, Planters' Bank and Union Bank would refuse to suspend, though no formal reply to the address of the meeting of the merchants had been reported last evening. All the other Banks in the city were kept open through the day yesterday, and paid out all calls. The following Banks were thrown out at the counters of the old Banks yesterday. The ground upon which their notes were refused, was that they had no agencies in Nashville to take them up. Some of them are believed to be entirely solvent. Here is the list: Bank of Tazewell, at Tazewell. Bank of Claiborne, at Tazewell. Exchange Bank, Murfreesboro. Bank of Lawrenceburg. Bank of Jefferson, Dandridge. Bank of Nashville. Bank of Memphis. River Bank, Memphis. Northern Bank of Tennessee, Clarksville.

3. August 17, 1860 Clarksville Chronicle Clarksville, TN
Article from Clarksville Chronicle, August 17, 1860

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Article Text

Not a single new Baok, we believe, has, as yet, organized under the new amended banking law of this State. The requirements that ALL THE CAPITAL shall be paid in, in gold and silver, before they can organize, is rather a tight card, for these steep times, A good many of the old free Banks, too, that used to adorn the State, have played out; some of them busted by a delicate constitution and over exertion; some wiped out by mutual consent; and others, like Spence's, presto-veto-changed, by a slight of hand trick, not yet fully understood, although the best necromancers of the State Bank 1 and the Comptroller's office were watching the trick, t all the time, with Semmon's best Brazilian pebbles across their noses! Amid all this crash, it is something for us to be proud of, that Clarksville has one of the few of the free Banks, that always has steod, and yet stands, among the safest and soundest in the State. The Northern Bank of Tonnessee, located here, amid all the panics, hard times, convulsions and crashes, has stood firm, solvent, and unshaken. It was one of the very few Banks that did not suspend in '57; and ever since it has mairtained the high position that it then won. Not only this, but it is, here, where it is well known, one of the most popular banks in Tennessee. Its own& ers and managers are among the best informed and is most sagacious financiers of our State, and the success they have achieved is no more than they deserve.

4. January 1, 1891 Daily Tobacco Leaf-Chronicle Clarksville, TN
Article from Daily Tobacco Leaf-Chronicle, January 1, 1891

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Article Text

# THE NORTHERN BANK Increases Its Capital $80,000, Divided Among Twenty Stockholders and Reorganizes After Thirty-seven Years $138,000. The Northern Bank of Tennessee, owned by Messrs. Kennedy and Glenn, makes an important announcement this morning, as will be seen published elsewhere, increasing its capital $80,000, making its capital stock $138,000, and has also reorganized, taking in new stockholders. Mr. Glenn, so long the cashier, is made vice-president and Ed. S. Munford cashier, though there will be no change in policy or manangement. The new stockholders are among our best and most solvent business men. They are F. P. Gracey, B. H. Owen, W. B. Anderson, James Henratty, R. H. Burney, J. J. West, Dr. N. L. Carney, John Hurst, F. S. Beaumont, M. H. Clark & Bro., Mat Gracey, Jack Crouch, A. R. Gholson, W. E. Beach, E. C. Morrow, L. G. Wood, Ed. S. Munford, Jno. D. Moore and others. This arrangement, we understand, has been contemplated for some time, and was made necessary by the increased demad for banking capital The old Northern Bank, as it is generally known, has the most interesting history of any bank in the south. It was established by D. N. Kennedy and Jas. L. Glenn the 7th of September, 1854, the two gentlemen owning all of the stock, and have continued to operate it to the present date on a capital stock of $50,000. And no bank has maintained more universal confidence in its sound policy and stability of character. During the panic of 1857, every bank in the State except this and two others, the Merchants Bank of Nashville and Buck's Bank of McMinnville, suspended payment. A run was made on this bank, when it paid off its depositors and established itself thoroughly in the confidence of the people, which confidence it has since maintained. At the breaking out of the war it had out a large circulation of its own currency, which it commenced redeeming, and at the fall of Fort Donelson, February, 1862, Mr. Kennedy went South with the assets of the bank, where they were converted into gold and the money shipped to Europe. Mr. Glenn remained here with gold enough to pay off the depositors, which he did, many of them declining to take it. But Mr. Glenn's bank was in the earth; he had the money in gold and buried in the ground, and he was also afraid to keep it. With its increased capital the bank will be able to do much good towards the advancement of the enterprises of the city and relief to the financial stringency. The banks are all in splendid condition and are abundantly able to move the present tobacco crop, and we expect to see lively business from this on.