Knoxville Bank - Knoxville, TN

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: state
Start Date: September 27, 1873
Location: Knoxville, Tennessee (35.961, -83.921)

Metadata

Model: gpt-5-mini
Short Digest: e25d8a8d

Response Measures

Accommodated withdrawals, Partial suspension

Description

Newspapers (dated Sept. 27–30, 1873) describe heavy withdrawals and public alarm tied to the national financial crisis; the Knoxville Bank paid out large sums, then suspended payments temporarily but was described as solvent and expected to resume. I classify cause as macro_news (national financial panic originating in New York).

Events (3)

1. September 27, 1873 Run

Cause: Macro News
Cause Details: Withdrawals and alarm were triggered by the national financial crisis originating in New York (Sept. 1873 panic); depositors drew funds en masse.
Measures: Paid out small/pressing demands (reported $15,000 paid in forenoon); offered to pay small depositors individually in currency; directors asserted personal means and solvency.
Newspaper Excerpt: The Knoxville Bank had ceased payment... paying out $15,000 in the forenoon... the alarm confined chiefly to small depositors.
Source: newspapers

2. September 27, 1873 Suspension

Cause: Macro News
Cause Details: Temporary suspension undertaken to prevent asset sacrifice amid heavy withdrawals caused by the wider financial panic; announced as temporary and to preserve solvency.
Newspaper Excerpt: The Exchange, Commercial, and Knoxville Banks have suspended. ... To preserve the assets from sacrifice the Knoxville Bank has determined this present morning to suspend for a short time until business can be resumed.
Source: newspapers

3. * Other

Newspaper Excerpt: Mr. Baxter publishes a card offering to give up all his personal property to satisfy the liabilities of the bank. ... Bank officers asserted solvency and expected to resume payment in about ten days or shortly thereafter (reports vary).
Source: newspapers

Newspaper Articles (4)

1. September 29, 1873 The Daily Dispatch Richmond, VA

Article from The Daily Dispatch, September 29, 1873

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Article Text

TELEGRAPHIC NEWS. THE FINANCIAL CRISIS. NEW YORK. NEW YORK, September 27.-The Sun learns that the Government vesterday invested in exchange on London $1,500,000 for the Navy and 8700,000 for the State Department. Private bankers have deposited security in the Bank of England for exchange. In answer to suggestions of the Stock Exchange Committee the Banking Committee say the proposed modes of relief seem to look exclusively to the convenience and safety of the Stock Exchange, without comprehending the dangers and inconvenience involved to the bankThe president of the Stock Exchange has issued the following notice "The New York Stock Exchange will open for business Tuesday next at the regular hour. Details of business will be arranged Monday morning at the meeting of the governing committees." The Clearing-House Committee, at meeting to-day, resolved to issue loan certificates to an unlimited amount. The committee have decided hereafter not to make public the amount of loan certificates issued. The day closed with a decided improved feeling. The decision of the Governing Committee to open th Stock Exchange on Tuesday started stocks on the street, which advanced five to fifteen per cent. in less than tifteen minutes. Western Union, 61 65, WASHINGTON. WASHINGTON September 27.-Since the positive policy of the Government was announced that nothing more could be done for the relief of finances no one seems disposed to pay fordispatches of advice to the Secretary of the Treasury. A competitive examination for receivers of crippled national banks is mooted. They are luerativeplaces. Government drafts on Clews, Habieht & Co. will be honored by Jay Cooke, McCulloch Co. Beyond this no change has been made in the London Government agencies. Many employés interested in railroad in. terests have been discharged. Others have struck on account of wages and hours. The Washington City Savings Bank (Rumns) is in the hands of a receiver. There aretwo thousand depositors, and the deposits aggregate 8750,000. Nearly all the northern and western cities have adopted conservative banking measures. Voluminous dispatches have been received here. The following is the most frank and significant MILWAURIE, Wis. September 27.---The report that the banks here have suspended payment of sums larger than 8200 a mistake. No such action has been taken. The banks are doing business as usual, except that they have stopped advances on produce until the eastern banks are ready to respond. The Secretary of the Treasury will not for the present issue the programme for the sale of gold and the purchase of bonds. The bank presidents had a meeting tonight, and resolved to adopt the New York plan. George W. Rizgs, banker, refused to join in the movement. PREDERICKSBURG. si SPENSION OF A BANKING-HOUSE [Special telegram to the Dispatch.] FREDERICKSBURG, V.I. September 27. way, Gordon Garnett. bankers: and brokers, suspended tc-day. AUGUSTA, GA. AUGUSTA September 27.--There sabetter feeling 16-day but the situation continues unchanged. There is nothing doing in cot. (on for the want of currency. It s believed that the suspended banks will be able to resame currency pay ments early next week, MONTGOMERY, ALA. MONTGOMERY September 27.-No run on the banks. They report that the deposits exceed the drafts. The Freedmens Bank requires thirty days notice. BALTIMORE. BALTIMORE, September 27.-The day closed without additional excitement The banks paid small checks liberally. CINCINNATI. CINCINNATI. September 27.-A full meeting of the Chamber of Commerce approves the action of the banks and bankers in refusing to pay out large sums. The financial situation appears to be improved. The adoption of the resolution by the Chamber of Commerce commending the action of the Cincinnati banks and expressing confidence in them, appeared in itself to prove the feeling of the members voting upon There is no panie in prices, and nothing is actually pressing on the markets. The banks and bankers report having passed through the day in it satisfactory manner, notwithstanding this was supposed would be the pressing day of the week. The manufacturers have generally been supplied with funds to meet their immediate wants. PHILADELPHIA. PHILADELPHIA, September 27.-The banks have paid out currency to-day necessary for wages, discounting freely for this purpose. BOSTON. BOSTON, September 27.-At a meeting of the bank presidents the New York plan was adopted. BRUNSWICK, N.J. BRUSSWICK. N. J., September 27.-The State Bank has suspended indefinitely, The directors, upon examination, find it impossible to o on. The police are after the cashier and book-keeper. A defalcation of half a million is reported. LOUISVILLE LOUISVILLE, September 27.-Considerable excitement prevailed here to-day, caused by the suspension at an early hour of the following banks: German Security, German Commerce, Masonic Savings, Western Bank Central Savings, German Bank, and Louisville Banking Company. Business is generally quiet, with nominal prices for all leading articles. There was no run at the close of banking hours upon any other banks, KNOXVILLE. KNOXVILLE, September -The Kxchange Commercial, and Knoxville Banks have suspended. THE LOUISVILLE SITUATION, LOUISVILLE, September 26.-The CourierJournal to-morrow will contain interviews of its reporters with the leading tobacco, one of security men cotton, look Among The for a feeling and tobacco diminution flour is operators. European buyers generally. here of foreign orders owing

2. September 30, 1873 Nashville Union and American Nashville, TN

Article from Nashville Union and American, September 30, 1873

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Article Text

WE learn from the Knoxville Chronicle that the Exchange and Deposit Bank of Kuoxville suspended Saturday. The Bank was owned by John Baxter. We did not learn the liabilities of the concern nor the amount of its assets. Mr. Baxter publishes a card offering to give up all his personal property to satisfy the liabilities of the bank. Latter in the day the Knoxville and Commercial banks suspended. Major R. C. Jackson of the East Tennessee National, and Col. C. M. McGhee, President of the People's Bank, think their institutions will survive the run without trouble.

3. October 1, 1873 Knoxville Weekly Chronicle Knoxville, TN

Article from Knoxville Weekly Chronicle, October 1, 1873

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Article Text

en THE FINANCIAL SITUATION. at if Suspension of the Exchange and Deposit, the Knoxville and the in Commercial Banks. be di tl Confidence of the Business Community or in the Banks Unshaken. n The Alarm Confined Chiefly to small Depositors. The great financial wave which started in New York, has swept over the country and while) other cities have felt its power, until within the past few days Knoxville has escaped the great maelstrom in which so :many staunch financial houses have been engulfed. Saturday morning the announcement and the suspension of the Exchange of Deposit Bank, of this city, caused a ripple local financial circles, which gathered in few hours later when it became force a that the Knoxville Bank had ceas the known payment, and culminated early similar in ed afternoon with the intelligence of on the part of the Commercial, action which made a gallant stand, paying out $15,000 The well in the known forenoon. integrity of the bankofficers, however, prevented a panic, able as ing know that they are abundantly it is of their personal means to make good out all deposits if their business should turn disastrously, though Messrs. Baxter, that 1 out Van Gilder and McClung all investment assert have not made a reckless they and think they will not lose dollar. N In the afternoon a CHRONICLE reporter and on the different bank Presidents of called obtained their views of the condition points affairs, which agree in essential es and should have tendency to restore public confidence. Id COL. JNO. BAXTER, to ry President of the Exchange and Deposit in s. Bank, expressed himself substantially He to his circular announcing his supension. for the of thought it would been better to al other banks which had suspended would he have done so when he did, as they have been enabled to resume payment not a ee much the sooner. His was be, he nso total suspension and would hundred not dolnpaid out over fifteen ER having lars to depositors who needed the money by he present use and were not influenced to be SO for feeling, and he expected sufficient ut a panicky to make collections with as, able to continue to do so. He had paid promptness out during the day a special deposit of the bank $400 in gold which had been in had erThe present stringency Cooke's in eight commenced, years. really, before Jay avoid the tendency having been to failure, deposits. His bank indebtedness, was perfectly making for every dollar of its in the th good he regarded every other bank wanted and equally solvent, all that they for a hat city being the indulgence of depositors shshort time. has R. M. 'CLUNG, ESQ., of on President of the Commercial Bank, said any ical there was really no occasion for to a that exeitement. The trouble was owing altoing to a want of confidence on the money part gether depositors, who drew out their use of when they had no immediate gh edit to hold, the samo. He had the most collections satisfor assurance that their prifor factory be promptly met. During October, which ns, would had paper to the value of $50,000, but gh he mature, and he had no doubt, Comby would cent would be paid. The made of that every had to bear the brunt and the les. mercial stand, paying out $15,000 during of 208 good but owing to the suspension yield wn, morning, two other banks they had to to the He hoped to resume pay- was eds, hes the pressure. in ten days. Their suspension small erment partial, as they had been paying would in sums only to relieve pressing wants and continue to do so. try. e of MR. JNO. S. VAN GILDER, n & President of the Knoxville Bank, was for a: of bank all day, and gave his reasons sudden heir the pursued by him. The in its the course of the storm was bewildering o ery ness and owing to the alarm of some gradual ionpower, coupled with the nes, withdrawal its depositors, of funds from the legitimate Viochannels of trade, the volume of currency to meet ines circulation was not sufficient not in in demands of business, as it was safes and arge the but kept locked up in the use for usic use, of the people, who had no it i bepockets were mortally afraid of losing almost re o be it, but in the banks. Business had bu will left from the effects of the cholera, Any covered needless panic would have a tendency There iece the a lull for several weeks. the coun/ to to cause really more money in de anwas than ever before. Knoxville the sus rioe. try now would lose nothing by temporary had He positors pension of the banks, beyond individual a prop state erty sufficient inconvenience. to guarantee the payment satisfy depositor, and would circular every of the fact. following o in any was one issued announcing the suspension the bank lin; KNOXVILLE, TENN., Sept. 27, Bank 1873. t in To the Depositors of the Knoxville of thi order to preserve the assets ton Bank In from sacrifice determined during the this present morn ing in panie, to suspend it has been for a sbort time until busi tract ness can The bank be resumed. has not by reason lost a dollar of the nor panic suffer ed any known. sacrifice It is amply solvent and of far as liabilities will be met. its addition to bank assets, the resour under nces In will hold.every individual ban 3on. signed the city or county to dischargeany such b Iton. in and desires to secure, any may any liability, private arrangement that agreed n. The small upon. depositors will be paid individ by th in a short time, from the safet ayes. undersigned in currency, and endange of ual the resources, public funds shall not be ed. It is hoped that this duration. temporary susper sion will not be of long Very respectfully INO S. VAN GILDER President.

4. October 2, 1873 The Stark County Democrat Canton, OH

Article from The Stark County Democrat, October 2, 1873

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Article Text

BOSTON. BOSTON, Sept. 27.-Bank presidents this city have decided to make only small currency payments, and to issue ten millions of loan certificates. The Farmers' National Bank of Newcastle, Del., suspended on Saturday. The steamer Java, which sailed from Liverpool on Saturday, took £500,000 in gold for New York. David Preston & Co., bankers, of Detroit Mich., resumed business yesterday, after suspension of two days. The Secretary of the Treasury will not for the present issue a programme for the sale of gold and the purchase bonds next month. The Allentown, Pa., banks have decided to the of checks Enstead of out currency in adopt system paying of certification large amounts. United States coupons maturing Nov. will be paid on and after Monday, Sept. 29, upon a rebate of interest at the rate of six per cent per annum. The Milwaukee banks are doing businest as usual, except that they have stop. ped advances on produce until the Eastern banks are ready to respond. The panic continued in Little Rock on in of this so city money Saturday. has money Never been the stringent. history It is impossible to get any with any sort collaterals. A feeling of confidence provails in Cleveland, and there is searcely a that the banks will get through coubt all right. but The savings banks have adopted the sixty days' notice plan, The Exchange, Deposit, and Knoxville banks of Knoxville, Tenn., have suspended the pay- of checks for currency. The Commercial Bank has suspended on all large amounts. At: meeting of the bank presidents of Boston on Saturday it was decided to adopt the New York plan, that is, to make only small currency payments, and to issue $10,000 000 of loan certificates. The Commercial National Bank of Dubuque is the only national bank of that city that is meeting all demands in full in currency. The Merchants' National Bank has suspended payment entirely. The National People's Bank and Home Bank of Clinton, III., have suspended payment until the financial crisis 18 over. The reason given 18 the regent action of the banks in Chicago, Cincinnati, and elsewhere. In Toledo the banks passed over Saturday in good condition. Several are stronger than at any time since the beginning of the run. The failure of Kraus & Smith has had less effect than was apprehended. An arrangement has been made by which the London house of Jay Cooke, McCulloch & Co., will honor all Government drafts on the London house of Clews, Habicht & Co. Beyond this there has been no change in the agency. A better feeling prevailed in Charleston S.C. at the close of business on Saturday, the national banks having received a larger amount of greenback on deposit than they paid out in checks. No suspensions have occurred beyond those announced on Friday. Bushing & Brothers, brokers, of Reading, Pa., who are carrying over $2,000,000 in a on The counSaturday. deposits, were paid sustained $50 depositors and heavy from the drain The try no more. city merchants received certified checks on this firm for produce. The banks of Atchison, Kansas, are doing business as usual and declare they do ot intend to suspend currency payments. Three of the banks kept open until five o'clock yesterday. Business men heartily sustain the banks in their determination not to suspend. The Cincinnati Chamber of Commerce passed resolutions on Saturday praising the for to sums in banks in currency, refusing expressing for all possible pay confidence out banking large them, and asking accommodation for merchants and manu facturers. There is little prospect of an end to the stagnation in forwarding until exchanges can be effected. The following Louisyille savings banks suspended payment temporarilly on Saturday. German Bank, Masonic Savings Bank, Western Bank, German Insurance Bank, Louisville Banking Company, German Savings Bank, and Central Savings Bank. A run on these banks has been speedily increasing for the pagi three days All of them have abundant resources. The committee to examine the condition ot the First National Bank Memphis re port its demand liabilities at $374,000. against unquestioned and available assets of $555,000. The doubtful and unavailable assets are $101,00C. After paying all the liabilities the stockholders can Iealize par on their shares. After the reading of the report $200,000 was subscribed