20851. Southern Bank (Memphis, TN)

Bank Information

Episode Type
Suspension → Run → Closure
Bank Type
state
Start Date
August 30, 1858
Location
Memphis, Tennessee (35.150, -90.049)

Metadata

Model
gpt-5-mini
Short Digest
018deb04

Response Measures

Full suspension

Other: Bank appears to have gone into liquidation; president pledged personal property to pay depositors.

Description

Southern Bank of Tennessee (Memphis) suspended payments on Aug 30, 1858. Contemporary reports state depositors made a run and the bank was expected to go into liquidation. The suspension was closely tied to loss of confidence caused by the Bank of America notes being 'thrown out' by other banks; I classify the immediate cause as distress tied to other local banks/notes. No reopening or receivership is reported; sources indicate likely liquidation.

Events (3)
1. August 30, 1858 Run
Cause
Local Banks
Cause Details
Depositors ran after other banks and brokers 'threw out' the notes of the Bank of America and news of Southern Bank's suspension; loss of confidence tied to other banks' difficulties.
Measures
President pledged his individual property for payment; bank indicated intention to liquidate (pledge communicated to depositors).
Newspaper Excerpt
We suppose the run was made by depositors.
Source
newspapers
2. August 30, 1858 Suspension
Cause
Local Banks
Cause Details
Other banks refused to receive notes of the Bank of America; Southern Bank (agent to redeem those notes) suspended and its notes were thrown out by banks and brokers, precipitating suspension/illiquidity.
Newspaper Excerpt
The Southern Bank suspended payment this morning
Source
newspapers
3. * Other
Newspaper Excerpt
It is understood that the Bank will go into liquidation. ... I hereby pledge my individual property for the payment of every dollar due you. W. J. DAVIE, President.
Source
newspapers

Newspaper Articles (9)
1. August 31, 1858 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, August 31, 1858

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Article Text

DOMESTIC INTELLIGENCE Arrival of the Empire City. NEW YORK, Aug. 30.-The Empire City has arrived in the lower harbor. She is detained at quarantine. The Captured Africans. WASHINGTON, Aug. 30.-The Government has telegraphed the U.S. Marshal at Charleston to have the Africaus captured on board the brig Echo removed to Fort Sumpter, near Charleston, for the purpose of returning to their native land. River Intelligence. ST. LOUIS, August 30. - The steamers Michigan and Uncle Sam have arrived here. The Monongahela left here for New Orleans this evening. VICKSBURG, Aug. 30.-The steamer Messenger passed down at 4 o'clock, P. M. Bank Suspended. MEMPHIS, August 30.-The Southern Bank suspended payment this morning, and the bills of the Bank of America are thrown out by the other banks and brokers.

2. August 31, 1858 Nashville Patriot Nashville, TN
Article from Nashville Patriot, August 31, 1858

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Article Text

Bank Failure. MEMPHIS, Aug. 30.-The Southern Bank of Tennessee, has suspended, and the Bank of America is thrown out by the Banks and Brokers this morning.

3. August 31, 1858 Nashville Union and American Nashville, TN
Article from Nashville Union and American, August 31, 1858

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Article Text

MONETARY AND COMMERCIAL. The notes of the Southern Bank of Tennnesee. at Memphis, and the Bank of America were thrown out yesterday by the Banks and Brokers in this city. This was the result of a tegraphic dispatch received from Memphis announcing the suspension of the former and that the latter had been thrown out there. A lieavy sun has been made upon the Bank of America for about two months past, and IFC fear it has been seriously damaged by that run, and we shall not be surprised to hear that it too has suspended--failed, is the right word. It was rumored upon the streets yesterday that the Messrs. DAVIE had some time since disposed of their stock in the Bank of America. We do not know how true this may be, but If so, we shall look for the Bank to be a failure: and a bad one. The Bank of America waschartered by the Legislature of 1855-6, and a clause was inserted in the charter for the purpose of making the stockholders liable in their individual property for the full amount of the debts of the Bank, but by an oversight, it only makes the stockholders liable to the amount of the stock they may hold. The following is the statement of the condition of the Bank of America, as returned to the Comptroller on the 1st of July last

4. August 31, 1858 Nashville Union and American Nashville, TN
Article from Nashville Union and American, August 31, 1858

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Article Text

Bank Suspension. MEMPHBS, Aug. 30-The Southern Bank of Tennessee has suspended, and the Bank of America was thrown out by the Banks and Brokers this morning.

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

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THE SOUTHERN BANK. A private despach 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 the fact that the America's notes are discredited. --Ib.

6. 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.

7. September 3, 1858 Nashville Patriot Nashville, TN
Article from Nashville Patriot, September 3, 1858

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Article Text

# 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, Monday, August 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 deposit, 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, is 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. - Memphis Bulletin, Aug. 31st.

8. September 3, 1858 Clarksville Chronicle Clarksville, TN
Article from Clarksville Chronicle, September 3, 1858

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Bank of America. Considerable excitement was produced here, a day or two ago, by the news that the Southern Bank of Tennessee, at Memphis, had suspended payment, and that the notes of the Bank of America had, in consequence thereof, been thrown out by other Banks at Memphis and Nashville. The Southern Bank was the agent, at Memphis, to redeem the notes of the Bank of America, and her suspension, of course, involved a temporary discredit of the notes of the Bank of America. The Bank of America had no intimation, whatever, we learn, of any design of the Southern Bank to suspend, until they got news that they had actually suspended. The Bank of America is still going on, as usual, and her notes are redeemed at Nashville by the Traders Bank, and the Merchants Bank. As to the final issue of this excitement, it all depends upon the action of the note-holders, and depositors, of the Bank of America. There is no Bank in the State that can stand a simultaneous run on it by both note-holders and depositors, Take the very strongest Bank we have, and, if every one who holds a note on it, or has a deposit with it, runs on it, at once, she cant begin to pay out; but give her time to collect what is due to her, and then she can pay all. So it is with the Bank of America ; if every one who has claims against her runs on her for it, she cannot stand it, nor can the Planters', nor the Union, nor any other Bank ; but if note-holders, and depositors, will be reasonable, and act as if they had heard no bad news, she will pay out in full. Many a farmer, or merchant, who ownsproperty to to the amount of fifty thousand dollars, may have notes out for five thousand, which if he is pushed on without notice, he cannot pay, and se with Banks. They invest their means in billsand notes, reserving a reasonable amount of eash, but if pushed for all they owe, they must wait till they collect their notes and bills. So it is with the Bank of America. So fir as her mon operations are concerned her officers say they can pay every dollar they have put out We would advise all note-holders and depositors, to remain quiet, and we think all will be right. The Bank if she has half a chance will pay out, but if crowded at once for all she owes no Bank can stand it.

9. September 5, 1858 The Washington Union Washington, DC
Article from The Washington Union, September 5, 1858

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WHEAT FROM A WEED.-Several years ago M. Fabre, of Agde, (in the department of l'Hèrault,) astonished both botanists and agriculturists by announcing that he had obtained wheat from a common weed, the Agilops ovato, by sowing its seeds successively for several seasons, the plant having each time yielded one of a more perfect organization; after passing through the stages of Eg. triticoides and spellafortitis, it actually became triticum sativum, or wheat. Dr. Gouldron, of Nancy, however, has just published some experiments of his, which cast more light on this mysterious generation of the most precious grain we possess. Having conceived a suspicion that M. Fabre's Apilops ovato might have been fecundated by the pollen of wheat, he proceeded to verify the fact by artificial fecundation, and at length, after repeating this operation at each generation with the pollen of wheat, obtained the same result as M. Fabre. The latter, therefore, most probably hit upon one of the rarest cases in botany, a fruitful hybrid of the AEjilops genus:-Galigmani. AN EXAMPLE FOR Boys -We have a carrier connected with this office, who is between the ages of 13 and 14, who occupies a seat in the highest class in our public schools, has the geography of the country at his fingers' ends, and who can cipher round a bevy of school-masters, and in two and a half years more, which will make him sixteen, he will probably read Cicero and Homer to boot. But, in addition to acquirements at school, he has three hundred dollars in the Savings, Bank, drawing five per cent. interest, and is daily adding thereto, all gathered together by selling newspapers between school hours.Trenton True Am. BANK SUSPENSIONS IN TENNESSEE.-The Memphis Avalanche, of the 31st ult., announces the failure of the Bink of America and the Southern Bank, located in that city, Both banks are owned by the same parties, and the Avalanche thinks that if the proprietors will consecrate their ample fortunes, as they promised, their notes will soon be at par. A SURJECT FOR RAREY.-In the course of the perform ance at the show yesterday, Dan Rice stated that one peculiarity of his trained horse Excelsior? was, that no other individual could take him out of the stable. During the past seven years there had been one hundred and eighty-three executions issued against him, but no officer had yet been able to take him ! "Excelsior" would make a good subject for Rarey to practise upon.