20852. State National Bank (Memphis, TN)

Bank Information

Episode Type
Run Only
Bank Type
national
Bank ID
2127
Charter Number
2127
Start Date
September 25, 1873
Location
Memphis, Tennessee (35.150, -90.049)

Metadata

Model
gpt-5-mini
Short Digest
5bd421dc

Response Measures

Accommodated withdrawals, Capital injected

Description

September 1873 financial panic in Memphis: several banks suspended (First National, De Soto, Freedmen's), producing heavy withdrawals citywide. The State National Bank experienced heavy withdrawal pressure but had an abundance of currency and weathered the storm and later took Eastern exchange, indicating it did not suspend. Cause attributed to inability to realize securities in New York and contagion from other local bank suspensions (classified here as correspondent-related contagion). OCR corrected minor typos (e.g., Do Soto -> De Soto).

Events (2)

1. August 27, 1873 Chartered
Source
historical_nic
2. September 25, 1873 Run
Cause
Correspondent
Cause Details
Run driven by inability of Memphis banks to realize on securities in New York and contagion from suspensions of other local banks (First National, De Soto, Freedmen's).
Measures
Held abundant currency; received Eastern exchange later ($40,000 reported) which helped restore confidence.
Newspaper Excerpt
The State National Bank had an abundance of currency, and weathered the storm to-day.
Source
newspapers

Newspaper Articles (2)

Article from New-York Tribune, September 26, 1873

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Article Text

BRIGHTER PROSPECTS AT PITTABURGH PITTSBURGH, Sept. 25.-It is learned from authentic sources that $350,000 in greenbacks arrived here to-day from New-York and Washington, and other large sums are on the way, which are expected to arrive to-morrow, and there is a hope that the greenback stringency will be over by Saturday morning, if not sooner. The entire outlook is brighter, and there is reason for saying that the temporary derangement of financial houses here wild be of brief duration. The run on the savings banks has stopped, and no new move ment of the banks is threatened. The Security Trust Company is making arrangements to resume. The of ficers say that they expect to open by Monday next. The Lawrence Savings Bank, which suspended yesterday, will resume in a few days. IN TENNESSEE. SUSPENSION OF THREE MEMPHIS BANKS. MEMPHIS, Sept. 25.-There is great excitement in this city on account of the suspension of banks, which is due to inability to realize on their securities in New-York. The First National and the Do Sote banks have closed to-day. and it is rumored that the Freedmen's Savings and Trust Company has also suspended. There is a heavy run on the other banks. Itisexpected, however, that all the suspended banks will reopen after the panic subsides. 6. p.m.-The excitement this morning over the suspension of the First National Bank was intense. Crowds gathered in front of the bank building in Madison-st. and attempted to break in the iron doors and shutters but they were scattered by the police. The liabilities of this bank are about $400,000, of which $350,000 is due depositors. Among its assets are overdrafts of solvent firms amounting to nearly $100,000. It is believed the bank can resume if able to realize on its assets. An effort is making to have W. W. Thatcher, its own cashier, appointed receiver. The excitement over the suspension of the First National caused a heavy run on the De Soto Bank, and at 101 its doors were closed. Its liabilities are about $150,000, and its officers claim that their assets are ample to meet all demands if they can realize on them. The State National Bank had an abundance of currency, and weathered the storm to-day. The Union and Planters' also endured a heavy run without flinching, as did also the German National, the Bank of Commerce, and the Fourth National. The Freedmen's Bank was compelled to suspend. The check on business is complete, and the planters will necessarily be greatly inconvenienced, as a failure to sell cotton and receive currency and capital will render laborers dissatisfied and unruly. Financial affairs are the all-engrossing subjects of conversation, and little attention is paid to the yellow fever, which is surely abating. PARTIAL SUSPENSION OF THE NASHVILLE BANKS. NASHVILLE, Sept. 25.-The National Banks of this city, four in number, in view of the present state of financial affairs have agreed to suspend currency payments on all balances exceeding $200. The Board of Trade, at a large and full meeting [to-day unanimously approved of the course of the banks and adopted a resolution that merchants and business men would continue to deposit with and aid the banks by every means in their power. A general good feeling prevails among business men, and there are no symptoms of a panic.


Article from Chicago Daily Tribune, September 28, 1873

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Article Text

MEMPHIS. Special Dispatch to The Chicago Tribune. MEMPHIS, Sept. 27.-The financial situation here has undorgono no marked change eluco yestorday, except nn increased fooling of caso occasioned by the probability of the early rosumption of payment by one or more of the suspended banks,-the First National and Do Boto,-which is most flattering. A mooting of the business mon and leading merchants of the city was hold this morning, attended by n majority of the depositors of the First National Bank, nt which it was decided by the bank dopositors to permit their monoy to remain in the bank untouched for eithor sixty or ninoty days, 80 that the bank might resumo within the time limited by law. The solid men of the city, or that portion of them who have not scanipored away on account of yellow fevor. camo up and subscribed loans varying from 81,000 to $15,000 each. the total subscription or lonu to the bank footing up over $200,000. which, with the nogotlable paper now owned by the bank, will place it again upon n substantial basis and permit its resumption immodiately upon the books being straightened. The additional bank failures reported in to-day's dispatches created littlo if any excitement hero to-day, and business was not disturbed in the lonst by the reports. The ruu upon the solvont banks was very light compared to that of yestorday or the day before, and in nearly every instance the DEPOSITS BROWED A MARKED INCREASE, for the first time in nearly two weeks, and the banke receive Eastern exchange on other institutions than their own correspondents, 0110 bank alone, the State National, taking nearly 840,000, which again insures 8 movement in cotton, and to n great extent will restoro to plantore in this immediate vicinity tho labor they have lost by not being able to get means from their morchauts to pay their hands, for which reason the cotton-pickors in numerous instances have loft the fields with not ono-teuth of the crop gathered.