Exchange Bank - Murfreesboro, TN

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: February 8, 1860
Location: Murfreesboro, Tennessee (35.846, -86.390)

Metadata

Model: gpt-5-mini
Short Digest: 92ece5a0

Response Measures

None

Description

Newspaper items indicate the Exchange Bank of Murfreesboro had failed/suspended prior to Feb 1860 (House resolution on Feb 8, 1860 to inquire into its failure). A later article (1870) references the suspension/failure and ongoing litigation over deposits and worthless notes. No article describes a depositor run; the bank appears to have failed/suspended and remained closed (lawsuit years later).

Events (2)

1. February 8, 1860 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Explicit reference to the failure of the Exchange Bank; investigation and possible suits regarding the bank's affairs and losses (insolvency/failed bank).
Newspaper Excerpt: Mr. Doak offered a resolution for the appointment of a committee to inquire into the affairs of the Exchange Bank of Murfreerboro, and into the expediency of instituting suit ... in the failure of that Bank.
Source: newspapers

2. January 12, 1870 Other

Newspaper Excerpt: The Exchange Bank of Murfreesboro vs. The State of Tennessee.... suit ... to recover the bonds alleged to belong to M. Spence, deposited ... previous to the suspension of the Exchange Bank of Murfreesboro, of which Spence was the President.
Source: newspapers

Newspaper Articles (2)

1. February 20, 1860 Nashville Patriot Nashville, TN

Article from Nashville Patriot, February 20, 1860

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Article Text

HOUSEOF REPRESENTATIVES. SATURDAY, Feb. 8. The House met pursuant to adjournment Petitions were presented and referred. Mr. Doak offered a resolution for the appointment of a committee to inquire into the affairs of the Exchange Bank of Murfreerboro, and into the expediency of instituting suit against all persons concerned, directly or remotely. in the failure of that Bank. Rule suspended and resolution referred to the Judiciary Committee. Mr. Lea introduced a bill to charter a Bank of discount and deposit at Brownsville. Mr. Shied. a bill for the benefit of purchasers of school lands in certain cases. The House then resumed the consideration of Senate bills on second reading, a number of which were passed. The bill to regulate the sale of spirituous liquors by the quart was laid on the table. The bill to charter the Sewanee Turapike Company was amended and passed its third and last reading. Adjourned till 2 p. m.

2. January 12, 1870 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN

Article from Memphis Daily Appeal, January 12, 1870

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Article Text

# SUIT INVOLVING $30,000. The Exchange Bank of Murfreesboro vs. The State of Tennessee. From the Nashville Banner of Saturday. The case of Ben Clark, James Dromgoole, John D. James and A. W. Moss vs. the State of Tennessee and the Bank of Tennessee, was taken up and argued yesterday by John Reid, counsel for plaintiffs. This suit has been in the courts for the past nine or ten years. It was brought against the State and Bank of Tennessee to recover the bonds alleged to belong to M. Spence, deposited in and held in that bank previous to the suspension of the Exchange Bank of Murfreesboro, of which Spence was the President. After such failure the notes of the Exchange Bank became worthless, a large amount of them being held at the time by plaintiffs. It is estimated that from one hundred to three hundred thousand dollars is involved in the suit. John Reid and Abe Demoss are attorneys for plaintiffs, and General Bate and Governor Neill S. Brown for defendants.