20904. Farmers & Mechanics Bank (Nashville, TN)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
June 18, 1819
Location
Nashville, Tennessee (36.166, -86.784)

Metadata

Model
gpt-5-mini
Short Digest
4b7a9d38

Response Measures

None

Description

The articles (June 18–29, 1819) report the Farmers & Mechanics Bank of Nashville voluntarily suspended specie payments due to heavy specie drain and general embarrassed state of the country. No permanent closure or receivership is reported; the suspension is described as temporary and precautionary. I classify the episode as a suspension with intent to resume (suspension_reopening). Cause is coded as macro_news — widespread specie drain and financial distress (the 1819 credit contraction) motivated the suspension. Dates taken from printed notices in the articles. No explicit run event on this specific bank is documented (though withdrawals noted).

Events (3)
1. June 18, 1819 Suspension
Cause
Macro News
Cause Details
Board resolved to suspend specie payments because of widespread specie drain and embarrassed state of the community (credit contraction of 1819).
Newspaper Excerpt
Farmers and Mechanics' Bank of Nashville, June 18, 1819. Resolved, that there be a suspension of specie payment by this Bank
Source
newspapers
2. June 26, 1819 Suspension
Cause
Macro News
Cause Details
Public notice reiterating the suspension; directors cite necessity and policy given attempts to drain the country of specie.
Newspaper Excerpt
Farmers & Mechanics Bank of Nashville, June 26th, 1819. The public have already been informed of the suspension of specie payment by this bank.
Source
newspapers
3. July 16, 1819 Other
Newspaper Excerpt
Within less than two months, upwards of $30,000 have been drawn from the vaults of this bank alone! ... We believe the demand so great that every dollar in the country will not satisfy it. (discussion of heavy withdrawals and bank's statement of assets).
Source
newspapers

Newspaper Articles (5)
1. July 6, 1819 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, July 6, 1819

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as said what the Exto the change Bank. know how goodness to estimate of JACOB the notes BARKER. of York S. BANK STOCK In New offers U. this torenoon. were soki at91 pay- the able July 1, the book vesterday, No 200 and shares 50 at 91, payable Little will on be next, Monday opening this of stock antil dividend is 10 be it done in dividend or no on Saturday, declared. when a A1 Boston, Phil. Frank. Gaz. stood at 89 COMMERCIAL 90. Saturday under state of the exevening, says as 10 Mr. Degrand, that the date render supply sales market the in Boston difficult, except Salesof coffee, tremely is such moment. to almost invaof the articles are is and after a down the offers circumstances is riably sugar demands knocked stopped off, other This small going quantity of things. is- reslead of rising. indicative of thestate at 12 5-8 to 12 sugars white 17 to 82 to 85 7-8 cents per hyson tea, 30 to 10 26 130; flour, 4 1251 $7 to 714 rye 4: flour, bbl. $3 3-4 to Havana ported gunpowder, as young lb. were : sold bohea, 18 macka- coffee, cent 31; to advance 434, rel, 7 to 11. ; exchange Spanish on in London, January, at coust states par. the crop a from had been who superfine that letter herrings Bombay of indigo but dollars, gentleman, says 2 per that the erably injured: in Bengal, until Feis not put into so that the letter brwary or must be have fallen in has seed been much March, incorrect. the ground from New adYork Bombay Spanish ; they dollars are to 1.4 per cent vance. noticed, the currency other day, this a report Wes- city, which We had obtained credited, that some the IIIand was generally had experienced at St. Louis, causes in the nature of Nor is it it would terruption tern from not precisely Expedition its understand. progress if, as at which present inform- report we like- did itLetters ed, incorrect. ly that we should, appear, that the from the prinand expedition, self was cipal ticer now with the both of the date no al- of St. Louis received newspapers, yesterday, which make have June 2d, to the circumstances which, it is therefore we are lusion been reported, and In any event, have hoped, some 100 persuaded, permitted. are untrue. no long The delay letters would will state be been that the waters in which appellension for steam boat navigation be immediately sublow keel beats will delay or obstruction case No other anticipated. Int. stituted. appears to have been [Nat. buzz the Among the multitude their of hour ephemeral.ru- and eastern are formours which has been a report of the in PRESIDENT, Cengotten, states, is of thus the noticed death in the Boston tinel which A of report the 26th United of instant: the States, death of of the fever, the Presi- pub- in of the spread a gloom on over Wednesday for a short was found Tennessee, dent lic mind examination, time it advices from to last. On We BOW health be incorrect. to the 3d inst. when his was sound," Tennessee &c. the reader accounts, We have still via later Lexington, of the Kv President which will perceive, the progress westward as Frankfort, reannounce in his tour as far surprising that such a the It is not a gloom over the port We the which the munity, public deep Ky. should gloom mind." " particularly spread overspread well remember distinction Congress com- of then at a and without the in session, time that party spirit late was life of illness. by a Jess dear Mr. MONROE of his was the venomous- party valuable threatened when, during President severe is no MADISON friends most war, The to country whether it put to the at this southern President of to life been have his summer. of doubted miles : The sun and least to some hazard travel advanced ought government has by by land, exposure yet to stage near- have be" a thousand he reaches the seat not of aware of any though we has occurred to return which his absence, and and, lice fore prejudice from are his the pub- well service be looked for with interest, [Ib. comed will with pl asure. Farmers' NASHVILLE, June Bank 19.-The of this place yester- We and Mechanics specie of the ments. directors, by one that are whom we have all its day informed suspended conversed, engage- the with well able to meet the Board the present the ments deemed Bank is in specie, interests but that step of adviseable, community, had as as well for for the the int. rest of the 10 institution. state positively, We are authorised of this State, and the are that the Bank Bank, and their Brauches, pay" in specie as usual. resolved Nashville to continue their Gazette. three Tuesday the 8th. from inst. the U. waggons On loaded with in specie, Cincinnati, pas Phila- ed S. Branch Bank on their way to bethrough Chilicothe said to contain delphia. They are and $150,000. transported The total tween $120,000 and silver, twelve of gold the last amount of the state, within about $800,000 out months, is estimated (Chilicothe at Gazette. loaded hoard the Pike, This and is delivered the money by her at Maysville.

2. July 9, 1819 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, July 9, 1819

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that the adoption of such a course be recommended 16 the directors of the different banks in this place. 2d. That they have entire confidence in the abi itv and integrity of the present directors of the several banks in this State, and in the ability of said banks to redeem their paper but believe that the necessity of the times, and the embarrassed state of the community, require such course to be pursued ; and they are of opinion further that the suspension of specie payments ought not in the least to unpair the credit of such bank paper. R C. FOSTER, Chairman. WILLIAM S. FULTON, Sec'try. Wehave been obligingly furnished with a copy of the resolution of the Farmers' and Mechanics" Bank of Nashville, with their reasons for suspending specie payments, at the presenterisis, which we present to our readers. (Clarion. "Farmers and Mechanics' Bank of Nashville, June 18, 1819. "The 10 rd of D ectors, view with regret the efforts now making to drain our country of specie. They believe the Irrang m ets which are about to be carried into effect for that purpose, not only injurious to the Banks, but destructive to the true interests of the country-and thatis prosperity depends upon devising some means by which this evil may be averted-and that no other plan will so effectually attain that object, as a temporain suspension of specie payments. In arriving at this conclusion they are not influenced by the impression that the Banks are otherwise than solvent, and able to redeem their paper, but believe that the interest of the country imperious ly demands the adoption of this measure; therefore, Resolved, that there be a suspension of spec re payment by this Bank: but this order is to continue no longer than in the opinion of the board, the prosperity of the country requires it."

3. July 9, 1819 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, July 9, 1819

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Another! and yet another A few days since the Furmer's' and Me. chanics' Bank of Nashville closed its vaults. The newspaper article which gave this information, "positively" announced (from authority) that the Bank of Tennessee, "and the Nashville Bank, and their Branches, were resolved to continue their pay. ments in specie as usual -But scarcely was this assertion made public, before the Bank of Nashville shuts up its vaults.So ignorant, to all appearance, does this institution seem to be of its actual situation And so little gifted with the spirit of foresight.-We see 100 the resolutions of a meeting of various citizens of Tenmessee, who are attending the federal court at Nashville they do not hesitateto recommend to all the banks of Tennessee to suspend their specie payments. Thus one bank follows upon the heels of another! Indeed, so great has been the balance of trade lately, against most of the southern and western country, and in favor of the east, that it will require some skill on the part of the western and southern banks to withstand the current. A large part of this balance is paid for in bank notes. These are of little use to the eastward; they are not wanting to pay debts to the South and West; for the balance of debis lies the other way. What becomes of these notes? Holders are unwilling to be at the risk and trou ble of sending them to the issuing bank to be exchanged for specie-they are of nouse, ifkept on hand. They are willing therefore, to part with them at a loss. The notes depreciate below the notes of the Northern banks. Thisinvites brokers to buy them up at a discount, and send them Much to be converted into specie predence is requisite to guard against this state of things. The banks of Virginia here seem determined to spare no means whatever to go on with the ir specie pay ments. They aresanguine in their hopes of success.

4. July 16, 1819 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, July 16, 1819

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mand for specie. We believe the demand so great that every dollar in the country will not satisfy it. Within less than two months, upwards of $30,000 have been drawn from the vaults of this bank alone! Were thespecie drawn from the banks to be kept in the country, there would be no cause for excitement.-It would return again in the course of business: but when 11 is to be taken out of thestate for exportation, or to supply the exhausted condition of other banks, and nothing left but a depreciated paper carreney, which none cau be compelled to receive, the consequences become serious and alarming ! We consider it a matter interest to the community, when so much bank paper is afloat, that every legitimate step should be taken, to give to 11, as a circulating medium, all the redit to which it is really entitled. The preservation of the specie in the country, and the timely suspension of specie payment, is, in our opinion, am important steplowardsit.-Webelieveali the banks in the western country will ultimately be compelled to adopt measure; and it so the sooner it is done, the better for the country. That the public may know the state of this bank, we eximbit the annexed exposition. Its solvency must depend upon the manner the notes discounted by the bank are secured. That we might avail ourselves of the judgment of disinterested persons ou this subject, we requested the Brauch Bank of the State oi Tenness at Nashville, to appoint a tee to make anexamination, for that purpose; who did so, and have certified as to lows: The undersignedbaving been appointed a committee part of the Branc Bank of the State of Tennessee at Nashville, by the request of the Directors of the Farmers' and Mechanics' Bank to examine the manner in which its discounted notes are secured, have no hesitation in saying that they are as wellsecured by endorsement, or by real estate, as it IS customary for banksto require. HENRY CRABB, THOMAS RAMSEY, JOHN P. ERWIN. June 25th, 1819. We believe the coursepursued by this Bank, in its effects, calculated to prevent general distress and individual ruin-and at the same time preserve the character of its paper. And though the specie of this nor any other Bank, where notes are discounted, can be equal to the amount of notes in circulation-set in the securily of that paper, and 111 the specie ou hand, there is not only ample meansof redeeming the notes in circulation, wheneverit shall be expedient 10 do so, but of producing a divid nd to the sto kholders, of $13,453. We therefore submit it to the public to say what credit the paper of this Bank shall receive: and to the Stockholders to approbate or cend mn the molives which have influenced our couduct. J WHITES IDE, President. WM. CARROLL G.G WASHINGTON. O B. HAYS, Directors. TH. HILL S The State of the Farmers' and Mechanics' Bank of Nashville on Friday Evening, June 25th, 1819. Amount paid for Real Estate, $11,008 54 Bills receivable under discount 310 240 11 Bills of Exchange do. 13880 73 specie on hand 20 000 52 Notes of other Banks, 233700 357.453 20 Stock paid in, $ 160,350 00 Bills payable on demand in circulation, 91,092 00 Post Notes due, 13.300 00 Do.not due. 17,692.00 27 726 65 Deposits of other Banks, 30,931 25 Individual Deposits, profit and Balance of loss 13,453 20 in favor 01 the Bank,

5. July 16, 1819 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, July 16, 1819

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DOMESTIC. From the Illinois Intelligencer of June 16.] The commi sioners appointed at the last session of the legislature for selecting a site for the permanent seat of government for this state, agreeably to the act of congress, met about the first of this month, and entered upon the discharge of their duties. They made the following selection for the above purpose: In township 6 north, range I east, sections 8, 9, 16 and 17-an named the new seat of government VANDALIA. NASHVILLE, June ..Yesterday. - a boat the hour of the opening of the Bank, one of the officers thereof handed us the following note. This day the Branch Bank of the State of Tennessee, at this place, suspended paying Specie. June 29th 1819 Farmers & Mechanics Bank of Nashville, June 26th, 1819. The public have already been informed of the suspension of specie payment by this bank. This measure was not a dopted without due reflection, or a conviction of its policy and necessity -1101 until unavailing attempts had been mad that 11 should he simultaneous with a suspension by the other banks. Wedeem it unnecessary to detail the causes which