Union Bank - Nashville, TN

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: October 18, 1839
Location: Nashville, Tennessee (36.166, -86.784)

Metadata

Model: gpt-5-mini
Short Digest: 47496fc4

Response Measures

None

Description

Contemporary papers report that the Union Bank (Nashville) suspended specie payments on Oct. 18, 1839 after the Bank of Tennessee drew a $100,000 specie draft on the Union and Planters banks and following news of eastern bank suspensions. No article describes a depositor run preceding the suspension. Later coverage (1858) discusses repeated suspensions of the Union Bank, implying the institution continued to exist after 1839; therefore I classify this as a suspension with eventual reopening (suspension_reopening). Bank charter/type not specified in the articles, so set to unknown.

Events (1)

1. October 18, 1839 Suspension

Cause: Correspondent
Cause Details: The Bank of Tennessee drew a $100,000 specie draft on the Union and Planters' Banks; coupled with news of suspensions in Philadelphia, Baltimore and Cincinnati, the Union Bank suspended payments on Oct. 18, 1839.
Newspaper Excerpt: This morning the Union and Planters' Banks have also suspended... The Bank of Tennessee made a specie draft of $100,000 on the Union and Planters Banksand the consequence was an immediate suspension by the Union and Planters' Banks.
Source: newspapers

Newspaper Articles (5)

1. October 30, 1839 Morning Herald New York, NY

Article from Morning Herald, October 30, 1839

Click image to open full size in new tab

Article Text

dis. dis. Rochester City Bank, Broome Co. Bank, Bank of Owego, Central Bk, Cherry V'ley, Livingston Co. Bank, Jefferson Co. Bank, " " Mohawk Bank, Bank of Monroe, " " Bank of Auburn, Montgomery Bank, " " Bank of Geneva, Ontario Co. Bank, " Utica Branch Bank, Ontario Brauch Bk,Utica, Leather Bank. Oneida Bank, " this. Steuben Co. Bank, Bank of Utiga, " Bank of Rome, Albany City Bank, The following are redeemed at the North American Trust and Banking Co. Commercial Bank,Troy, dis. Orange Bank, N.J., fives Merchants' and Farmers' and over. par. Bank, Ithaca, Farmers' Bank, Hudson. Farmers' and Drovers' Bank of Syracuse, Farmers' and Mechanics Bauk, at Somers, 3 pr ct. Genessee Co. Bank, 1 pr ct. Bank, By J. T. Smith, at 26 Wall street: Bank of Delaware, 1 pret. Herkimer Co. Bank, 1 pr ct. " Sackett's Harbor Bk, 2 Cayuga Co. Bank, All others not redeemed, including red back and safety fund, are bought at 28 Wall street, at 5 per cent discount. There are, however, many brokers who charge from 5 to 7 per cent according to the necessities of the sellers. Providence bills are bought at from 10 to 12 discount. The following are the rates of exchange, as near as may be: 18a20 112a12} dis. Mobile, Philadelphia, 9al0 New Orleans, 111x12 " Baltimore, 12:13 12 aló " Charleston, Richmond, The brokers will not buy the bills of these banks redeemed in the city at a less rate than 5 per cent, so precarious is the na ture of the redemption considered, being liable to be discon. tinued at any moment. These rates for the money, have led to the purchase of the bills for the purpose of demanding specie on speculation. An agent left here with $300,000 for that purpose, which was purchased at an average of 7 per ceut discount The operation, therefore, yields a profit of $21,000 in a few days This drain, but few of the banks can stand. While these operations are going on, what do the committee of the Western banks at the City Hetel, having failed in the objects for which they came here, passing resolutions that they have perfect con. fidence in the banks which they represent? Why do they not go home and provide means of payment, instead of staying here and saying they can pay? It is cash that is new wanted, not resolutions. The difficulty of procuring payment from the western banks daily increasing; a draft of the Erie County Bank, on a new bank in this city, called the Atlantic, for $326, was redeemed with some difficulty. There are many of the new banks at the west, which do net pretend te disco unt, but the bills are used by the proprietors in their individual business, and not a few of whom employ their funds in buying western money in Buffalo drawing the specie for it. The effects of the position of New York are beginning to be manifest in the influx of specie from the south. A large amount has been received today in this city, and was offered at a premium, which could not be obtained, and was then deposiited with one of the banks in the ordinary way. It is idle to suppose that our banks will give any thing for specie. They have as much as will make them perfectly safe, and more they do not care about keeping. From Philadelphia we learn that public opinion is fast changing in favor of the New York policy and against the United States Bank, which institu. tion is becoming unpopular as fast as the merchants understand the true bearing of her policy. Already the majority banks," or those which voted against a suspension, are making preparations to discredit her bills altogether. The moment that is done, she will stand as a broken bank. The practical effect of this feeling is explained in the fact that a person who was yesterday a large buyer of that stock in Philadelphia, at 86 cash, to fulfi: contracts, refused it at 84 next week. Statement of the Marine Ins. and Branch Bank at Macon, (Ga) and also the Planter's Bank of the State of Georgia, as com. pared with their condition at the time of suspension in May, 1937. Oct. 1839. May 1837. Loans. Specie. Loans. Specie. 78,450 445,188 Ins. Bank 925,823 161,516 164,766 755,827 Plr's Bank 1,030,739 367,760 Circulation. Deposites. Circulation. Deposites 76,995 80,468 Ins. Bank 496,770 224,370 171,525 108,699 Plr' Bank 354 613 689,493 The prevailing, but erroneous impression at the south, that the New York banks would follow in the wake of the United States bank caused, on the receipt of the news of the Phila. delphia failure at Nashville, the suspension of the Union Bank and the Planters' Bank, both of which are large debtors to the bank of Tennessee, which institution drew from them $100,000 in specie, previous to their suspension, and then addressed the following note to the Legislature now in session: BANK OF TENNESSEE, Oct. 18. 1839. To the General Assembly of the State of Tennessee. GENTLEMEN.-Bylast evening's mail we are in receipt of the information that the banks of Philadelphia, Baltimore, and Cincinnati have susp nded the paymen of specie, and probably the New York and Kentucky banks also. This morning the Union and Planters' Bank have also suspended. The balance due this institution from those banks is very considerable, and they have refused payments of the same. WM. NICHOL, President. I have the honor, &c. The following is a statement of the three banks at different neriods:

2. October 31, 1839 Lynchburg Virginian Lynchburg, VA

Article from Lynchburg Virginian, October 31, 1839

Click image to open full size in new tab

Article Text

SUSPENSION.-The Banks in New Orleans, we learn, have suspended specie payments. In Ohio, the suspension is HOO universal : the Dayton, Zanesville and Urbana banks, and the Clinton and Franklin banks of Columbus continue to pay specie. The Indiana banks likewise pay specie. The Savannah banks and two of the Charleston banks, decline suspending. In Nashville, the Union bank and the Planters' bank have suspended; the Bank of Tennessee continues to pay specie, and says it intends to do so unless otherwise re. commended by legislative authority.

3. November 1, 1839 Richmond Enquirer Richmond, VA

Article from Richmond Enquirer, November 1, 1839

Click image to open full size in new tab

Article Text

Constituting a total deposite of $1,645.000 Of these stocks, Indiana is quite good it not better than the others, yet that stock sold within a few days a 50 cents on the dollar It is therefore evident that the is security, though good, fails at the moment when it wanted in a state of ease and confidence in the market when the security will bring full price, it is not wanted; but is at a time like this, when the bills of the banks hus secured are selling at a discount of 5 per cent., thereby tempting speculators to run the banks, that the security is most wanted Should the new banks now be forced to suspend, and the whole of the above amount of $1.645,000 be thrown upon the market, The the holders will not realize 40 cents on the dollar. stocks of the new banks, as compared with the old in stitutions, are comparatively worthless, from the fact that in their dealings are ID securities which are at present consertible. These considerations are biassing the pubof the old system- with the arrival of the from England, an lic in next favor packet explosion banks will proba in bly take place among certain of the new this State which may prostrate the new system entirely, and the old banks of the city of New York will form a nu cleus around which will rally the solvent merchants and healthy business, while the speculating bankrupt jobbers, auctic neers and insolvents of all kinds will periah under the ruins.of that mighty system of unlimited credit they have helped to create. The Lancaster (Ohio) Eagle of the 26th says, "Thus for the Cincinnati Banks, (except the Commercial.) the X-nia. Hamilton. Dayton and Urbana are the only Ohio Banks known to have suspended. The Zanesville Ga. zette Wednesday last, says that the Granville Society has also suspended The Bank of this place (the Co. jumbus and Zanesville Banks) have, it 15 understood, decided to continue specie payments "The Wheeling Times says it has no doubt, from pre sent appearances that most of the banks in Ohio will wind up their affairs. They had much-better do it than attempt, embarrassed and restricted as they are, to continue business The Columbus Statesman of the 25th. gives an elaborate Table. fornish by the Auditor of the State, of from the condition of the thirty fire Banks of Ohio, present which it appears, that their amounts to $10, 22297-their circulation to 6.263 454-their deposite other money, 1.844 8-which with the monies due to banks and other liabilities. amount in the whole to $23.055426-And on the other side of the account, their notes discounted amount to $11;208 125; specie 2 098,587; notes of other banks 930-565. due from o her banks 966, 190: other resources 7,821,856; amounting in the whole to $23 065 426 The Indiana Banks. it is said by some, continue to pay specie.- But the Chillieothe Gazette of the 24th saye, that they have suspended. The Northern Bank of Kentucky, at Lexington, has suspended TENNESSEE BANKS "The news of the suspension eastward. reached Nashrille on the evening of the 17th inst The same evening, a consultation was had among the bank officers, of that city. but nothing definite was concluded on Next morning. the Bank of Tennessee the made specie draft of $100,000, on the Union, immediate and Planters Banks-the consequence was an Ten suspension by the two last named. The Bank of nessee still held out paying specie on the 18th inst. as we learn from the Nashville Whig of that date, while being unwilling to take the reaponsibility of suspending. the State Legislature is present, in session, to direct its movements The Nashville Banner of the 19th informs us, that the Union and Planters Bank suspended on the 18th, R. and that on the afternoon the Speaker of the H. of laid before the House the following communication from the President of the Bank of Tennessee "BANK OF TENNESSEE, Oct. 18, 1839. 'To the General Assembly of the State of Tennessee: Gentlemen- last evening's mail we are in recript of information that the Banks of Philadelphia, Baltimore and Cincinnati have suspended the payment of specie, and probably the New York and Kentucky Banks also. "This morning the Union and Planters' Banks have from also suspended The balance due this institution these Banke is very considerable, and they have refused the payment of the same. 1 have the honor to be, Yours very respectfully, W NICHOL, President. "This communication was addressed to both The Houses de. and referred to the committee on Banks. Yoakum bate was in the Senate was quite animated. Mr introduced a resolution. providing that notwithstanding the of payments by the other banks, 'the and branches to debts as the public faith and common pay suspension bank its of Tennessee specie will still resolution continue honesty require.'-1 immediate adoption of this Gilleswas pressed with much zeal by Mr Yoakum and Messrs. pie at considerable length by the who advocated its on which was ultimately fix Committee Laughlin and opposed and others, Banks, reference carried wasto to The object as avowed by most of the speakers all the responsibility of suspending on the Bank-at the sub eventato give no advice or make no pledge on ject. until the condition of the Bank and to to continue were officially specie payments made its it is known ability thought, the Legislature. The committee on Banks, will report to-day not beard the result.) The Commercial Bank of Columbia (S C) has acted the so for in an manner. Notwithstanding Baske in were urged by a deColumbia exemplary meeting of it the has citizens, to suspend specie payments, clined to but taken measures to virtually suspend, afford the purchase all necessary pecupiary relief, especially towards 'This' the C. Carolinian) striking not only of the soundness of cotton." evidence. (says of is this another com ex cellent institution. but of the general good sense, which perhensive views, and sound banking principles, will govern its affairs now, as heretofore. A little time shew the correctness of its policy. in the present instance, not only for its own sake, but that of the business of the place also-especially if, as seems daily more and more probable, the New York Banks do not suppend, which

4. November 7, 1839 Staunton Spectator, and General Advertiser Staunton, VA

Article from Staunton Spectator, and General Advertiser, November 7, 1839

Click image to open full size in new tab

Article Text

# BANK SUSPENSIONS. Tennessee. The Nashville Whig of the 18th instant, after referring to the Eastern Bank suspensions, says- We understand there was a consultation of Bank officers last night, but nothing definite concluded upon. This morning the Bank of Tennessee made a specie draft of $100,000 on the two Stock Banks, and the consequence was an immediate suspension by the Union and Planters' Banks. The Bank of Tennessee holds out, the President and Directors being unwilling to take the responsibility of suspension, while the General Assembly is present, in session, and competent to direct their movements. The Principal Bank here, is strong enough to pay every dollar of its circulation without stopping, but some of the branches it is believed may be forced to suspend. New Orleans. It has been a matter of speculation, hitherto, whether the banks of New Orleans would follow the example of those banks which have suspended specie payments, or would stand out with the New York banks against the suspension. That problem is now solved. We learn from the New Orleans papers that the news of the suspension of specie payments at Philadelphia reached that city on the 18th instant, and that on the next day, all the Banks of New Orleans suspended specie payments. Indiana. The Chilicothe, Ohio, Gazette of the 24th instant states that the Indiana Banks have suspended specie payments.

5. December 16, 1858 Nashville Union and American Nashville, TN

Article from Nashville Union and American, December 16, 1858

Click image to open full size in new tab

Article Text

brought into life the stock banks of the Eastern and Western portions of the State, but the central and selfish power of the Union and Planters Banks at Nashville? Again we confidently appeal to the obs servation and experience of the people residing in the neightorhood of their branches to tell whether they have been managed for the public good, or to subserve selfish, central and local favoritism. (As to the Union Bank, see legislative proceedings of 1855-6, in regard to complaints of citizens of noxville.) So far as accomodations are 00 .cerned, from these banks, the great body of the people have been than off Lazarus. worse But it is replied here, that the people need not accomodations; it is only the trading end mercantile classes; that all the people desire is a sound circulating medium. Only stops ping to say, that it is not one class, from whom they derive their privileges, but the whole body, we pass on, to ask, if istrue, that they supply thetrading and mercantile classes, or isit only a select circle that happen to be directors, or kinsmen and favorites thereof? It is certainly true that the great body of the trading and mercantile community do not feel that there is certainty in their discounts or security in their continuance, and hence the disasters and dangers attending these pursuits. But still passing on, we deny that they. have furnished the people with a sound circulating medium. Their mountain-ki!enote system proves this. Their repeated suspension of specie payments establishes it. In their suspension of specie payments they committed a great wrong upon the people. For the large grant of power they enjoyed at the hands of the people, they owed them by contract, by every consideration of good faith, by every high principle, a circulating medium, sound, equal to specie, above suspicion. Did they make any sacrifices to do this? or, as in '38, '39, '40, and 41, did they make "a season of suspension a season of profit?" Though by suspension they depressed the price of property, and thereby the ability of their debtors to pay, did they hasten to repair the injury done them by restoring specie payments? No! On the contrary, by continued suspension they destroyed public confidence and private credit, depressed laber, brought the price of property, and whilst growing fat upon the ruins they had made, who ever heard or read of their making a single sacrifice, returning & single dividend, or refusing to receive it, for the benefit of those who were their makers and benefactors-the people But with their oppressions upon the people we are not yet done. With a very large body of them the attacks of these institutions upon the Bank of Tens nessee is a cause of serious complaint. Without be ing governed by motives of public good, it seems that they have persistently made war upon the State Bank. And whilst I have no particular sympathy with that Bank, and admit much that is said against it, and would be glad to see the State dissolve her connexion with banking-believing that in almost every point of view it is wrong, yet it is not to be denied tbat whilst the "war of the banks" has been going on the people have been the sufferers, and for which they hold the Union and Planters Banks reTinnessee. sponsible.