2132. Potomac Savings Bank (Washington, DC)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: savings bank
Start Date: October 19, 1852
Location: Washington, District of Columbia (38.895, -77.036)

Metadata

Model: gpt-5-mini
Short Digest: 2dd40e80

Response Measures

Accommodated withdrawals, Full suspension

Other: Assets placed in hands of a receiver to wind up affairs; bank advertised redemption of notes as assets converted.

Description

Multiple contemporaneous articles (Oct 19-22, 1852) report a heavy run on the Potomac Savings Bank triggered by a small-note panic after the failure of the Bank of the Union; the bank met demands for several days but soon suspended and by Oct 29 assets were placed with a receiver (Thomas S. Powell). Sequence: run → suspension → receivership/ wind-up (permanent closure).

Events (3)

1. October 19, 1852 Run

Cause: Local Banks
Cause Details: Run driven by panic over the recent closing/failure of the Bank of the Union and a wider 'small-note' panic causing depositors to rush other local banks' notes.
Measures: Bank redeemed notes and met withdrawals for several days; publicly professed ability to continue or at worst suspend briefly to convert assets into cash.
Newspaper Excerpt: For several days there has been a heavy run on the Potomac Savings Bank...It has hitherto met all demands
Source: newspapers

2. October 22, 1852 Suspension

Cause: Local Banks
Cause Details: Continuation/escalation of runs and the small-note panic (after Bank of the Union failure) forced suspension of payments.
Newspaper Excerpt: The Potomac Savings Bank of Washington, D. C., has suspended payment
Source: newspapers

3. October 29, 1852 Receivership

Newspaper Excerpt: The assets of this institution have been placed in the hands of Mr. Thomas S. Powell (as Receiver)...to wind up its business (Oct. 29, 1852).
Source: newspapers

Newspaper Articles (13)

1. October 19, 1852 Daily American Telegraph Washington, DC

Article from Daily American Telegraph, October 19, 1852

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City Items. VENTRILOQUISM AND LEGERDEMAN.-ThisisW man's last night at Odd-Fellows' Hall. Embrace the opportunity if you would enjoy fun, and witness rare and wonderful performances. His last feat will be to make his own disappearance-to vanish away! Be sure to be present. The Circuit Court of the District of Columbia commenced its fall term yesterday-Associate Judges Morsell and Dunlop presiding. There is much business to be transacted during this term, but some time will elapse before any of importance will be reached. The Court is now attending to the appeal cases. 100 Yesterday, Mr. Zephaniah Jones, a most worthy and esteemed citizen of Washington, was very seriously injured. He was trying to subdue a high-mettled horse, and had him hitched to a cart for this purpose. By some mischance, Mr. Jones was thrown upon the ground, and a wheel of the cart passed over him, lacerating his head and face, and injuring him otherwise. His injuries, we are gratified to learn, are not considered dangerous. IO Justice Thompson last Friday evening committed Bernard McGrann to jail for striking his wife with a spade and injuring her so that her recovery was considered doubtful. Justice T. very properly refused to take bail until it should be ascertained that the lady was out of danger. We are sorry that any man who would strike a woman can find bail in Washington. The Ball of the Arlington Club was very well attended last night, and the company seemed to be highly pleased with the arrangement. Iron Hall is a fine assembly room, and we think will be very popular with the concert and ball loving portion of our citizens. It is 50 or 60 feet wide, 100 long, and 19 high, beautifully situated, and surrounded by every possible safeguard and convenience. Dr. Cunnington is here making arrangements for opening the National Theatre this season. The Aid Fire Company of Norfolk, Virginia, arrived here this morning in the 11 o'clock train from Baltimore. They bring with them a a handsome suction engine, built by Rodgers, of Baltimore. They are the guests of the Northern Liberties Fire Company, and were received at the depot by that Company, and delegations from the Franklin and Columbia Companies. The Potomac Savings Institution has sustained a steady and determined run for the past ten days-ever since the closing of the Bank of the Union-and has met it well, redeeming every dollar as presented. Its issue was pretty large, too. We believe the return of its notes has, however, somewhat diminished during the last forty-eight hours. Yesterday the Mayor appointed, and the Aldermen unanimously confirmed, Mr. James M. Busher as the additional police officer for the Fifth Ward. A good appointment. NEW MANUFACTURINGESTABLISHMENT.-Messrs. Hill, Shelton, and others, of New York, individuals associated for the purpose of immediately putting into operation an extensive manufacturing establishment in this city, have caused a letter to be addressed to the Mayor of the City, by Mr. B. H. Cheever, and which was communicated to the Board of Aldermen last night, asking the terms on which the Corporation will rent for a series of years, say ten or twenty, (with the privilege at any time within said lease to purchase, and the price,) the following property belonging to the city, namely: either or both of the canal wharfs on the Eastern Branch; the wharf on Sixth street, occupied by Mr. Bird, and the Van Ness wharf, 80 called. The communication was referred to the Committee on Finance. [Republic.

2. October 20, 1852 The New York Herald New York, NY

Article from The New York Herald, October 20, 1852

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THE POTOMAC SAVINGS BANK-WHIG BARBECUE U. S. STEAMER WATERWITCH. FROM A REGULAR CORRESPONDENT. WASHINGTON, Oct. 19, 1852. For several days there has been a heavy run on the Potomac Savings Bank, of Washington. Jno. F. Callen is President. It has hitherto met all demands, and pro fesses to be able to continue, and, at the worst, suspend only a few days, to convert its assets into cash. A whig barbecue is to be held to-morrow in Alexandria county, three miles southwest of the Long Bridge Politics are at a dead lock, and both parties are afraid to bet. The Waterwitch will be launched at the Navy Yard, on Thursday afternoon. The steamer Isabel sails from Baltimore to morrow, to take her place on the line between Charleston and Hava. na.

3. October 20, 1852 Daily American Telegraph Washington, DC

Article from Daily American Telegraph, October 20, 1852

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City Items. The Potomac Savings' Bank to-day continues to redeem its paper; but we think there is now precious little of it afloat in this community. Having so well sustained eleven days' run, we cannot withhold our sympathy from its proprietors. They may yet be forced into a suspension, but the proofs they have already given will not be lost upon the popular mind. The following was this morning published in the Baltimore Sun : POTOMAC SAVINGS' BANK, WASHINGTON, Oct. 19. The proprietors of this institution have determined to wind up its affairs and take in its circulation as speedily as its assets (which are abundant) can be converted into money. Every dollar of the notes (it is confidently expected) will be redeemed." 100 The "Aid Fire Company," of Nerfolk, at present on a visit to our city, had a warm and cordial reception yesterday at the hands of a portion of our fireman, consisting of the Northern Liberties, and delegations from the Columbia and Franklin. After visiting the various places of interest, they sat down to a sumptuous dinner, prepared for them by mine host of the Empire Hotel, at the instance of the Northern Liberties Fire Company, where they found everything in season. After the cloth was removed, &c., a letter from J. W. Maury, Mayor, was read, regretting that he was unable to attend. Upon the health of the ex-Mayor, Mr. Lenox, esq., being drank with three hearty cheers, he replied in his usual happy and eloquent style. The company continued to enjoy themselves with speeches and songs, and separated at an early hour well pleased with the entertainment. The Board of Aldermen have consented to increase the pay of the Chief of Police and the Ward Commissioners. This, we think, is a good move, and will meet with the approval of the lower Board. "The laborer is worthy of his hire," and his hire should be proportioned to the amount of labor he is to perform. Good wages will obtain good and faithful workmen. The proposition is to increase the salaries of the Chief of Pelice to $1,000; three of the commissioners, each to $800, and one to $600 per annum. Mr. William Courtenay, a very worthy NO and industrious laborer, had his leg broken yesterday afternoon, by the falling of a bank of earth under which he was digging, near the railroad depot. He was taken to the infirmary, where proper care will be taken to relieve his injuries. THE CONCERT.-We would advise all lovers of good music to attend the concert of the Goodall Family" to-night, at Iron Hall. It will more than compensate them for their attendance. It is unnecessary for us to say any thing of Professor Goodall's abilities-hist putation as a musician is fully established. Mrs. Goodall is an excellent vocalist, possessing a voice of much flexibility, sweetness, and compass. We have no doubt that her vocalization will be greatly admired by our citizens. Of Master Goodall we might say a great deal if we had time. His performances have astonished all who have witnessed them. We have seen him at the Philharmonic Society (of which his father is conductor) perform at sight music that has staggered some of the best performers. A large number of our citizens are prey paring to attend the barbacue at Walter's Grove, t about two miles from the Chain Bridge. It is free for all. Good speakers having been engaged, it will be a good opportunity for relaxation and enjoyment. not The Whigs of the Northern Liberties meet t to-night at their stand on 7th street, east of the Northern Liberties market. They will have first rate speakers, beautiful fire-works, excellent music, and every thing to give zest to the occasion. The alarm of fire last night, about twelve I e o' clock, was caused by a bonfire in the western part of the city or in Georgetown. 103 Eleven persons, white and black, were d taken to the watch-house last night. Four paid n costs this morning-one by receiving a dozen e lashes-and seven were sent to the "Farm." A Word to the Prospective Bankers of

4. October 20, 1852 The New York Herald New York, NY

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CIAL M A RKET TUESDAY, Oat.19-6 P. M. The arrival of the steamship Crescent City, from Havama had a very favorable effect upon the stook marke's the and raised the spirits of holders to high point. At first board, an improvement in nearly every fancy on than the List was realized. and the transactions were larger we have noticed for some days. From the numerouscash in purchases, we should judge that the bears were buying some of their shorts. North American Trust went up three per eent, in anticipation, it is said, of a decision some time next week Most of this stock is in the hands of lawyers, who have purchased largely, in expectation of a compromise being ultimately made between the stockholders and bondholders Nicaragua Transit was in de mand at better prices. and the sales were principally for cash. It advanced 1/2 per cent. Erie Railroad ad. vanced 1/4 per cent; Harlem, 1/4; Stonington, 1/2. There were sales of Ulster Mining stock to-day, at ten percent. Recent discoveries in the mines of this compamy, have made its stock sought for in the market, at handsome advance The company have just receive from the superintendent of the mines. some magnificent specimens of copper ore. They are certainly the finest we have ever seed. Large quantities of this. and the lead ore of the company will be brought to market, via the Delaware and H Iudson canal. before the close of naviga tion. There is no doubt but that the new discovery is a regular vein, inexhaustible in its supply, and of great pus rity. The stock must rapidly improve in market value, inview of these prospects. Very little is offering, and no one is auxious to sell, even at the advance. The decline in Stonington and Norwich is attributed entirely to the contest going on between the two companies, relative to travel on the Sound The great reduction in fare, and the spirited competition carried on, must materially re" dace their receipts and profits. New Jersey Zinc has been quiet for some time past. The transfer books are now closed. and an election for officers for another year about being held. We understand some important changes will be made in the direction. In the meantime, reshould like to see the report which has been so long preparing At the second board the market was quite buoyant, but the stock offering was limited. Nicaragua advanced 3/2 per Gent; Cumberland Coal. 14: Erie Railroad. 1/4. There were no sales of Florence and port at either board, day. It was offered at twenty-eight per cent without finding buyers. A few days since it sold at fifty. two There were, apparently, plenty of buyers at fifty but no one feels disposed to touch it at twenty-eight. We learn that a company has lately been formed in Brooklyn for the manufacture of white zinc paint from the imported zinc metal. It is stated that a better quality of paint os be manufactured from the metal, cheader than in any other way. The company have a smaller capital than other zine companies in this vicinity, and there is very little doubt it will bes profitable concern. The receipts at the office of the Assistant Treasurer of this port to-day amounted to $135,334 01; payments, $68,997 07-balance, $6,378,784 03. The demand for foreign exchange, for remittance by the steamship Asia. for Liverpeol, morrow (Wedneeday) has been quite active. and rates have been well sustained We quote bills on London at 1014 a 10 1/2 per cost premium; on Paris, 5f. 133 5f. 12 1/2: Amsterdam, 41 1/4: Bremen, 79.7%%; Hamburg, 30 1/2 36% The steamer will take out nearly half a million of specie. About that amount has already been engaged. The Potomac Savings Bank of Washington, D. C.. has suspended payment We de not know the extent of its liabilities, or the value of its assets. A new bank, under in tie of the Bank of Columbia. is about commencing the ta in Washington The small note law will interbusiness ity with banking operations in that immefere materia. The merchants of Portsmouth Va., have diate viciality +11, after the 1st of November, refuse resolved that they w denominati on than $5, except to take all notes of a is nks; and that they will not the notes of North Carolina 'es less than $5. except from this time, pay out any no. ka of Washington North Carolina notes. The good be. mination than have ocased issuing notes of a less denv, five dollars The Secretary of the Interis gives notice to the holder of Virginia land warrants that they will be filed in the order of their recepti- n but that no scrip can be issued or rules and r gulations be prescribed, until the necessary action shall have been taken by the Legislature of is and officially communicated to his department, authorizing the Governer of that State to execute the act of relinquishment required the second section of the act of Congress The Governor, under present cir. cumstances, do at feel himself authorized to execute the act without further legislation. The balance of the Beston City Water Loan, amount Eg to about £200.000 sterling, has been negotiated under the direction of the Committee of Finance of the City Council, with Messrs. Baring Brothers & Co at four and half per cent. The stock is payable in London in twenty years. The Corning and Blossburg Railroad has been relaid with a heavy rail, and will be opened in a few days for travel. The guage conforms with that of the New York and Erie road The total value of foreign exports, from the port of Baltimore, for the week ending on Thursday was $183,175 00. Among the articles shipped were 19.998 barrels and 200 half barrels of flour, 550 barrels of meal, 3,513 bushels of wheat 590 bushels of corn, and 1,483 thhda. of tobacco The twenty sixth annual report of the Baltimore and Ohio Raffroad Company gives a very favorable exhibit of the finances of the concern. and the operations during the past year The receipts and expenditures during the year ending September 1852, were as annexed BALTIMORE AND OHIO RAILROAD $314,914 Passengers 60.740 00 Mails 949.909 18 Freights $1,325,563 65 Total 710 179 22 Deduct expenses 43 $615.384 Net receipts Equivalent to 8% per cent per annum on the original capital of $7,000,000. The board have declared a dividend of seven per cent. payable in stock on the 25th of November The earnings of the Washington branch, for the year were $348,622 7 and the expenses $132,385 31, leaving a net revenue of $216 237 45 out of which a dividend of four per cent has been declared for the Fix months ending the 30th of September payable on the 15th instant, making. with the April dividend, eight per cent for the year The Central Railroad Company, of New Jersey, have declared an interest dividend of three and a half per cent, payable in stock. The Boston Journal gives the annexed account of two Dew land companies recently started in that section:Meantime some of the new land stocks are attracting a moderate degree of attention. Among these the Waverley Company, a bright *little fancy, ushered into existence about year since claims a passing notice. The Wavertey Company own valuable tract of land in Watertown,

5. October 21, 1852 The Daily Dispatch Richmond, VA

Article from The Daily Dispatch, October 21, 1852

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THE SMALL NOTE MARKET.-There is no improvement in the small note market. The total failure of the "Bank of the Union," and the partial failure of the "Potomac Savings Bank," of Washington, has naturally created a panic here and caused our citizens and the trading community generally to refuse all notes except such as are issued from a source at home known to be responsible and ready to redeem all their issues at any moment. Even the notes of the Corporations of Fredericksburg, Alex andria, and Georgetown, were refused by some of our citizens yesterday. We learn from Washington that the Potomac Savings Bank had not closed on Tuesdaythat it is making an effort to redeem all of its notes-and that the proprietors of the Bank hope they shall be able to weather the storm and avoid the necessity of a transfer of their affairs into the hands of trustees. Whether or not they will be able to do 80 remaine to be seen. Speculators were buying the notes of this Bank yesterday, at rates ranging from 50 to 80 cents on the dollar, and the latter price, we presuite, can yet be obtained for them in certain quarters.

6. October 21, 1852 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, October 21, 1852

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The Potenne Savings Bank-Whig Barbecue -Pelities-Steamer Waterwich. WASHINGTON, Tuesday, Oct. 19, 1852. For several days there has been a heavy run on the Potomac Savings Bank, JNO. F. CALLEN, President. It has hitherto met all demands, and professes to be able to continue, and, at the worst, su, pend only few days to convertits assets into cash. A Whig Barbecue is to be held to-morrow in Alexandria County, three miles south-west of the Long Bridge. Politics are at a dead-lock, and both parties are afreid to bet. The Waterwitch will be launched at the Navy Yard on Thursday afternoon.

7. October 22, 1852 The Republic Washington, DC

Article from The Republic, October 22, 1852

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SMALL NOTES.- - The excitement on the subject of small notes, which commenced with the explosion of the Bank of the Union, and which has shaken confidence in nearly all other individual institutions and caused a daily run upon the banks and the exchange offices, was renewed yesterday by a current report that the "Potomac Savings Bank" of Washington had failed. Large numbers of note-holders flocked to the exchange offices with notes of that and similar banks; but the gates were found closed. The brokers were also alarmed, and refused to deal in any notes except those issued by our own citizens, known to be good, and ready to redeem their obligations. Blessings, far from a pious nature, are now heard at all cornere of our streets against the shinplaster system; and the reign of the numerous horde of irresponsible bank adventurers seems rapidly drawing to a close.-Richmond Despatch, 20th.

8. October 22, 1852 Wheeling Daily Intelligencer Wheeling, WV

Article from Wheeling Daily Intelligencer, October 22, 1852

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WASHINGTON, D. C., Oct. 19. There is a heavy run on the Potomac Savings Bank, John H. Cullam, President. The Bank has faithfully met all demands promptly, and professes to be able to do so for the future, or at most, to suspend only for a few days, to be enabled to convert its assets into cash.

9. October 23, 1852 The New York Herald New York, NY

Article from The New York Herald, October 23, 1852

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FINANCIAL AND COMMERCIAL. MONEY MARKET. FRIDAY, Oct. 22-6 P. м. There was quite an active demand for stocks to-day, and prices were pretty well sustained. At the first board Delaware and Hudson Canal advanced ¼ percent; Canton Company, %; Hudson River Railroad. ½; Stonington. 2; Erie Railroad. 6; Michigan Central Railroad ; Norwich and Worcester, ¼: Albany and Schenecta dy 4: Montgomery Mining %; New Jersey Zinc, %: Indiana 5's, ½: Erie Income bonds, %; Long Island, %. At the second board, Morris Canal improved per cent.i Hudson River Railroad. The market closed steady with a moderate demand for the leading fancies. The receipts at the office of the Assistant Treasurer of this port to-day, amounted to $65,216 43; payments, $26 670 39--balance, $5.999,419 49. The demand for foreign exchange for remittance by the steamship Franklin, to morrow (Saturday), to Southampton and Havre has been only to a moderate extent. Drawers made a slight concession to-day in favor of buyers. We quote bills on London at 10% & 10% per cent. premium; on Paris, of. 13% a 5f. 12%; Amsterdam, 41 a 41%; Bremen. 79 a 79%; Hamburg, 38% & 36%. The Franklin will not take out a large amount of specie. Engagements have been made for nearly three thousand dollars. The proprietors of the Potomac Savings Bank, of Washington, which suspended a few days since, have given notice that its circulation will be redeemed as fast as its assets can be converted into money. They expect that every dollar will be paid in full. The total amount of toils collected on the canals of this State, from the opening of navigation to the olese of the second week in October, 1862, was $2 423.516. against $2,629,525 for the corresponding period in 1851. Deficiency this year, October 14. $201.009. The deficiency has not varied $10,000 in the past ten weeks, and probably will not vary much from the present amount at the close of navigation. The Boston Post of the 22d ult. says:-"We understand that the State Treasurer has accepted the proposal of Messrs. Blake, Ward & Co., of London, for the purchase of $100 000 of Massachusetts five per cent stock running twenty years, at 5 2.100 per cent. premium This issu of stock is for the purpose of building three sims-houses, and is considered a very good sale for the commonwealth and at the same time, a very good purchase for foreign investment." The Buffalo and Lockport Railroad will be completed and ready for travel by the 10th of November. The following semi-annusi dividende bare been de jared by the several companies, which pay at this time

10. October 27, 1852 Staunton Spectator Staunton, VA

Article from Staunton Spectator, October 27, 1852

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The Bank Panic. Since our last issue, information has been received of the suspension of the "Potomac Savings' Bank" of Washington, another of the shinplaster concerns. It promises ultimately to redeem all its notes. They were selling at Richmond last week at 25 a 50 per cent. discount. The rumor that The Southern Manufacturers' Bank," C. W. PURCELL, President, and the "United States Bank"--WM. N. TINSLEY, President had bursted, is contradicted. Messrs. PURCELL and TINSLEY, both of Richmond, possess ample means, and advertise that they will give gold or Virginia money for their notes. These gentleman together with T. C. WOODY, President of the Merchants' Exchange Bank, have been indicted in the Richmond Circuit Court for issuing notes under five dollars.

11. October 30, 1852 Daily American Telegraph Washington, DC

Article from Daily American Telegraph, October 30, 1852

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Potomac Savings Bank, WASHINGTON, October 29, 1852. HE assets of this institution have been placed in the hands of Mr. Thomas S. Powell, (as Receiver,) who is T fully authorized to wind up its business, in which he will be assisted by the other officers of the Bank. All persons indebted to the Bank are requested to make promp and early settlement, so as to aid in resuming the payment of the out standing circulation at as early a day as possible. The business hours hereafter will be from 10 a. m. to 3 p. m. J. F CALLAN, President. oct 29-d3t [Intel.]

12. November 3, 1852 The New York Herald New York, NY

Article from The New York Herald, November 3, 1852

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The full list is as follows : :Hon. R F. Stockton Princeton Newark Hon. William Wright James S. Green Princetou Edwin Port Stanhope James L Curtis New York Charles E Detmold Orange William Cook Princeton W. C. Squier Rahway S. M Stillman New York Horatio Allen J C. Hitchcock Thomas A. Dexter Boston The assets of the Potomac Savings Bank of Washington have been placed in the hands of Mr Thomas 8 Powell (as receiver), who is fully authorized to wind up its business, in which he will be assisted by the officers of the bank. The total value of foreign exports from the port of Baltimore, for the week ending on Thursday. was $240,670. Among the articles shipped were 10,105 bbls. of flour, 616 bbls. meal. 20.901 bushels of wheat, 300 bushels of corn. and 2,323 hhds. of tobacco. The receipts of the York and Cumberland Railroad Company for the months of August and September, this year, amounted to $9,551 84, against $5,782 76 for the same months in 1851. Increase, $3,769 08-equal to sixty- five per cent. The arrivals of cotton at the port of New Orleans, from the interior, during the twenty-four hours ending at 7 o'clock P. M., Oct. 26, amounted to 23,338 bales. Aggregate for ten days, 81,728 bales. The Collector of the port of Key West gives the annaxed statement of its commerce for the quarter ending September 30, 1852:-

13. November 4, 1852 Hannibal Journal Hannibal, MO

Article from Hannibal Journal, November 4, 1852

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WASHINGTON. October. 20. The block of marble from Texas to the Washington Monument has been received. California is about to send three blocks, the one previously sent not being deemed of sufficient magnitude and beauty. The one from Texas completes the full compliment of blocks from all the States in the Union. A Virginia paper mentions that the Van Clure gold mines at Fredicksburg have been sold for $30,000. They will be worked by an English company. The Potomac Savings Bank of this city has suspended pament for the present.