Planters' and Mechanics' Bank

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: September 23, 1873
Location: Petersburg, Virginia (37.205, -77.392)

Metadata

Model: gpt-5-mini
Short Digest: ab81d24b

Response Measures

None

Description

Multiple contemporary articles (dated Sept 23, 1873) report that the Planters' and Mechanics' Bank of Petersburg 'suspended this morning' as part of the wider financial panic following major failures (Clews, Jay Cooke & Co.). The stories describe a systemic panic rather than a specific run on this bank. No articles here report a reopening or receivership; historically such September 1873 suspensions were often temporary — I classify as suspension_reopening as the most likely outcome but this is not directly stated in the provided texts.

Events (1)

1. September 23, 1873 Suspension

Cause: Macro News
Cause Details: Suspension occurred amid the nationwide financial panic of Sept 1873 (failures of Henry Clews & Co., Jay Cooke & Co.) and widespread commercial failure rumors in Petersburg.
Newspaper Excerpt: The Merchants' National Bank, the Planters' and Mechanics' Bank, the People's Bank and the First National Bank, all of Petersburg, suspended this morning.
Source: newspapers

Newspaper Articles (5)

1. September 24, 1873 Nashville Union and American Nashville, TN

Article from Nashville Union and American, September 24, 1873

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Article Text

The Situation Elsewhere. / Four Banks Suspend in Petersburg, Virginia. RICHMOND, VA., Sept. 23.-The Merchants' National Bask, the Planter3' and Mechanics' Bank, the People's Bank and the First National Bank, all of Petersburg, suspended this morning. The Citizens' Bank, of Petersburg, although not suspend ed, declines payment. Rumors of a beavy commercial failure are rife in that city. The banks of Richmond are all quiet, but there is consider able excitement here over the news from Petersburg. Result of the Panic on Locomotives. PATTERSON, N. J., Sept. 23.-In consequence of the general depreciation of new railroad securities, orders for locomotives for three months ahead at Rogers' Locomotive Works in this city, have been cancelled, and five hundred and eighty workmen were discharged to-day. It is fe red that five hundred more may be discharged from the same works and several hundred at the Danforth and at the Grant works. Confidence Unshaken in Canadian Railroads. OTTAWA, Sept. 23-The Government has received advices by cable stating that Mr. Tilley, Finance Minister, has successfully placed on the London market five per cent loan of two millions sterling for Inter-Colonial railways. The bids amounted to four millions sterling, at an average premium of 412 per cent. The interest is to begin from the 1st of October. Trenton Easy. TRENTON, Sept. 23.-There is no run of consequence here and no failures. Poughkeepsie. POUGHKEEPSIE, N. Y., Sept. 23.-Information from Amenia, states that the iron ore men are making & run on the bank there, and that the bank is standing it well. BRE A Reaction at Albany. ALBANY, N. N., Sept. 23.-The run on the Albany Savings Bank closed this noon, and the deposits at the close were much larger than the amount paid out. The panic is over here. Philadelphia on its Feet. PHILADELPHIA, Sept. 23.-The financial eris 8 here is over, and the bankers and brokers are transacting business as usual. All the State banks that were under temporary difficulties have resumed, except the Union and Citizens'. The latter will soon resume. All the National banks stood firm. Chicago. CHICAGO, Sept. 23.-A report gained circulation here to-day that there were rumors in New York of the failure of heavy grain dealers in this city. There is not the slightest foundation for the report. The slight run which began on some of the savings banks yesterday has entirely subeided, and they are now paying without asking thirty day's notice. LATER-The news of the failure of Clews & Co. had the effect to depress the

2. September 24, 1873 New-York Tribune New York, NY

Article from New-York Tribune, September 24, 1873

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Article Text

IN VIRGINIA. SUSPENSION OF FOUR BANKS AT PETERSBURG-EXCITEMENT IN RICHMOND. RICHMOND, Sept. 23.-The Merchants' National Bank, Planters' and Mechanics' Bank, People's Bank and First National Bank, all of Petersburg, suspended this morning. The Citizens' Bank of Petersburg, although not suspended, declines payment. Rumors of heavy commercial failures are rife in that city. The banks of Richmond are all quiet, but there is considerable excitement here over the news from Petersburg.

3. September 25, 1873 The Leavenworth Weekly Times Leavenworth, KS

Article from The Leavenworth Weekly Times, September 25, 1873

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Article Text

# EXCITEMENT ABATING. New York, Sept. 23, 10 a. m.-The Gov- Terning Committee of the Stock Exchange have decided not to open the Exchange to- day. The Gold Exchange is open, and reg- ular transactions are being made. The ex- citement on the street seems to be lessening and wearing itself out, and a better feeling appears to exist. Brokers have congrega- ted in front of the Stock Exchange and formed a street market, all sales being for cash. A number of poor women and labor- ing inen have gathered at the Savings Bank, awaiting their opening, but nobody seems to think that anything like a run will take place. # ANOTHER BANK SUSPENSION. The suspension of Henry Clews & Co. is announced. The failure tends to increase the excitement. The firm paid $1,250,000 in legal tenders to depositors during the past few days, and it was generally the impres- sion that they would pull through, but to- day the Fourth National Bank refused to clear their checke, although the firm had $500,000 of securities, against which $300,- 000 had been drawn. The clearings of the Gold Exchange Bank are completed and balances will be paid as usual. The Assistant Treasurer has re- ceived $20,000,000 in greenbacks, from Washington, and is ready to buy all bonds offered. $3,800,000 of the $10,000,000 loan certificates issued to relieve the banks, have been taken up, and it is expected that the remaining $10,000,000 will be taken up to- day; in that event additional loan certificates will be issued. At 20 minutes to 3 o'clock the banking house of Henry Clews & Co. suspended pay- ment. As soon as the announcement was made that the bank had suspended, large crowds gathered in front of the building. Intelligence that their checks were refused payment at the Fourth National Bank reached the banking house about 2:30 p. m., and the closing of doors followed the an- nouncement. Immediately after the closing of the doors, several prominent capitalists were eagerly seeking Mr Clews, who was not to be found. Assistance is necessary to pull through the day. There would have been had there been any suspicion that the bank wou'd refuse payment of Henry Ciews & Co's checks. The fact of the suspension created as much excitement as the suspen- sion of Jay Cooke & Co. The Clews left the street at the close of business in a condition of great excitement, and the headway made in restoring confidence, in a great measure lost. This afternoon Mayor Havemeyer, after consultation with several gentlemen, decided to issue an address on the present financial crisis and to tran mit it to the spe- cial Board of Aldermen which was called for to-day. When asked what his views were about the panic, the Mayor said he had intended to advise the working men and laborers of this city not to continue to run on the various savings banks, as he feit assured their deposits were perfectly se- cure, and that a run during the present panic might possibly result in the loss of both principal and interest of the amount de- posited. The effect of the panic upon the importing business, or the withdrawing of goods trom the bonded warehouse for the current de- mands of trade, is hardly perceptible as shown by receipt of duties. The following dispatch is published: London, Sept. 23.-Jay Cooke, McColloch & Co. are throwing out drafts drawn by Jay Cooke & Co. and which have come to hand since the news of suspension was received. Washington, Sept. 23. The most promi- nent depositor in the First National Bank of this city, next to President Grant, was An- drew Johnson. At the time of the failure of the bank Mr. Johnson had $60,000 to his credit, on which he was receiving 6 per cent interest, which was his only revenue. Should the bank be unable to discharge its obliga- tions, a contingency by no means improba- ble, ex-President Johnson will be almost penniless. The widow of a former navy agent had $17.000, the proceeds of a sale of all the property she had, and it is said General Hunter had a large balance to his credit. Mr. Knox, collector of currency, whose money was in the bank, said he hadn't money enough to go to market with, the day after the enspension. General Schofield, commanding the de- partment of Columbia, has issued orders to the commanding officer at Fort Klamath, Oregon, to carry out on October 31 the sen- tence of the military commission which tried the Modocs. The Indians to be executed are Captain Jack, Schonchin, Shack Nasty Jim, Boston Charley, One-Eyed Jim and Stolock. Richmond, Va., Sept. 23-The Mer- chants' National Bank, Planters' and Me- chanics' Bank, People's Bank, and First National Bank, all of Petersburg, failed this morning. The Citizens' Bank, although not enspended, declined payment. Rumors of heavy commercial failures are also rife in that city. The banks of Richmond are safe, but there is considerable excitement over the news from Petersburg. Chicago, Sept. 23. A report gained cir- culation here to-day, that there were rumors in New York of the failure of heavy grain dealers in this city. There is not the plight- est foundation for the report, as there have neither been failures nor rumors here. The slight run which began on some of the savings banks yesterday, has entirely subsided, and the banka are now paying those who cell for deposits without asking any no- tice.

4. September 27, 1873 The New North-West Deer Lodge, MT

Article from The New North-West, September 27, 1873

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Article Text

THE SECOND FINANCiAL STORM. -Henry Clows & Co. Go Down Before It. New York, Sept. 23.-Henry Clews & Co. have suspended. The firm say they have no statement to make, except that it has been deemed advisable by the firm to suspend for the present. Henry Clews & Co. state that during the past four days they have paid out one and a half million dollars in money, and made the utmost effort to-day to raise the money on securities; but finding it impossible to do so were compelled to suspend. The failure of Henry Clews & Co. tends to revive the excitement. The firm paid $1,250,000 in legal tender to de assitors during the past few days, and it was the general expression that they would pull through. But 10-day the Fourth National Bank refused to clear their check, although the firm had $800,000 securities deposited, against which $200,000 had been drawn. Richmond, Va, Sept. 23. . The . Merchants' National Bank, the Planters' and Mechanics' Bank, all of Petersburg, suspended this a. m. The Citizens' Bank, although not suspended, declines payment. Rumors ot heavy commercial failures are rife in that city. The banks of Richmond are all right but are in considerable excitement on acs court of the news from Petersburg. Buffalo, Sept. 23.-H. W. Bart & Co., private bankers and brokers, closed this afternoon.

5. October 3, 1873 The Jasper Weekly Courier Jasper, IN

Article from The Jasper Weekly Courier, October 3, 1873

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failures reported were the Union Trust Company (the cashier of which was said to be a defaulter to the amount of $600,000), the National Trust Company, and the National Bank of the Commonwealth. The excitement and panic which followed the announcement in the Stock Exchange of the suspension of these institutions were beyond description. The Stock Exchange resembled a mad-house, and the streets were blocked with people, all laboring under great excitement and frenzy. Prices tumbled from two to sixteen per cent., and stocks were slaughtered without any apparent regard to values. President Grant and Secretary Richardson proceeded to New York on Saturday night, and on Sunday a conference was held with some of the leading financiers at the Fifth Avenue Hotel, to endeavor to arrange some plan for governmental relief. A proposition was made that the President authorize the Secretary of the Treasury to place $30,000,000 of legal reserve in the city banks, and Commodore Vanderbilt offered to add $10,000,000 more. This proposition was declined, the President stating his belief that he had no constitutional power to afford the relief asked for in this manner. It was finally determined that the Assistant Treasurer be instructed to purchase all the government bonds offered for sale to any amount, and as the savings banks hold many millions of these bonds, it was thought probable they would sell them and deposit the proceeds in the national banks, which would give them relief. At Washington, on Saturday, there were continued runs upon the Freedmen's and City Savings Banks, but both held out. In Philadelphia the Union Banking Company suspended; in Chicago, the Franklin Bank, and at a meeting of the officers of the different savings banks, it was unanimously resolved to notify their depositors, that they will avail themselves of the privilege given them by their charter of giving sixty days' notice before paying their depositors. The managers of the Eastern railroads have come to a determination to issue return passes to stock drovers on and after October 1st. The Assistant Treasurer at New York continued purchasing all the 5-20 bonds that were offered by the banks on Monday, for the purpose of easing the money market. Both the Stock Exchange and Gold Exchange continued closed during the day. A run was commenced on the savings banks in the early part of the day, but later a feeling of greater security prevailed, and the crowds of depositors dispersed. The day closed with a general confidence that the crisis was entirely over. On Tuesday, 23d, the New York Stock Exchange continued closed, but the Gold Exchange was open and regular transactions resumed. Up to 2 o'clock p. m. the monetary situation might have been summed up in a sentence, "Confidence is restored, the banks are conducting business as usual," but just as the street was beginning to feel that the end of the panic had been reached, the painful rumor started that the house of Henry Clews & Co. had suspended payment. As soon as the announcement was made that the doors of this banking house had closed, the most intense excitement again prevailed, only equaled by the first announcement of Jay Cooke & Co.'s failure. The run on the savings banks was continued moderately throughout the day, but the time rule allowing the banks to require thirty days' notice on all sums over one hundred dollars, was generally enforced. A London telegram announced that Jay Cooke, McCulloch & Co. were throwing out drafts drawn by the American house and which have come to hand since the news of their suspension was received. A Petersburg dispatch announces that the Merchants' National Bank, Planters' and Mechanics' Bank, People's Bank, and First National Bank, all of that city, had suspended. The Citizens' Bank, although not suspended, declines payment. Rumors of heavy commercial failures were also rife in that city. It is stated that the Pennsylvania Railroad Company have reduced the hours of work for laborers and road men to eight hours per day, and the pay rolls will be reduced accordingly. The laborers, it is said, will strike against the new rule. Up to noon on Wednesday, the Government had purchased about $12,000,000 of bonds in New York City, but the financial crisis was apparently not yet over. The principal failures announced were the London house of Clews, Habecht & Co., and that of Howes & Macy, New York-both brought about by the suspension of Henry Clews & Co. on the previous day. At Philadelphia, Sept. 24, Thomas B. Parker, a wealthy retired iron merchant, shot his wife and then killed himself with