21738. Bank of Commerce (Richmond, VA)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
September 24, 1873
Location
Richmond, Virginia (37.554, -77.460)

Metadata

Model
gpt-5-mini
Short Digest
f524ab36

Response Measures

Borrowed from banks or large institutions, Capital injected, Full suspension

Other: Organized a new state-chartered bank (capital subscription) and converted private firm into Bank of Commerce; officers went North to obtain currency.

Description

Isaacs, Taylor & Williams (private bankers) suspended on Sept 24, 1873 after heavy withdrawals driven by fears from the New York failures; they then organized and reopened immediately as the state-chartered Bank of Commerce on Oct 1, 1873. Cause attributed to macro/news-driven panic and groundless local fears from NY failures. No evidence of permanent closure or receivership.

Events (3)
1. September 24, 1873 Run
Cause
Macro News
Cause Details
Heavy withdrawals/groundless fears created by failures in New York (panic) led depositors to demand funds.
Measures
Reliance on collections and reorganization: converted the suspended private banking firm into a state-chartered Bank of Commerce and arranged pro rata payments; sought subscriptions and capital to resume operations.
Newspaper Excerpt
The causes of the suspension of our firm on the 24th instant...Except for the groundless fears of our people, created by the failures in New York, there would have been no necessity for such action on our part
Source
newspapers
2. September 24, 1873 Suspension
Cause
Macro News
Cause Details
Suspension of payments due to persistent and large demands from depositors triggered by the nationwide panic and failures in New York; lack of market for securities constrained liquidity.
Newspaper Excerpt
our firm ... suspended on the 24th instant ... we could have met them, had there been a market for our securities.
Source
newspapers
3. October 1, 1873 Reopening
Newspaper Excerpt
The Bank of Commerce was organized to-day by Isaacs, Taylor & Williams, private bankers, who suspended last week. ... This bank has been organized under a charter granted in pursuance of the laws of the State, and opens this day for the transaction of legitimate banking in all its branches.
Source
newspapers

Newspaper Articles (8)
1. September 30, 1873 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, September 30, 1873

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THE BANK OF COMMERCE.-The enterprising bankers of this city, Messrs. Isaaces, Tayfor & Williams, who were forced to suspend operations a few days since on account of the want of currency, are about to resume business again in a rather different way and on a much more extended scale. Being unable to sell stocks or negotiate a loan on them, and therefore dependent upon collections, and foreseeing that they would be unable to resume business before the 1st of November, and their large number of customers requiring banking facilities, they, by the advice of judicious business men, have resolved to get it charter for a State bank, to be known as the Bank of Commerce. The charter will probably be granted by Judge Wellford to-day, and business will be commenced at once. The capital stock of the bank is to be $500,000. or may be increased to that amount. Yesterday $100,000 was subscribed. Among the most prom nent stockholders are the following: Messrs. Palmer, Hartsook & Co., A.S. Buford, John Enders, L.J. Bossieux; Conrad, Shelburn & Co. D. J. Hartsook. A. J. Ford, Albert Ordway, E. & S. Wortham & Co., Spotts & Gibson, Andrew Washburn, P. H. & A. Gary, James M. Moody, L. R. Chiles, John G. Moffett & Brother, W. I. Clopton, A. G. Wortham, Breeden & Fox, R. W. Powers & Co., Rev. John E. Edwards, Parker Campbell, H. K. Ellyson, James Thomas, Jr., A. S. Shepherd & Co., Colonel J. K. Connally, A. B. Clarke Simpson, Bass & Co.; Ellison & Harvey, John Harwood & Estes, F. T. Glasgow, J. F. Gibson, P. H. Starke, A. G. Jeffress, John W. Cunningham, and Judge B. R. Wellford.

2. October 1, 1873 New Orleans Republican New Orleans, LA
Article from New Orleans Republican, October 1, 1873

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BY TELEGRAPH. FINANCIAL New York. New YORK. September 30.-The customs receipte have diminished one half since the panic. Henry J. Brooks. !eather merchant, has failed. and vicinity is The members the crowded. The Stock Exchange flocked their around hats president's desk. waving and cheering. The president said: We are met again after a very moment. ous suspension for the purpose of resuming business. Your action in the interim has has me: with universal approbation, and been most satisfactory to yourselves." Business. be said. would be carried on under the rules adopted yesterday by the governing committee. which he read. and appointed a committee to settle the contracts of defaulting parties. In conclusion. the added **All I ask now is that von help each other to bear the burden that has fallen upon us. and to so conduct business as to enable the Exchange to carry on it# work successfully." Loud cheering greeted these remarks, and the members proceeded with business. A much better feeling appears to exist. and the opening prices of stocks show a feeling of confidence. Later. - Considerable pressure to sell. Stocks have declined 1 to 3 per cent from opening prices. Brokers are indisposed to operate for customers on margins until affairs are more settled. The impression prevails that all the lead ing houses will pull through. Sterling unsettled but improved. 3P. M.-Stock market still without exeitement and closes firm. Western Union Telegraph quoted at 66% Rock Island 91; Lake Shore 714: Union Pacific 1976: Pacific Mail 33. Application was made in the United States Circuit Court to-day for an order enjoining the Controller of the Currency and the receiver of the Bank of the Common wealth from proceeding further in the mat ters of that bank: also for citation to show cause why the receivership should not be vacated and the appointment declared null and void, on the ground that the bank never refused to redeem any of its circulating notes. The citation was granted, and made returnable October 7. It is stated, on the authority of a Clearing House official, that legal tenders were received from the interior of the country to-day in considerable amounts The sub-committee of the Stock Exchange reports that it has examined everything laid before it, and says that there is not single delinquent. Washington. WASHINGTON, September 30.-The banks houses associated .0 do more than certify but little while those not association have largely and nothing business, banking increased checks in their the do busipess, paying all checks upon them as usual. Among the latter is G. W. Riggs, who, since Saturday, has refused to receive 8800,000 on deposit, not earing to enlarge his business and employ additional clerks. Memphis. MEMPHIS, September 30.-At a large meeting of the Chamber of Commerce this to consider the from the a was to the effect that morning resolution received banks financial in of they addition situation. this would city not suspend, but would open, to the usual business, an exchange account. to be paid in kind, for the purpose of moving cotton, which was unanimously adopted by the chamber. The most responsible merchants of this city have subscribed and paid in $320,000 to the First National Bank, which will able it to pay all liabilities, and resume business as once. Charleston. CHARLESTON, September 30.-The Bank of the Union continues the payment of currency. The deposits exceed the disburse. ments three-fourths. There were cotton sales to-day for green. backs, instead of exclusively for eterling. as has been the case since the crisis. Leavenworth. LEAVENWORTH, September 30.-Indignation exists among the stockholders positors of the First National Bank of this city in consequence of the vice president ordering the bank to suspend and at the same time drawing from the bank nearly $100,000 in currency to sustain the credit of Scott & Co., brokers. of which firm Vice President Lyman Scott is a partner. St. Louis. Sr. LOUIS, September 30.-The financial situation here presents no new feature. All is apparently quiet with the banks. They still pursue the policy first marked out, and nothing has occurred to produce a jar or discord. The announcement that the Union National Bank of Chicago had gone into liquidation caused a profound sensation on Change and a depressed feeling followed, but no excitement occurred. There is, however. still much apprehension for the future in commercial circles: but. if things work out well in New York, it is the general belief here that business will revive and no more disasters occur. Richmond. RICHMOND. Va., September -The Bank of Commerce was organized to-day by Isaacs, Taylor & Williams, private bank ers. who suspended last week. The full amount of the capital was subscribed, and the bank will commence business at once. YELLOW FEVER

3. October 1, 1873 The Daily State Journal Richmond, Alexandria, VA
Article from The Daily State Journal, October 1, 1873

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A CARD. The causes of the suspension of our firm on the 24th instant are too familiar to the public to need repetition. Except for the groundless fears of our people, created by the failures in New York, there would have been no necessity for such action on our part; but, notwithstanding the persistency and amount of the demands made upon us, we could have met them, had there been a market for our securities. We have lost nothing by the failures at the North, and our condition is as solvent as at any time. Until the finances of the country settle down, we must rely on our collections to pay our indebtedness. This will be done in pro rata instalments, commencing the first of November. In view of the inevitable delays in resuming business, and the necessity of our large custom for banking facilities, and that we may in future enjoy all the privileges of a chartered bank, we have yielded to the advice of judicious friends, and with their aid and that of many of our most active and substantial business men, have decided to organize the Bank of Commerce, under a charter granted in pursuance of the provisions of the laws of the state. The collections now in cur hands, belonging to other parties, will be turned over to the Bank of Commerce, unless otherwise instructed. We beg to tender to the community at large our most grateful thanks for their kind expres sions of svmpathy and offers of substantial aid in our difficulties. A sense of duty to them and ourselves compelled us to decline the latter, and we would now most respectfully solicit their confidence in, and patronage and support to, the new enterprise. ISAACS, TAYLOR & WILLIAMS.

4. October 2, 1873 Evening Star Washington, DC
Article from Evening Star, October 2, 1873

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NEW BANK IN RICHMOND, VA -Isaacs, Taylor & Williams, the suspenred Richmond bankers, have organized anot) er bank called the Bank of Commerce with heavy support, among monied men of that city.

5. October 3, 1873 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, October 3, 1873

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D A he causes of the suspension of our firm on the 24th September are too familiar to the public to need repetition. Except for the groundless fears of our people. created by the failures in New York, there would have been no necessity for such action ou our part: but notwithstanding the persistency and amount of the demands made upon us we could have met them had there been a market for our securities. We have lost nothing by the failures at the North, and our condition Isas solvent as at any time. Until the finances of the country settle down we must rely on our collections to pay our indebtedness. This will be done in pro ruta Instalments, commencing the 1st of November. In view of the inevitable delays in resuming bustness, and the necessity of our large custom for banking facilities, and that we may In future enjoy all the privileges of a chartered bank, we have vielded to the advice of judicious friends. and with their aid and that of many of our most active and substantial business men, have decided to organize the BANK OF COMMERCE, under a charter granted in pursuance of the provistons of the laws of the State. The collections now in our hands belonging to other parties will be turned over to the Bank of Commerce unless otherwise instructed. We beg to tender to the community at large our most grateful thanks for their kind expressions of sympathy and offers of substantial aid in our diffcuities. A sense of duty to them and ourselves compelled us to decline the latter, and we would now most respectfully solicit their confidence in and patronage and support to the new enterprise. ISAACS, TAYLOR & WILLIAMS. BANK OF COMMERCE, CORNER MAIN AND THIRTEENTH STREETS. RICHMOND, October 1, 1873. This bank has been organized under a charter granted in pursuance of the laws of the State. and opens this day for the transaction of legitimate banking in all its branches. It has no complication of any kind whatever. Deposits made in it will be held sacred to the paymentof checks drawn against them. Particular and prompt attention will be given to collections. The patronage and correspondence of banks, bankers, and or the public, is respectfully solleited. JOHN C. WILLIAMS, Cashier. WILLIAM B. ISAACS. President. WILLIAM G. TAYLOR, Vice-Pre-ident. DIRECTORS: WILLIAM B. ISAACS, A. - BUFORD. WILLIAM G. TAYLOR, F.T. GLASGOW, JOHN C. WILLIAMS, JOSIAH RYLAND, DANIEL J. HARTSOOK. OC 1-3t

6. October 9, 1873 Huntington Independent Huntington, WV
Article from Huntington Independent, October 9, 1873

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RESUMPTION.-It is gratifying to know that several of the brokers who suspended during the panie have resumed payments, paying 7 per cent on the amounts due; it is stated that Rufus Hatch, Robinson & Suydam, Smith & Seaver, C. G. White and others of New York have resumed. Messrs. Isaacs, Taylor & Williams, have resumed business in Richmond as a regular bank under the State laws, "the Bank of Commerce;" they have the full confidence of their depositors LIEEL SUIT -Henry S. Walker of the Charleston Courier, has been sued by Gen. Imboden for libel, because he told the truth about some bonds sold by Gea. I to an English company. A friend of ours who knows the lands says they are not worth a cent an acre. If Mr. Walke is all wea to prove the truth of his allegations in mitigation. of damages, the $25,000 -damages will come out extremely small.

7. May 15, 1874 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, May 15, 1874

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TAYISAACS, LOR A LARGE THE CREDITORS WILLIAMS OF IN COUNCIL. PRESENTTHE FROM CONCERN PROPOSITION ACCEPTED YESTERMEETING DAY, &C., &C. by made Isaacs, their In Williams Virginia Taylor & assembled at pursuance of the large call majority Hall of at 10 morning Mr. Thomas Mr. and John Ott creditors o'clock yesterday of Mr. F. called T. Glasgow, to the secre- chair, tary On motion W. McCance requested was to act as of The the names were creditors called, who ascertain in either present, go as to by proxy. of the firm, an ing address, person Isaacs, or the genior information member following of the meet- is copy May, then Mr. read for the of which the 1874. to ing RICHMOND, 14th depositor bay the of and the few of our the courts for we collection of the date from having the on each same Gentlemen, threatened to amounts resort due our them, suspens10 ion placed footing. depositor to each and pro their rata share, all to we treat alike, you her call toget of or being and paid fully determin it our duty action to promoted, the interests and and have deemed that by protected united and demands, every by in order all may be of entreaties, bam! us us, at would pre no relieved meet yielded to interests. in threats that which, if your indebted ness was round turn, and our avail- ex. mounting to meet effort operate On the 1st of numbers to $91, 500, were the run able funds, in the vain us was hausted made on we of adof work in To our fuellitate that end, bad ness which been built that On the outs ?selves moment to hich the to pay. the many busi of we hard years labor, speedily dressed means with and also to up through found of are not large whom majority of up the the take Bank of to we sub which small Commerce of the we and made were which scribers of and third divide the of 1st No day ly, and officers. The first, second, we paid and on January friends respect ad- of them, against vet we instead the ten ember, per cent. December, judicious business urged dividends felt it our end realized. ourfound selves without five vised per cent. as fast February) w we to pay our far the but under to an condicipated of duty of that to period pay (say the ready advice means of amount friends sufficent. five per the that thus amount paid We have income ther was cover antic dividen result has just been been about realwill since perceived cient for February to distributed the in has dividends the 1st of our reduced indebtedin the round leaving of now due balance This ized. 000, you we baye sum of $231,480, as per reemorandy herewith at sac. some reached pecuniary find rifice and ourse now firm and costing, against for cost cortunately sult has been cost individual and we assets 141.13, or surp you, the Danic: selves, imextent with of as $48,176 the Unfortu effects of to render or to realize it except large portion money be would to at to such to sell an our operty of ruinous assets, to our- The you. and very damaging is best now vestion of to heavy to time the take illing felt of We unw the have them? to any plan, any make to to your hole the leave with has but been that your seeming by be may patilitated in our end view that With our roll to that us this minds in of stock Surficiates take for your entire Bank Commerce the To bank protect righted You our the thus adition, the the transfer have. and, business in which and get all tablished inherit year, from and us, longer repreyour would interest enting very has well and services will for Board this of be ectors and In with time, your rustees. an the bank ement, manag all our at In lent. your placing are time we same the resources, to from receive anxious in good out will and carry you, are may any you faith which nowrive. submit it canever, be not to sur and we have we the add the in of the and Bank the directors of coma Dr. On Monteiro the to take tee of by the other to o'clock firm, recomould they this action what in to the at editors large mend the of take on, was premistioned Dr. James W. the Each and the follo M. Moods Dance, Colone W Jack H. W Palmer KL H. Elly Colonel M. Conj. Colone William Chiles, Zyland, J. W. son, Dr. L. Tosiah R. Charles W. James to John son, James W. Nold and Horum. yourned then be At that hour meeting a few moand after order, the the the read The copy of the The beg leave to be the We the for following 1 It done. may the stock! of threeof bank. the said resoluby mal

8. June 11, 1895 Richmond Dispatch Richmond, VA
Article from Richmond Dispatch, June 11, 1895

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but It was a source of genuine surprise and sorrow to all who knew that most estimable gentleman. The deceased had spent almost his entire life in Richmond, and was recognized as a man of influence, of careful, conservative thought, of fine executive ability, and of perfect courtesy and rigid honor. He was a kind and atfectionate father and husband, temperate and prudent in all things, and a regular attendant upon divine worship at St. James Episcopal church, which for a long while claimed his services as a vestryman. For fifty years he had attended the annual sessions of the Grand Chapter of Royal Arch Masons of Virginia. He was at the time of his death a member of the Board of Governors of the Masonic Home and of the Board of Trustees of the Masonte Temple Association, and the magnificent pressed-brick and brownstone structure at the corner of Broad and Adams streets stands to-day as much a monument to the energy and affectionate interest in Masonry of William B. Isaacs as to any other influence brought to bear in its erection. Mr. Isaacs was 77 years of age, having been born in Norwald, Conn., April 12. 1818 He was a son of Judge Benjamin Isaacs, recorder of the Episcopal Council of that State. When not much more than a lad he left his home and went to Oswego, N. Y., to live. Afterward he went to some city in Georgia, and spent quite awhile, but upon leaving there came to Richmond and lived here till he died. A singular incident in connection with his history is that when he was in Oswego, N. Y., he met a lad about his own age named Samuel P. Lathrop, that after he came to Richmond to live he met a young man by the same name, who turned out to be the same Samuel P. Lathrop he had known in Oswego, and the two lived to become fast friends and neighbors here. living next door to each other. TRUE TO THE SOUTH. There was no Virginian who was more devoted to the cause of the South during the civil war than was Mr. Isaacs. He regarded the cause of the Confederacy to be a just one, and he served his adopted State and country well. He was one of the old Richmond Ambulance Corps, which organization was engaged during the war in attending the dead and wounded upon the battle-fields immediately around Richmond. Only two members of that corps are now alive, and one of them is Mr. John Enders. Mr. Isaacs began business in Richmond as a clerk for the large dry-goods establishment of Wadsworth, Turner & Co., and later went into the drug business with one of his brothers-In-law, the style of the firm being Dove & Isaacs. He subsequently became a partner of A. Y Stokes in the wholesale grocery business. Just prior to the war he went into the banking business with Mr. William G Taylor, of Manchester, and at the close of the war that institution expanded, and the firm was known as Isaacs, Taylor & Williams. Mr. John C. Williams having been taken in. This was for a long while one of the bestknown banking institutions in the State, and was finally merged into what was known as the Bank of Commerce. This financial enterprise, however, went down in the panic of 1873, with several other large banking concerns here. The failure was an honorable one. A run was made on the bank by frightened depositors, and Mr. Isaacs went North to get currency. He succeeded in doing so, but reached Richmond a little too late to save his bank. Mr. Isaacs was at the same time a silent partner in the firm of Palmer, Hartsook & Co. in the general commission business. MARRIED SECRETARY DOVE'S DAUGHTER. Mr. Isaacs had not been in Richmond long when he met Miss Dove daughter of Dr. John Dove, whom was then Grand Secretary of the Masonie grand bodies of Virginia. He married Miss Dove shortly afterward. In 1842 he became a Mason in Masons' Hall, on Franklin street, and it was not long afterward that he was made Deputy Grand Secretary under his father-in-law Dr. Dove, then secretary of the grand bodies. During the last years of Dr. Dove's life Mr. Isaacs performed all the duties of the Grand Secretary's office, and at the Doctor's death Was made Grand Secretary. This latter office he had filled with honor and credit to himself and the fraternity ever since. When Mr. Isaacs was made a Mason be at once took an active interest in all the affairs of the order. His promotion was rapid. He had filled many offices in the various bodies. He was a