Bank of Richmond - Richmond, VA

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: November 21, 1860
Location: Richmond, Virginia (37.554, -77.460)

Metadata

Model: gpt-5-mini
Short Digest: 28c3b5b3

Response Measures

None

Description

Multiple contemporaneous Richmond newspapers (Nov 21–22, 1860) report that the Bank of Richmond, along with other Richmond banks, suspended specie payments 'for the present' because of political disquietude (secession-threat) and related drains. Articles state the suspension was intended as temporary and to prepare for an early resumption, so classified as suspension_reopening. No explicit depositor run is described in these pieces.

Events (1)

1. November 21, 1860 Suspension

Cause: Macro News
Cause Details: Political disquietude and secession-related distrust and large drains on specie; desire to stay ruinous drafts and relieve mercantile distress; suspension described as temporary to enable resumption.
Newspaper Excerpt: Resolved, That the other Banks of this city having suspended specie payments, this Bank deems it due to itself and to the community to do so likewise.
Source: newspapers

Newspaper Articles (4)

1. November 22, 1860 The Daily Dispatch Richmond, VA

Article from The Daily Dispatch, November 22, 1860

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Article Text

Suspension of Specie Payment.-Many of our citizens will no doubt be gia ified to learn that all the Banks in Richmond have suspended specie payment. This result, it is hoped, will give relief to our manufacturers, and enable many of them to continue the employment of their present forces, and thus save the work. ing classes from the many horrors which would inevitably follow a suspension of employmentat this particular season of the year. We append the resolutions adopted by the Board of Directors of each of the Banks, to show that the political disquietude all over the country has brought about a distrust in financial affairs which is truly deplorable to be looked upon. The Directors of the FARMERS' BANK or VIRGINIA, by whom the initiatory step to suspeusion was taken, adopted the following resolution : 'Resolved, unanimously. That, in view of the distrust which prevails. of the suspension of the large money trade with the South usual at this season. and of the pressure of the law requiring the Banks of this city to redeem the circulation of their branches-a law which bears with special severity on this Bank. because of the number of her brinches-specie pa ments be for the present suspended; and that a course of policy be pursued which will prepare for an early resumption." The Directors of the BANK OF THE COMMONWEALTH, at a called meeting held on the night of the 20th irst., adopted the following preamble and resolution In view of the political troubles of the entire country. by which confidence 18 being almost to taliy destroyed in commercial circles: and also of the mercantile distress in our community. which. if it continue. must devolve a heavy loss on the Banking Institutions of this city: Therefore, Res olved. / hat this Bank suspend specie payments until the further order of the Board The Directors of the BANK OF RICHMOND met yesterday morning, and after duly considering the question of suspension, adopted the following resolution: Resolved, That the other Banks of this city having suspended specie payments. this Bank deems it due to itself and to the community to do so likewise." A a meeting of the TRADERS' BANK of Richmond, held on the 21st inst., Hector Da. via, President; John B. Davis, Jos. Brummel, Geo. W. Smith, Franklin Stearns, J Thompson Brown, C. E Whitlock and Thos. Jones being present, the following resolutions were unanimously adopted Resolved. hat the President and Directors of the Traders' Bank, influenced alone by a desire to do justice alike to the stockholders and to the commercial community, determine to suspend, for is e present specie payment. Reso ved, That the will pursue such a policy as to enable them. at the earliest pra ticable day, to resume the usual rouine of business The Directors of the EXCHANGE BANK in this city, held a meeting and adopted the 101lowing resolution: Resolved, Thatthis Bank for the present sus pend special payments. The Directors 01 the BANK OF VIRGINIA also held a meeting, and resolved losuspend specie payments, in consequence of some of the leading Banks having adopted that course.

2. November 22, 1860 Richmond Daily Whig Richmond, VA

Article from Richmond Daily Whig, November 22, 1860

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Article Text

COMMERCIAL. OFFICE OF THE WHIG, November 21, 1860 SUSPENSION OF SPECIE PAYMENTS, The announcement of the suspension of specie payments, by the Farmers' Bank, of this city, on Tuesday afternoon, was received with some degree of surprise by the community, though it had become evident to the more sagacious of our business men, that a general suspension of specie payments was imperatively required as a measure of relief, and could not long be postponed without greatly increasing the embarrassments of merchants and manufacturers, and involving many of them in the ruin which seemed to be impending. The aciion of the public meeting at the Va. Life Insurance office, Tuesday night, evinced & general concurrence in this opinion, and, at the same time, developed the urgent necess!ty of suspension. In accordance with the wishes of this meeting, as expressed in one of the resolutions adopted, the other Banks of this city, viz: Bank of Virginia, Exchange Bank, Bank of Commonwealth, Traders' Bank, and Bank of Richmond, have re solved to suspend specie payments for the present. One immediate result of th's policy is to impart a general sensation of relief to the business com munity. The paper currency will assume a more uniform value, and all in want of bank accommodations will now submit their paper with a more confident hope of realizing the required funds. On the other hand, those having obligations to meet In the Northe n cities are likely to Incur a serious loss by the advance of Northern exchange. The market, to-day, was altogether unsettled, affording no indication of the rates which may be established to-morrow, or next day, but a high rate of premium may be anticipated.

3. November 22, 1860 The New York Herald New York, NY

Article from The New York Herald, November 22, 1860

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Article Text

INTERESTING EROM VIRGINIA. RICHMOND. Nov. 21, 1860 The Bank of Virginia, the Exchange Bank, the Bank of the Commonwealth and the Traders' Bank suspended specie payment to day The Bank of Virginia, the Exchange Bank and the Farmers' Bank adopted this policy to stay the ruinous draft which was being made upon their specie capital by parties holding the notes of the several branches, which they were obliged to pay specie for on presentation by a law of the last Le gialsture A large drain to satisfy Nothern claims was also being made, and the safety of the institutions required that it should be avoided The suspension is deemed advantageous to the mercantile interests of the city as it will enable the banks to extend their discount line and thus relieve the tightness in the money market. A card from Thes R. Price & Co., extensive wholesale merchants of this city, appeared in the New York Times of yesterday, to which I find a statement sent by telegraph from here to that paper on the 15th intant, at tributed to the HERALD'S coreepondent This state ment which can be found in the Times of the 16th falsely net forth that there was a rumor that the firm of Kent, Paine & Co. were going to suspend, and that the drms of Thos R Price & Co., Summer & Co., and Clarkson & Anderson. bad discharged several clerks because of the stringency of the times On seeing the card of Mr. Price I called upon that gentleman, and brought nis at tention to the error. He emphatically denied having mentioned the name of the HERALD ia his card. and in proof of this produced the original manuscript from which that card was copied. He stated, moreover, that be transmitted a copy of the despatch in the Times containing the obnoxious statement to a friend in New York, with the card which appeared in yesterday's Times, and quoted the paper in which it appeared and the date of its appearance. How came the HERALD'S name to be introduced into that card, and connected with a charge to which the Times alone was smenable? This matter needs expianation Mr. Price anticipated that bis friend would have the card published in the Journal of Commerce At all events, perversion of its application has been made after 16 was sent by Mr Price, and it is proper that the parties guilty of it should be traced out. The seceding State will benefit largely by the present panic. They are buying slaves at dity per cent below former rates, while hundreds of them are being ment South for hire because of the depreciation in slave labor here This will materially add to the ordinary yield in the cotton States. A report is in circulation that an address 18 to issued to the American people on the present condition of public *ffairs, signed by A 8 Foete, Senator Hunter, Wm. a Rives, and others. The Examiner LO day undertakes to contradict the rumor, so far - It relates to Mr. Hunter's connection with the movement He considers that the public, who have noticed for many years the difference of views between Mr. Hunter and those associated with him in this rumor would readily appreciate the improbability of the statement, that he would ever be found upon the same platform with ibose gentlemen. One of the first acts of the Southern Confederacy, If it shall be formed. will be the reopening of the African slave trade. This is the strongest motive for the present secession movement, and Virginia and the other border States view this prospect with serious apprehension Yes they will have no alternative but to join the South Their best means of security will be in . operation with the Southern States, for they will thus have . voice in the federal councils, and it may be that they could effectually resist this slave trade project, or at least secure some modification of It to save themselves from atter ruin If they stand aloof there will be no restraint upon these States, and they can carry out this slave trade project without any regard to the interests of Vir givia or her sister border States. Meetings are being held in different parts of the State to consider the present alarming state of the country. In every Instance a call for a convention is recommended. The Enquirer to day publishes an important letter from Governor Letcher, in reply to that of John 8. Bus bin, of Pennsylvania, who ridicules secession, and states that two bundred Virginians have tendered him their command in the event of disunion, &c. The Governor in his reply administers . severe rebuke to the Northern nullidostion States, and shows that derelietion on the part of the North is the prime cause of the present dangerous trouble. He advises the people of the North to correct public sentiment at home and die charge their constitutions) obligations with strict fidelity He then indicates his determination to defend the State of Virgina and stand 68 % mediator-an armed mediator If necessary-between the Sonthern States and their as sailants, come from what quarter they may. This letter created great sensation here. ACTION OF THE VIRGINIA MINUTE MEN. NORPOLK, Va., Nov. 21, 1860. The Minute Men of this city held . meeting o-night, and passed strong remolutions in favor of resistance to Northern aggreesion. Three cheers were given for the

4. November 26, 1860 Daily Nashville Patriot Nashville, TN

Article from Daily Nashville Patriot, November 26, 1860

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Article Text

Monetary and Commerciai, There was no improvement in money affairs Satur. day. The feeling prevalent for the few days previous was rather intensified, and the desire for a suspension of our banks more general, It is thought that this step would enable those institutions to do something to re ieve the screws which are pressing upon all kinds of business. Foreign money continues to depreciate, and some of our banks refuse Alabama, Virginia, Georgia, North Carolina and South Carolina altogether. This state of things must, We think, prove but temporary. We are glad to state that Tennessee bonds improved in New York on the 23d, and sold at 80c. They had be n down as low as 74c. A telegraphic despatch from Baltimore to the Cn. cinnati Enquirer, under date of the 22d inst., informs us that the suspension of the banks of that city has had a beneficial effect. It says: The acti n of the bank has had a tendency to further strengthen both the money m rket The st ck ard Wassing (11) iner to-day. A telegram from New York to day one o'clock, announced a heavy rise there,and it had an immediate ffect on our trade. Our banks disc ounted largely to day, and it is their tion, I unde stand, to expaud 10 a large amount, but not beyond what prudence would diclate. Mo ey is much easier to-day. I have heard of some paper dd asl W as three-quarter per cent. The banks have thus relieved the street, and we may ex eet a more cheerful state of things for some time to come. In regard to the suspension at Richmond, the Whig, of Wednesday the 21st inst., says: The announcement of the suspension of specie payments, by the Farme s' Bank, of this city, on Tues. day afternoon, was received with S me dear e of surprise by the community, though it had become evident to the more sagacious f our b siness men, that a general suspens on specie payments was imperatively r quired as a measure of relief, and could not long be postpo without greatly increasing the embarrassments of merchantsand man facturers, and ivolv. ing many of them in the ruin which seemed to be impending. The a tion of the public meeting at the Va. Li e Insurance office, Tuesday night evinced a general currence in this opi i n, and st the store time deV lo ed the urgent necessity of suspension. In accordance with the W shes of this meeting, as expressed in one of the resolutions adopted, the other Banks of this city, viz: Bank of Virginia, Exchange Bank, B nk of Comm nwealth, Trader's Bank, and Ba k of Richmoud, have resolved to suspend specie payments for he P -ent. One immedi te re ut of this policy is to m. a sensation of Tel ef to the isiness community. The paper currency will as ume a more un form value, and all in want of bank accomo lations will now ibmit th ir paper with a more conndent hope of realizing the required funds. On the 0 her hand, those having oblig tions to meet in Northern ci are likely to incur a serious loss by the advance of North ra exch enge. The market, to-day, was altogether unsettled aff r ing no indication of the rates which may be established to morrow, or next day, but a h gh rate of premium may be anticipated.