21789. Exchange Bank (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
76988620

Response Measures

None

Description

Newspaper reports (Nov 21, 1860) state that Exchange Bank joined other Richmond banks in suspending specie payments 'for the present' to stop drains of specie and relieve money market. No mention of a depositor run, receivership, or permanent closure; suspension presented as temporary, so classified as suspension_reopening.

Events (1)

1. November 21, 1860 Suspension
Cause
Macro News
Cause Details
Suspension to stop ruinous drafts and large drain to satisfy Northern claims amid the 1860 secession/political crisis and general tightness in the money market; banks jointly adopted suspension to relieve merchants and preserve specie.
Newspaper Excerpt
the Exchange Bank ... resolved to suspend specie payments for the present.
Source
newspapers

Newspaper Articles (2)

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.


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