21796. Farmers Bank (Richmond, VA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
October 12, 1839
Location
Richmond, Virginia (37.554, -77.460)

Metadata

Model
gpt-5-mini
Short Digest
bb7d2395

Response Measures

None

Description

The Farmers' Bank of Virginia in Richmond temporarily suspended specie payments on 12 October 1839 (article statements) and again on 6 April 1841. The banks had resumed specie payments on 1 February 1841 (articles mention resumption then), but resumed payments were suspended again April 6, 1841. No article describes a depositor run or permanent closure; the suspension is presented as temporary with an intention to resume when conditions permit.

Events (4)
1. October 12, 1839 Suspension
Cause
Local Banks
Cause Details
Suspension taken at same time as other banks in the state and due to inability to draw specie from northern correspondent banks; commercial revulsion and suspension by banks in other cities forced action.
Newspaper Excerpt
This Bank was reduced to the necessity, along with other Banks of the State, of resolving temporarily to suspend specie payments on the 12th of October last.
Source
newspapers
2. December 3, 1839 Other
Newspaper Excerpt
State of the Farmers Bank, including the Branches, on Monday, the 2nd December, 1839 ... The undersigned, Directors of the Farmers' Bank of Virginia, certify that the foregoing statements have been examined and are believed to be correct ... Farmers' Bank of Va. Richmond, 3d Dec. 1839
Source
newspapers
3. February 1, 1841 Reopening
Newspaper Excerpt
the Banks of this City did on the first day of February last, enter upon the resumption of specie payments, and have since steadily adhered to the redemption of their circulation in coin, or exchange at the pleasure of the holder; ... If Baltimore is not prompt to name a day, we hope and believe that Richmond will resume without her. (article referencing resumption on February 1, 1841).
Source
newspapers
4. April 6, 1841 Suspension
Cause
Local Banks
Cause Details
Resumption proved too severe given position of banks in adjacent states and adverse exchange; decision to suspend again taken jointly by Richmond banks to avoid extreme pressure on country.
Newspaper Excerpt
thereupon it was resolved, that specie payments by this Bank be for the present suspended; that the Branches be advised thereof; that a general statement of the institution be published ...
Source
newspapers

Newspaper Articles (10)
1. December 10, 1839 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, December 10, 1839

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UC increased at such time: and besides that, the payment of deposites would be exacted in coin. The reduction of the outstanding debt and of the liabilities of the Bank, had been steadily looked to ante. rior to the suspension of the Banks in the cities before mentioned It was a policy, however, that had, of course, to modified and limited by a due regard to its effects on the property, business, employments and commerce of the country. Hence the reduction was pursued with caution, and less was accomplished than would have satisfied the judgment of those having the management of the institution, if they had been at liberty to disregard the high claims of the commun ty It must be admitted, that time and great forbearance are necessary to br ng about a change in banking, espemally when, as in this State, it has been conducted through a long series of years upon terms of great indulgence and Liberality At the date of the late sus. pension, the Board was satisfied that the consequences of an incautious attempt to maintain specie payments would have been the loss at least of the specie capital to supply the foreign demand for it, the prostration of business of every k nd along with the price of every description of property, and general embarrassment and discredit The capital of the Bank has been increased since the beginning of the year, nearly 8600,000. and the debt outstand ng has been reduced someth ng more than 8590,000. Within that period, the circulation has been dominished upwards of 8590,000, and the deposites more than $300,000 The circulation and the dstanding debt are less now than they were on the 12th October, when the suspe. sion was resolved o. by which it appears that the Bank has not departed from the course of cautious reduction which it had previously prescribed to itself. The line of discounts and circulation compared with the specie are each within the limits prescribed by the act of As. sembly The last dividend of profits declared was at the rate of per centum, which, on the capital of $2,000,000, amounted to $120,000. The Bank has continued to supply the community liberally with change, and by some of the branches of this institution large demands, made by brokers and others, have been paid in coin, rather than meur the penalties of a protest The course of the Bank has been forced upon it by public considerations, at the risk of serious conse. quences to itself, and of great embarrassment to the of ficers, in the humble confidence that it will be approved by the General Assembly I have the honor be, With great respect, Your obedent servant, WM. H. MACFARLAND President To His Excellency CAMPBELL Mr ALLYN of Norfolk presented a memorial from the Exchange Bank, asking that some protection be granted to the Institution against the demands of bro. kers and money-changers and that permission may be granted the Bank to issue notes of the denomination of five dollars-which, on Mr. ALLYN motion. was or. dered to be printed State of the Farmers Bank, including the Brunches, on Monday, the 2nd December, 1839 Debt outstandingInland bills, 1,212,757 85 Bills discount ed. bonds, and all other debts, & 3,782,594 07-$4,995,351 92 Foreign bills, 6,936 86 4,900 00 Farmers Bank stock, 49 shares, Specie, 531,541 83 Notes of other Banks, 207,528 53 71,033 Due from other Banks, Real Estate, 199,312 8 $6,016,605.32 Capital StockOld stock, 2,000,000 00 New stock, instalmentsand interest, 546,470 91 S 2,596,470 91 Notes circulation, 2,132,523 50 Deposite money, Commonwealth and others, 739,237 09 Contingent Fund, 434,569 44 Profit and loss of the Institutionsix months, 113,503 53 if 6,016,605 37 Farmers' Bank of Via. Richmond, 3d Dec. 1-39 The undersigned, Directors of the Farmers' Bank of Virginia, certify that the foregoing statements have been examine d and are believed to be correct Charles Ellis, Sam Marx A Pleasants, Samuel Reeve, Nicholas Mills, O. Williams, Sublett McGruder Wm. H. Hubbard, James Sizer, (Sworn to by J. G. Blair, Cashier.) Mr. FONTANE offered the following resolution wh was rejected: Resolved, That the Committee on the Militia Laws inquire into the expediency of repealing so much of the Militia Laws revised in 1834, as relates to the training of officers and holding of musters, and in lieu thereof. requiring the field officers and staff, with the commissioned officers and sergeants of each company in every regiment. and the commissioned officers and sergeants of the volunteer companies attached thereto, to assemble once in every year, at some place to be selected by the votes of a majority of said officers, and there to be trained and instructed, agreeably to the mode preser bed by Congress: each officer to be furn shed with muskets and accountrements, at the expense of the State, to be handed over to his successors. And that the General of Brigade be required to attend one such tra It ng in every year with a different regiment. until he has trained with all of the regiments in his command: then commencing with the first and so in rotation. Each officer being allowed the sum of per diem And further, that 90.0 Committee inquire into the expediency of abolish ng all company, battalion and reg rimental musters, except the spring company musters, and in lieu thereof, that each man. between the ages of be 18 and 45, be required to pay the sum of to collected in the same manner that other militia fines are now collected. and to be appropriated to the payment of the per em allowance of the officers aforesa d. This resolution s rejected: but the motion being is cons dered, on motion of Mr Fax, Mr. Tayloe offered the follow n substitute, wh ch was ad ptcd Reso red. That the Committee on the Militia be instructed to inqu re into the expediency of revising or amending the exist ng Militia Laws. On motion, the House adjourned. SENATE 6th 1939 Thousand

2. December 10, 1839 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, December 10, 1839

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THE FARMERS' BANK OF VIRGINIA The following Letter, from the President of this In-stitution, was laid before the House by the Speaker: FARMERS' BANK OF VIRGINIA, December 5th, 1839. Sir-I enclose a general statement of the condition of the Bank, on the 3d instant, with a table showing the denominations of notes in circulation, the dealings in exchange, and the real estate of the Bank, which, with this note, I pray you to lay before the General Assembly. This Bank was reduced to the necessity, along with other Banks of the State, of resolving temporarily to suspend specie payments on the 12th of October last. The resolution was taken under a painful sense of the responsibility it involved; and not until it was seen that thereby alone could mischiefs, the most serious to the community at large and to the Banks, be avoided. The state of the Banks of this Commonwealth has annually been made public; and whilst their condition has been such as to inspire unhesitating confidence in the soundness and security of the institutions, it must have been remarked, that it was not favorable to the maintenance of specie payments in a period of commercial revulsion, occurring unexpectedly, and compelling the Banks of the principal commercial points to suspend. It has been known that their loans have been large, for their capitals, and that they could not be called in, of a sudden; and least of all, at a period of unusual obstruction to the ordinary business transactions of the country. So, also, the circulation has been large, for the specie held by the Banks-usually, it has been redeemed without embarrassment, by drawing upon collections made by other Banks, on account of our own; but this resource failing, as fail it must, in the event of suspension by Banks in other States, the loss of the specie capital of our Banks would be inevitable. For, it will be remarked, the tendency of the circulation to

3. January 11, 1840 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, January 11, 1840

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character and experience all such appointis of the the money this By period, from in kct which, Europe, had been the of first summer so and an had gloomy unpromisi ussumed de the to the board directors as to induce of to the and further await arrival of the agent parture broad from advices of the not the result merely the from of sources The subsequent news This of step the was day, in! but formation of in the cities of of by specie ac educed best and New York. by the banks. sastrous from Europe, meeting to dispayments still more the November with the intention the first however the counts board of directors for the present, of out reamoney change the for grounds continue the the "resuming agency it market upon the which may that hold the measure stated already would sonable he attended amiss to add what of is the board, the that It may not be boration last the President to of the city of offering the by about way the of 1st being of August called by business me his friendly preet: aid, of mers Philadelphia, Bank and renewed kindly the enquiry of per as cent to bonds, mission and to bility my at that regard period to the probable he addressed result possible, to me on be his effect likewise in In letter which "It would not this be country but on wholly venture return Europe he remarked sale at any point in disinsible; and to of offer this lieve, terms which would satisfied be that did I not think, abandon the all NO ROOM became You may, and look alone to I for sale. this country, them, the last ac- as the~bonds of sale in And in respect to the preceding bad last hope abroad unfavorable than Letters by the markets more have been. presented the foreign counts are known to me, which rep American securities steamer they are read to closed against arrival of additional as market spoke literally of the turn erpetnal offered at reduced towards rates, them the brokers among -They each in their feeling of repugnance be 115 ful in of as well as them forward, bringing having amounts, produced a whose among might every class in to state further likewise proper of one that Board, purchase And may of be the conduct the of versity the of Virg to rinia, subjects whose of early the vindication able professors been of particularly directed the month and of July that of attention finance, went has to England in the month early of October; to me as his demeeting and return he that has at no May, the could negolimited the cided since stockholders conviction, in the prescribed month of by our law (by to SIX which per shaken tiation the rate upon of interest the terms to cessfully be allowed lueted is by in the the fact mai that have cent.) ha been was his opinion and Illinois agents not heard he the terms, abroad Nor elvania, Mary land for although he had were much than those more advantageous the subsequently Pennsy succeeded felt well assured which that we they are authorized been have which to offer To the facts and circumstances should be added pernicious that after to the fiscal credit mentioned, the remark it would be Highly well as to that of the her (with State, guarantee at should attempt uccessful failures at home of the company, as to the stock,) be made that shall have taken an markets abroad. be before such change and proper to is it an send Europe, agent It to seems, of any in How the long it may would render it expedient to predict be gen- with certainly degree however, of have that conceded amendment indications of the are and board increasing; the that erally already appeared and the hope and will have advanced in directors :hich indulge is now the in progress agency may spring be successfully 2 of notes The issue post change such all the that of the in of debts due of the that June month can from the company the meeting in the this resolution; and until assure be ed, the board It of the directors stockholders came that that it was postpone should arrested, be at to the company was perfectly progress ascertainer of the work would and at improvement. the hazard of ed calculable failure loss of the whole scheme the hole line was of unfinish actively towards total At the from period Richmond eferred to, to Lynchburg penditure advancing about S) 10,000. at this period of loan the power the by authorized old of its month The of of to the negotiate company of 23d of March to of the and capital, remainder amounting about making =710,000; to the monthly ments, or resources of unwards was of indispensably them in some form been has no that The loan. permanent other these Bv the statement already made, it the had just fa. the most the Eumake been made the the and America had totally failed; favorable and if condition, the ropean vorable market auspices, had been reach it stated, in time that It the attempt the to the it was meeting, impossible as heretofore of the Bank of Virginia had and failed, embark June the President Farmers Bank in the the agency the of the The chiefly Presider could upon not the probably ground be that effected earlier detailed than in the has narrative, it that and founded, suing loan spring course of subsequent events, as proven was utterl, efliand the use cient power in direction of impossible anticipation preceding for the company to make prompt permanent the the of remainder Nor that was it possible upon to meet the unrealized been made, and had the company capital by drawing The effort failure had which gave funds rise to 1st all failed; the old and it was state this of the company remaining on the availathen of the embarrassed residue of that old could capital be readily made to behad been December consisting last, of Bank the arrears of Virginia of and balance the State on hand come blc, due anticipated, from the and along of the with year, the had been appropri The amounting at the purpose of the work remaining 10,000, on hand con- al of gisted ated to balance the of the old capital to about 57 subscribe rs. or alized ized of the June $321,234, meeting due from individual subscription. unreali consisted the subscription and of and $363,1 amount of $294,541 Richmond: S61 ,500 of coltown Lynchburg, the latter of the city of S7, 100 of Washington lege to rehaving been obliged directors in form the Richmond The payment board of from afte the some MEY partial of sales, stock having at par, found had ceive of city racticable stock, and to dispose necessity of the in the cent. early part But even to found been it reluctantly reduce driven the by price receivable to 95 in per current bank to of the at spring this reduced to price, be a vendible article, but subscrif amounting notes, inconsidera it was rabie amount of the individual of which be lost, the very In regard to the $321,234, balance very nothing small had part been col- left undone but these efforts !ection; tion, if any will by the ultimately board to facilitate had been or attended to hasten with very the failures, little success. consequence of these the unfortunate old capital fell estimates; far short receipts In upon account of to pay the monthly necessity of in of the amount necessary constantly increasing of the company and hence arose the future loans resources At the period anticip of the anticipating form of temporary the board, besides of the Virginia of the the meeting of of the Bank and the State, through June the medium to fall due from the ba of original periods or relast instalments tions, in obtained therappy at sundry newed various credits, autumn had and been winter from the Bank of Vir during the

4. January 18, 1840 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, January 18, 1840

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DOMESTIC. FARMERS' BANK OF VIRGINIA. the Annual Meeting of the Stockholders of the At Bank of Virginia, held the 7th day of JanuFarmers' ary. 1840, the President submitted the following report; whereupon it was resolved, "That the reportsubmitted by the President be adopt- of and as a further evidence of the concurrence ed, meeting in the views therein presented, the said the report this be published, and a copy thereof laid before General Assembly now in session. REPORT It has not been usual to do more, at the annual meet- a of the Stockholders of this Bank, than to present cond. compendious ing yet clear statement of the general of the institution The usage in that respect has tion complied with on this occasion as appears by the been statements now exhibited; high the recent sustabular of specie payments, and the alterations introdaced into pension the of the bank since the last annual meeting. seem to call for an additional report. The board of the mother bank deemed it necessary the to resolve to suspend specie payments, temporarily by of October last. The resolution was adopted 12th directors under a painful sense of their obligations the the institution and to the public, upon full considera- behoor tion to of the weighty and delicate points which it ed them to consider. It must be known to all those any way familiar course of business between this city and the the of Philadelphia and Baltimore, that is suspens. their banks of necessity exposes our own to the are most the serious and perplexing embarrasements They from which 3 large portion of our points returned to be redeem which under ordinary funds stances is effected It our banks are enabled to provide in those cities. the notes be safely assumed that eight tenths of may returned upon our banks for specie, or to be exchanged other funds, come from Deltimore and Philadelphia; that it for demands have of Inte been so frequent as would and the scarcely be an exaggeration to describe their daily It hence appears why a suspension in the Northern our must be attended by serious consequences to cities The funds OF which they are accustomed unavail to banks. for the redemption of their notes become and drafts discounted, with an eye to the than obliof such funds, are made of less value rely ing; lation available accumu- means at home Whilst the the would be thereby greatly gations the banks payable diminished, For the of for specie would be multiplied tend sus. in the cities before mentioned the the circulation of our banks ont, on pension demands to keep back would but not in throw it more rapidly upon contrary When specie is at a premium of S per cent. in Balti- high Philadelphia, and it was for a time as notes more and the strong inducements to the holders of and as 12, depositors to press upon the banks would be generally yielded condition to. of this bank at the date of the resoluThe suspend, was such as to warrant confidence in tion ability to to meet any thing short of an unexpected and it its crisis. Compared with former years dia state of more than ordinary of was had been impressed with the that extraordinary rectory in security. importance itself The strengthening the bank, and had applied to the as carefully as a just regard to its effects upon end interest of the community seemed to authorize. the be great The line of discounts had been reduced since circulation of the year, and along with it the the bank ginning had been brought down. But yet disasand dep not in a condition to abide with safety the was reverse to which it was unexpectedly exposed trous suspension of the Northern banks It as appre- suthe that the unequa! intercourse which would the thereupon, would expose the hended. pervene foreign bank demand to loss of its specie, to supply the circulation speedy hence it would be also lost to the And as the chance of its cut off by the course of for of the it: was and State. effectually replenishing the North coin banks, an impartial regard to the rights of every era creditor, whose claims could not all be in coin, well as urgent considerations of policy, seemed the to as but one alternative. As a suspension was in upon any prudent the atfairs of the bank, resolution leave end conducting unavoidable, and the discreet plan of what, with widely conse- have to the community and did but anticipate the their bank, different must course quences ensued, if events had been left to own that the foregoing view places our state of dependence upon the course of banks banks that exposes them to it is elsewhere, in admitted a suffer by their and mismanagement and indiscretion. The fact is State so; or equally true of the banks of any other acit is connected with other points or places by to be tive relations Its in the laws of trade that regulate commerce sought country, commercial explanation international;- the is whether domestic or of a influence wholly of and arrangements. It may gr every all exert conventional people, controlling State independent be suffer nted by of the banks of our to the that of those of another, is to some from which they cannot condition misconduct the liability wheily banks escape;- degree, were reconcile us to know that if with altogether, the sympathy would still exist, any dispensed but ferent it may communities and between would under cerry dif form of economy consequences of a revulsion the of the country in which it limits conceivable disastrous originated. calamities beyond attendant And the the be hazarded, that the an occurrence, in extent and upon and a recovery from the opinion aggravated, such may intensity pressure bank would of an be time retarded, for the want of that very agen- headcy evil which has been erroneously supposed to be the spring not of the intended mischief. to say that no change can be will made not It is the mode of conducting the bank, which and in to render it more independent of other vicissitudes banks, serve to stand the shock of commercial forcibly recommended by the of A would be to restrict discounts to paper but 2 betterable change years, experience having of recent commercial and business character, to be to run, and which was R It is known that a different from strictly few months maturity. intended practice paid evailed in this and other Lanks of the of has end that it has led to the is to at foundation; such creation State debt their debt. The effect of to the from the ability of the bank to to of an active and expanding if its detract wants largenccommedation commerce, contribute than and the institution greatly more exposed leave were confued to notes to be paid at through the past year, all discounts directory, endeavored maturity. to to conThe course to this suggestion, in respect form for loans: and required the accomnew to be reduced. It would comport modation applications their line with old neither which sound policy, nor the understanding its with debt in "OSTE past was contracted, to insist upon colthis rapid payment; but if due regard be had to time the lection too of it, as it may be expedient from crea- to it in, and care be taken to to time to call consequences avoid the of a similar debt in future, the and discounts be confined tion the institution will be highly salutary. within If this proper policy

5. October 26, 1840 Morning Herald New York, NY
Article from Morning Herald, October 26, 1840

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$382,313 Overdraw by three houses, The stock of the Dry Dock is now on the rise, it is said, because of the sy mptoms of improvement in the real estate of that neighborhood. Speculation is thus on foot in various ways, fostered, as it were, by the necessity which exists for the employment of capital temporarily, during the depression of the Southern business, caused by the continued suspension. From all quarters, the indications are those of resump. tien, and the hope has been falsely propagated by the U. Bank, in order to lull public feeling, the matter has been pushed so for by the Southern banks, which have shown many indications of their ability to resume, that it cannot be evaded, and the U. S. Bank must stand or fall.The following is from a Richmond paper in regard to the banks of that state:The Bank of Virginia has met with heavy losses,whie added to her large subscription to the Jaines River and Kanawha Improvement, has unavoidably been the source of embarrassment. The bank has been compelled to curtail its outstanding debt as fast as the exigency of the times would allow, with out a rigor which would have created distress. It has at the same time been induced in self-defence to limit its discounts considerably, though not to so great a degree as many suppose. The bank fortunately had a large surplus, the aid of which, with the withholding of the last semi-annual dividend, and its ge. neral prudential policy, will enable it to resume with ease along with our other banks. The Farmers' Bank is in excellent condition, and has acted nobly in the exigencies which have been visited upon us. Its discounts have been as liberal as with justiceto itself they could be; and they have been, we believe exclusively, or almost so, confined to regular business paper, and its customers have been singuarly punctual Hence its profits have been good, and it will be able at any time to follow sxit to the resumption of the north. The Exchange Bank has also driven a safe and profitable business, and its discounts, in proportion to its means, have been liberal, and have been of material service to the trade of our city. The high prices and prompt sales of our staple product, tobacco, have too furnished the very best funds to our banks, and thus they have received important aid. The balance of trade, if not turned in our favor, has been pretty well equalized, and the banks havefunds which will, we are sure, meet all demands at the point where they will be required. A general resumption in the present state of the coun. try, will cause an early revival of business in the spring, which will absorb all the real capital of the country now idle, yet the banks, which will have newly resumed, will not be strong enough to go beyond the actual demands of business, and continue to control their old accommodation loans; consequently a rigid a therence to a cash system and short credits will not only be necessary, but the natural consequence of the ill established confidence in the stability of the suspended banks on the pert of the New York banks. The absorption of idle capital by the increase of business, will stop the speculations going forward in fancy securities.

6. January 23, 1841 The Madisonian Washington, DC
Article from The Madisonian, January 23, 1841

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RESUMPTION. We have entertained and expressed but one opinion on this subject from the beginning, and that has been and is, that, the banks should resume no conto the advice of a trary payment. We have Baltimore had financier, doubt, that, the banks generally, were able to maintain specie payments, and being able, justice and propriety dictated the policy of resumption with as little delay as possible. Events, on nearly every side, are confirming the correctness of oui opinion. The Harrisburg Intelligencer of the 19th, after three days' proof or experience of the effect of the measure, says: "The banks of Pennsylvania resumed specie payments on Friday last. We do not believe there was any serious "run" on any of them." The York Gazette of Tuesday remarks: We believe that the resumption of specie payments on Friday last, was general among the banks of Pennsylvania. We have not heard of an exception. In most instances, so far as we have been able to learn, the demand for specie at the counters of the banks was much less extensive than was expected-and scarcely amounted to what is termed a run, if we except the case of the United States Bank. "The York Bank commenced redeeming its issues with specie some days before the time fixed by lawand on Friday and Saturday was not called upon for more than about $700. The news from Philadelphia seems to leave no doubt of the success of the resumption there. A heavy run was made upon the U. S. Bank by New York brokers, but they seem to have exhausted themselves without shaking the bank. In Illinois resumption took place nearly a month since, and we learn that there has been no run upon the banks sufficient to affect their condition in any way. We learn, too, from Mr. McFarland, President of the Farmers' Bank of Virginia, who has passed through this city on his way to confer with the banks of Baltimore, that Virginia is ready to resume, and that gentleman is now endeavoring to get the Baltimoreans engaged in bringing resumption about. The Richmond Whig says: "If Baltimore is not prompt to name a day, we hope and believe that Richmond will resume without her." The Baltimoreans think this "bold language." It is the boldness of right, and we hope the right will triumph. We have no chartered banks now existing in the District of Columbia; but if we had, we have no doubt they would be ready and willing to pay specie. The Virginia Banks have published the following resolutions: At a meeting of the Presidents of the Bank of Virginia. The Farmers' Bank of Virginia, and of the Exchange Bank of Virginia, at Richmond, and being authorized to act in the premises, by their respective Boards, JANUARY 18th, 1841. Resolved, unanimously, That the Banks will resume simultaneously with the Banks of and that the specie Baltimore; payments President of the Farmers' Bank be requested to report this resolution to the Banks of Baltimore, with a request that an early day be fixed upon for the resumption. (Signed) JOHN BROCKENBROUGH, T

7. April 7, 1841 Daily Richmond Whig Richmond, VA
Article from Daily Richmond Whig, April 7, 1841

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At a meeting of the Presidents and Directors of the Bank of Virginia, the Farmers' Bank and the Branch of the Exchange bank, assembled together at the banking house of the Bank of Virginia in Richmond, on Tuesday the 6th April, 1811:-On motion John Brockenbrough, esqr., was called to the Chair, and James W. Pegram was appointed Secretary of the meeting.-The following resolution was adopted : Whereas the Banks of this City did on the first day of February last, enter upon the resumption of specie payments, and have since steadily adhered to the redemption of their circulation in coin, or exchange, at the pleasure of the holder, but it becoming apparent that the resolution to pay specie if persisted in, must press with extreme severity up on the country at large; that the difficulties to be ncountered are greatly aggravated by the posit on of the Banks in the adjacent States; that the Co nmonwealth is under the necessity of obtaining lo IDS of the Banks, and of necessity their issues are her by increased; and that it is not within the power of the Banking corporation of this State to correct the exchanges, unaided by the corporation of the Banks elsewhere. Therefore, Resolved, That the redemp= tion of their circulation in coin be suspended, and that the Banks confine themselves to a line of policy which shall prepare them for resumption at the earliest period it may be attempted with success. JOHN BROCKENBROUGH, Chr'n. T

8. April 9, 1841 Daily Richmond Whig Richmond, VA
Article from Daily Richmond Whig, April 9, 1841

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G. W. MUMFORD, Sec'ry. FARMERS' BANK OF VIRGINIA. April 6th, 1841. The President repoted the resolution adopted at the conference held this day between the boards of the several Banks of this city-namely, (see resolution published) whereupon it was resolved, that specie payments by this Bank be for the present suspended; that the Branches be advised thereof; that a general statement of the institution be pub. lished, in order that it may be seen the grounds for public confidence and security are wholly unimpaired, and that the public may be assured this Bank will be prepared for specie payments as early as the state of the country will admit of it. Extracts from the Minutes. J. G. BLAIR, Cashier.

9. April 9, 1841 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, April 9, 1841

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Reduced $300,242 $295,132 18 Specie 28th December last, 262,092 5th April instant, $33,040 Reduced $40,000 Outstanding debt increased RICHMOND Basks.--Suspension of Specie Payments. Yesterday our Banks determined to suspend specie payments. We refer the reader to their proceedings given below. This movement will meet the general approbation the of curcitizens. It was necessary in order to foster porand avert certain ruin to a large decitizens upon whose active all tion her The Banks (as we pends trade of our of her prosperity. city enterprize alternative have they would do) when the along abandoned the fully predicted presented, ground suspending which they had was faith taken, and by specie have avoided the calamity would have brought upon payments their with determination good which persisting We ad- RichWe commend them for their course. in first resolving to pay they almost alone in that resolve, mond. mired stood their spirit although specie while we with them as to the propriety and expediency if determination; and they have in a sense soulless of differed that political institutions, shown that they beings not altogether to in of the or insensible to the this they terests conducted are city by sufferings blind the of community. The Banks have suffered a considerable draft of spefunds since the resumption, and found it necessary, to meet the continued drain, to curtail their circulation to such an extent as would be ruinous to trade. They have curtailed their circulation to an astonishing amount and are in excellent condition. [Wednesday's Compiler. At: of the Presidents and Directors of the of the Farmers' Bank Bank Meeting Virginia, together and the Branch at the of Bank, assembled Richof the Bank of Virginia, on the 6th April, mond, Banking-house the Exchange Tuesday, 1841- in On motion, John Brockenbrough, Esq., was called to the Chair, and James W. Pegram was appointed Secretary of the Meeting. The following resolution was adopted: Banks of this City did, on of "Whereas the of specie the first paylast, enter upon the resumption ments, and have since adhered to tion of their circulation in coin, or February steadily exchange the redemp- at that the pleasure of the but it becoming the resolution to if press with extreme the country at severity holder; pay specie, upon persisted in, apparent must large, that the difficulties to be encountered are greatly aggravated by of the Banks in the the position adjacent necessity States, of obthat the Commonwealth is under the taining loans of the Banks, and of necessity their is. eues are thereby increased, and that it is not within the power of the Banking Corporations of this State, of to correct the exchanges unaided by the co-operation the Banks elsewhere-Therefore That the redemption of the in coin be and that the Banks "Resolred, suspended, confine circulation them them. selve to a line of policy which shall prepare for resumption at the earliest period it may be attempted with success. BANK OF VIRGINIA The President having communicated to the Board of Directors, the proceedings of a meeting of the three Banks of this City, held this day, the following resolutions were adopted Resolved, That it is expedient, under the circumBlances, for the Bank of Virginia and its branches to conform the resolution adopted at the three in this by present, the of their notes Banks to payment City, discontinuing, in coin. the meeting for the of That a statement of this Bank and its branches be and Resolved, prepared public general published, condition in order has not that may to the that her in the least been That this Bank will be resume Resourced, appear degree impaired during with ready the the resumption. to Banks cecie payments cotemporaneously of failadelphia, or Baltimore, or whenever the balance of tade between this State and the Northern cities will Tender such a measure prudent and safe; and to this end it will be the fixed policy of the mother Bank, and the same is recommended to the branches, to observe the utmost prudence in their discounts, and to proceed to convert into active and available resources their suspended debts and unproductive balances. FARMERS' BANK OF VIRGINIA. April 6th, 1841. The President reported the resolution adopted at the conference held this day between the boards of the everal Banks of this city-namely, (see resolution published,) whereupon it was resolved, that specie paynents by this Bank be for the present suspended; that be Branches be advised thereof; that a general state. bent of the institution be published, in order that it may be seen the grounds for public confidence and security are wholly unimpaired, and that the public may be assured this Bank will be prepared for specie payments as early as the state of the country will admit of it Extract from the Minutes, J. G. BLAIR, Cashier. Office of the Exchange Bank of Virginia, Richmond At a meeting of the Board on Wednesday, 7th April, 1841, the proceedings of a called meeting for conference of the Board of Directors of the several Banks in this City were submitted. Whereupon, the following resolutions were adopted Resolved, That in the view of this Board, these profeedings render it expedient that specie payments be for the present suspended inasmuch, as perseverance on the part of this Board, in a different line of policy from that thus determined upon, would be injuriout to the interests of the Stockholders of the Exchange Bank without producing any corresponding benefit to the community Resolved, That the loans and discounts of this Bank be 80 regulated, and its business generally so conducted, as to on its the position of always to and maintain payments with the other being temporaneously ready maintain, resume part, Banks specie in the city. Ordered, That the Cashier furnish for publication a copy of the state of this office as it existed on the 31s

10. April 22, 1841 Martinsburg Gazette Martinsburg, WV
Article from Martinsburg Gazette, April 22, 1841

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DEFERRED ARTICLES. THE RICHMOND BANKS. The following is the official annunciation of the suspension of specie payments by the Banks of Richmond. At a Meeting of the Presidents and Di. rectors of the Bank of Virginia, the Farmer's Bank and the Branch of the Exchange Bank, assembled together at the Banking-house of the Bank of Virginia, in Richmond, on Tuesday, the 6th April, 1841On motion, JOHN BROCKENBROUGH, Esq. was called to the Chair, and JAMES W. PEGRAM was appointed Secretary of the Meeting. The following resolutions were adopted: Whereas the Banks of this city did, on the first of February last, enter upon the resumption of specie payments, and have since steadily adhered to the redemp. tion of their circulation in coin, or exchange at the pleasure of the holder; but it becoming apparent that the resolution to pay specie, if persisted in, must press with extreme severity upon the country at large, that the difficulties to be encounter. ed are greatly aggravated by the posi. tion of the Banks in the adjacent States, that the Commonwealth is under the ne. cessity of obtaining loans of the Banks, and of necessity their issues are there. by increased, and that it is not within the power of the Banking Corporations of this State, to correct the exchanges unsided by the co-operation of the Banks elswhere;Therefore "Resolved, That the redemption of the circulation in coin be suspended, and that the Banks confine themselves to a line of policy which shall prepare them for resumption at the earliest period it may be attempted with success." BANK OF VIRGINIA. The President having communicated to the Board of Directors the proceedings of a meeting of the three Banks of this city, held this day, the following resolutions were adopted : Resolved, That it is expedient, under the circumstances, for the Bank of Virginia and its branches to conform to the resolution adopted at the meeting of the three Banks in this City, by discontinuing for the present, the payment of their notes in coin. Resolved, That a general statement of this bank and its branches be prepared and published, in order that it may ap. pear to the public that her condition. has not in the least degree been impaired dur. ing the resumption. Resolved, That this Bank will be ready to resume specie payments cotemporaneously with the Banks of Philadelphia, or Baltimore; or whenever the balance of trade between this State and the Northern Cities will render such a measure prude nt and safe : and to this end it will be the fixed policy of the mother Bank, and the same is recommended to the branches, to observe the utmost prudence in their dis. counts, and to proceed to convert into ae. tive and available resources their suspend. ed debts and unproductive balances.