2315. Georgia Rail Road & Banking Company (Augusta, GA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
October 13, 1857
Location
Augusta, Georgia (33.471, -81.975)

Metadata

Model
gpt-5-mini
Short Digest
f62ae739f9d9dad7

Response Measures

None

Description

Contemporary newspapers in October 1857 report the Georgia Rail Road & Banking Company (Augusta) suspended specie payments around Oct 13–15, 1857 during the Panic of 1857. The New-York Daily Tribune notes the immediate cause was the failure of their deposit bank in Charleston (a correspondent failure). There is no contemporaneous description of a depositor run on this specific bank; later coverage (1873) describes the bank as having remained solvent and honoring payments, implying it ultimately resumed operations. Dates are taken from the newspaper dispatches (Oct 13–15, 1857).

Events (1)
1. October 13, 1857 Suspension
Cause
Correspondent
Cause Details
Immediate cause reported as the failure of their deposit bank in Charleston, from which specie had been ordered; suspension occurred amid the wider Panic of 1857 and local calls for suspension by citizens and bank presidents.
Newspaper Excerpt
The Georgia Rail Road Bank has suspended.
Source
newspapers

Newspaper Articles (11)
1. October 15, 1857 Evening Star Washington, DC
Article from Evening Star, October 15, 1857

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action to that end. A committee of eight was accordingly anpointed; which proceeded to Albany this evening. The meeting of the officers of the several Savings Banks of New York York and Brooklyn which was held this afternoon, resolved to pay depositors only in the notes of city banks. Several of the banks which closed their doors yesterday resumed business to-day. The Supreme Court judges to-day held a meeting and decided to issue no process against the form. banks excepting upon notice given in the usual The action of the merchants' meeting fails to give satisfaction. Richard Schell, Esq., was present with resolutions censuring the banks for demanding specie of each other, when they withheld it from their customers, but he was induced to withhold them. A strong movement is progressing among the republican leaders against the proposed extra session of the Legislature or any other recognition of the suspension. while a large majority of the democrats and a few Americans and republicans banks. are uniting in support of the relief of the P. M-The bank suspension has had a beneficial effect, and stocks largely advanced. The feeling generally is improved and the excitement subsided. The banks paid out five millions of specie yesterday. They continue business as usual, except paying specie. The Chemical and Bank of America pay everything. specie included. The other banks are indignant at such a course. Gold commands a premium of four to five per cent., and city bank bills sell at five per cent. discount. At a meeting of bank officers this afternoon, it was resolved to suspend the specie clause in the clearing house, substituting therefor an agreement balances. by which the debtor banks pay interest on The banks which have already gone into the hands of receivers will immediately enter upon the business of winding up, unless they can retrace their steps and resume their places in the ranks of the clearing house. The American Exchange and the Metropolitan Banks have resolved to receive State money at par, but the other banks are yet undecided. Several of the city savings banks refuse further payments of coin at present. The Chemical Bank announced its determination to continue specie payments. This bank was the only one that went through the crash of 1837 unharmed. pended. Every one of the Williamsburg banks have susA meeting of the merchants was held this afternoon, and voted that they had full confidence in the banks, notwithstanding their unfortunate suspension. They also resolved to use every effort to restore the prosperity of the city. BOSTON, Oct. 14.-All of the Fall River banks have suspended. Since the bank meeting this morning everything is quiet. Stocks are unsettled, with symptoms favora ble to a rise. The Massachusetts Insurance Com any has declared a dividend of 20 per cent. The Massachusetts Bank paid specie up to the closing to-day. Its circulation is one hundred and thirty-six thousand dollars, and its specie three hundred and seventy thousand dollars. P. M -The suspension of our banks has caused but littieexcitement. They have resolved to continue the exchange house and to resume specie payment as soon as possible. The banks of New Bedford. Worcester, Fair Haven. and other principal places havesuspended. The Nantu and Lowell banks paid specie throughout to-day, but the suspension will be general in New England. ALBANY, October 14.-The banks here have resolved to receive on deposit and in payment of debts, the notes of all State banks redeemable in New York: NEWARK, N. J., Oct. 13.-There was a great run on the Newark Savings bank here to-day, but it is thought they will fully sustain themselves. BOSTON, Oct. 14.-Every bank here voted to suspend specie payment. The Banks throughout the State will follow suit. PETERSBURG, October 14.-The branch of the Farmers' Bank of Virginia at this place has suspended. The branches of the Virginia and Exchange banks are still paying specie. AUGUSTA, Oct 14.-The Georgia Railroad Bank has suspended. DETROIT, Oct. 14.-The Michigan Insurance Co. has suspended specie payment. SECOND DISPATCH. RICHMOND, Oct. 15.-The Farmers' and Exchange Banks here suspended this morning. The Bank 0. Virginia still holds out. AUGUSTA, Oct. 15-A public meeting of the citizens here recommended all the banks to suspend. The Union Bank suspended this morning. Philadrlphia, Oct. 15-The banks here today manifest a disposition to not accept the provisions of the relief bill, and there is an additional gloom in business circles. Sata Fe Traders at St. Louis. ST. LOUIS, Oct. 13.-A number of Santa Fe merchants have arrived to-night, with upwards $100,000 in gold, for the purpose of settling up their old accounts and purchrsing new goods. Marine Disaster. NORFOLK, Oct. 14.-Arrived to-day bark Lucerne, from the coast of Africa, bound to New York, in a leaking condition, spars damaged and crew sick.

2. October 16, 1857 The Athens Post Athens, TN
Article from The Athens Post, October 16, 1857

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A grocer having mentioned to one of his lady customers that the submarine telegraph was broken, she replied, that if in their next attempt they should grease the cable with some of his strong butter, which she had been nsing for some time, she thought it would impart strength to it.The grocer smiled faintly out of compliment, but didn't see the point of the joke. Suspension of the Georgia Railroad Bank -The Augusta Dispath of the 13th says:--------The Georgia Rail Road Bank suspended today, at about half past 12 o'clock.

3. October 17, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, October 17, 1857

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on the affidavits preliminary to legal action. Those facts are subetantially On Friday of last week & bench warrant was issued from the District Court for the arrest of Jas. o Couner, of the firm of O'Conner Bro. & Co., bankers and brokers, Wood street, on an affidavit made by John Scott, now President of the Bank pro tem., chafging him with obtaining $185 000 from the Merchants and Manufacturers' Bank, with the intent to defraud. For some reason. 88 yet unexplained, the execution of the warrant was delayed till Wednesday, when Mr. Conner was arreated. taken before Judge Hampton, and held in the sum of $200,000 for his appearance in the District Court on Saturday next, for an examination. C. Ihmsen, esq., became security in that amount for Mr. Conner, and he was discharged. He was immediately arrested by Officer Moon, on a warrant issued by Alderman Johns, on the affidavit of John Scott, charging him with conspiring with Wilson Blakeney, an officer of the bank, in unlawfully conspiring and confederating together for the purpose of fraudulently obtaining money from the Merchants and Manufacturers Bank. and by means of said conepiracy obtaining $310,000 of the proper moneys thereof, with intent to defraud said bank. O'Conner gave bail for a hearing. Of the amount of bail required we are blissfully ignorant, the Alderman not being communicative on so momentous a subject. It was not by any facility offered our reporter that the nature of the last affidavit was ascertained. On learning that a second arrest was to be made, he visited the Alderman's office, and in reply to a question as to whether there was a charge made against Mr. Conner there, received the highly satisfactory reply Not that I know of. A short time elapsed when the officer entered with Mr. o Conner, and the Alderman suddenly became aware of the fact that an affidavit had been made before him, and seemed to be pretty fa. miliar with the allegations contained in it. Presently a carriage rolled up at the door, a few subdued words were said, & recognizance taken, and the prisoper was discharged from the custody of the officer. We shall await the developments in this case with some curiosity. We are anxious to know by what process 8 confidence can be established in an institution created for the ostensible purpose of accommodating business men, by which any one m&n. or any two men, can overdraw to the amount of $310,000said funds being charitably applied, no doubt, to the interesting purpose of shaving and discounting at two or three F' cent a month, and the purchase of the issue of discredited and broken banks, at 30 or more P cent discount. In process of time we shall all be enlightened upon this interesting point. G. P. Hamilton, egq., is employed for the plaintiff, and Roberts & Mellon for the defendant. -One of the firm requests us to state that they are fully able to pay the institution any amount, which, on & settlement of their accounts with the bank, may be found due it-that ample security can at any time be given to do 80, and adds that such securities have already been placed in the hands of disinterested and responsible parties to an amount nearly equal to the alleged claim. He states that there has been DO conspiracy to defraud that institution, as will be shown when the cases come up for investigation, if they are pressed to such an issue. From The Augusta (Ga.) Constitutionalist of Oct. 14. We regret to announce the suspension of the Georgia Railroad and Banking Company yesterday. The immediate cause of the suspension, we understand, was the failure of their deposit bank in Charleston, from which specie had been ordered. We will only add, that whatever may be the present inconvenience to many, no bill-holder or depositor should suffer the loss of a cent on the issues of this bank. The Company by its last statement has a surplus of more than half & million, and securities of the best kind, easily convertible in ordinary times to twice the amount of their present circulation. With these means, and an average gross income of about 3 000 day, with & proud and wealthy set of stockholders, the bill-holder has nothing to fear but present inconvenience. We make these remarks solely to caution the unwary against sacrifice. The bills are intrinsically 88 good now as they were before the suspension of the bank was announced. GROUND BROKEN ON THE FIRST RAILROAD IN MINNESOTA.-We understand that the Minnesota and Pacific Railroad Company have made arrangements by which they will give employment to & large num ber of laborers during this Fall and 80 long as the weather will permit. This will be good news to a large class who will be thrown out of employment by the stoppage of city improvements. The Times says the first ground was broken on the 1st instant, and & number of men engaged at work between this city and St. Anthony-that portion of the road being the first that will be completed. Six miles of the road are staked out for the operations of the workmen. (St. Paul Pioneer.

4. October 20, 1857 Nashville Union and American Nashville, TN
Article from Nashville Union and American, October 20, 1857

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LIST OF SUSPENDED BANKS. IN GEORGIA. Georgia Railroad and Banking Company, at Augusta. Union Bank, at Augusta. Manufacturers' Bank, at Macon. All the Banks in Savannah. SUSPENDED BANKS IN SOUTH CAROLINA. Bank of the State of South Carolina, at Charleston, with branches at Columbia and Camden. Bank of South Carolina, at Charleston. Bank of Hamburg, at Hamburg. Planters' and Mechanics' Bank, at Charlestsn. Farmers' and Exchange Bank, at Charleston. People's Bank, at Charleston. South-western Railroad Bank, at Charleston. This bank, we believe, has an agency at Tallahassee, Florida.

5. October 21, 1857 The Hillsborough Recorder Hillsboro, NC
Article from The Hillsborough Recorder, October 21, 1857

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The money panic has well nigh reached its climax. The banks of New York city, more than fifty in number, suspended specie payments on Tuesday the 13th instant, and the suspension has been pretty general through all the Northern States, Virginia included. In the South, the Bank of the State of South Carolina, suspended on Saturday the 10th, and the Bank of South Carolina, and the South Western Rail Road Bank suspended on the 12th. The Georgia Railroad Bank located in Augusta, and others, have also suspended. In our own State, the Bank of Cape Fear, as well as the Farmer's Bank, has submitted to the necessity of the times and suspended. The prospect now is that the suspension will become very general throughout all the States.

6. October 21, 1857 The Lancaster Ledger Lancaster, SC
Article from The Lancaster Ledger, October 21, 1857

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Celegraphic. Georgia Banks. AUGUSTA, GA., Oct. 14-A public meeting of citizens held in this city, rec ommends the Banks to suspend. The Union Bank has suspended this morning. There RTG no other suspensions in this city. MACON, GA., October 14.-The Manu. facturers' Bank in this city has suspen ded. Financial Affairs in Pennsylvania. Harrisburg, Pa., Oct. 14-The Legis lature, in special session in relation to fi nancial affairs, has adjourned. The Gov. ernor of the State has signed the Relief Bill. Citizens' Meeting in Savannah. Savannah, Ga., Oct. 14-A meeting of citizens, held in this city to day, recommended that the Banks suspend. The Georgia Rail Road Bank. Augusta, Oct. 13.-The Georgia Rail Road Bank has suspended. The Boston Banks. Boston, Oct. 15.-The Banks in this city yesterday, voted for a general suspension. New Orleans Banks. New Orienns, Oct. 14.-The Bank of JAMES ROBB kept paying specie till six o'clock torday. There is no doubt of its ability to go through the panic. There is no doubt of the Southern Bank. Virginia Banks. Richmond, Va., Oct. 15.-The Bank of Virginia in this city, and the Branch Bank at Petersburg. have suspended :also the Exchange Bank in this city, and the Exchange Bank in Petersburg. The Tennessee Banks. Nashvitie, Tenn., Oct. 16.-The Banks of this State having suspended, the Leg. islature is considering what course it is best to pursue. Suspension in Savannah. Savannah, Ga., Oct. 15.-A meeting of Presidents of the Banks of this city, held last evening, resolved unanimously upon suspension. and the resolution was carried into effect this morning. Financial Affairs in New York. New York, Oct. 14-All the Banks in this city suspended to day. More Suspensions New York, Oct. 14.-In Hartford, Conn., in Albany, N. Y., in Portland, Maine, and in New Jersey, all the Banks have suspended. Custom House Robbed. Richmond. Va. Oct. 13 The Custom

7. October 21, 1857 The Lancaster Ledger Lancaster, SC
Article from The Lancaster Ledger, October 21, 1857

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The Georgia Rail Road Bank. Augusta, Oct. 13.-The Georgia Rail Road Bank has suspended.

8. October 24, 1857 Keowee Courier Walhalla, Pickens, SC
Article from Keowee Courier, October 24, 1857

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memones or my maive mms, and the spare cold waters gushing from them. How bit. terly I cursed my fully, my ambition, my chivalry. my love of adventure, that bad led me far of my native to fever in or have the tropics. bills away Never from die the before of cool thirst fountains since and I suffered such agony as during this time on Lobos. But Neptune at last asserted the supremacy of his trident, and the winds hushed their three days the norther fury. After had the wasted usual its spell breath,and of there was a calm on the waters. Them we had water, fresh water from the ships, and our sufferinge were ended. BOSTON, Oct. 10.-A letter received per on reports matters as er money Niagara, throughout dated England, generally the 25th while ultimo, growing the demand tightwas also on the increase. At Manchester the late bueyancy had yielded to a depression, and on both goods and yarns a deeline had been submitted to. The demand for cotton for export continned active and more than absorbed the receipts. NEW YORK, Oct. 10.-If it were possible for Wall street to look bluer than it has done, then it looks SO to-day. The rates asked for money are higher than ever, and many failures are reported, including some heavy sugar dealers and paper dealers. The Illinois Central Railroad Company has an are rumors of more road course, made Company. trouble assignment. These in the things, There Reading of Railaffect the stock market most seriously. The Grocer's, Marine, Pacific, New York Exchange, Merchant's Exchange, North River, Citizen's, Irving and Ocean Banks, have suspended specie payments. Several of the country and some of the New Jersey bank bills have been thrown out. CHARLESTON, Oct. 18.-The People's Bank suspended to-day. AUGUSTA, Oct. 13.-The Georgia Railroad Bank has suspended. NewORLEANS,Oct.13.-Messrs. Oakey & Hawkins, large cotton factors in this city, have suspended. It is rumored that others will follow. AUGUSTA, Oct. 14.-At a public meeting of the citizens, held this day, it was recommended that suspend suspended specie payment. this morning. all The the Union banks Bank The Bank of Hamburg, and Manufacturer's Bank of Macon, have suspended. NEW YORK, Oct. N-Nineteen banks suspended yesterday, and it is believed that to-day the balance will go. The Tradesman's Market, St. Nicholas, Chatham, Bull's Head Banks, and the Bank of New York have suspended. Several old banks announced their ability and determination to go through the crisis, but it is feared that a general suspensiou is inevitable. Marine Bank was stopped by injunction and is The of customers, it presumed avoid that others have adopted the same means to the penalty of suspension. The excitement is relieved, and it is that the tempoBusiness, thought rary. however, suspension is is generally only deranged. FURTHER SUSPENSIONS.-The Southwestern Railroad Bank and the Bank of South Carolina suspended specie payments this forenoon. They are unquestionably solvent, as are all our banks. Note-holders and depositors need have no apprehension now or owe the amount beyond banksan eventually. The of debt, latter. community much Current the cash liabilities of the means are only wanted, and as specie cannot be obtained, what currency is next so good and convenient as the bank bills ? Why then sacrifice the latter by forcing suspensions An unnecessary and heedless panic possessed some this morning, and dashes were made in Broad street at various other banks, but the latter have met them steadily. The of our are prepared, and our majority nothing but banks the panic Let well of people can embarrass them. depositors at least remain calm. All rumors as to the suspension of other banks are incorrect; and the probability is, no more will suspend. They will not suspend, unless our own people comp them which is suicide. There is not a deposite or note of any Charloston Bank which is Evening News, I stepped in at the Bank of Charleston, when the excitement was at its height, and remained half an hour for the purpose of witnessing the effects of the rush for specie upon the insiders, and remarking the conduct, countenances and general department y of the motloy crowd of bill holdere, as th threw them upon the counter. and demanded the special Many incidents occurred which were altogether amousing to a disin

9. October 29, 1857 Fayetteville Observer Fayetteville, TN
Article from Fayetteville Observer, October 29, 1857

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List of Suspended Banks. IN GEORGIA. Georgia Railroad and Banking Company, at Augusta. Union Bank, at Augusta. Manufacturers' Bank, at Macon. All the Banks in Savannah. SUSPENDED BANKS IN SOUTH CAROLINA. Bank of the State of South Carolina, at Charleston, with branches at Columbia and Camden. Bank of South Carolina, at Charles. ton. Bank of Hamburg, at Hamburg Planters' and Mechanics' Bank, at Charleston. Farmers' and Exchange Bank, at Charleston. People's Bank, at Charleston. South-western Railroad Bank, at Charleston. This bank, We believe, has an agency at Tallabassee, Florida. A CANDID ACKNOWLEDGMENT OF AN UNDOUBTED TRUTH-At a meeting of the proprietors and managers of the Western Railroads, held a few days ago in Columbus, Ohio, a debate arose concerning the affairs of the roads, when one of the members remarked "that the milroads of the country never could repay, if they were disposed, the debt due to the newspaper press for its powerful aid when the idea of a. railway had to be explained and popularized-the public benefitsshown, and the people induced to come forward and associate for the purpose of accemplishing the great works that now need no advocate." The same gentleman, in concluding a speech on the subject, said, "he could not forget the amount of unpaid labor performed in the infancy of railway building by the only men who could reach the popular ear and the popular heart in the most effective manner." We believe, (with the Alexandria Gazette,) that in regard to many of the railroads of the country, they owe their inception, progress, and completion, mainly to the exertions of the newspaper.

10. November 10, 1857 Arkansas True Democrat Little Rock, AR
Article from Arkansas True Democrat, November 10, 1857

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NO. 5. List of Suspended Banks. IN GEORGIA. Georgia Railroad and Banking Company, at Augusta. Union Bank, at Augusta. Manufacturers' Bank, at Macon. All the Banks in Savannah. SUSPENDED BANKS IN SOUTH CAROLINA. Bank of the State of South Carolina, at Charleston, with branches at Columbia and Camden. Bank of South Carolina, at Charleston. Bank of Hamburg, at Hamburg. Planters' and Mechanics' Bank, at Charleston. Farmers' and Exchange Bank, at Charleston. People's Bank, at Charleston. South-western Railroad Bank, at Charleston. This bank, we believe, has an agency at Tallahassee, Florida.

11. October 2, 1873 Edgefield Advertiser Edgefield, SC
Article from Edgefield Advertiser, October 2, 1873

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The Situation in Augusta. There were very perceptible indications yesterday of a continued diminution of the panicky feeling created in commercial circles in Augusta on Thursday by the suspension of currency payments by several of our banking institutions. Depositors, where assured of the solvency of the institutions with which they were doing business, begin to appreciate the utter fol. ly of lashing themselves into a mid-summer perspiration simply because they can not get possession of their entire deposits in so that they may lock it up in their own a every coutingency currency, that strong they boxes will against require remote dollar for business purposes They begin to realize that upon just such food panics and increase and their grow have strong made up minds their tobe breadth, to satis an fied with a sufficiency of currency swer their most exhibition of of this pressing disposition demands. has been The incalculable financial relief. throughout the city and adjacent country, in encouraging our suspended banking institutions to resume and continue the payment of small checks, affording 111 the aggregate great relief to a class of depositors which otherwise must have experienced severe deprivations, from lack of money to purchase food supplies and seasonable clothThe even payments ing. permeate benefits the of whole these community, small and gradually find their wav back to the individual or institution making them. A MOST GRATIFYING SHOWING. The National Bank of Augusta, W.E. Jackson, President, throughout yesterday stood the pressure just as if it were veritable financial " Stonewall"-meeting all demands of depositors Among its heaviest payments were $8,300 to the Augusta Factory, to pay the operators of that establishment; between $5,000 and $6,000 to the city of Augusta, to pay th canal hands; and $1,200 on a check of the Orphan Asylum in favor of W. H. Goodrich. In addition, a number of checks for smaller amounts were paid to merchants and other depositors. And yet, at the its of were the close currency of day's business, $7,000 to the $8,000 depos- in excess of the amount of currency with which the bank commenced business the morning. The Georgia Railroad Bank remained firm and unyielding as Gibralter," waxall ing while still honoring stronger in checks its currency of depositors. supply, This institution is a recognized king of the present monetary crisis, and just about as safe and stroug as human institutions get to be. The Merchants and Planters National Bank, ex-Gov. C.J Jenkins, President, resumed the vent in currency of small checks yesterday, and effected settlement of larger amounts by certified checks, now current in the city. This institution expects to be firmly on its legs next week, doing busines as usual. The National Exchange Bank, Alfred Baker President, continued to pay small checks in currency yesterday, and make settlements with depositors desiring to accept first class securities. Messrs. John J. Cohen & Son, bankers, paid. in currency all demands made on them yesterday, and will gradually be to currency to dollar for prepared dollar pay deposited with depositors them. They will resume business on Monday under the same schedule as run yesterday. will be arrangements Deposits having received been and made checks by them sold, for the same. The Commercial Insurance and Banking Company continued to meet all demands of depositors The Freedman's Savings Bank remains in currency, under possession the sixty of its days' supply notice of rule. But few notices have been filed by depositors, and by the time the sixty days. run out, they will doubtless be fully satisfied to leave their deposits where they are. Commercial circles promise to weather the storm, and our merchants are heroi cally addressing themselves to the labor of the the can. trade-doing turning poorly very greased best they wheels of local The aspect of affairs is certainly encouraging and hopeful. Money is expected from New York by some of our cotton men about the middle of the present week, with which to purchase cotton, when general contraction of lengthened countenances will follow.-Constitutionalist,