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AUGUSTA. On, Oct 10-PM Reliable intelhgence from Charleston announees the suspension of the Bank of the State of South Carolina. a State instituTOOP I IT
Bank of the State of South Carolina (Charleston, SC)
Episode Information
- Episode UID
260034390694- Episode Type
- Suspension → Reopening
- Bank Type
- state
- Bank ID
-
26003439hash - Start Date
- October 10, 1857
- Location
- Charleston, South Carolina (32.777, -79.931)
Metadata
- Model
- gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
844355a705a97ef3
Response Measures
None
Events (2)
1.
October 10, 1857
Suspension
- Cause
- Local Banks
- Cause Details
- Other Charleston banks pressed for specie balances and discharges of balances, creating a liquidity press that forced suspension.
- Newspaper Excerpt
- Reliable telegraph news from Charleston announces the suspension of the Bank of the State of South Carolina.
- Source
- newspapers
2.
June 8, 1858
Reopening
- Newspaper Excerpt
- The suspended banks in Charleston resumed specie payments on the 8th, the Bank of the State of South Carolina leading off.
- Source
- newspapers
Newspaper Articles (13)
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The Financial Crisis, &c. NEW YORK. October 10.-The East River Bank has suspended. BOSTON, October 10-Financial matters continue much depressed; the merchants, however, are generally meeting the payment of their notes. No new failures are announced. The evening papers of to-day represent money matters as less favorable than yesterday, but there is no apparent excitement Thestock market has again commenced to decline under orders from holders to sell at the best rates offered. Bank stocks also share in the depression, and there are far more sellersthan buyers. The principal decline to-day, how ver, was in the shares of the Merchants' Bank, which fell off three per cent., closing at 95 bid. The report of the failure of the Boston Belting Company-Tappan & McHenry agents-was in. correct, and probably originated trom the fact that they stopped their works for the periodical cleaning of the machines It is said their assets exceed their liabilities $500,000. LOUISVILLE, October 10.-The failure of A. D. Mansfield, clothing warehouse, is announced today. Mr. Smith, the proprietor of Owens's Hotel, also found it necessary to make an assignment this forenoon. HEELING, Oct. 10-The report of the failure of the Manufacturers' and Farmers' Bank of this city is entirely false. That bank had only $25,000 in circulation previous to the suspension, and are now drawing in as fast as possible. The other banks of this city are in a sound condition. RICHMOND, Oct. 10.-The Governor has issued a proclamation prohibiting the notes of the Bank of Kanawha from being received in payment for money due the State, that bank having refused to redeem its notes and removed a large amount of its assets beyond the limits of the State. AUGUSTA, Oct. 10.--Reliable telegraph news from Charleston announces the suspension of the Bank of the State of South Carolina, a State institution, of which C. M. Firman is president. NEW ORLEANS, Oct. 10.-The cotton market has further declined one cent per pound since Wednesday, and middling is freely offered at 12 cents. The total decline within the past ten days has been four and aquarter cents per pound. Sterling has also declined. and the best bills on London are nominally 93a96, or from four to seven per cent. discount. In freights there is no change, and engagements are limited. DETROIT, Oct 9.-Produce is fast accumulating at this port. Very little is going forward, on account of the derangement in currency and the uncertainty of the eastern markets. The stock of flour on hand is larger than at any previous period of this season. The receipts of flour by railroad yesterday amounted to 2,250 barrels, and of wheat to 10,000 bushels. The Michigan Central Railroad boats plying between Detroit and Buffalo will be laid up as fast as they arrive at this port. [SECOND DISPATCH.] NEW YORK, Oct. 12.-Messrs. Corning & Co., bankers, suspended on Saturday. They were large stockholders in the Southern Bank of New Orleans. Kansas Election-Conflicting Reports. Sr. LOUIS, Oct. 10-The Republican has returns from Kansas which put down the Democratic majority in Leavenworth at 244, in Atchison 63, and Doniphan 50. In Johnson county the Democrats are reported to have a large majority, and the Democrats are understood to have been successful likewise in Jefferson. In Douglas county the Republicans are said to have a majority of 1,165, and in Shawnee a majority of 350. The Legislature, according to the same authority, is certainly Democratic, while for Congress, Parrott, the Republican candidate, is alleged to have been successful. Leavenworth advices state that by the returns of the Kansas election, received up to the 8th, only heavenworth county had so far given a Democratic majority. Returns, given as authentic, give a Republican majority in six counties of over 2,000 votes. Later advices from Kansas state that Parrott, (Free State,) for Congress, has a majority of from 5,000 to 8,000. According to the estimate of the Free State men the Legislaturestands: CouncilRepublicans 9, Democrats 4; House-Republicans 24, Democrats 15. Johnson county gives a Democratic majority of 250.
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Bank of the State of South Carolina Suspended, Telegraphic despatches received in this city this morning, from Charleston, announce the suspension of specie payments by "the Bank of the State of South Carolina." When we first beard this intelligence, our surprise was somewhat excited, but a moment's reflection convinced us, it was a result to have been anticipated, as among the fixed facts, unless the other Banks of Charleston sustained it. The Bank of the State, has long enjoyed a credit it was not entitled to; and being exclusively a State institution, and managed by favorites of the Legi-lature, it has been conducted by a class of politico-com mercial men, who generally used the Bank to subserve their own and their legislative friende' pur poses. In other words, they have presumed upon the credit of the Bank, to grant large accommodation loans, not to advance or promote the commercial interests of the State or city, but to sustain lame ducks and politicians. The consequence has been the Bank has been overrun with that class of business, and the result is seen in a suspension of specie payments-being the first institution in the cotton growing States to proclaim its inability to meet its engagements. Without any knowledge on the subject, we venture to express the opinion, that the other Banks in Charleston will not follow the very pernicious example set by the Bank of the State, and, therefore, that institution will be immediately wound up, a desideratum which the true friends of a sound currency in that State have long been endeavoring to accomplish. This suspension should not, we think, produce any excitement. It was, as we remarked, to have been anticipated, as a certain result of the policy and course of the institution. The true policy for the people to pursue in this crisis is, not to permit themselves to become panic stricken in reference to the sound and safe Banks.-Augusta Chronicle.
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BANK OF THE STATE OF SOUTH CAROLINA. The suspension of this institution is thus noticed in the Augusta Constitutionalist: "Despatches received in this city this morning announce that this institution has suspended. This is, perhaps, owing to the peculiar character of the bank, which is a State institution. Its suspension should create no panic, as the State is liable for its issues, and there is no danger of ultimate loss to the bill-holders. The other banks of Charleston are not injured, but rather, we imagine, relieved by this suspension of the Bank of the State, which they have had to aid and sustain, in some measure, for some time past. A large party in South Carolina have long contended that the Bank of this State should be wound up, and we hope that this will be the result of its present temporary suspension. 'The Bank of the State of South Carolina,' the State institution which has suspended, must not be confounded with The State Bank of South Carolina,' a private corporation, which, as far as we know or believe, is sound and safe."
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CHARLESTON BANKS.-The banks of Charleston, S. C., which had suspended up to Tuesday evening, are: Bank of the State of South Carolina, South Western Railroad Bank, Bank of South Carolina, and People's Bank. The last-wamed stopped redemption Tuesday morning, in consequence of, or on notice of, a demand for a balance of some $22,000 due one of the banks of theinterior. The Charleston Courier says: In reference to the first suspension-the Bank of the State of South Carolina-and the peculiar and prolonged character of its issues, we have but to repeat that there is an absolute guaranty of security and indemnity, under any possible and conceivable catastrophe of banking experience or development, which leaves no excuse or pretext for any fear of sacrifice on the part of bill holders. The good faith and financial integrity of the State, may suffer technically a blunder, and the penalty of subjection to banking contingencies; but the State herself, in her own proper attitude and sovereign personality is, has been, and will be, beyond and above all approach or question of contamination. The suspension referred to, has excited some surprise in quarters beyond our State limits, but we are pleased to record, that as yet, we have seen no expression or even intimation of an opinion contrary to that we have confidently reiterated. The bills of this bank, accordingly, were paid and received yesterday.
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SUSPENSION IN SOUTH CAROLINA. Suspension of the Bank of the State of South Cardina. This banking institution o' the State was compelled by unavoidable circumstances to suspend this forenoon. A good deal of excitement, 01 the announcement of the fact, pervades our community. There is, however, no just cause of panic-such a panic as will induce an unnecessary run on the other banks. The liberality of this bank in accommodating the people, when neither funds nor currency could be obtained from other quarters, had so extended its discount and circulation lines that when the other banking institutions, insisting on constant discharges of balances in specie between them-an unwise and incongruous measure at this crisis-made a press upon it, its suspension becsme inevitable. The note-holders and depositors need not, however, apprehend any loss, unless in their panic they choose to sacrifice their securities. The immediate liability on bills and deposites is about a million and a half. This is but a small proportion of the assets of the bank, which are unquestionable. Its discount line of promissory notes, its bonds, its exchange, its stocks, &c., all of which are realizable in a limited period, are nearly treble those liabilities. In addition to the amplitude of the assets and the general soundness of the bank, the State stands as a guarantor of its eventual liquidation of all demands. The rumor of the suspension of other banks is unfounded. We havé reason to believe they will pay on to the last, and that need not come.- Charleston News.
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BANK OF THE STATE OF SOUTH CAROLINA.-The Charteston papers confirm the telegraphic reports of the suspension of specie payments by the Bank of the State of South Carolina. A writer in the Charleston Standard (who is said to be familiar with the subject) says "it is not known, nor is it believed that any special cause has occasioned this result.By reference to the monthly Bank Statements, for the last few years, it will appear that the circulation, deposits, and other liabilities of the Bank are about the same they have been; its specie, exchange, for. eign and domestic, and other cash assets, have not been diminished; and the calamity, therefore, is one to which all the Banks in Charleston, and particularly the Bank of the State, must be always liable under the present system of exchange. The Charleston Evening News of Saturday says: This banking institution of the State was compelled by unavoidable circumstances to suspend. A good deal of excitement, on the announcement, pervades our community. There is however no just cause of panic-such a panic as will induce an unnecessary run on the other Banks, The liberality of this Bank in accommodating the people, when neither funds nor currency could be obtained from other quarters, had so extended its discount and circulation lines, that when the other banking institutions, insisting on constant discharges of balances in specie between them-an unwise and incongruous measure at this crisis,-made a press upon it, its suspension became inevitable. The noteholders and depositors need not however apprehend any loss, unless in their panic they choose to sacrifice their securities. The immediate liability on bills and deposites is about a million and a half. This is but a small proportion of the assets of the Bank, which are unquestionable. Its discount line of promissory notes, its bonds, its exchange, its stocks &c., all of which are realizable in a limited period, are nearly treble these liabilities. In addition to the amplitude of the assets and the general soundness of the Bank, the State stands as a guarantor of its eventual liquidation of all demands. The rumor of the suspension of other banks is unfounded. We have reason to believe they will pay on to the last.
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The Charleston Banks. The "run" and excitement which prevailed on Monday was not renewed on Tuesday to any great degree, and seemed to be subsiding gradually. We have, however, to add one name to the suspended list,-that of the People's Bank,-which stopped redemption yesterday morning, in consequence of, or notice of, a demand for a balance of some $22,000 due one of the Banks of the interior. There was, so far as we observed and witnessed, no general or excited pressure on any of the other er banks, which yet continue, however, to satisfy all claimants. We shall be pleased to note a returo of due and proper confidence, and of such a condition of affairs as may enable us calmly and impartially, to investigate the causes and responsibilities of the late revulsion in our midst, and the lessons to be derived from it. The list of suspensions for this city now stands: The Bank of the State of South Carolina, suspended Oct, 10th. South Western Railroad Bank, Oct. 12th. Bank of South Carolina Oct. 12th. Peoples' Bank, Oct. 13th. It is needless to say that the issue of the question, 80 far as it involves the renewal or continus ance of a panic, rests with the Banks, and with holders of their emissions. Unfortunately, howev. er, the evils and incidental injuries of such a state will not be confined to those previously active or interested in its promoting causes, but will be felt by all in the ramifications of business and daily traffic. Confidence, as distinguished alike from selfish distrust, and from rash presumption, is the great panacea, and we are pleased to hall any symptoms of its re-appearance. In reference to the first suspension-the Bank of the State of South Carolina, and the peculiar and prolonged character of its issues, we have but to repeat that there is an absolute guaranty of security and indemnity. under any possible and conceivable ca astrophe of banking experience or development, which leaves no excuse or pretext for any fear of sacrifice on the part of bill-holders. The good faith and financial integrity of the State may suffer technically a blunder, and the penalty of subjection to banking contingencies; but the State herself, in her own proper attitude and BOVereign personality is, has been, and will be, beyond and above all approach or question of contamination. The suspension referred to, has excited some surprise in quarters beyond our State limits, but we are pleased to record, that as yet, we have seen no expression or even intimation of an opinion contrary to that we have confidently reitersted. The bills of this bank, accordingly, were paid and received yesterday.-Charleston Courier, 14th nst.
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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.
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Suspended Banks. The following is a list of suspended banks in Georgia: Union bank, at Augusta. Manufacturer's bank, at Macon, All the banks in Savannah. The following is a list of 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, Planters' and Mechanics' bank, at Charleston, Farmers' and Exchange bank, Charles. ton. People's bank, Charleston, South-western Railroad bank, Charleston.
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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.
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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.
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Resumed. Thesuspended banks, in Charleston, resumed specie payments on the 8th, the bank of the State of South Carolina leading off. The country banks will follow, it is thought, iinmediately. This makes our bank bills, heretofore good, as current as they were before the suspension.