2818. Bank of Columbus (Columbus, GA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
August 1, 1841*
Location
Columbus, Georgia (32.461, -84.988)

Metadata

Model
gpt-5-mini
Short Digest
89b4c430

Response Measures

None

Description

The Bank of Columbus (Columbus, GA) was placed in receivership / suspended in Aug 1841, later withdrew from the list of suspended institutions and resumed specie payments in Jan 1842, and then suspended again on or about 1842-03-30. There is no clear contemporaneous description of a depositor run driving the suspensions; the Aug 1841 action was a receivership (government/judicial action). Final outcome after the March 1842 suspension is not reported in these articles. I classify the overall episode as a suspension followed by reopening (the bank did reopen in January 1842).

Events (5)
1. August 1, 1841* Suspension
Cause
Government Action
Cause Details
Receivers were appointed for the Bank of Columbus by state authorities / judge (judicial appointment of receivers).
Newspaper Excerpt
Gov. McDonald has appointed receivers for the Bank of Cloumbus ...
Source
newspapers
2. September 3, 1841 Other
Newspaper Excerpt
proceedings under the appointment made by Judge King of receivers ... have been suspended ... Those Banks are now redeeming their bills as heretofore, and we have full confidence in their ability ... No one need sustain any loss on their bills.
Source
newspapers
3. January 10, 1842 Reopening
Newspaper Excerpt
We are much gratified to learn that the Bank of Columbus at Columbus, Ga. has resumed specie payments.
Source
newspapers
4. January 11, 1842 Other
Newspaper Excerpt
The Bank of Columbus, Geo., has withdrawn from the list of suspended institutions, and has resumed specie payments.
Source
newspapers
5. March 30, 1842 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Reported ongoing struggle for existence after resumption; accounts state the bank has since sustained a constant struggle for existence, leading to suspension on March 30, 1842.
Newspaper Excerpt
The Columbia (Georgia) Enquirer says that the old Bank of Columbus suspended specie payments on the 30th ult.
Source
newspapers

Newspaper Articles (9)
1. August 9, 1841 Mobile Daily Commercial Register and Patriot Mobile, AL
Article from Mobile Daily Commercial Register and Patriot, August 9, 1841

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NEW ORLEANS, Aug. 7. The Cotton Market during the week was very heavy. The entire sales reached about 450 b, viz : 100 Louisiana and Mississippi 104; 23 at 10; 28 at 8f; 130 N Ala 81; 12 Texas 81. Prices were merely nominal. Received during the week 505 b. Cleared 4694 --leaving a stock of 18,801 b. The account of the crops from Louisiana and Mississippi are favorable, and the planters were taking advantage of the fine weather to pick the bolls as fast as they opened. Among the receipts of the week, were 9 bales of the new crap; 7 of which classed "fair" sold at 11 ce per lb. Western produce was very abundant, but notwithstanding increased facilities for shipment, there was scarcely any inquiry for export. In Exchange there is no alteration of price, and sales dull. The same is reported of freights. The total number of pounds of Pork shipped from the 1st Oct. last till the present time, is 8,224,000. During the same time for the previous year 3,643,326, showing the enormous disparity of 4,580,674 lbs In almost all the staple articles of Western produce, a similar difference in favor of the past season exists. The quotations of Exchange at Augusta on the 5th, were for drafts on New York at 1) a 14 prem; checks 8 per cent; Philadelphia par. A decided improvement had taken place in Georgia Railroad Notes. The papers speak highly of the prudence with which this institution had been managed. Gov. McDonald has appointed receivers for the Bank of Cloumbus and the Planters' and Merchants' Bank, to take charge of their assets. If this course were pursued with every suspended Bank, the State of Georgia would require no better "Regulator" than Gov. McDonald. There is a strong and general disposition in the state to force the banks into honesty and propriety, and with the reaping of the abundant crop of the season, it is expected that the Georgia currency will stand almost on a par with that of its neighbor South Carolina.

2. August 12, 1841 Edgefield Advertiser Edgefield, SC
Article from Edgefield Advertiser, August 12, 1841

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The Banks.-The Columbus Argus of the 4th inst. says:-" Judicial proceedings have been instituted against the Banks of this city, and receivers have been appointed for the Chattahoochee Rail Road and Banking company, and for the Bank of Columbus, by Judge King of the Flint Circuit. This is rather an extraordinary proceeding. Our own opinion is, that the law does not contemplate or anthorise the appointment of a receiver until the proper tribunal has declared the charter forfeited, but if it be necessary to appoint for one, it is for all why not appoint a receiver for the Planters and Mechanics Bank as wellas for the others? Really it seems as if Judge King will use his judicial powers just in any way that any body chooses to ask; not long since, he granted certioraries in favor of the Planters and Mechanics Bank, upon cases that had never been tried; and now, he appoints receivers for the Banks before their charters had been forfeited. This is what we call hanging first and trying afterwards. It is not just either to the Banks or the people. We have no objections to proceedings of any kind authorised by law against the Banks, but we do object to making the judicial pow ers Oil the government, the organ of partiality or oppression.

3. September 3, 1841 New-York Tribune New York, NY
Article from New-York Tribune, September 3, 1841

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Commercial and Mon Matters. Thursday, P.M. There was a fair business done at the Stock Exchange to day, but the market was not sustained. U.S. Bank shares improved 1 per ct.; N. A. Trust declined Mohawk and Paterson Harlem 1; Long Island, and Delaware & Hudson 1. Farmers' Trust improved 2 per cent. The only transactions in State Securities was55 1,000 Illinois Sixes, 1870 The Commercial Bank of Rochester has declared a dividend of 4 per cent. The Canal Bank, Albany, 4 per cent. The N. Y. State Bank, Albany, 5 per cent. The Phenix Bank of Hartford, $3 50 per share. F John O. Cole, Esq. has been appointed Cashier of the Watervliet Bank, West Troy. The Canal Commissioners advertise for sealed proporals, until the 15th inst. for a loan of seven hundred thousand dollars for the enlargement of the Erie Canal: two hundred thousand dollars for the construction of the Genesce Valley Canal, and one hundred thousand dollars for the construction of the Black River Canal; making in the whole the sum of one million of dollars, for which transferable certificates of stock will be issued in the name of the People and of the State of New-York, bearing interest at the rate of five per cent. per annum, payable quarterly, on the first days of January, April, July and October in each year, and the principal payable on the first day of July, 1860, or at any time thereafter, at the discretion of the Commissioners of the Canal Fund. The Georgia Argns, speaking of the proceedings under the resumption law against the two Banks in Columbus, says: "We understand that all proceedings under the appointment made by Judge King of receivers for the Bank of Columbus, and Planters' and Mechanics' Bank of Columbus, have been suspended, and that nothing will be done in the premises until the return of Judge Welbourn. Those Banks are now redeeming their bills as heretofore, and we have full confidence in their ability and the disposition of those who control them to continue to do so. To place their assets in the hands of receivers would at once have the effect to depreciate their bills, and the injury resulting from it would fall upon the people, not upon the Banks. Of the ultimate solvency of these Banks, we believe no one entertains any doubts, and even if their charters should be forfeited. NO one need sustain any loss on their bills." Some of our friends from the Wes: have called upon us, and complain that they have been deceived by "SYLVESTER'S REPORTER," where the bills of the Wisconsin Marine and Fire Insurance Compamy are quoted at five per cent. discount. On this authority they came here with their pockets full of the money, and find that it is not bought at any price. We understand that the bills are perfectly good where they are issued, but no provision is made for their purchase in this city. New-York Markets. ASHES.-No change. The market is not active. Sales of both descriptions at $5 75. FLOUR-The demand in better, and the market rather more firmNo change in prices. COTTON.-The market is very quiet. I GRAIN.-Corn is more plenty. Sales Southern Yellow at 76c, mea sure; Jersey 76c, weight Oats at 48c for new, and 50c for old. Ryo is in demand at 76} a 77.

4. September 8, 1841 New-York Tribune New York, NY
Article from New-York Tribune, September 8, 1841

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The current rate for U.S. Bank Notes to day is about 30 per cent. discount. It is really somewhat surprising that these notes are yet at to great a d scount Not only are they. under the last assignment. receivable for all dues to the Bank, but any assets of the Bank may be sold and payment received in these notes and, in addition a partial assignment, as is known, was made some time since of $12,000,000 of assets to secure the holders of their notes, and the depositor, estimated together at 5 000.000, since reduced to $4,000,000. In the sale of the assets of the Bank and the gradual settlement of the suspended debt, a demand must grow up for the notes of the institution, and con sequently the rate of discount be lessened. Some reports have been afloat lately, affecting the standing of the Bank of Columbus, Geo. The Cashier of that institution states in a letter to a highly respectable house in this city, that the reports are unqualifiedly false, and were started by individuals in Columbus hostile to the Bank, and who have been endeavoring to injure its reputation. Among other rumors, it was stated that the Bank had been moved into Alabama and a new Cashier appointed for which statement there exists not the slightest foundation. The defalcation of one of the officers has also been mugsified; but the letter of the Cashier states that the amount was small. and that the Bank is amply secure from loss. We also learn that there is a stronz probability that the Bank of Columbus and the Planters and Mechanics' Bank will soon resume specie payments, for which they are preparing. In relation to the state of business and the Money Market in Philadelphia, Bicknell's Reperter says: Money has undergona little or no change. The rates continue low for first-rate paper; but there is little or none of this kind in the out-door market. There never was a period, perhaps. when more speculators or unstable houses found more difficulty in raising funds. Still, we hear of no failures, and business generally, although not extravagant or particularly active, may be regarded as wholesome and fair. The fall trade may be said to be at its height. Some of our houses are very busy, and all of any note have something to do. The opinion 18, that the season will prove a very fair one, and sound in its general results. Money, (first-rate paper out of doors) 6 to 8 per cent." The Ca-hier of the Bank of Michigan has actified the debtors of that institution that the injunction having been removed, it is the intention of the Directors to bring its affairs to a close as speedily as possible, and cails upon them to pay up. New-York Markets. ASHES.-The inquiry for Pots is rather more active to-day, but 5.75 continues to be the market rate. Pearls are selling in small lots al the same price. The receipts are fair. COTTON.-For the last two or three days the sales have averaged 4 or 500 bales, at about I cent decline on ruling prices before the arrival of the steamer. The market is still rather in favor of the buyer. FLOUR -The demand is limited, and sales of Genesee are not easily made at $7.00, which is the price it is freely offered at to day. Some small lote have been sold at that price. Ohio we quote at 6.75 a 7.00; Michigan 6.75 a 6 871. In Southern there is no change. Georgetown 18 held at 7.25, and Brandywine at 759, but we hear of no sales. The market generally has a downward tendency, and will probably decline to the rates previous to the arrival of the Britannia. GRAIN.-A cargo of 1500 bushels new North Carolina Wheat. interior, was sold at 130c, and 500 bush Genesee at 145. Sales of 2000 bash Jersey Corn at 78. meas; 2500 do Southern at 7S! meas. Northera is held very high-85 a 86 meas. Sales 2500 bush Rye, to arrive, at 76 delivered. No change in Oats. We quote new Northern at 48, old do 50 a 51. The demand IS not active.

5. January 10, 1842 New-York Tribune New York, NY
Article from New-York Tribune, January 10, 1842

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Motio A lot of 3591 shares Harlem Ratiroad stock was offered at auction to day, said to have been hypothecated with John Ward & Co. by the Company for money borrowed. Tbcy were sold in lots of 50, with the privilege of taking 500 shares, and were: bought by J. H. Gourlie at 9. 91, 91 a94. As Gourlie is hand and glove with the managers of the road he probably bought for account of the Company. It is supposed that the aggregate circulation of the iacorporated bank. of this State, According to the return of January 1st. will be only about eight millions of dollars A year ago it was $15,235 050. Two years ago, $10,360,592. Three years ago, $19,373,149. Four years ago, viz. 1st of re January, 1838. 1,812,432,472. This was the first annual turn after the suspension of specie payments. Five years ago. $24,198,000. The apecio in this city is about three and 8 half millions. The Equitable Insurance Company has declared a dividead of four per cont. Bank of Georgotown, S.C. one dollar pershare: Bank of Camdes. S. C. two dollare per share: UnionBank of South Carolina one dollar fifty cents per share; Yank of South Carolina one dollar tifty cents per share: Farmers' and Planters' Bank, S 9. seventy ty-five per share. John Russell, Eeq. has been appointed Cashier of the Penn Township Bank, in the place of Jacob Frick, Esq resigned. We are much gratified to learn that the Bank of Columbus at Columbue, Ga. has resurred specie payments. We trust this noble example will be followed by more of the suspended banks in the infected district. The publie voice requires it, and will soon make itself heard in tones not to be misunderstood. Although the South it was stated, required but one or two crops to place it in a strong position to resume, yet crop after crop has gone forward to market and the supension yet continues. The Banks find it too profitable a condition to resign it, ex cepting under compulsion. The Bauk of Columbus has been one of the ableet managed institutions in the South and great credit is due to its cashier, A. B. Davis, Eeq for his financial skill and untiring industry by which he has enabled the bank to withdrew from the unholy alliance of suspended banks, and has taken her position again among the colvent institutions The repudiating meeting held in Philadelphia some days ago forwarded a petition 00 the subject to the Legislature which was referred to A Committee of the House on Wednesday last. with instructions to report against it, and give unqualified Resurances to the creditors of the State that the faith of the State should be most colemnly preserved. They reported accordingly, and the report WHY adopted unanimously.

6. January 11, 1842 The New York Herald New York, NY
Article from The New York Herald, January 11, 1842

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This bond is endorsed as follows :" For value received, the BANK OF THE UNITED STATES guarantees the paymant of the principal and interest of the within bond in the manner specified there. in. J. COWPERTHWAITE, Cashier. BANK OF THE U.S. Oct. 1st, 1838." The bond is further endorsed, " Richard Alsop."These bonds, to the number of 312, fell due as specified, on the 1st inst. and on application to Jas. Iddings, As sistant Cashier of the Bank of the United States in New York, payment was refused, and at the request of J.E. Thayer, protest was made, and notices served on the following persons :-" Richard Alsop.Esq. Philadelphia; " Bank of the United States, Philadelphia, Pennsylvania ;" Jas. Robertson, Esq., President, and Thos. E. Tay. lor, Cashier of the U. S. Bank, Pa.; " The Planters Bank of the State of Mississippi, Natchez, Miss." These bonds are mostly held in Boston, and when negotiated in this market, it was understood Mr. Alsop was to receive the proceeds-he now, however, resists payment as endorser, because the bond purports to be sealed, although a close observer could discover no seal upon the instrument : suits were immediately commenced against him in the United States Court; and as we before stated, the rents of the U. S. Bank building in New York, were at tached. Since then the farm and other property of Mr. Alsop, in Connecticut, have been attached. The eastern creditors have long enough been harrassed by the practical repudiation, insolvency and dishonor of Pennsylvania, and seem now determined to have justice if the protection of the federal government can give it. In the Stock market affairs are very gloomy and prices again fellte-day-Delaware and Hudson 1 & per cent; Illinois 6 per cent, 1; Bank of Commerce Scrip 2 per cent; Harlemt; Mohawk R. R. 2 per cent; Canton 1; sales of bills on Philadelphia 41 a5; Baltimore 4; Mobile 17; New Orleans 10. Another sacrifice of the State credit was made at auction to-day to feed that vampyre, the Erie Rail Road, in the shape of $100,000, 6 per cent stocks. The effect of these repeatedly forced sales, may be seen in the fact that New York State 6 per cents, redeemable next June, were sold at the board at 96, which is equal to 14 per cent per annum on the investment. The Delaware and Raritan Canal and Camden and Amboy Railroad Transportation Company have declared a dividend of three per cent for the last six months, pay. able on the 15th inst. The Paterson and Hudson Railroad Company have this day declared a dividend of two and a half per cent, payable on the 20th inst. The Connecticut River Banking Company has declared a dividend of three per cent for the last six months, payable on the 10th inst. The Connecticut River Company has. declared a dividend of two dollars and fl fty cents, pay able on the 10th inst. Bela Latham, William Conclin, and E. W. Hubbard, have been appointed Bank Commis sioners for the State of Ohio. The Bank of Columbus, Geo., has withdrawn from the list of suspended institutions, and has resumed specie payments. A creditable move, and one which we trust will be extensively followed. The Farmers' Bank of Orleans, a free Bank, having failed, the Comptreller has issued a notice to that effect. The affairs of the Bank are stated as follows:FARMERS' BANK OF ORLEANS. Amount of circulating notes registered and is. sued to the Bank, $85,385 $78 650 Secured by bonds and mortgages stocks-Indiana 5's 75.000 $153,650 The bills at the best are, therefore, worth but 70 cents on the dollar. John Brough, Esq., auditor of the State of Ohio, has, in a letter utterly denied any connection with that ex ploded concern, the Lebanon Miami Bank. The State Bank of Illinois has issued the following notice STATE BANK OE ILLINOIS,? Dec. 29th, 1841. At a meeting of the Directors of this Bank, held on the 21st inst. the following preamble and resolution were adopted, viz: Whereas a circular has been received from the President of the State Bank of Indiana, setting forth that the said bank will be prepared to unite with the banks of Ohio and Kentucky in the resumption of specie pay. ment, on the first day of August next :-Therefore, Resolved. That the State Bank of Illinois and its Branches will be prepared to join with the banks of Ohio, Indiana and Kentucky in the resumption of specie payment, en the said 1st of August next." By order of the Board, N.H.RIDGELY,Cashier. This amounts to nothing. The same professions have been made these three years. The banks are never all ready at the same time. The following was the condition of the Bank on the 13th November last, as compared with the previous year STATE BANK OF ILLINOIS

7. January 20, 1842 Martinsburg Gazette Martinsburg, WV
Article from Martinsburg Gazette, January 20, 1842

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BANK OF COLUMBUS, GEO.-This - Bank has withdrawn from the list of suspended institutions, and has resumed specie paymen's.

8. April 8, 1842 New-York Tribune New York, NY
Article from New-York Tribune, April 8, 1842

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Commercial and Money Matters. THURSDAY, P. M. There was more animation at the Brokers Board onday, and the sales were larger than for some days past. The market was generally firm. Delaware and Hudsan improved i per cent. Harlem 1, Mobawk 14, Paterson 1, Canton Co. 3. The operations were limited in State Stocks, but N. Y. Stocks were very firm. Five and a half improved 1 per cent. Illinois declined 1 per cent. Indiana 1. Ohio Sixes were firm. The sales were as follows 183 75 do 2,000 1,000 New-York 5. 51. 185 do this week 16 5,000 1,000 Illinois 6s, '70 184 do cash 152 1,000 1,000 do next week 18 19 cash do 2,000 1,000 Indiana 5s SECOND BOARD. do 1,000 Illinois 6s, '70 10 days 15 1,000 15% There is rather a better feeling in Foreign Exchang Sterling 6} a -Francs 5.37! The operations for the packet however were not very large. No material change in Inland bills. Specie is still moving toward Philadelphia. The Banks there appear to have an insatiable longing for coin, and refuse to receive any thing for their drafts but metal. Robert C. Cornell, Esq has been appointed Receiver GI the Lafayette Bank of this city. We have a letter from Columbus, Geo. stating that the Bank of Columbus has again suspended payment. This Bank resumed about three or four months ago and has since sustained a constant struggle for existence.

9. April 14, 1842 Staunton Spectator, and General Advertiser Staunton, VA
Article from Staunton Spectator, and General Advertiser, April 14, 1842

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The Columbia (Georgia) Enquirer says that the old Bank of Columbus suspended specie payments on the 30th ult. President Houston has declared the ports of Mexico in a state of blockade.