2850. Bank of Darien (Darien, GA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
October 7, 1839
Location
Darien, Georgia (31.370, -81.434)

Metadata

Model
gpt-5-mini
Short Digest
f5109ed1

Response Measures

None

Description

Newspaper articles from Oct–Nov 1839 report the Bank of Darien as one of the suspended banks in Georgia; another article (Nov. 15) lists it among banks that are broken. No article describes a depositor run or a later reopening. OCR errors corrected (e.g., Darsen -> Darien).

Events (2)

1. October 7, 1839 Suspension
Cause
Local Shock
Cause Details
Pressure from regional scarcity of specie/credit and delays to crop payments (prevailing sickness) causing liquidity problems for southern banks.
Newspaper Excerpt
This is one of the suspended banks of Georgia, and its bills are at 25 per cent discount at Augusta.
Source
newspapers
2. November 15, 1839 Other
Newspaper Excerpt
Bank of Darien ... These are broken, and the last one entirely worthless (listed among broken banks).
Source
newspapers

Newspaper Articles (3)

Article from Morning Herald, October 5, 1839

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Article Text

houses, and the merchants are sacrificing their property in vaia struggles to meet their payments. There is growing impression in Wall street, that the Philadelphia banks must soon suspend. It is also reported that a great anxiety exists in Philadelphia for the New York banks to take the lead in such a movement. That cannot be, however; the New York banks are in a situation which is impregnable, until the depositors withdraw their deposites-an event which is probable only in case a high premium for specie is created in Philadelphia by a previous suspension of the institutions there. There are many of the speculative class of dealers who are anxious to bring about a suspension to ease their own affairs.We are not, however, apprehensive that such will be the case The many suspensions which have recently taken place are principally of badly conducted institutions, among which were the following:-Middling Interest Bank, Boston, Jewett City Bank, Conn; Essex Bank, Guildhall, Vt.; City Bank of Detroit, Bank el River Raisin; Bank of Darien, Geo.; Chelsea Bank; Willoughby Bank. There is every probability that many of the Southern Banks will suspend in consequence of the delay caused to the crop by the prevailing sickness. The indebtedness of that region to New York is of such a nature, being old debts, that it is not depended upon as present means. In Philadelphia and Baltimore, however, large Jebts were accumulated last spring which will trouble the banks of those cities unless they can be realised. Should the delay of southern payment carry them to the point of suspension, New York may be obliged to follow in her wake, more especially should the news by the Liverpool be as gloomy as is anticipated. Sales at the Stock Exchange. $2000 Corporation Bonds, payable in October 1840, 97-5 shares U S Bk 100g. 5 do 100A-50 do Com 943, 50 do 95, 50 do 30 ds 95.75 do 95, :00 do 84 mes941-15 do Manhattan Com 118-6 do4State Bk New York 93)-155 do Del & Hud 574, 50 do 57th 50 do s 60 ds 574, 50 dos 60 ds 573. 150 do s 10 ds 58, 50 do S 30 ds 58, 190 do 5St, 100 do a 30 ds 58, 130 do 581, 50 do S 60 ds 58, 215 do 58, 200 do 58 100 do 8 30 ds 58. 100 do S 60 ds 58 82 do 581, 25 do nw 581, 50 do 5th, 50 do S 30 ds 58, 50 do n w 581 900 do b n W 581, 50 do S 30 ds 58-20 do Am Ex Bank 79}. 35 do 791-10 do N A Trust 531, 110 do 534. 25 dos 30 ds 53 25 do 8 30 ds 537, 50 do 54, 125 de S 30 ds 53g. 25 do s10 ds 53g. 13i do 54, 50 do s 30 ds 534. 190 do 54, 00 do b next wk 54, 25 do b 30 ds 55, 25 de 54. 25 do b 30 ds 544-150 do Vicks burg Bk. tomorrow 33-50 do Kentucky Bk Monday 72 50 do nw 724. 50 do Menday 721, 50 do nw 72.100 do 72-10do Morris Canal 29-10 do Manhattan Ins Co 1051-25 do New York Gas Co 124-50 do Mohawk 524, 25 do 521-50 do Boston and Providence 60 ds 100-25 do New Jersey RR SS-110 do Stonington 211-28 do Utica 1153-60 do Harlem Rail Road a 15 ds 124, 150 do 421, 100 do 424, 150 do b 10 ds 424, 100 de 421. State of Trade. The sale of dry goods advertised for today by John Haggerty & Sons, consisting of 194 pkgs, was but a sorry affair. Tle attendance was very thin, and the goods went off very heavily at prices mach lower than at former sales. The dry goods trade generally is very quiet at this moment. The latter part of the present month is looked forward to by the tr de with much confidence that a good business will be done. This impression is warranted by the prosperous state of the inland navigation, and the large movements of produce, the arrivals of which at Buffalo, during the month of September, were as follows 25,027 bbls. 168 239 bushs. Flour, Wheat, " 14 646 1,197 kgs. Lard, Corn, 453 bbls. 181 000 Staves, Pork and Fish, In this market, cotton is quiet. In flour there is more firmness, in consequence of the decreased arrivals. Holders are stiff at $5 75 a $5 87}.


Article from Morning Herald, November 15, 1839

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Article Text

[Correspedence of the Herald.] Macon, Nov. 7, I$39. I last addressed you from Charleston. Since then, I have visited MiHedgeville, the metropolis of this state. The legislature commenced its session OR Monday. On Wednesday the Governor elect, Judge McDonald, was duly installed. You have, DO doubt, read the message of Governor Gilmer, in which he expressed himself decidedly against the banks. The legislature is decidedly locofoco, and harsh measures will be adopted against such as suspend. A.bill is already prepared to compel them to resume, under the penalty of not receiving interest from their debtors. or being allowing to sue themthus making bad worse. This will not pass, but shows somewhat the state of feeling which pervades nearly the whole legislature. All of the banks in the state are brought to a halt. They can col lect nothing. and they wont lend a dollar. The The Ocmulgee and Monroe railroad, of this place, spended a short time since, and commenced discounting and throwing out their paper trash. The planters and banks handled it so tenderly that they took the alarm and hauled in. Their notes are refused now in Savannah (where they were lately bankable) and I believe are now rejected by all the banks in the state, out of this place. There is an evident uneasiness among the banks in this place about these notes, and I look for them to be discre dited in every direction. I subjoin a list of all the suspended and broken banks in this state. I think the residue will continue to pay their debts, and some of those that have suspended, talk of resuming. Bank of Augusta, Insurance Bank of Augusta, Bank of Columbus. These are suspended, but speak of resuming immediately. Bank of Milledgeville, Georgia Railroad, at Athens; Oemulgee, Monioe Railroad, Planters' and Mechanic.' Bank of Columbus. These are suspended. Farmers' Bank at Chattahoochie, Bank of Darsen, Western Bank at Rome, Bank of Macon. These are broken, and the last one entirely worthles The scarcity of money in this country is beyond all precedent, but the merchants here dont do as the New Yorkers do. If they cant raise the wind without dividing the spoil with the brokers and shavers, they wait the issue of the law. A Georgian dont feel disposed to sacrifice his all at the shrine of punctuality. Property must change hands to an enormous extent, but the law has to be the arbiter in these cases. They are a law-abiding set. When nothing else can be done, its dictates are submitted to with as much resignation as can be expected from a hot-headed people. Yours, GALLATIN. Religion and Rum in Boston.-The Rev. John Pierpoint is again parson of the Hollis street church He was recently ejected for his ultra temperance doctrines. Amerigo Vespucci is sojourning at the Tremont House, Boston. The Third District.-Official returns have been received, and the three whig candidates are elected to the Senate. General Root by one vote! The words three dollars in the original bills are stricken out and the words twenty dollars substituted. Troops for Florida. - One hundred dragoons under the command of Lieutenant Darling, left this city on Wednesday, for Florida.


Article from Morning Herald, November 18, 1839

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Article Text

Bank of Darien and branches on the 7th of October as compared with the 1st April, 1839 Oct. 1839. Decrease. A; ril, 1839. 670.376 605,719 Loans, 64,657 47,458 170,576 23,118 Exchange 32 449 21,724 54,173 Specie, 440 993 293,720 Circulation, 147.273 25,085 32,139 7,054 Deposites This is one of the suspended banks of Georgia, an its bills are at 25 per cout discount at Augusta. The Oemulgee Bank at Macon has also suspended. United States Bank notes are at 5 per cent discount, and Savannah city notes at 1 per cent premium, and specie 6 per cent premium. Sight checks on New York at 10 per cent premium. It will be recollected that on Tuesday last we published a circular containing a new arrangement proposed by the Safety Fund Banks for the redemption of their bills in Albany. An in vitation was extended by the same circu'ar to the associations under the general Banking Law, to join the plan. By a refereace to the letter of our correspondent at Rochester, published in another column, it will be seen that this invitation has been accepted. The arrangement, as it now stand is very imper fect, and will by no means effect the desired object of making their bills available in New York. A merchant here, in possession of Safety Fund money remitted him in payment of notes, does not want a draft on Albany for the money, and to negociate them will cost at least 11 per cent. or all the difficulties with which our state currency has had to contend, the miserable bungling in the exchange system 18 the worst. The evil is now of so great maguitude that it calls imperatively upon the Legislature to interfere and set it right. Much of the difficulty during the past summer has arisen from the conflict of the two systems of banking, each of which is struggling for the mastery. There are fo England, Scotland, Ireland, and New England, four different modes by which the exchange of bills among the country banks is regulated, each of which works with perfect harmony and preserves the recipients of the bills from loss. There are in England, 670 private country banks, and 274 joint stock banks, making 904 banks, which issue either their owa notes or those of the Bank of England. The Bank of England is not professedly a bank of discount; they avoid discounting prirate bills as much as possible, and design only to furnish a cir. culating medium by the purchase of public securities, leaving the discounting of private paper to the bankers of Louach. To do this, the bank uniformly keeps the rate of interest a little higher than the market rate. It is only in times of severe pressure that they discount commercial paper. When the rate of intere*t was kept at five per cent by law, and the market rate rose above it, every one applied to the bank: but now the institution raises the rate to any amount. Thereiore the cireulation for sixty-five miles round London, is in the notes ex* clusively furnished through the medium of bankers. There are many of the country banks which, although entitled to issue notes of their own, prefer to issue these of the bank.These oanks, in particular circles, meet on Tuesdays and Fri days of each week and exchange the notes they hold of each other's issue, and the debtor banks give a draft on the London banker who is their particular agen', for the balance. The arerage sum ou deposite in London for each of these banks is £6,000, making £4,520,000; the interest of which at three per cent. is £135,600 per ensum-which, added to an avera commission of £300 paid by each. is the remoneration of the London banker. This system has been proposed to be altered by establishing a joint agency in Londen, which will reduce the expense nearly half.