Bank of Milledgeville - Milledgeville, GA

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: February 1, 1838*
Location: Milledgeville, Georgia (33.080, -83.232)

Metadata

Model: gpt-5-mini
Short Digest: d12e6d38

Response Measures

None

Description

The article (Richmond Enquirer, 1838-02-08) states the Milledgeville suspended specie payments. The piece places the suspension in the context of widespread monetary ferment and bank troubles elsewhere (Boston, NY, U.S. Bank operations), indicating a systemic/macro cause. The article does not report a run, receivership, or permanent closure, so I classify this as a suspension with likely temporary (reopening) character; however no explicit reopening is reported in this excerpt, so the reopening judgement is inferred as the likeliest outcome given typical suspensions in the 1837–38 panic — this inference is noted and may be revised if further documentation shows permanent closure or receivership.

Events (1)

1. February 1, 1838* Suspension

Cause: Macro News
Cause Details: Widespread monetary ferment, scarcity of currency and bank disclosures elsewhere (Boston, NY, U.S. Bank operations) during the 1837–38 financial disturbance prompted suspension of specie payments at Milledgeville.
Newspaper Excerpt: the Milledgeville suspended specie payments
Source: newspapers

Newspaper Articles (1)

1. February 8, 1838 Richmond Enquirer Richmond, VA

Article from Richmond Enquirer, February 8, 1838

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Article Text

Munctary Market. The N. Y. Herald of the 4th, states that "after ing week, during which stocks declined almost date and money seldom so scarce, something like a pause took place yesterday, and a slight firmness was observa ble in the prices of securities. Curtailments of the which have in a manner ceased here, are evident. Com ly rency, begun to be felt in other quarters. There is a plete fermentation in money matters over the whole country. From Boston and the East we have some of the bank disclosures. The Legislature of astounding have been examining the conduct of the Common State wealth, the American, the Lafayette, the Franklin banks. Some of these banks have been managed other the most corrupt principles. The transactions of on Franklin bank have been characterised by fraud. perjo of every kind. has been discovered and Mr. Smith, roguery a member of Congress from Maine, borro ed $15,000 of its specie to set a bank a-going there Also that large amounts of Mr. Webster's paper Some is Ivia protested in the Commonwealth Bank. over banks were the agents of Government-others to these The assets of the American bank are supposed good-and the bills worth their full value. These startling developments, showing the management of the Boston banks, have entirely rupt the character of Eastern money in this city the destroyed kind and description are returning upon ISSC Every This state of things has produced a slight suspen ers. of business in Boston Little is selling, it is sion the necessaries of life, flour at S8 and other prove but Great complaint is made of a scarcity of curren sions. cy-and fears are entertained of a revulsion among men of business." The same paper says, that " We have seen business letters of the first authority from Charleston, C. Mobile, giving an account of the new and inagnificent market operations of the U. S. Bank in the cotton those regions At the last dates, the agent of Mr. Bidd in Mobile had gone into the market and purchased lare quantities of cotton, paying for it in the old uncance led notes of the Bank In Charleston. similar operations were performed on Northern funds In consequence these operations, exchange on the South has somewhat vibrated, but its ultimate effects will not be realised time. It is generally believed now that the U some Bank has an outstanding circulation, in uncancello of $12,000,000, principally in the Southern notes, Western States. By these notes, Mr. Biddle can advantageous operations in the cotton market and in foreign exchanges.-10 is that the commercial engaged in form state, inland very however, interests due view to these tru to in the cotton and inland exchange business operations of Mr. B. with great jealousy and alarm.' of Monday states, that rather favorably. There is a commenced The Herald be slight the remembered week improve Saturday-which it will a better condition in money was evinced ment upon improved, affairs than ticipated. Stocks have generally although but slightly. We hope that the week beginning thus auspiciously may show a favorable change. It is much needed. In specie, nothing is doing. The only quota tions are-Mexican dollars, 104; half dollars, 103 1003 104. Treasury notes are at par. Five per cents, a 100.' Later slips from N. York represent the situation Sun of Banks, as not so gloomy-- - The N. York forms Boston us. that The Report of the Massachusetts gistature upon the American Bank, Boston, states of the total amount of its liabilities is $454,833, and their assetts $929,925; and the committee give it as nimous opinion that the resources of the Bank are amp bank their liabilities. With regard to the Kilby sme to meet Mercantile Journal says that it redeems all its of the its counter-that it is under the direction able bills at and highly respectable board of directors-and its liabilities are not large. The Journal concludes those holding its bills not to part with the under advising their par value. The Times says the notes the of con Bank are worth dollar for dollar; and calls T duet Kilby of the associates towards it a "scurvy trick." whole amount of its circulation is only about $135,00 of the Association hold $110,000." the Bank of Columbus has to at In which Georgia, yielded citizens, recommendation of a large meeting of the Uni payments. The Milledgeville suspended specie understand from the itself I.S "at a loss to propriet all dir expresses their suspension now, when accounts of tions, show a great depreciation as to the rate Bank of exchang of and premium on specie." The Insurance wealth town has done better; and is determined to same the Set orm. The following is the "praiseworth reply the President of this Institution, declining to comp with the request of the meeting. BANK OF COLUMBUS Gco. January "Columbus, "ISSURANCE transmitting 16, 1838 Gentlemen-Yo communication, proceedings of the Citizens of Columbus, requesting suspension of specie payments by this Institution of been received. Enclosed I hand you the action Board of Directors in relation thereto. "1, in common with others, am not insensible to of state of affairs, growing out of the 1 want find it present circulation; but at the same time Instit ficult necessary to reconcile the propriety of placing this its tion in the situation to decline to pay specie for affairs are so abundantly solvent, and part at this time too, when I believe the larly denced while its by indications the lower rate of Exchange and premium by specie, are so much in favor of a resumption Banks generally, in the course of the approaching sprit I am, gentlemen, with great respect, Your inbedient servant, J. C. WATSON. Pres Messrs. D. (cDougald, and others, Committee, &.c." False Rumor-And the true course.