Article only reports suspension of specie payments after Charleston news; no follow-up on permanent closure.
Events (1)
1.October 24, 1839Suspension
Cause
Local Banks
Cause Details
Suspended specie payments shortly after receiving news of a suspension at Charleston.
Newspaper Excerpt
We are informed that the Bank of Ham. burg, S. C., and the Banks of Augusta, Ga., suspended specie payments, shortly after they received the news of the suspension at Charleston.
We are informed that the Bank of Ham. burg, S. C., and the Banks of Augusta, Ga., suspended 5) ecie payments, shortly after they received the news of the suspeusion at Charleston.
Bank runs are almost always and everywhere a deterioration of bank fundamentals.
But not for you.
You are the measure-zero exception: great fundamentals, solid bank, and yet the Diamond Dybvig fairy spread its rumor. Depositors woke up. Your collateral was not prepositioned. The Clearinghouse had it for you.
Do not pass Go. Do not collect $200. Go directly to jail… or worse.