Article gives only initial suspension and poor condition; no reopening mentioned, so closure inferred but not confirmed.
Events (1)
1.September 6, 1854Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank described as 'in an unhealthy condition' with many 'worthless' notes in circulation.
Newspaper Excerpt
CHESTERTOWN BANK.-This Bank has suspended payment. It has been in an unhealthy condition for some time.
Source
newspapers
Newspaper Articles (1)
1.September 6, 1854Smyrna TimesSmyrna, DE
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Article Text
CHESTERTOWN BANK
-This Bank has suspended payment. It has been in an unhealthy condition for some time. People should be careful in receiving notes, as there are a great minny worthless one's in circulation.
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.