Northern Bank - Lexington, KY

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: October 1, 1839*
Location: Lexington, Kentucky (37.989, -84.478)

Metadata

Model: gpt-5-mini
Short Digest: aa14e24d

Response Measures

None

Description

Article (Richmond Enquirer, 1839-11-01) states The Northern Bank of Kentucky, at Lexington, has suspended. Context indicates a broader panic (other city banks suspending), so suspension appears driven by contagion/macro banking news. The article gives no explicit report of a depositor run or of permanent failure; historically many such 1839 suspensions were temporary, so I classify as suspension_reopening but reopening is not confirmed in the text.

Events (1)

1. October 1, 1839* Suspension

Cause: Macro News
Cause Details: Contagion from suspensions of banks in Philadelphia, Baltimore, Cincinnati and general specie shortages/panic reported in October 1839; decision to suspend amid regional banking crisis.
Newspaper Excerpt: The Northern Bank of Kentucky, at Lexington, has suspended
Source: newspapers

Newspaper Articles (1)

1. November 1, 1839 Richmond Enquirer Richmond, VA

Article from Richmond Enquirer, November 1, 1839

Click image to open full size in new tab

Article Text

Constituting a total deposite of $1,645.000 Of these stocks, Indiana is quite good it not better than the others, yet that stock sold within a few days a 50 cents on the dollar It is therefore evident that the is security, though good, fails at the moment when it wanted in a state of ease and confidence in the market when the security will bring full price, it is not wanted; but is at a time like this, when the bills of the banks hus secured are selling at a discount of 5 per cent., thereby tempting speculators to run the banks, that the security is most wanted Should the new banks now be forced to suspend, and the whole of the above amount of $1.645,000 be thrown upon the market, The the holders will not realize 40 cents on the dollar. stocks of the new banks, as compared with the old in stitutions, are comparatively worthless, from the fact that in their dealings are ID securities which are at present consertible. These considerations are biassing the pubof the old system- with the arrival of the from England, an lic in next favor packet explosion banks will proba in bly take place among certain of the new this State which may prostrate the new system entirely, and the old banks of the city of New York will form a nu cleus around which will rally the solvent merchants and healthy business, while the speculating bankrupt jobbers, auctic neers and insolvents of all kinds will periah under the ruins.of that mighty system of unlimited credit they have helped to create. The Lancaster (Ohio) Eagle of the 26th says, "Thus for the Cincinnati Banks, (except the Commercial.) the X-nia. Hamilton. Dayton and Urbana are the only Ohio Banks known to have suspended. The Zanesville Ga. zette Wednesday last, says that the Granville Society has also suspended The Bank of this place (the Co. jumbus and Zanesville Banks) have, it 15 understood, decided to continue specie payments "The Wheeling Times says it has no doubt, from pre sent appearances that most of the banks in Ohio will wind up their affairs. They had much-better do it than attempt, embarrassed and restricted as they are, to continue business The Columbus Statesman of the 25th. gives an elaborate Table. fornish by the Auditor of the State, of from the condition of the thirty fire Banks of Ohio, present which it appears, that their amounts to $10, 22297-their circulation to 6.263 454-their deposite other money, 1.844 8-which with the monies due to banks and other liabilities. amount in the whole to $23.055426-And on the other side of the account, their notes discounted amount to $11;208 125; specie 2 098,587; notes of other banks 930-565. due from o her banks 966, 190: other resources 7,821,856; amounting in the whole to $23 065 426 The Indiana Banks. it is said by some, continue to pay specie.- But the Chillieothe Gazette of the 24th saye, that they have suspended. The Northern Bank of Kentucky, at Lexington, has suspended TENNESSEE BANKS "The news of the suspension eastward. reached Nashrille on the evening of the 17th inst The same evening, a consultation was had among the bank officers, of that city. but nothing definite was concluded on Next morning. the Bank of Tennessee the made specie draft of $100,000, on the Union, immediate and Planters Banks-the consequence was an Ten suspension by the two last named. The Bank of nessee still held out paying specie on the 18th inst. as we learn from the Nashville Whig of that date, while being unwilling to take the reaponsibility of suspending. the State Legislature is present, in session, to direct its movements The Nashville Banner of the 19th informs us, that the Union and Planters Bank suspended on the 18th, R. and that on the afternoon the Speaker of the H. of laid before the House the following communication from the President of the Bank of Tennessee "BANK OF TENNESSEE, Oct. 18, 1839. 'To the General Assembly of the State of Tennessee: Gentlemen- last evening's mail we are in recript of information that the Banks of Philadelphia, Baltimore and Cincinnati have suspended the payment of specie, and probably the New York and Kentucky Banks also. "This morning the Union and Planters' Banks have from also suspended The balance due this institution these Banke is very considerable, and they have refused the payment of the same. 1 have the honor to be, Yours very respectfully, W NICHOL, President. "This communication was addressed to both The Houses de. and referred to the committee on Banks. Yoakum bate was in the Senate was quite animated. Mr introduced a resolution. providing that notwithstanding the of payments by the other banks, 'the and branches to debts as the public faith and common pay suspension bank its of Tennessee specie will still resolution continue honesty require.'-1 immediate adoption of this Gilleswas pressed with much zeal by Mr Yoakum and Messrs. pie at considerable length by the who advocated its on which was ultimately fix Committee Laughlin and opposed and others, Banks, reference carried wasto to The object as avowed by most of the speakers all the responsibility of suspending on the Bank-at the sub eventato give no advice or make no pledge on ject. until the condition of the Bank and to to continue were officially specie payments made its it is known ability thought, the Legislature. The committee on Banks, will report to-day not beard the result.) The Commercial Bank of Columbia (S C) has acted the so for in an manner. Notwithstanding Baske in were urged by a deColumbia exemplary meeting of it the has citizens, to suspend specie payments, clined to but taken measures to virtually suspend, afford the purchase all necessary pecupiary relief, especially towards 'This' the C. Carolinian) striking not only of the soundness of cotton." evidence. (says of is this another com ex cellent institution. but of the general good sense, which perhensive views, and sound banking principles, will govern its affairs now, as heretofore. A little time shew the correctness of its policy. in the present instance, not only for its own sake, but that of the business of the place also-especially if, as seems daily more and more probable, the New York Banks do not suppend, which