7284. Bank of Louisville (Louisville, KY)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
September 27, 1873
Location
Louisville, Kentucky (38.254, -85.759)

Metadata

Model
gpt-5-mini
Short Digest
30c11ab3

Response Measures

None

Description

In late September 1873 most Louisville banks (including the Bank of Louisville) formed a clearing-house association and 'suspended payment in currency' temporarily as part of the wider 1873 financial crisis. Articles mention a small run but emphasize suspension via clearing house and temporary nature ('for the present'). No explicit reopening date is given in these excerpts, but the language indicates a temporary suspension rather than permanent closure.

Events (2)
1. September 27, 1873 Run
Cause
Macro News
Cause Details
Minor withdrawals driven by the wider financial exigencies of the 1873 panic; described as some little run but not a full panic.
Measures
Banks promptly cashed checks; formation of clearing house and adoption of certified checks and pledges to settle through the clearing house.
Newspaper Excerpt
There was some little run on the banks Saturday, but checks were promptly cashed and no panic occurred.
Source
newspapers
2. September 29, 1873 Suspension
Cause
Macro News
Cause Details
Collective suspension adopted by Louisville banks in response to the national financial crisis (Panic of 1873); implemented via a clearing-house arrangement to limit currency payments and settle by certified checks and pledged securities.
Newspaper Excerpt
to suspend payment for the present in currency, except in small checks and to adopt the plan of settlement through a clearing house by means of certified checks and certificates based upon pledges of securities deposited with the Clearing House Association.
Source
newspapers

Newspaper Articles (2)
1. September 29, 1873 Public Ledger Memphis, TN
Article from Public Ledger, September 29, 1873

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Article Text

The Financial Situation. LOUISVILLE, September 29.- A largely attended meeting of bank presidents, cashiers and prominent financiers of the city was held in the gentlemen's parlor of the Galt House, yesterday afternoon and evening. The meeting was called to consider upon the present exigencies of the financial situation, and after long and earnest discussion, it was resolved to take the same action as that adopted by the association of banks in New York and the other great financial centers of the country, viz: to suspend payment for the present in currency, except in small checks and to adopt the plan of settlement through a clearing house by means of certified checks and certificates based upon pledges of securities deposited with the Clearing House Association. The following banks were represented: Western Financial Corporation, Bank of Louisville, Planters' Na tional Bank, Peoples' Bank, Farmers' and Drovers' Bank, Citizens' Bank, Louisville City National Bank, Second National Bank, Merchants' Bank, Falls City Tobacco Bank, Bank of America, German Security Bank. JEFFERSONVILLE, IND., September 29. The Ohio Falls Car Works has suspended operations in order to take a calm survey of the situation. James Howard & Co., boat builders, paid two thirds wages on Saturday, and will not suspend work. There was some little run on the banks Saturday, but checks were promptly cashed and no panic occurred.

2. September 30, 1873 The Rutland Daily Globe Rutland, VT
Article from The Rutland Daily Globe, September 30, 1873

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Article Text

Clearing House Association in Kentucky. LOUISVILLE, Sept. 29. The majority of banks formed a clearing house association yesterday and resolved to suspend paying currency in large amounts. The banks that suspended on Saturday are making arrangements to enter the clearing house association. The Bank of Kentucky declines to go into the association and continues to meet all demands made upon it at its counter. There is no run upon it and there is no excitement in financial circles.