7512. Bank of Salisbury (Salisbury, MD)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
October 2, 1851
Location
Salisbury, Maryland (38.361, -75.599)

Metadata

Model
gpt-5-mini
Short Digest
91f14e59c11a5316

Response Measures

None

Description

Contemporary papers (Oct. 1851) list the Bank of Salisbury, Md., among Broken Banks and discuss inability/temporary absence of redemption at New York agents and loss of confidence following other Maryland bank troubles (Havre de Grace). No article describes a discrete run followed by a temporary suspension and reopening; the coverage indicates failure/stop and inclusion in a list of failed banks, so classify as suspension leading to permanent closure. OCR errors in articles corrected (e.g., Havrede Grace -> Havre de Grace).

Events (1)
1. October 2, 1851 Suspension
Cause
Local Banks
Cause Details
Loss of confidence and redemption difficulties tied to failures/troubles of other Maryland banks (e.g., Havre de Grace) and agency redemption interruptions in New York; brokers listing it among 'broken banks'.
Newspaper Excerpt
Broken Banks.-List of Banks Already Failed ... The Bank of Salisbury, Md.
Source
newspapers

Newspaper Articles (3)
1. June 28, 1851 The New York Herald New York, NY
Article from The New York Herald, June 28, 1851

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Article Text

Dr. James R. Chilton, the most celebrated chemist in the United States, has had charge of Dr. Townsend's sarsaparilla manufactory for more than a year, and has made many important improvements in the medicine. From one to two teaspoonfuls of the improved earsaparilla that is required for a dose, to act as a mild alterative and topic. Dr. Chilton's certificate. printed in green paper, will befound on every bottle prepared since February. 1850. as well d's Dr. S. P. Townsend's signature. on steel plate label, on the outside wrapper. Beware of counterfeite, and buy that only which has Dr. Chilton's certificate on the wrapper. Principal offices- In New York, 82 Namau street; in London, 355 Strand, next door to the Lyceum Theatre. MONEY MARKET. FRIDAY, June 27-0 P.M. The stock market was unusually active at the first board to day. Reading. Harlem. and Erie Railroad. were in demand, and the transactions were very large, with an advance on prices current at the close yesterday. Most all the fancies improved this morning. The bulk of the operations were on time. buyer's and seller's option. Canton Company went up % per cent; Stonington. 1; Reading Railroad.) Harlem. M Erie Railroad, 14. At the second board. Reading Railroad advanced % per cent; Harlem 14; and Erie Railroad, 1/6, with moderate sales of each There are indications of another upward movement in Reading Railroad. and the probability is that the impstus will be given in a different quarter from the last. Harlem Railroad will. without doubt, touch higher points between this and the closing of the books for the dividend. than have been realized for a long time. There has been an active demand for money. within the part few days; but it has partially subsided. and the market is pretty easy again. The failure of a large chipping house was announced to-day. The same concern suspended about two years ago. Losses on shipments of cotton is said to be the cause of the akdown this time. The firm pretented to do a commission business. but like most all other commission houses, had large speculations of their own on hand. The receipts at the office of the Assistant Treasurer of this port. to-day, amounted to $99,116.83 payment $93.200-balance, $2,966,662 84. The facts which transpired during the trial of the Cashier of the Havre de Grace Bank. have frightened holders of the bills of the Bank of Salisbury, another Maryland banking institution of the Havrede Grace order. These bills are at present redeemed in Wall street. at one per cent discount. and probably will continue to be 80 redeemed as long as it is for the interest of the agent or agents. We caution the public against the issues of this Salisbury Park. It is sustained by a small elique 6 financiers. who will let it go by the board one of these days. and the result will be similar to the Plainfield Lehigh. New Hope. Morris and Havre de Grace banks. All who have any of the Hills, had better take them at once to the agent in Well street. pay the one per cent discount and get good bills. or the specie. in exchange. There has not been a very active demand for foreign exchange for mittance by the United States mail steam ship Humbelet Wequote bills on London. 10% a 101, per cent premium: on Paris. 5f 814 a 5f 71/2 Amsterdam, 4114 a 42 Bromen. 75% a 791/: Hamburgh, 3014 a ST The Humboldt will not take out a very large amount of specie. Several orders for shipment have been counter manded She will not take more than half a million of dollars Holders of Western State. City. County, and Railroad Bonds, the interest on which is due on the 1st of July preximo. will find an advertisement in another column. designating the place of payment, upon presentation of the proper coupons. We have heard loud complaints lately. about the doings in the Government Land Office. in relation to the issuing of land warrants, and it is full time that the Secretary of the Interior looked into the matter. There are at least twenty five thousand certificates and proofs in that office waiting for warrants; and speculators who under stand how to pull the wires in that department. can get their warrants through before others which have perhaps been waiting months for their turn. The office of the Commissioner of Pensions. and the General Land Office, are equally implicated in this matter. The advantage which this unfair, unjust mode of doing business

2. October 3, 1851 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, October 3, 1851

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Article Text

SECOND BOARD 74 100 Erie R. R 86 $2,000 Erie Conv 5 $60 b30 54 1200 Ports. D. D 200 Read. R. R 50 N. O. Canal B. Co. 90 100 N.J. Min. Co. $60 81 b4 90 66 do 25 5 Hud. Riv. R. R 510 90 50 do 74 100 Erie R.R 64 200 Harlem R. R do 50 opg 75 s30 64 do 100 74 do 25 64 do 50 74 do 25 100 Morris C. Co. b60 14 $30.74 do 100 b30 75 do 100 100 Reading R. R. b30 54 53 do 100 74 do 200 do s3 74. 25 THURSDAY, Oct 2-P. M. The influence of the uncurrent money panic has passed away and stocks have resumed their previously improving tendency. The market has been scarcely so active as it was yesterday, but the transactions show generally higher prices. Erie Stock shows an advance of two Pencent., an advance, owing, however, as much to the favorable statement of the receipts of the road which we published yesterday, as to the subsidence of yesterday's panic. The Convertible Bonds improved Harlem advanced 11 Erie Bands, 1859, H Reading,1 Long Island, 1, and Canton The Money market shows a feeling of gradual ameliortion. No Gold is going this week to Europe, and the declining rates of Sterling Exchange indicate the probability that little or none will go next week. Sterling is offering at 91 @101 P cent. for the best bills, and the supply is likely to be increased largely from the South before the next steamer sails. In Freights there is less offering, and the rates are hardly so firm. To London, 5,000 bushels Wheat was taken at 5d. to Liverpool, Flour at 7@ 7dd. Wheat, and Cotton and Heavy Goods at former rates. The Brokers have generally returned to the discount of our State money for the present, all uncurrent money is bought @@ P cent. higher than usual quotations. John Thompson publishes the following list of Broken Banks I P. M. Oct. 2.-Broken Banks.-List of Banks Already Failed James Bank, Saratoga County Bank of New-Rochelle Farmers' Bank of Mina Western Bank, White Creek Peoples' Bank, Paterson, N.J. Commercial Bank, Perth Amboy The Bank of Salisbury, Md. The Bank of Cayuga Lake, and State Bank at Saugerties are regularly taken by the Brokers to-day. The New-York Agent of these Banks has published the following notice The Bank of Cayuga Lake and State Bank at Saugerties are wholly secured by United States and New-York Stock and redeemed by Washburn & Co. at Peent. discount in specie,at the bank at par.and received by the Brokers at the current rates. The Albany Evening Journal, of last night, states that There was a little flurry in the street this morning, caused by a rumor that the bills of three free banks were not redeemed at their agency in this city. The rumor was true but the absence of funds will only be temporary, and scaused by an unusual and unexpected rush of the bills of these particular banks. They will, weare informed, probably be redeemed as usual, to-morrow. Or if they should not they are just as good as gold, inasmuch as they re secured by anabundance of first rate stocks." In respect to the Commercial Bank at Amboy, The Newark Advertiser states "We understand that an injunction was granted, Saturday last, against the Commercial Bank of New-Jersey. The injunction was served and the assets taken by Receivers on Monday morning. No full investigation of the affairs of the Bank could yet had, but it is the opinion of the officers, and those best acquainted with the matter, that there are assets more than sufficient to redeem the circulation, in which case the holders would do well not to sacrifice their bills too suddenly. The following explanation of the unfortunate occurrence has just been communicated to us: "It is said that the stoppage of this Bank was a perfect surprise upon its officers and Directors. The Mechanics Bank in New-York were its agents for redeeming $10's and upward. On the afternoon of the 24th of September, the same day on which the People's Bank stopped, Thompson's Bank Note Re. porter appeared with a notice pasted on it, that the agents had ceased to redeem the bills of the Commercial Bank also, which was not the case, but it, of course, created anxiety to dispose of the bills. The Mechanics' Bank had that day what was supposed to quite sufficient for all redemptions that were to be anticipated, and had besides in their hands some $40,000 of excellent paper for collection, and as secu-

3. October 8, 1851 The Democratic Sentinel and Harrison County Farmer Cadiz, OH
Article from The Democratic Sentinel and Harrison County Farmer, October 8, 1851

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Article Text

Broken Banks. The brokers have generally returned to the discount of our State meney; for the present, all uncurrent money is bought Aa1 per cent, higher than usual quotations. J. Thompson publishes the following list of broken banks: 2 P. M., Oct. 2.-Broken Banks.-List Banks already failed-James Bank, Sarmers' Bank of Mina; atoga of County; Bank of Western New-Rochelle; Bank, White FarCreek; People's Bank, Patterson, N. J.; Commercial Bank, Perth Amboy; The Bank of Salisbury, Md. The Bank of Cayuga Lake, and State Bank of Saugerties are regularly taken by the brokers to-day. The New-York Agent of these Banks has published the following notice: The Bank of Cayuga Lake and State Bank at Saugerties are wholly secured by U. S. and N. Y. Stock and redeemed by Washburn & Co., at 1/4 per cent. discount in specie, at the bank at par, and received by the brokers at the current rates. The Albany Evening Journal, of last night states that 'There was a little flurry in the streets this morning, caused by a rumor that three free banks were not redeemed at their agency in this city. The rumor was true; but the absence of funds will only be temporary, and is caused by an unusual and unexpected rush of the bills of these particular banks. will, we are informed, probabe redeemed as bly They usual, to-morrow. Or if they should not be, they are just as good as gold, inasmuch as they are secured by an of first rate stock." In to the Bank at abundance respect Newark Advertiser Commercial states: Amboy, the "We understand that an injunction was granted on Saturday last, against the Commercial Bank of N. J. The injunction was served, and the assets taken by the receivers on Monday morning. No full investigation of the affairs of the bank could yet be had, but it is the opinion of the officers, and those best acquainted with the matter, that there are assets more than sufficient to redeem their circulation, in which case the holders would do well not to sacrifice their bills too suddenly. The following explanation of the unfortunate occurrence has just been communicated to us: "It is said that the stoppage of this bank was a perfect surprise upon its officers and directors. The Mechanics' Bank in N.Y. were its agents for redeeming $10's and On the of the same on upward. September, afternoon day of the which 24th Bank the People's Bank stopped, Thompson's Note Reporter appeared with a notice pasted on it, that the agents had ceased to redeem the bills of the Commercial Bank also, which was not the case, but it, of course, created anxiety to dispose of the bills. The Mechanic's Bank had that day what was supposed to be quite sufficient for all redemptions that were to be anticipated, and had besides in their hands some $40,000 of excellent paper for collection, and as security, belonging to the Commercial Bank. The morning of the 25th found them in possession of about $4,000 cash, and early after bank hours a draft for $5,300, held by a broker interested with Thompson, it was said, was presented, drawn the day before by cashier at of the Wall Amboy, street in and ignorance the the difficulty in panic about banks. "The President of the Amboy Bank had not at that hour, reached town-yet the Mechanic's Bank, notwithstanding their knowledge of this fact, and their large securities, not only dishonored the draft, but sent notes to all the banks in the city that they had ceased to redeem the Amboy bills. In this situation the President arrived in the city; but of course the panic so created could not be allayed, and any bank must have suspended under such circumstances. "We further learn that the people of Amboy sympathize greatly with the bank and its directors. The occurrence is indeed, for their sake, to be greatly regretted, for a n more useful institution did not exist in the State, and its officers were deservedly popular. n We understand that the most responsible e Director of the bank has alienated that portion of his real estate which is situated ni New Jersey.