7818. Banks in Boston (Boston, MA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
May 1, 1837*
Location
Boston, Massachusetts (42.358, -71.060)

Metadata

Model
gpt-5-mini
Short Digest
7edd9419

Response Measures

None

Description

Multiple Boston city banks suspended specie payments in May 1837 as part of the widespread 1837 panic; articles later report resumption of specie payments in Boston in May 1838. No specific depositor run on a single named bank is described in these clippings — this is a collective suspension and later resumption (reopening). Cause is systemic/macro news (wider panic and policy moves).

Events (2)

1. May 1, 1837* Suspension
Cause
Macro News
Cause Details
Widespread suspension of specie payments associated with the 1837 financial panic and fallout from federal policy (Treasury Circular / war on the Bank of the United States).
Newspaper Excerpt
the stopage of the Banks in New York and Boston ... the Banks in Boston have suspended the redemption of their bills
Source
newspapers
2. May 3, 1838 Reopening
Newspaper Excerpt
The Banks in Boston have resumed specie payments on their notes in circulation below five dollars ; and, the resumption, it is thought, will soon become entire with them.
Source
newspapers

Newspaper Articles (6)

Article from Rutland Herald, May 16, 1837

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Article Text

POSTSCRIPT. BY LAST EVENING'S MAIL so (N. Y. Express of Saturday.) 07 The work of desolation and ruin is rapidly progressing. In addition to the stopage of the Banks in New York and Boston, we find by the Mail papers this morning, that all the Banks in Philadelphia, includ. ing the U.S. Bank, have suspended the redemption of their bills. We further learn that the Banks at N. Haven, Con. Brookline and Providence, have al. so stopped payment. B On the receipt of the news of the stopage of the Boston Banks, the Bank in this town, also followed suit. The Manchester, Bennington and rumor says, the Windsor and Woodstock banks, have come into this measure and we are sorry to say that we have no doubt but every bank in the Northern. Middle and Eastern States has or will have to adopt this course. What will be the ultimate end of all this derangement of the Fiscal concerns of the country no one can tell. Most of the banks are doubtless solvent and sound, and unless all their debtors fail. will continue 80 until the country can be relieved from the reckless blood-suckers who mis- govern it, and disorder and confusion can be restored. We conjecture that the bills of most of the banks will continue to circulate as usual, and the people may perhaps consent to take them as readily as hertofore, for there is no other currency now apparently ID existence, in this region. All the Jack son gold' and silver has been lugged off to the Western Wildes to speculate in lands, locked up in the vaults of the banks, or in the coffers of the miser, who dares not entrust it to go beyond his reach for fear it will get the Western fever! and fall into the hands of the Western pels. The bills of such banks as have been current here heretofore, we understand are receivable at the bank in this town now, except the Manchester, Bennington and St. Albans ; 86 also most of the New York Western Banks. d we understand that a meeting of the directors of all the Banks in this state is requested a Montpelier on Friday next.


Article from Litchfield Enquirer, May 18, 1837

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Article Text

THE ENQUIRER LITCHFIELD, MAY 18, 1837. The Legislature of this State on Friday morning adjourned over to Tuesday morning. Nothing of very great consequence has yet been done. We understand that there was: a prodigious fluttering among the official pidgeons when Dr. Vaill of Washington introduced his resolution to have a committee appointed to ascertain whether there were not members of the legislature (Postmasters or Deputy Sheriffs) holding their seats in direct contravention to the spirit if not the letter of the constitution. The factis members the legislature are elected for twelve months; and e ery year more or less Postmasters are chosen. They transfer their office for a few days to some friend, and on the adjournment of the legislature resume it-making their resignation a mere matter of moonshine-a sheer evasion of the law. We should be glad to see the legislature adopt some strong measures upon this subject. The Speaker, in the appointment of the committee, and not putting the mover of the resolution upon it, was guilty of a species of meanness, of want of courtesy and parliamentary usage altogether unjustifiable, which we trust will be remembered at the close of the session. The Better Currency."- will be seen by our readers, on reference to various articles in our paper to-day. that all the Banks in New-York have stopped specie payments. And no sooner had information of this fact reached New-Haven and Hartford, than the Banks in those cities had meetings, and (except the City Bank of New-Haven) came to the conclusion to suspend also. So at Providence, Boston, Albany, Philadelphia, Baltimore, and indeed every where else so far as we have received information, except the Bank of the Metropolis at Washington. This is another of the many bitter fruits attendant upon the war commenced upon the Bank of the United States by the administration, and continued by issuing the famous Treasury Circular. What are we to do for change ?" " How shall we get along for small change?' is now the universal cry all over the country, since the Banks have stopped paying it out. The answer is easy-and we conceive the remedy is easily applied, if all will act in concert.Let in the to without to we it what any there attempts is community hoard it continue up, and circulate, think will be abundant. There is still a large amount of specie in the country and as the banks have come to the determination not to pay it out, there can be no great need of enlarging the amount in their vaults for the present. K Or if all this will not do, we shall be obliged to resort to individual tickets of the dat winn. tion of 6 1-4, 1-2, 25, &c. as in 1814 cated Man t at that time called Shin-Plasters." right to be a children "hard currency" sure enough! to In should think of any man in favor of country. ntly chargeable Tom Benton ! in breakings Will not our Legislature repeal if, brittle material he so that one and two dollar notes may unfortunate at least a Banks and passed by the people withouch, is rath erned, prosecution? This is a question which pauch quently propounded by all classes and parties. A number of petitions praying that it might be done have already been presented to the legislature ; and we are assured by some of the members that a bill having that for its object will undoubtedly pass the House, and probably the Senate-though in the latter body it is more doubtful. Things have arrived to such a crisis, however, that we think they will not venture to take the responsibility of negativing such a measure. A Caution!-We would advise all holders of bank notes not to be hasty in parting with them for less than their face. A committee appointed by the Legislature have recently investigated the affairs of all the Banks in this State, except the Quinebaug, and pronounce them perfectly sound. The notes still pass from hand to hand as usual, will pay all debts at the Bank, and will buy goods, provisions, and other necessaries as usual they will, in short, constitute, as heretofore, only more exclusively, the circulating medium of the country and the sooner, and more permanently, confidence is restored in making use of them, the better will it be for the whole community. Connecticut bills, and New-England bills generally, already are more current in the city of New-York than their own safety fund notes. or Our readers are referred to the first page of this day's paper for some communications for which we had not room on the inside columns. or Numerous merchantsin Hartford and New-Haven, we perceive by the papers, advertise to receive the notes of all the Banks in this State, as usual, for goods in payment of accounts. The Banks continue to receive and emit bank notes as formerly. Bankruptcy.-In looking over the advertising columns of the Hartford Times of Saturday last, we observed notices from the Court of Probate for Bristol, for the appointment of Commissioners on the estates of at least fourteen different individuals who are represented insolvent, in the little manufacturing town of Bristol alone, to wit: Merriman, Atkins & Co., Geo. Mitchell, Rollin Atkins, Mitchell & Hinman, R. & I. Atkins, Orasmus Allen, Geerge H. Mitchell, and Hart, Hills & Tucker. Six months ago, and these men were doing business, and considered in prosperous circumstances now, thanks to Gen. Jackson, and his tinkering with the currency, they are prostrate, and the probability is that some of them, who are aged men, will never be able to rise again. K The Secretary of the Treasury has issued a circular to the Collectors of the Revenue that all bonds for payment of duties must be paid in gold or silver, or of the notes of specie-paying Banks. And the Postmaster General directs Postmasters not to receive postage in any thing else. KT The Senate of New-York on Friday last passed a law, 24 to 2, suspending the operation of the law for one year which requires the Safety Fund Banks of that State to pay specie for their notes- in other words, granting them permission to suspend specie payments without the liability of prosecution by the


Article from Vermont Phœnix, May 19, 1837

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NOTICE. The citizens of Brattleboro are invited to meet at Emerson's Hall, (Vermont House) at 9 o'clock this morning, to consider what course it is advisable for the Bank in this town to pursue in consequence of the suspension of Specie Payments by the Banks in Boston and elsewhere. Brattleboro, Saturday, May 13, 1837. Agreeable to the above notice, a very large and respectable number of the citizens of Brattleboro assembled at the Hall of Mr. Emerson, where, after a short discussion, the following resolutions were unanimously passed without a dissenting voice: Resolved, That we have entire confidence in the Responsibility of the Bank of Brattleboro, but considering the present situation of the Country and the course taken by the City Banks suspending specie payments, we do earnestly recommend to the Bank of Brattleboro to pursue the same course adopted by the City Banks. Resolved, That the proceedings of this meeting be signed by the Chairman and Secretaries, and a copy sent to the Board of Directors of the Bank of Brattleboro. CYRUS DAVIS, Chairman. A. E. DWINELL, Secretaries. GEO. H. PECK, Brattleboro, 13th May, 1837.


Article from Virginia Free Press, May 3, 1838

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RESUMPTION-New-York was the first to suspend specie payments, and she is the first to resume. The Journal of Commerce, of the 23d ult., states that all the Banks of the city of New York commenced specie payments, that day, in the broadest estent, bills, deposits, and all; "and more than that, they pay out their own notes only." The Banks in Boston have resumed speele payments on their notes is circulation below five dollars: and, the resumption, it is thought, will-soon become entire with them.


Article from Martinsburg Gazette, May 9, 1838

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RESUMPTION.-New York was the first to suspend specie payments, and she is the first to resume. The Jour. nal of Commerce, of the 23d ult., states that all the Banks of the city of New York commenced specie payments, that day, in the broadest extent, bills, deposits, and all; "and more than that, they pay out their own notes only." The Banks in Boston have resumed specie payments on their notes in circulation below five dollars ; and, the resumption, it is thought, will soon become entire with them.


Article from Lynchburg Virginian, August 23, 1838

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# RESUMPTION. The Banks of Charleston have resolved to resume specie payments on the 1st of September; and the Banks of Savannah on the 1st of October. The Louisville Advertiser of the 10th inst. States that all the Banks in Kentucky and Ohio had resolved to resume on the 13th of August, simultaneously with those in the Atlantic cities—and that those of Indiana and Illinois, if they did not agree to commence on the same day, would certainly do so within a few days thereafter. In the the Northern cities—Baltimore, Philadelphia, Boston, &c.—the transition has been made almost imperceptibly. Confidence of the Banks being restored, and the slang of the Sub-Treasury men about their being broke, being known to be untrue, no run has been made upon them; but, on the contrary, many of the hoarders of the precious metals, preferring the safe depository of the Banks even to their own Sub-Treasury vaults, are pouring into the coffers of those institutions more than is drawn out. If the Government will now cease its tinkering Experiments, every thing will move on smoothly: but, if they will persevere in their determination to restore the age of "barbaric pearl and gold," so far as the collection, deposite and safe-keeping of the government money is concerned, nothing can save us from a relapse,—and we all know how dangerous a relapse is—but the stern rebuke of the people themselves. We do not doubt that this rebuke will be administered, if Mr. Van Buren persists in his "Untried Expedients."