Merchants Bank - Boston, MA

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: October 2, 1873
Location: Boston, Massachusetts (42.358, -71.060)

Metadata

Model: gpt-5-mini
Short Digest: 39106837

Response Measures

None

Description

Article (Oct 2, 1873) reports Boston banks (including Bank of Commerce) adopting a precautionary suspension of payments for large amounts and forming a committee to issue loan certificates. No run is described and no explicit reopening date is given; historically this was a temporary clearinghouse suspension, so I classify as suspension_reopening (no evidence of permanent closure).

Events (1)

1. October 2, 1873 Suspension

Cause: Local Banks
Cause Details: Precautionary suspension in response to a steady drain of greenbacks and New York banks' actions; Boston banks copied New York's suspension and formed a clearinghouse committee to issue loan certificates to meet demands.
Newspaper Excerpt: Resolved. That the Boston banks, as a precautionary measure for themselves and the mercantile community and to prevent the consequent drain of currency from them, do from this date and until further action adopt the same measure.
Source: newspapers

Newspaper Articles (1)

1. October 2, 1873 Ellsworth American Ellsworth, ME

Article from Ellsworth American, October 2, 1873

Click image to open full size in new tab

Article Text

The Situation in Boston. In view of the steady drain of greenbacks from the banks of this city. and the threatened increase in the demands for currency, it became necessary as a precautionary measure to adop the policy being pursued by the banks in New York. The New York banks have been picking up checks upon Boston banks, and large sums of greenbacks have been sent to that city. It is rimored that séveral parties in State street are engaged in locking up currency. A meeting of the Presidents of the several banks was therefore held at the Clearing House. a 11 o'clock on Saturday, when the following resolutions were adopted by a unanimous vote: Whereas the banks in all the large cities in the United States have deemed it prudeut and expedient to suspend entrency payments for large amounts, therefore Resolved. That the Boston banks, as a precautionary measure for themselves and the mercantile community and to prevent the consequent drain of currency from them. do front this date and until further action adop: the same measure. Resolved, l'hat a committee of five be appointed oy the Chair, who shall have the power to issue loan certificates to the amount of $10.000 000 upon substantially the same basis as issued by the banks inNew York city. The Chairman appointed the following gentlement as that committee: Franklia Haven, of the Merchants'; George C. Richardson. of the Union; B. E. Bates. of the Bank of Commerce; Thomas Lamb. of the New England; A. I. Benyon, of the Exchange; and Josph H. Beal, of the Second National.