7958. Middling Interest Bank (Boston, MA)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
August 5, 1839
Location
Boston, Massachusetts (42.358, -71.060)

Metadata

Model
gpt-5-mini
Short Digest
e695d992

Response Measures

Full suspension

Description

Newspaper items (Aug–Oct 1839) describe a great rush of bill holders when the bank closed its doors by injunction (Aug 5, 1839), followed by a perpetual injunction by consent and the appointment of a receiver to wind up the bank's affairs. Sequence: depositor rush (run) → injunction/closure (suspension) → receivership (closure). Bank type inferred as state (pre-National Bank Act era) though name doesn't explicitly state 'State'. Dates taken from article references (Aug 5, 1839 for the initial closing; receivership reported by Aug 17, 1839).

Events (3)

1. August 5, 1839 Run
Cause Details
Rush of bill holders precipitated by the bank's doors being closed by injunction (legal action) creating a run/large withdrawals.
Measures
President of the Bank published a notice that all their bills will be eventually redeemed.
Newspaper Excerpt
Great excitement had been occasioned, on the 5th, in Boston, by the closing of the doors, by injunction of the Middling Interest Bank. The rush of bill holders was very great.
Source
newspapers
2. August 5, 1839 Suspension
Cause
Government Action
Cause Details
Bank operations suspended due to an injunction obtained by the Bank Commissioners; doors were closed by injunction and payments halted by consent leading to winding up.
Newspaper Excerpt
closing of the doors, by injunction of the Middling Interest Bank.
Source
newspapers
3. August 17, 1839 Receivership
Newspaper Excerpt
the injunction was made perpetual by consent. The affairs of the bank will now go into the hands of a receiver, and will be wound up as soon as possible.
Source
newspapers

Newspaper Articles (3)

Article from The Madisonian, August 17, 1839

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Article Text

Middling Interest Bank -The Boston Atlas of Monday has an article relative to the affairs of this Bank, from which we extract the following: "We stated that the hearing upon the petition of the Bank Commissioners for a perpetual injunc- tion, was to be held on Saturday last. We are in- formed, however, that the bank did not see fit to make any defence, and that the injunction was made perpetual by consent. The affairs of the bank will now go into the hands of a receiver, and will be wound up as soon as possible. The public have thus lost that light which it was expected might be thrown upon the state of this Bank's affairs by a judicial hearing, and they now must wait with no little im- patience, for that luminous and justificatory exposi- tion, which the President has promised to put forth through the columns of the Post. In the meantime, however, it seems highly desirable that the Bank Commissioners, at the earliest possible day, should publish some official exposition, such as may serve to satisfy the creditors of the Bank as to the actual value of their respective claims."


Article from True American, August 20, 1839

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Article Text

From our Edition of SUNDAY. By yesterday's mail-New York dates are to the 8th inclusive, and Philadelphia of the 9th. ht U.S. Bank stock are was selling at 110 a 1103. Pennsy Ivania has failed in obtaining a state loan of 1,500,000 for the repayment of temporary loans, now falling due. No offers had been to the 27th, the last day they were to be received. The present project is to procure a loan for the whole amount appropriated under the improvement bill, and bids to be received until the 24th August. Greut excitement had been occasioned, on the 5th, in Boston, by the closing of the doors, by injunction of the Middling Interest Bank. The rush of bill holders was very great. But the President of the Bank has published a notice that all their bills will be eventually redeemed. But little business was doing in New York in general. Shipping very dull. Cotton sales continue moderate, and prices without material alteration. A colored boy was lately run over and killed on the Long Island Rail Road, A Mr. Carmichael lately fell into the dock. whilst stepping on board the steam boat Albany, and was crushed between the bont and the dock. A locomotive, built at Loweil for the Western Rail Road, was lately tried on the Lowell road, and started with a train of 63 cars, filled with merchandize, weighing 333 tons, which it carried with ease, over an ascent of 10 feet to the mile, at the rate of 9 miles the hour. Two hundred and twenty hands are constantly employed in manufacturing stockings at Portsmouth, N. H.; 3000 pairs were made in one week. By the latest accounts, beeves were selling at Buenos Ayres at two dollars ahead. North Carolina.-Churles Shepard is re elected to Congress in the Newbern district, over Mr. Biddle his Whig opponent. Mr. S. was elected last year as a whig but was dropped on accounts of his vote on the Treasury question. The return from four di-tricts, are complete. Edward Stanley, M. T. Hawkins. Shepard and


Article from Morning Herald, October 5, 1839

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Article Text

houses, and the merchants are sacrificing their property in vaia struggles to meet their payments. There is growing impression in Wall street, that the Philadelphia banks must soon suspend. It is also reported that a great anxiety exists in Philadelphia for the New York banks to take the lead in such a movement. That cannot be, however; the New York banks are in a situation which is impregnable, until the depositors withdraw their deposites-an event which is probable only in case a high premium for specie is created in Philadelphia by a previous suspension of the institutions there. There are many of the speculative class of dealers who are anxious to bring about a suspension to ease their own affairs.We are not, however, apprehensive that such will be the case The many suspensions which have recently taken place are principally of badly conducted institutions, among which were the following:-Middling Interest Bank, Boston, Jewett City Bank, Conn; Essex Bank, Guildhall, Vt.; City Bank of Detroit, Bank el River Raisin; Bank of Darien, Geo.; Chelsea Bank; Willoughby Bank. There is every probability that many of the Southern Banks will suspend in consequence of the delay caused to the crop by the prevailing sickness. The indebtedness of that region to New York is of such a nature, being old debts, that it is not depended upon as present means. In Philadelphia and Baltimore, however, large Jebts were accumulated last spring which will trouble the banks of those cities unless they can be realised. Should the delay of southern payment carry them to the point of suspension, New York may be obliged to follow in her wake, more especially should the news by the Liverpool be as gloomy as is anticipated. Sales at the Stock Exchange. $2000 Corporation Bonds, payable in October 1840, 97-5 shares U S Bk 100g. 5 do 100A-50 do Com 943, 50 do 95, 50 do 30 ds 95.75 do 95, :00 do 84 mes941-15 do Manhattan Com 118-6 do4State Bk New York 93)-155 do Del & Hud 574, 50 do 57th 50 do s 60 ds 574, 50 dos 60 ds 573. 150 do s 10 ds 58, 50 do S 30 ds 58, 190 do 5St, 100 do a 30 ds 58, 130 do 581, 50 do S 60 ds 58, 215 do 58, 200 do 58 100 do 8 30 ds 58. 100 do S 60 ds 58 82 do 581, 25 do nw 581, 50 do 5th, 50 do S 30 ds 58, 50 do n w 581 900 do b n W 581, 50 do S 30 ds 58-20 do Am Ex Bank 79}. 35 do 791-10 do N A Trust 531, 110 do 534. 25 dos 30 ds 53 25 do 8 30 ds 537, 50 do 54, 125 de S 30 ds 53g. 25 do s10 ds 53g. 13i do 54, 50 do s 30 ds 534. 190 do 54, 00 do b next wk 54, 25 do b 30 ds 55, 25 de 54. 25 do b 30 ds 544-150 do Vicks burg Bk. tomorrow 33-50 do Kentucky Bk Monday 72 50 do nw 724. 50 do Menday 721, 50 do nw 72.100 do 72-10do Morris Canal 29-10 do Manhattan Ins Co 1051-25 do New York Gas Co 124-50 do Mohawk 524, 25 do 521-50 do Boston and Providence 60 ds 100-25 do New Jersey RR SS-110 do Stonington 211-28 do Utica 1153-60 do Harlem Rail Road a 15 ds 124, 150 do 421, 100 do 424, 150 do b 10 ds 424, 100 de 421. State of Trade. The sale of dry goods advertised for today by John Haggerty & Sons, consisting of 194 pkgs, was but a sorry affair. Tle attendance was very thin, and the goods went off very heavily at prices mach lower than at former sales. The dry goods trade generally is very quiet at this moment. The latter part of the present month is looked forward to by the tr de with much confidence that a good business will be done. This impression is warranted by the prosperous state of the inland navigation, and the large movements of produce, the arrivals of which at Buffalo, during the month of September, were as follows 25,027 bbls. 168 239 bushs. Flour, Wheat, " 14 646 1,197 kgs. Lard, Corn, 453 bbls. 181 000 Staves, Pork and Fish, In this market, cotton is quiet. In flour there is more firmness, in consequence of the decreased arrivals. Holders are stiff at $5 75 a $5 87}.