8316. Banks in Baltimore (Baltimore, MD)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
May 1, 1837*
Location
Baltimore, Maryland (39.290, -76.612)

Metadata

Model
gpt-5-mini
Short Digest
2d5e96a5

Response Measures

None

Description

The articles (May 1837) describe a coordinated suspension of specie payments by banks in major cities including Baltimore as part of a nationwide crisis (specie suspensions). They describe runs on banks generally, but no single Baltimore bank is identified as failing or entering receivership; suspension is portrayed as temporary with expectation of resumption.

Events (1)

1. May 1, 1837* Suspension
Cause
Macro News
Cause Details
Part of a broad nationwide crisis/panic in May 1837 (specie suspension following pressure from the deranged currency, Treasury/Specie Circular and failures elsewhere); banks collectively resolved to suspend specie payments to avoid ruin.
Newspaper Excerpt
All the Banks in New York, Philadelphia, and Baltimore, have suspended specie payments.
Source
newspapers

Newspaper Articles (5)

Article from Martinsburg Gazette, May 17, 1837

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THE BANKS-N6 SPECIE,-All the Banks in New York, Philadelphia, and Baltimore, have suspended specie payments. This step has been taken as the only means of security against the ruin that must have befallen them if they had continued redeeming their notes with specie while the present deranged state of the cur rency continues-it is in fact the only alternative left them. The banks are not broken; they have only bowed to the storm that is now careering over the country, and will, when it has passed over, resume their former position. Where mow, is the better currency that was to take the place of that which the country had a few years since? The first breeze has swept it away, for the Pet B anks, with the others, have gone by the board. The suspension of specie payments in the cities will soon be followed by a like suspension in the country, or else what little specie there may at present be in the possession of the country banks will find its way to the city before the close of another month. The Williamsport bank has already adopted this course. We have not heard of any of the Virginia Banks having suspended payment as yet, but expect to hear that it has been done before the close of the week.


Article from Litchfield Enquirer, May 18, 1837

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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 Constantine Republican, May 24, 1837

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SUSPENSION OF SPECIE PAYMENTS IN NEW YORK, PHILADELPHIA AND BALTIMORE. The New York Courier and Enquirer of May 10th has the following notice: Notice to the Public in relation to the Banks. At a meeting last evening of all the Banks in this city except three it was Resolved, That under existing circumstances, it is expedient and necessary to suspend payments in specie. In the mean time, the notes of all the Banks will be received at the different Banks as usual, in payment of debts, and in deposit ;--and as the indebtedness of the community to the Banks, exceeds three times the amount of their indebtedness to the public, it is hoped and expected that the notes of the different Banks will pass current as usual, and the state of the times will soon be such as to render the resumption of specie payments practicable. May 10, 1837. From the New York Daily Express. May 10. WEDNESDAY, 12 M. The public were astounded at the news contained in the various papers, that all the banks but three had suspended specie payments. Inquiries were made, which were the three banks that held out; none knew, but it was generally understood that they were the Merchants, the Manhattan and the America. It was ascertained, however, that those banks could not stand, and they yielded to necessity, and came into the measure. The sensation in Wall street, at so unexpected a result was very great. On the whole the public appeared gratified, and the whole collection of persons wore smiling countenances. It would, no doubt, have saved a large number of merchants from failing had the banks adopted this measure a month ago, for it has been apparent that either or both the merchants and banks must stop. The merchants have consequently been sacrificed. Still it is questionable whether the public would have sustained the banks had they stopped a month ago; it would have been believed that they stopped from interest and not from necessity. Now there is no question on the sebject. The banks are exhausted and can pay no longer. The public will now unite in sustaining them. And why should they not They are as sound and healthy as ever, their solvency does not depend on the specie in vault, but on the strength of paper under discount. The merchants will now be sustained.-The public will receive the notes of the banks, and we have no doubt the change is for the better. The new city government, Mayor and Aldermen, were at their posts till two o'clock this morning, every arrangement was made to put down e any mob, should there be any riotings. The watch was doubled and the military were under arms, but fortunately there was no disturbance to require any interference of either the civil officers or military. e Stocks have gone up astonishingly to-day, as the following table will show :-


Article from Litchfield Enquirer, May 25, 1837

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LAST WEEK'S OMISSIONS. Review of the New-York Market, May 13. The week commenced with greater despondency, than we have ever experienced. For two days, the run on Banks was so great, that the Banks could not afford the slightest aid. On the contrary, they were fast sinking themselves. On Wednesday morning they gave up, and on that morning, the papers all come out with the official declaration of them all, that they come to a stand to suspend. The public at first appeared amazed, and hardly knew how to receive it. Fears were entertained that the excitement would be so great, that mobs would be the result. The new mayor, however, took the most effectual means to put down all riotings by having the military in readiness. Fortunately, however, the whole passed off without the slightest disturbance. The effect on the public has been such as to cause instant relief. Stocks have risen ten to fifteen per cent. No failures have since taken place, and things appear brighter. The shock here will vibrate throughout the whole country. Already every Bank within the sound of the news, has had to yield to the same alternative. Providence, Baltimore, Philadelphia, Albany, and all along in the intermediate places, have yielded to the current. Cotton-The sales during the week that have come to our knowledge, extend to 2100 bales. Of these about 1000 were sold previous to the suspension of specie payments by the banks, at very low rates, say from 6 3-4 for 6 ordinary," to 9 1-2 for middling fair to fair.' About 1100 bales have been since disposed of, at an advance of full 1c per pound, and very many of the holders anticipating a further improvement, have withdrawn, reducing the stock on sale to 5 to 600 bales. The quality of cotton now offered, ranges from middling to middling fair, and rates from 8 to 9 1-2. Strietly fair, Florida or Mobile, would now command 11. We quote from 7 1-2 to 11-very little below 8. Flour-Until yesterday, Flour has been exceedingly dull, and generally on the fall. Yesterday however, there was a revival, and Western sold for $8 very freely; for common brands, New York and Troy, $7 a $7 50. Richmond City Mills, $8 75. Georgetown, $9 a $9 50. There was a brighter feeling for every thing, and Flour felt the change as well as other articles. Provisions-Pork has fallen very much since last week. Sales of mess at 13 1-2 c a 15, which is below any rate we have known any sales at in more than a year. Prime 9 1-2 a 12. Beef dull-sales at 14 for mess, and 8 a 8 1-2 for prime. Lard 6a8c. Hams 8 a 12. Money-This has been the most extraordinary week ever passed, and will be a memorable era in the history of our country. For more than a month the whole commercial community had been gradually falling away, until the pressure was so great that the Banks had to follow. The run on them commenced on Monday morning, and on Tuesday P. M. after a period of only ten hours, they yielded, and all suspended specie payments. The thing was general, and as fast as the news could travel. every Bank have had to follow. Money was as tight as it could be the first two days of the week; since which, the whole community have been wonderfully relieved. The banks now can discount without fear, and they now begin to put out bills freely. Yesterday and to-day, they have discounted very freely. 'In seven months from this time," said the Globe several years ago, bank rags will be abolished and will be overspread with gold. merchant in the West a the cry farmer whole country and will interstices have long Evsilk purse of open network, through the of which the yellow gold will shine and glitter." Yes indeed," echoed Col. Johnson in his speeches throughout his Congressional District, the Globe tells the truth. The rags are a-going and hard money is acoming!" Here the old fellow would shake his hand few inches of his right ear as if shaking a of eagles and dollars, and purse within a chink then exclaim-" As Ah! an gentlemen I can hear it already amusing commentary we now republish the following paragraph from the last number of the Globe. Citizens of the United States, were ye not beautifully humbugged ?-Lou. Journal. From the Globe. THERE IS NO PRESSURE WHICH ANY HONEST MAN SHOULDREGRET. The cry of pressure for money, when it is in greater abundance than ever before, is like a cry of famine in the midst of the most plentiful harvest. SOME THERE MAY BE, EVEN IN SUCH TIMES, WHO HAVE NOTHING TO EAT, BUT IT CAN BE ONLY THOSE WHO DESERVE TO STARVE, BECAUSE THEY HAVE EARNED NOTHING."


Article from Richmond Palladium, May 27, 1837

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e PUBLIC MEETING IN RICHMOND. 1A numerous meeting of the citizens of Richmond convened on the 20th inst, agreeable to a call previously given for that purpose, at the Council Chams ber. The meeting was organized by appointing e. Capt. Daniel Reid, chairman, and Irvin Reed, Seca retary. The object of the meeting having been P briefly stated by J. W. Borden, and various papers e relative to the suspension of specie payment by the Banks in the eastern cities, and other parts of the Union, and also the proceedings of the Board of Directors of the State Bank of Indiana, recommending a similar course to the Banks in this state, having been read; on motica of Dr. Wm. B. Smith, Resolved, That a committee of five be appointed by the Chair to take into consideration the propriety of recommending to the Branch Bank at this place a temporary suspension of specie payments during the present pecuniary exigencies. Dr. W. B. Smith, Col. S. Fleming, Messrs. Ed. Grover, W. R. Foulke, and John Finley, Esq., were appointed said committee, who, after a short ab. sence, reported the following preamble and resolu. tions; which after remarks from Mesers. Borden, Foulke, Coffin, and Grover, who addressed the meeting, were unanimously adopted. Whereas, The Banking institutions in the cities of New York, Philadelphia, Baltimore, and Cincinnati, have for the present suspended specie payments, at the request of large and respectable meetings of the people of those cities, and wherethe continuation of payments in specie by the Branches of the State Bank of Indiana, while the Banks of other states have suspended specie payments, would lead to the exportation of specie from our state, and produce serious evils to our citizens;and whereas, at a meeting of the board of Directors of the State Bank, it was recommended to the several branches to suspend, for the present, specie payments, until the resumption of the same by other banking institutions of the West. except in case of private deposites, made with the understanding of payment in specie; and of pensioners, who should always be paid in specie;'therefore, 1st Resolved, That this meeting recommend to the Directors of the Branch at Richmond of the State Bank of Indiana, to suspend specie payments for the present, agreeably to the recommendation of the State Board. 2d. Resolved, That such is our confidence is the solvency and correct management of the State Bank of Indiana and branches, that we will continue to receive and recommend their notes to others, believing them as sound as any other paper currency in the United States; and we also recommend to the Richmond Branch to continue to receive such notes of other banks as they have heretofore taken, so long as the Directors may have confidence in their solvency. 3d. Resolved, That under existing circumstances we recommend to our fellow citizens a spirit of forbearance with each other and mutual aid in allying any excitements which may arise in the publie mind in the present crisis-having full confidence that the present state of things will shortly change for the better. On motion of Mr. Borden-Resolved, That the Committee appoint to draft and report resolutions be requested to wait upon the Board of Directors of the Branch Bank in this place and lay the proceedings of this meeting before them. Also-Revived, That the proceedings of this meeting be published in the papers in this bank district. The following are the resolutions of the Board of Directors of the State Bank of Indiana, sdopted May 18th, 1837, above referred to. Whereas, it has come to the information of this institution, that anentire suspension of specie payments has taken place by the banks in the cities of in New York, Philadelphia, (including the Bank of in the United States,) Baltimore and Cincinnati; and whereas the banks in those cities are heavily indebtth he led to the Branches of the State Bank of Indiana; fo and whereas the safety of this institution and the interests of the state, being so large a stockholder la therein, and the people of this state requires that the large amount of specie now is the vaults of the Branches be retained from being drawn out to othstates and banks, therefure,