8317. Banks in Baltimore (Baltimore, MD)

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: October 10, 1839
Location: Baltimore, Maryland (39.290, -76.612)

Metadata

Model: gpt-5-mini
Short Digest: c6727270

Response Measures

None

Description

Multiple newspapers from Oct 1839 report that the banks in Baltimore unanimously resolved to suspend specie payments after learning of suspensions in Philadelphia and elsewhere. There is no article here describing depositor runs; the action is described as a coordinated suspension with statements of intent to resume when conditions permit, so classify as suspension_reopening. Bank entry refers to multiple institutions, not a single bank.

Events (1)

1. October 10, 1839 Suspension

Cause: Local Banks
Cause Details: Banks in Baltimore suspended after receiving news that banks in Philadelphia (and other Northern cities) had suspended; directors met and adopted the same course to avoid specie drains.
Newspaper Excerpt: a resolution to suspend specie payments in Baltimore, was offered, and unanimously adopted.
Source: newspapers

Newspaper Articles (7)

1. August 23, 1838 Lynchburg Virginian Lynchburg, VA

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."

2. October 17, 1839 The Ohio Democrat and Dover Advertiser Dover, OH

Article from The Ohio Democrat and Dover Advertiser, October 17, 1839

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SUSPENSION OF SPECIE PAYMENTS.We copy from the Baltimore Patriot October, 10th, the statement of this important moven ment: By the railroad cars last night, from Philadel phia, authentic information was received in this, city of the (suspension ofspecie payments, yesterday, by the banks in Philadelphia. This decisive movement, in the commercial metropolis of Pennsylvania, our nearest neighbor city to the East, seemed to leave no alternative to the banks ir. Baltimore, but imposed a necessity on their part-if they would be'true to the interests of the community in which they are locatedto adopt a similar course of action. A meeting of the officers and directors of the several banks in Baltimore was accordingly held this morning, at eight o'clock, when, on the annunciation of the foregoing fact, a resolution to suspend specie payments in Baltimore, was offered, and unans imously adopted. The measure thus adopted, was made known at the openiug of the banks this morning, and, so far as we hear, fully acquiesced in by the community, as one dictated by prudence, no,less than the necessity of the case, and by a just'regard to the interestr of our citizens. The specie of the country is not in sufficient quantity to pay at once, in that medium, the whole debt of the country at home and abroad. This being conceded -for indeed, no proposition can be more self-evident - the questions then come up:-Shall we go on, shipping our gold and silver to Europe, a million at a time by every departing steam ship, until the whole is exhausted, and the business energies of the coun try prostrated ? Or, shall we stop short in a sourse that cannot be perservered in to the end: and, by a present and timely suspension of specie payments preserve the energies of the country in a condition to take the most effectual mea* sures for an early adjustment of ALL its liabilities, both at home and abroad ? The second alternative involved in these questions was adopted as the proper one in Philadelphia. And being adopted there, every consideration of prudence and expedience, required the adoption of the same course in Baltimore, as it will unquestionably be adopted in every section and state of the Union.

3. October 19, 1839 True American New Orleans, LA

Article from True American, October 19, 1839

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SATURDAY, OCTOBER 19, 1839. The Northern Mail, which arrived yesterday, brought UA no papers from New York. Private letters received state that the Banks iii Philadelphia, Baltimore and New York had euspended specie payments. This news created SC me sensation in our city; brokers were seen running from bank to bank, changing their notes for hard money. and it is generally thought that our banks will follow the example of the New York and Philadelphia banks. We don't know that a suspension will be of great The injury to the mass of business men in our city. big fish will be forced to poney up, and a little more liberality will be shown to the honest merchant and small trader.

4. October 22, 1839 Richmond Enquirer Richmond, VA

Article from Richmond Enquirer, October 22, 1839

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# MORE THAN TWO YEARS AGO more than two years ago. -it, however, becomes a matter of grave consideration, whether an indulgent people will sanction such an unreasonable expectation. No sooner it seems, then it was known, that the Banks in Philadelphia and Baltimore had suspended, our Virginia Banks, almost without an effort to sustain their credit, resolved to follow suit. We shall no doubt be told, that they acted in self-defence, and could not pay their debts and solemn engagements, unless other Banks would do the same. But is this excuse to be again received as sufficient? If it was a question between our Banks and those of the North, the defense set up might be at least plausible; but that is not the issue. Our Banks are bound to discharge their obligations to our own citizens, who let their notes, or who have deposited their money in these institutions. We have not refused to comply with our obligations to the Banks, and it is no defence for them to refuse us our rights, because the Northern Banks fail in their duty to their creditors. If one man proves faithless and dis- to do the same, and, it is no justification for another the plea set up by our Balls is the sum and substance of tinue to pay specie, our vaults But, say they, if we con- And is this any excuse? Suppose soon be exhausted. drawn from the vaults of the Banks, EX dollar was any just cause complain? Is it not their duty with opt their last dollar, like honest men? They w owe so much the less to the community, and by shewing a disposition and willingness to pay as long as they were able, they would then be fully acquit- ted for failing to pay more. Their credit would be better with the public than it deserves to be now; for they now play the part of a dishonored bankrupt, who will pay no thing because he cannot pay all that he owes. Of what service is it to the community to know they have specie in their vaults? For all useful purposes of relief, it migh as well be in the depths of the ocean. Now that it is most wanting, it cannot be had. The Banks pay specie as long as it is not demanded; but so soon as you ask for it, you are to be told, they will lose all their specie ans they cannot pay a dollar. Why do they ever keep specie, unless it be to pay to their creditors, when called for?- It is worse than idle to require them to keep specie in ordinary times, if they are to be permitted to suspend whenever it suits their convenience, and in taking care of themselves scatter distress and ruin over the land. I know they have the hardihood to affirm, that it is to the interest of the community for them to suspend, to pre- vent their specie from being drawn from them and sent to the North, or to Europe. But if there be a demand for specie to be sent abroad, (and this is no doubt the fact,) whose duty is it to supply that demand? The spe- cie is wanted, and must and will be had, as was the case in 1837. If not supplied by the Banks, it must be drawn from the ordinary channels of circulation, and then we are to be told that we must have small change to supply the drain. Shinplasters then become the order of the day. The people are to supply the foreign demand for specie out of their pocket change, then take the dirty trash is- sued by private individuals, while the banks are to be permitted to hoard up their specie, which belongs of right to their depositors and bill holders. And will the Le- gislature, will a forbearing and indulgent people tamely submit to such outrageous injustice? Will they again forgive these faithless corporations for their violated en- gagements, when they now have specie in their vaults, and refuse to redeem their notes, even so far as to pre- vent a recurrence to the shinplaster currency? It may be asked, what I would have the banks to do, when a run is made on them for more specie than they have on hand? I answer, pay out their last dollar, and then say they can pay no longer. This is what their charters require-this is what an honest man would do, and this would satisfy the community; for, if banks would adopt this course, the demand for specie would soon cease Some of them might be con.pelled to suspend for a short time; but there never would be such a de- mand, as to require all the specie from all the banks in the country to supply it, and then all the ordinary chan- nels of circulation would be still full; the inconvenience would fall on the banks who brought about the difficulty by their own mismanagement and overdealing, and not on the innocent community. The people ought not to submit to the sacrifices en- dured during the foriner suspension, while the banks are permitted to go on at their ease and continue to make large dividends, without any sacrifice whatsoever. Let them go into the market and buy specie, whenever the time arrives for a resumption of specie payments. Many an individual will have to pay a high premium on specie to discharge his obligations, and the banks with their hoards claim to be exempt from the least sacrifice. Sooner than submit to such a state of things, it would be far better to require these rotten concerns to be wound up, as utterly faithless to the Commonwealth; and if we must have banks at all, let us create new ones on differ- ent principles, to be prescribed by our Legislature at their next session. In the mean time, if our present Banks refuse to sup- ply our citizens with sufficint specie for ordinary pur- poses of circulation, it is hoped some one will be found independent enough to bring suit on their notes, and in this way extort justice from their hands Once let the example be set, and other suits will soon follow. These arrogant institutions may in this way be made to know, that their interest requires them to discharge their obliga tions to the extent of their means. If they refuse to extend relief, and persist in throwing the burden of their mismanagement on the people, it will be the bounden duty of our Legislature to take a firm and decisive stand against their continuance. If they cannot be reformed or punished-if they cannot be controlled or governed- let them be destroyed. A COUNTRYMAN.

5. October 22, 1839 Richmond Enquirer Richmond, VA

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(From the Baltimore Post ) It is but a few days since the papers of Philadelphia announced the completion of an amicable arrangement between the Banks of that city. New York and Boston by which the vexatious drawing of specie was to be avoided: and in view of this arrangement it was triumph antly stated that "the greatest of the crisis had passed But now we are told by the National Gazette, the organ of the United States Bank. that the measure of suspen. sion "is not one of quick and desperate immaturity; but one of cool reflection, of well weighted facts. and well de scribed results Such is the policy Philadelphia has thought proper to pursue in this movement-a policy in strict accordance with the uniform conduct of the Uni ted States Bank, which appears to have taken the lead and dietated the course. The measure was unexpected by our Banks in Baltimore and forced them to the same step. Large drafts came on from Philadelphia by last night's cars expecting to procure the specie before the Banks had time for de. liberation A conference of their officers was held early this morning and they came to the unanimous determination to suspend, temporarily. However much we may regret the necessity for such a step. that the necessity enicted annot, suppose, be questioned; auti however efdisastrous may be the ultimate results, the immediate fect will be to relieve the community. The public can be at no loss to understand the causes which have produced this second suspension. The reckless policy of the States in creating foreign debts for building unproductive railroads and canals-together with the excessive importations of foreign merchandize have brought us 160 deeply indebted abroad In addition to which. the depression in the price of cotton and other American produce, has diminished our means of paying the balance against us-the deficiency has been supplied in specie. To this add the increased demand in England for the precious metals produced by the exportation from that country to the Continent of some 30 millions of dollars in payment for grain. and we see some of the causes which have operated to produce a constant drain upon the banks of this country for gold and silver. Another and more immediate cause which has contributed othis suspension, indiscreet and unjust course which the Pennsylvania Bank of the United States has pursued in the issue of Post Notes. It has harrassed our banks beyond measure. These notes have been made payable six and eight months ahead, and sold in the market at any price they would bring. The avails have been drawn from the Banks in specie. and the spe. cie shipped abroad. The "great regulator' of the Banks has been their greatest enemy and contributed most of all to cripple their means to sustain their customers It has finally accomplished its end--: second suspension of specie payments. If to ell the foregoing causes we add the speculations in which individuals and corporations have engagedthe overtrading and overdoing in all departments of business-the general disposition to grow rich without prodoctive industry-th unbounded extravagance in which we live, we can see little cause for wonder that our feeble and defective system of banking has sunk under the revulsion These evils bring out more clearly and brightly the importance of severing all connection between the Go vernment and the Banks, and placing the finances of the former beyond reach of the revulsions to which the latter are constantly.subject Every day's developments afford additional prouf of the importance to the country of the Independer Treasury These events, we think must satisfy the most inveterate advocates Banking that our system is wrong, and must be substantially modified to be adapted to the wants of the country. The language of the great Athe nian oralor was never more peculiary applicable than to the errors of our country on this subject 'The corrup tious blunders and mismanagement of a Stare," said he, "like secret diseases in the human body, are concealed by the veil of prosperity; but let a time of adveraity and trial come, and spe how the flimsy covering parts, and aked start fouth The ad. versity and trial have given our banking system an am ple test, and exposed its wretched deformities. If the present results should lead to the desired change, we may submit to it with some cheerfulness as the indirect cause of great good. The solvency of the Banks in this city no one questions, and we are informed it is their intention to continue to pay specie in such small sums as are required for ordinary purposes of change. (Correspondence of the Nezo York Times.) BOSTON. Oct. 14th, 1839. The cold Northeast storm which commenced this morning, has driven within doors the groups of anxious debaters on "the effect of the late suspension," and the streets present more the aspect of ordinary times than they have for the last three or four days The excitement here. occasioned by the suspension of the Pennsylvania Banks, has in no way subsided, and imprecations open and bitter are freely vented against the government of the Institution. which nothing will silence but a full and candid exposition of the why and wherefore these things are so. Saturday was the tightest day in the money market in this city, ever known Money. there was none, no price could bring it. Only two failures, however, were an. nounced, one a grocer, and the other a firm in the dry goods,line, who were obliged to stop in the pressure of 1837, but subsequently obtained an extension Many notes, however, lay over, under the promise that they should be provided for this day. Some little excitement was added to that already ex. listing on Thursday, by the refusal of the State Bank to honor the checks of the agent of the Bank of the U.S. in this city. It is understood, that the State Bank claims to hold funds in deposite with them, to meet their demands on the Bank now due. Whatever may be the cause, the fact is undoubtedly true, that the checks of the agent to the amount of $30,000 were protested for non-payment by the holders.

6. October 24, 1839 Staunton Spectator, and General Advertiser Staunton, VA

Article from Staunton Spectator, and General Advertiser, October 24, 1839

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THE SUSPENSION. From the Richmond Compiler, October 15. SUSPENSION OF SPECIE PAYMENTS. was received in this city yesterday of suspensions by the and Baltimore, and morning adelphia News Banks by the in U. Phil- S. Bank in New York, whereupon meetings of the Directors of ourdifferent Banks were convened and they resolved to suspend specie payments for the present. This course by our Banks, was one unavoidable; and adopted in justice to the Banks themselves, to the trade and interests of Richmond, and to the State: which is a large stockholder in them all. For some time our Banks have had to supply heavy demands upon them from the North for specie; and there were in this city, yesterday, several Northern brokers awaiting the hour of9 o'clock, to make large drafts upon them. But the Directors wisely closed the vaults against them, for it would have been suicidal to pay out when there are no longer means of replenishing, left them. The alternative was presented of suspending immediately, or of submitting to a drain through the brokers, which would in a few weeks either compel them to stop business or suspend specie payments. In the former case our trade would have stopped, and our merchants would have been ruined-in the latter the Banks would have weakened themselves in a manner that would have made resumption still the more difficult with them when the time might arrive. Our Banks did not hesitate, and they ought not to have hesitated. They are justified by our citizens.- the annunciation of their determination all was calm, and there was a general indication of satisfaction at the event. The people in the country may rest assured that our Banks have taken their course under circumstances and in a condition which should impart the most perfect confidence in them. They will be ready to resume the moment the course of the Northern Banks render that expedient and proper. The country has fallen into its present miserable condition, through a series of measures which have been levelled at the banking institutions of the State, and have involved the People and the Union in a common catastrophe. The National Bank was destroyed to strengthen the States; and to give them a better currency in the bills of their local institutions. Now the State banks must be destroyed, to strengthen the Federal Government; and to substitute the paper of the Treasury for the paper of the States. The whole process has carried through from the beginning, the whole war has been waged against the National Bank and the State Banks, to realise the original plan of Gen. Jackson for the organization of an Executive Bank, "with the necessary officersas branch of the Treasury department,"-with Mr. Woodbury for the President, Custom House Collectors as deputy presidents of the branches, and your whole Post Office department an association of financial agents and brokers. To this complexion comes the policy of the administration, painted though it may be an inch thick. Are the American people prepared to sacrifice the banking system of the States, to consummate this dangerous union of political and-monied power hands of the Federal Administration.-New York Courier. The Richmond Whig appropriately brings to mind the remark of T.H. BENTON, in ter, that "ANOTHER SUSPENSION BY THE BANKS MAY BE NECESSARY TO CARRY THROUGH THIS GREAT MEASURE"-meaning the sub-Treasury. This has been the whole and sole desire of the Government. "Give us a suspension," say "and can carry the sub-Treasury.' They have succeeded in their effortsperhaps will succeed in obtaining their darling measure. We shall at any rate see how far they can succeed in repairing the mischief all they have accomplished. The people of parties will lock anxiously for the result.BALT. PAT. "Shall ours be a Government of the Banks, or a Government of the People ?" asks a Van Buren paper. Since the expiration of the charter of the U. States Bank, the Jackson and Van Buren Legislatures of the several States seem to have vied with each other in the manufacture of Banks.-They have increased in the Van Buren States as fast as newspapers; and at the present moment, Van Buren men are giving notice throughout Maryland, of their determination to apply to the Legislature for Bank charters. Let the Van Buren people, then, answer the question. "Shall we have (continues the Van Buren paper) a constitutional treasury, or an unconstitutional treasury ?" We do not see that it is likely to make much difference what the treasury is, inasmuch as the public money is carried off the new kind of public treasurers as rapidly almost as it is collected. Nothing of this kind took place when the public funds were kept by the United States Bank.--Balt. Chron. The gratification of the office-holders at the suspension of specie payments may be traced to the fact that now, asduring the late suspension, they can make a "handsome penny" by selling the specie checks they receive for their salaries. Specie will perhaps be worth 5, 10, or 15 per cent., and the officers of the government being paid in specie can readily make the evchange for bank notes, much to their pecuniary advantage. "One currency for the government and another for the people, is their delight, and so long as they can preserve this state of things they will doubtless doit.-Balt. Chron. PUT UP THE FENCE! The opinion prevails extensively-it spreading widely, and the conviction of its correctness the with all resources, in United cannot States, grows get along stronger smoothly, her and mighty stronger-that her business affairs, without the aid of protecting tar-

7. November 1, 1839 Vermont Phœnix Brattleboro, Bellows Falls, Ludlow, VT

Article from Vermont Phœnix, November 1, 1839

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VERMONT PΗΕΝΙΧ. Friday Morning, November 1, 1839. The Suspension. -The Banks in Philadelphia and Baltimore having suspended specie payments, nearly all the Banks south and west have been compelled to follow suit. But we believe all the Banks in New York and New England, with the exception of some of the Rhode Island Banks, continue to redeem their notes in specie. The Providence Banks owing large sums to the Banks of Philadelphia and Baltimore, could not safely continue specie payments, after the banks in these cities had suspended. The best spirit is manifested, as yet, by the Banks of New York and Boston. They are determined not to suspend, unless it should become absolutely necessary for their safety. When the United States Bank suspended, we feared we were on the eve of another universal suspension. But every day brings us evidence of the determination and ability of the Banks in New York and Boston to stem the torrent. At a meeting of delegates from the Boston Banks, recently holden in that city, the following resolution was unanimously adopted: Resolved, That after an interchange of opinions and a statement of facts in regard to the present condition of the Boston Banks, we are fully satisfied that they are in a sound condition, and in the possession of an unusual amount of specie; and that without the occurrence of some unanticipated event, have the utmost confidence in being able to maintain specie payments, and at the same time continue, or even moderately increase their present line of discounts.