8327. Banks of Baltimore (Baltimore, MD)

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: March 1, 1842*
Location: Baltimore, Maryland (39.290, -76.612)

Metadata

Model: gpt-5-mini
Short Digest: b56aa61f

Response Measures

None

Description

Newspaper excerpts describe the Banks of Baltimore participating in resumption attempts in late 1841, then following Philadelphia into suspension, and then resuming again in 1842 after negotiation with the legislature/Annapolis committee. The primary proximate cause of suspension is described as the suspension of Philadelphia banks and resulting contagion (classified here as 'local_banks'). There is repeated mention of mob action/agitators pressuring banks, but the sources do not describe a single discrete misinformation-triggered run; instead they describe broad public agitation and suspension/resumption policy. Dates are approximate based on article dates and internal references (March–May 1842).

Events (3)

1. March 1, 1842* Other

Newspaper Excerpt: the apprehension of [a] mob... had awed the Banks of Baltimore into resumption; mobs in Baltimore had exerted considerable influence upon the conduct of the Banks in that city; houses were demolished, vaults broken open and robbed, and the books and papers... destroyed and scattered to the four winds of heaven.
Source: newspapers

2. March 1, 1842* Suspension

Cause: Local Banks
Cause Details: Baltimore banks suspended after the Banks of Philadelphia again suspended; contagion from other city banks prompted suspension.
Newspaper Excerpt: In a short time, however, the Banks of Philadelphia again suspended, and their example was speedily followed by those of Baltimore.
Source: newspapers

3. May 1, 1842 Reopening

Newspaper Excerpt: The Committee presented a memorial proffering terms of resumption; these terms were accepted; the proposed law was passed; and in a very few weeks all the Banks resumed payments - the vicious currency disappeared, and prosperity and safety were restored to the town and its commerce.
Source: newspapers

Newspaper Articles (10)

1. February 5, 1841 The Illinois Free Trader Ottawa, IL

Article from The Illinois Free Trader, February 5, 1841

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Resumption of Specie Payments The Banks of Pennsylvania have at length resumed specie payment, in conformity with the law of that State passed at the last session of the Legislature. A correspondent of the New York Herald, dated on the 15th ult. at Philadelphia, says: "This was resumption day, and has been passed through to the present time, by all our banks, with good order, good humor, and what is more important, good faith. There was no bustle or throng about any of them but the Girard and United States, and very little about the former of these. The latter was pretty well run. There were four men behind the counter, two of them with their coats off and sleeves rolled up, who were actively engaged from the opening to the close, in answering the demand for specie. At the opening of the doors, about 200 persons of all grades and occupations, principally those holding small amounts of bills, entered, and forming into line, they extended into the street, which was kept up for several hours by some new comers. The broken Schuylkill Bank to-day paid all her balances in full in United States Bank Bills--SO that the resumption is complete in Philadelphia." It is to be regretted that the banks of Baltimore have refused to co-operate with those of Philadelphia, as without their aid the resumption in the South-west will not take place. The Baltimore Patriot of the 13th ult. says: We learn that at a meeting of the Presidents of the several Banks in the city of Baltimore, on Monday evening, the question of the resumption of specie payments came up-when a resolution was adopted by a decided vote, that it was inexpedient for the Banks of this city to resume, unless there was a simultaneous act of resumption on the part of the Banks of Virginia." This course by the Baltimore Banks renders it certain that there will be no resumption south of Pennsylvania, and should the report be true that the banks of Baltimore are secretly drawing on the banks of Philadelphia for specie, it may lead to a third suspension there!

2. February 18, 1841 The Charlotte Journal Charlotte, NC

Article from The Charlotte Journal, February 18, 1841

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Washington City, Feb. 10, 1841. It was ascertained that Gen. Harri. DEAR SIR: would beherein the morning yesterday, hour sun Avenue was at an with People, the number was so the I came from the crowded and suppose Pennsylvania many country, Georgetown early and great: adjoining towns of Alexandria and formed the cars came in. two lines were General Before foot way, inward face for the on to pass through, commencing towards and extending up the avenue road and the suit depot position at the they rail mansion. In that about two hours, the snow falling stood the President's rapidly Address all As was anxious to hear the Seaton, (the Mayor) and the of I went early, and was fortunate the reply, the Mr. time. of in General's getting crowd the Mayor, and like the rest to keep near time in the snow all that As suon as the cars came in, a marked time rush thrown was warm. thing for a shorttime was made, and The Marshals could not confusion. every keep kept the up in back, and such an uproar was else heard crowd did not, and I believe no one that remarks I of either the General or the the Mayor. two the General and suit passed through, in the rear, four abreast, and a rush the slop to the City Hall, but it. through lines the closed attempt ench marched The to get in that I did not was was looked to be in fine health he General made welcome and evi- re. with the hearty from the oppressed and much ceived dently gratified mile square. injured peo. and ple of the the Banks ten in the cities of Philadelphia on all All have suspended specie payments five dollars, Baltimore denomination than is believed a that the Banks of Southern States will of here is, that the ear of notes and the other it of impression larger follow Banks Virginia suit. New The and the general held the word of promise to the the perform York banks, and broke it in The truth is, every one begins to act see as ance. of & National Bank the Philadelphia the necessity and to New and in feel to the State Institutions, located Yorkers regulator are very anxious to have it means to their City, their and they object. will The stoop Philadelphia to any Banks run out under the them, and if they had accomplish held manfully tromendous banks received would the made assistance upon from the New York of all the least weathered the storm. The paper and have banks is unquestionably notes for to part with any of their less their nominal Philadelphia no one ought value. good. likely than what I can learn, I think it quite I say From consequence of the bad and administration. may that wicked in proceedings of the present session of it will be necessary Such is to the call prostration an extra of and every will Congress. of business, the country requires a day branch action of Congress at as early at that something may to demand possible, the stability be done trade. once 86 confidence and give the present to restore well known that the majority in distresses Congress It is will as do it nothing was through to relieve their the ageney Never the of the people, state of affairs was brought about. rained by a country so the most the was wretched so empiricism of a set of present quack prosperous politieiuns. sadly assemble ig. norant both Houses of Congress Representative will Today joint meeting in the House of results will be in to count the votes, when the official The Treasury note It made known passed to the the House country. of Representatives. the em. bill has the only feasible expedient to meet was so bare was of the case, for the Treasury slightest ergency it was apprehended that the Mr. Ray. money involve it in bankruptcy. been hi, a speech upon it which has He delay of ner extolled made might for its ability and elequence. young men one of the most promising long in considered the House, and should he continue will be emiare now beginning to engage short remnant bills and as there is but a business of public nently House, life I useful have and brilliant. doubt his The career public appropriation the attention of the session left I presume the Senate br of the be rapidly despatched. The DOW the bill by a passed than [ had supposed. All the jority will pre-emption rejected. much amendments larger of offered to it were see much in the Locofoco press wish is You will in the Whig ranks, but " the was more the thought," as there never a among our friends. reason is left of opinion so long as alike, feronce farther harmony dissensions to We tolerate free dif. we combat it. and if we all can't think The Whigs to fall and quarrel about it. of and give to his will all not sections out of our Country will rally around a pat. old and generous support. of Tip," administration They understand throwing the riotic game the Locofocos are distract playing. them, and my the tub to the whale will not to be gulled by any such word for device. it, they learn have who shallow I presume situations we shall in in a the fow Cabinet days that will now are to fill the open, as the President elect the views been kept opportunity of uscertaining subject. have an of his friends upon the it would be a matter section should to the people from what capable, consequence and wishes think of very little they and provided they are honest, thing are taken, to the Constitution- one ablest Cabi. you faithful may rest assured had since that the it will days be of the James administra- Monroe. net we have the friends of the present Harrison a fair Many of to give Gen. a tion are say they will not and trial. to his administration, They disposed countenance prosides that fac. tious RS to the person who they the are nation so that he pursues an to the interest policy, looking more to the over patriotic opposition indifferent enlightened triumph and of the country than I think and prosperity and personal aggrandizement. administration of party, believe that Gen. Harrison's country, and that and harmony to our distracted contented will restore we shall once more become a and prosperous Very people. respectfully, &c. &c. &c. of the establishment of

3. July 31, 1841 The Madisonian Washington, DC

Article from The Madisonian, July 31, 1841

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IN SENATE. FRIDAY, July 30,1841 Mr. BUCHANAN presented the memorial of numerous citizens of the city and county of Philadelphia, on the subject of bankruptcy. Which was laid on the table. Mr. ALLEN offered a resolution, to rescind the rule of the Senate, which requires that the doors be closed while in Executive session, except in cases when they are engaged on treaties. The resolution lies over one day. DIGEST OF PATENTS. The special order of the day was taken up, being the joint resolution for the distribution of nine hundred copies of the " Digest of Patents, patented by the Commissioner of Patents, under the act of Congress of 3d March, 1839 -seven hundred copies to be distributed among the States and Territories, and two hundred to be left with the Librarian of Congress for future distribution and providing for the payment of $512 38, from the Patent Fund, to reimburse what is still due for publishing said digest. After some explanation by Mr. TAPPAN, the resolution was adopted. Mr. BARROW presented a remonstrance of inhabitants of New Orleans against the bill for the extension of the port of New Orleans which was laid on the table. DISTRICT BANKS. The consideration of the bill to revive and extend the charters of the Banks in the District of Columbia, was resumed the question being on the amendment of Mr. BERRIEN to the section prohibiting the payment by the Banks of the notes of other Banks which are non specie-p aying Banks, so as to have it take effect after the 1st March next Mr. WRIGHT said the object in resisting the amendment was to resist a paper circulation in the District, which was palpably irredeemable. The Senate had passed a National Bank charter, which was to regulate the currency and drive out of circulation irredeemable paper, and yet they were called on to renew the charters of six Banks, to issue not only irredeemable paper, but this paper avowedly not their own. What did they propose to accomplish and what was the state of facts? These District Banks had made them visit almost annually for the purpose of having their charters renewed, and this had been done, number of times. At length the patience of Congress had become exhausted, and these charters had expired. When the subject first came here they were told that all the Banks of the country were in a state of suspension, and it was useless to compel these Banks to pay specie. What then was the point of resumption? It was said, when the Banks of New York resumed, these Banks would resume and, when that was effected, Philadelphia was pointed to and now it was to be deferfed till the National Bank came into operation. Now they were called on to revive the charters of six more Banks in state of suspension, that the great "regulator" might lift them up. The state of business of the city of Washington was as good as he had ever itnessed it, and yet after these Banks had been out of existence for a year, and in this state, business was prosperous, they were called on to revive their charters. But as to the argument of his friend from Indiana (Mr. Smith,) that these Banks were to be for the benefit of the people. The first petition on this subject this session was from the stockholders of the Banks, with professed object for the benefit of the people- and he believed the main interest in them was that of the stockholders. He hoped the amendment of the Senator from Georgia would not be adopted, and that the provision would remain as it stood. The question was then taken, and the amendment adopted. Yeas 21 -nays 18. The question then recurred on concurring with the Committee in striking out the section to which this amendment had just been made. Mr. ALLEN opposed the amendment. as by this limitation, the principle was admitted of sanctioning the issues of irredeemable paper by the Banks; which he would not do, for single Mr. MERRICK recapitulated the effect of the provision of the section. He hoped it would remain, as it had been amended, and that the proposition of the Committee to strike it out, would not be concurred in Mr. KING voted against the amendment that had been adopted. because he could not bring his mind to vote for the charter of a Bank that was for the shortest period to suspend the payment of specie. But he preferred to have the section stand, as it was some additional restriction He hoped his friend from Ohio would withdraw his call for the yeas and nays, as they were unnecessary Mr. ALLEN withdrew the call for the year and nays. The question was then taken, and the amendment of the committee rejected. Mr. MERRICK offered an amendment. to add at the end of the fourth section, a provision that nothing herein contained shall be so construed as to prohibit said banks from issuing and paying out their own notes, of one and two dollars, during the continuance of the suspension of specie payments by the banks of Baltimore and Richmond Mr WALKER would merely call the yeas and nays He expected that the committee would have come down to authorize the banks to issue notes of one cent and half cent Mr. MERRICK briefly explained the necessity of the amendment. Mr. WALKER said the effect of the amendment could only be to create a shinplaster system. They were retrograding daily on the subject. First they made war on gold; now, they begun the war on silvei by substituting small notes: and he next expected if this administration continued in power, to see war on copper, and have notes of one cent and half cents in its place Mr. MERRICK said, the honorable Senator had asked if there was not silver enough for circulation? Did he not know that the circulation here was made up of irredeemable one and two dollar notes? Mr. WALKER said this was because specie was at premium, above the currency now in circulation. Mr MERRICK said in this state of things, those who had specie sold it at a premium for irredeemable paper, but were the notes of banks in circulation, no one would perform the double amount of labor in going to a bank, demanding specie, and then selling that specie broker at a premium for irredeemable paper. Mr. WALKER said, if the notes of the banks were equal to specie, they would be taken to brokers and sold for irredeemable paper, and would be more convenient for transportation than specie. Mr. ALLEN said the Banks had been re-chartered six times; each time under the pretence that a little time was necessary to devise some plan of currency for this District, to relieve the people. This Administra tion had come down, not only from a spec.e basis, which they at first considered necessary, but had reduced their paper to one dollar notes, and he next expected they would come down with it to six and quarter cents, and the Administration would come down with it He opposed the amendment. Mr. YOUNG moved a modification fixing the time for the provisions of the amendment to go into effect, at the 1st of March next. Mr. ALLEN hoped their friends would not compromise at on questions of this sort The amendment to the amendment was negatived Mr. TAPPAN said the remedy was in the hands of the people themselves. He should say to them, " Thou fool put thy shoulder to the wheel.' If they would take the power into their own hands, and not take less than five dollar notes, this worthless small currency could be driven out of circulation. The amendment was then rejected, -yeas 21, nays 22 Mr MERRICK moved an amendment in the sec tion providing that no loans shall be made to any offi cer or director of the Bank to greater amount in the The

4. July 31, 1841 The Madisonian Washington, DC

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Mr. ALLEN offered a resolution, to rescind the rule of the Senate, which requires that the doors be closed while in Executive session, except in cases when they are engaged on treaties. The resolution lies over one day. # DIGEST OF PATENTS. The special order of the day was taken up, being the joint resolution for the distribution of nine hun- dred copies of the "Digest of Patents," patented by the Commissioner of Patents, under the act of Con- gress of 3d March, 1839-seven hundred copies to be distributed among the States and Territories, and two hundred to be left with the Librarian of Congress for future distribution; and providing for the payment of $512 38, from the Patent Fund, to reimburse what is still due for publishing said digest. After some explanation by Mr. TAPPAN, the re- solution was adopted. Mr. BARROW presented a remonstrance of in- habitants of New Orleans against the bill for the ex- tension of the port of New Orleans which was laid on the table. # DISTRICT BANKS. The consideration of the bill to revive and extend the charters of the Banks in the District of Columbia, was resumed; the question being on the amendment of Mr. BERRIEN to the section prohibiting the pay- ment by the Banks of the notes of other Banks which are non specie-paying Banks, so as to have it take effect after the 1st March next- Mr. WRIGHT said the object in resisting the amendment was to resist a paper circulation in the District, which was palpably irredeemable. The Senate had passed a National Bank charter, which was to regulate the currency and drive out of circu- lation irredeemable paper, and yet they were called on to renew the charters of six Banks, to issue not only irredeemable paper, but this paper avowedly not their own. What did they propose to accom- plish? and what was the state of facts? These Dis- trict Banks had made them a visit almost annually for the purpose of having their charters renewed, and this had been done, a number of times. At length the patience of Congress had become exhausted, and these charters had expired. When the subject first came here they were told that all the Banks of the country were in a state of suspension, and it was use- less to compel these Banks to pay specie. What then was the point of resumption? It was said, when the Banks of New York resumed, these Banks would resume; and, when that was effected, Phila- delphia was pointed to; and now it was to be defer- fed till the National Bank came into operation. Now they were called on to revive the charters of six more Banks in a state of suspension, that the great "regulator" might lift them up. The state of busi- ness of the city of Washington was as good as he had ever witnessed it, and yet after these Banks had been out of existence for a year, and in this state, business was prosperous, they were called on to revive their charters. But as to the argument of his friend from Indiana, (Mr. Smith,) that these Banks were to be for the benefit of the people. The first petition on this sub- ject this session was from the stockholders of the Banks, with a professed object for the benefit of the people and he believed the main interest in them was that of the stockholders. He hoped the amend- ment of the Senator from Georgia would not be adopted, and that the provision would remain as it stood. The question was then taken, and the amendment. adopted. Yeas 21-nays 18. The question then recurred on concurring with the Committee in striking out the section to which this amendment had just been made. Mr. ALLEN opposed the amendment, as by this limitation, the principle was admitted of sanctioning the issues of irredeemable paper by the Banks; which he would not do, for a single day. Mr. MERRICK recapitulated the effect of the pro- vision of the section. He hoped it would remain, as it had been amended, and that the proposition of the Committee to strike it out, would not be concurred in. Mr. KING voted against the amendment that had been adopted, because he could not bring his mind to vote for the charter of a Bank that was for the short- est period to suspend the payment of specie. But he preferred to have the section stand, as it was some additional restriction. He hoped his friend from Ohio would withdraw his call for the yeas and nays, as they were unnecessary. Mr. ALLEN withdrew the call for the yeas and nays. The question was then taken, and the amendment of the committee rejected. Mr. MERRICK offered an amendment, to add at the end of the fourth section, a provision that nothing herein contained shall be so construed as to prohibit said banks from issuing and paying out their own notes, of one and two dollars, during the continuance of the suspension of specie payments by the banks of Baltimore and Richmond. Mr. WALKER would merely call the yeas and nays. He expected that the committee would have come down to authorize the banks to issue notes of one cent and a half cent. Mr. MERRICK briefly explained the necessity of the amendment. Mr. WALKER said the effect of the amendment could only be to create a shinplaster system. They were retrograding daily on the subject. First they made war on gold; now, they begun the war on sil- ver, by substituting small notes; and he next expected if this administration continued in power, to see a war on copper, and have notes of one cent and half cents in its place. Mr. MERRICK said, the honorable Senator had asked if there was not silver enough for circulation? Did he not know that the circulation here was made up of irredeemable one and two dollar notes? Mr. WALKER said this was because specie was at a premium, above the currency now in circulation. Mr. MERRICK said in this state of things, those who had specie sold it at a premium for irredeemable paper, but were the notes of banks in circulation, no one would perform the double amount of labor in go- ing to a bank, demanding specie, and then selling that specie to a broker at a premium for irredeemable paper. Mr. WALKER said, if the notes of the banks were equal to specie, they would be taken to brokers and sold for irredeemable paper, and would be more convenient for transportation than specie. Mr. ALLEN said the Banks had been re-chartered six times; each time under the pretence that a little time was necessary to devise some plan of currency for this District, to relieve the people. This Administra- tion had come down, not only from a specie basis, which they at first considered necessary, but had re- duced their paper to one dollar notes, and he next ex- pected they would come down with it to six and a quarter cents, and the Administration would come down with it. He opposed the amendment. Mr. YOUNG moved a modification fixing the time for the provisions of the amendment to go into effect, at the 1st of March next.. Mr. ALLEN hoped their friends would not com- promise at all on questions of this sort. The amendment to the amendment was negatived. Mr. TAPPAN said the remedy was in the hands of the people themselves. He should say to them, "Thou fool! put thy shoulder to the wheel." If they would take the power into their own hands, and not take less than five dollar notes, this worthless small currency could be driven out of circulation. The amendment was then rejected, yeas 21, nays 22 Mr. MERRICK moved an amendment in the sec-

5. December 9, 1841 Lynchburg Virginian Lynchburg, VA

Article from Lynchburg Virginian, December 9, 1841

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# GOVERNOR'S MESSAGE. EXECUTIVE DEPARTMENT, December 6th, 1841. Fellow-citizens of the Senate and House of Delegates: By the resignation of our late Governor, Thomas W. Gilmer, the Chief Executive power of the Commonwealth has devolved upon me as Lieutenant Governor. I proceed therefore, under the requirement of the Constitution, to invite your attention to such subjects as, in my opinion, deserve your consideration. It is a source of gratification, to be able to offer the representatives of the people continued congratulations for the success which has attended the industry and enterprise of all classes of our citizens, for the abundance of our harvests, the beneficial operation of mild and equal laws, the enjoyment of peace with foreign nations, and tranquility at home, and the preservation of our republican institutions. A proper appreciation of these blessings should stimulate us to submit cheerfully to any burdens which the public good may require, to yield a prompt obedience to the laws, and to practise those virtues without which no Republic can long preserve its existence. If we would merit a continuance of these benefits, we should render grateful acknowledgements to HIM to whose kind providence we are so especially indebted for so liberal a portion of his bounty. Since the last session of the Legislature, our nation has been deprived by the dispensation of Providence, of then late President, Wm. Henry Harrison. The sudden death of this eminent citizen, after having been so recently elevated to the highest office within the gift of his countrymen, strikingly displays the uncertainty of human calculations, & admonishes us of the vanity of human honors. It furnishes the first instance in our history, of the transfer to the Vice President of the important functions of the Federal Executive. The quiet and ready acquiescence of the whole nation in this transfer, happily illustrates the wisdom of our constitution, and the disposition of our people to yield obedience to the government of law. The act of the 22d March last, contemplating a deficiency in the Treasury of the Commonwealth, authorized the Executive to cause such sums to be borrowed as the public exigencies might require. In pursuance of its provisions, the Treasurer from time to time under the orders of the Executive, has obtained on loan from the Bank of Virginia, the Farmers' Bank of Virginia, and the Exchange Bank of Virginia, the sum of $245,000, which, with the sums previously loaned to the State by those Banks, amounts to the sum of $345,000, being a charge upon the Treasury, payable on the 15th day of the present month. The responsibility incurred by the Commonwealth to repay these loans, together with the amount of her funds, temporarily unavailable, by the refusal of the Deposit Banks to receive the notes of the Wheeling Banks on general deposit in payment of taxesas is hereinafter explained present a less favorable exhibit of the state of the Treasury than might otherwise have been expected. On comparing, however, the resources of the Commonwealth with her engagments, her finances will be found in a sound condition, especially, when we consider the resources of the Literary Fund and of the fund for Internal Improvement, which, after meeting existing pledges, might be regarded as affording, if, necessary, an additional guarantee for the redemption of the faith of the State in any unforeseen emergency. But so long as our country shall be blessed with a continuance of peace, there can be no necessity, with prudent management, for diverting these resources from the valuable objects to which they have heretofore been applied. There can be no doubt that the people will cheerfully submit to such increase of taxation as the exigencies of the Commonwealth may require. Impressed with this belief, I most respectfully suggest for your consideration, whether sound economy in the administration of our finances would not be promoted, by imposing such taxes as the ordinary current expenses of the State require, instead of anticipating the public revenue by a resort to loans. The system of borrowing, if continued, will insensibly, but assuredly, lead to such an augmentation of the public debt as may be seriously felt at no distant day. It may not be advisable to discontinue it at once, but its gradual abandonment may be easily effected by such an imposition of taxes as will annually reduce the amount to be borrowed, and ultimately render the revenue amply sufficient for current demands. The reports of the Treasurer and First Auditor will exhibit a full statement of the condition and prospects of the Treasury, to which your early and particular attention is respectfully invited. In submitting a view of our financial concerns, it is proper that I should call your attention to the present condition of our Banks, with whose operations the fiscal affairs of the State are necessarily and intimately connected. By an act of the Legislature, our banks were exempted from the penalties imposed upon them for failing to redeem their notes in specie. Notwithstanding the relief thus afforded them, the Bank of Virginia, the Farmers' Bank of Virginia, and the Exchange Bank declared their readiness to co-operate with the Banks of Baltimore in resuming specie payments. A resumption was accordingly effected almost simultaneously, by these Banks and the Banks of Philadelphia. In a short time, however, the Banks of Philadelphia again suspended, and their example was speedily followed by those of Baltimore. The Banks of Virginia above specified nevertheless continued to redeem their notes in specie in the sanguine hope that they would be able to sustain themselves in the effort. The suspension of other institutions, under such circumstances, operated entirely to our disadvantage, enabling them to replenish their vaults at the expense of our Banks, while the latter received no equivalent. Perceiving this consequence of persisting in the course they had adopted, and aware that the rapid curtailment of the circulating medium which would be necessary to enable them to preserve, would be severely felt by all classes of the community, the directory of our Banks rescinded their resolution. Their determination to resume specie payments at so early a period was no doubt premature. It would have been more safe for them and better for the community, if they had deferred the execution of a design so creditable to their public spirit, until that design could have been effected without regard to the course of others. It is to be hoped that it may yet be accomplished at no distant day, if a small, gradual and regular curtailment of discounts be rigidly enforced against all the customers of the Banks. A resumption of specie payments by all our institutions,

6. December 16, 1841 Staunton Spectator, and General Advertiser Staunton, VA

Article from Staunton Spectator, and General Advertiser, December 16, 1841

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# Governor's Message. EXECUTIVE DEPARTMENT, December 6th, 1841. Fellow-citizens of the Senate and House of Delegates: By the resignation of our late Governor, Thomas W. Gilmer, the chief Executive Power of the Commonwealth has devolved upon me as Lieutenant Governor. I proceed, therefore, under the requirement of the Constitution, to invite your attention to such subjects as, in my opinion, deserve your consideration. It is a source of gratification, to be able to offer the representatives of the people continued congratulations for the success which has attended the industry and enterprise of all classes of our citizens, for the abundance of our harvest, the beneficial operation of mild and equal laws, the enjoyment of peace with foreign nations and tranquility at home, and the preservation of our republican institutions. A proper appreciation of these blessings should stimulate us to submit cheerfully to any burthens which the public good may require, to yield a prompt obedience to the laws, and to practise those virtues without which no Republic can long preserve its existence. If we would merit a continuance of these benefits, we should render grateful acknowledgments to HIM to whose kind providence we are so especially indebted for so liberal a portion of his bounty. Since the last session of the Legislature our nation has been deprived by the dispensation of Providence, of their late President, Wm. Henry Harrison. The sudden death of this eminent citizen, after having been so recently elevated to the highest office within the gift of his countrymen, strikingly displays the uncertainty of human calculations, and admonishes us of the vanity of human honors. It furnishes the first instance in our history, of the transfer to the Vice President of the important functions of the Federal Executive. The quiet and ready acquiescence of the whole nation in this transfer, happily illustrates the wisdom of our Constitution, and the disposition of our people to yield obedience to the government of law. The act of the 22d March last, contemplating a deficiency in the Treasury of the Commonwealth, authorized the Executive to cause such sums to be borrowed as the public exigencies might require. In pursuance of its provisions, the Treasurer from time to time, under the orders of the Executive, has obtained on loan from the Bank of Virginia, the Farmers' Bank of Virginia, and the Exchange Bank of Virginia, the sum of $245,000, which, with the sums previously loaned to the State by those Banks, amounts to the sum of $345,000, being a charge upon the Treasury, payable on the 15th day of the present month. The responsibility incurred by the Commonwealth to repay these loans, together with the amount of her funds, temporarily unavailable, by the refusal of the Deposit Banks to receive the notes of the Wheeling Banks on general deposite in payment of taxes as is hereinafter explained, present a less favorable exhibit of the state of the Treasury than might otherwise have been expected. On comparing, however, the resources of the Commonwealth with her engagements, her finances will be found in a sound condition, especially, when we consider the resources of the Literary Fund and of the fund for Internal Improvement, which, after meeting existing pledges, might be regarded as affording, if necessary, an additional guarantee for the redemption of the faith of the State in any unforeseen emergency. But so long as our country shall be blessed with a continuance of peace, there can be no necessity, with prudent management, for diverting these resources from the valuable objects to which they have heretofore been applied. There can be no doubt that the people will cheerfully submit to such increase of taxation as the exigencies of the Commonwealth may require. Impressed with this belief, I most respectfully suggest for your consideration, whether sound economy in the administration of our finances would not be promoted, by imposing such taxes as the ordinary current expenses of the State require, instead of anticipating the public revenue by a resort to loans. The system of borrowing, if continued, will insensibly, but assuredly, lead to such an augmentation of the public debt as may be seriously felt at no distant day. It may not be advisable to discontinue it at once, but its gradual abandon-ment may be easily effected by such an imposition of taxes as will annually redeem the amount to be borrowed, and ultimately render the revenue amply sufficient for current demands. The reports of the Treasurer and First Auditor will exhibit a full statement of the condition and prospects of the Treasury, to which your early and particular attention is respectfully invited. In submitting a view of our financial concerns, it is proper that I should call your attention to the present condition of our Banks, with whose operations the fiscal affairs of the State are necessarily and intimately connected. By an act of the Legislature, our Banks were exempted from the penalties imposed upon them for failing to redeem their notes in specie. Notwithstanding the relief thus afforded them, the Bank of Virginia, the Farmers' Bank of Virginia, and the Exchange Bank declared their readiness to co-operate with the Banks of Baltimore in resuming specie payments. A resumption was accordingly effected almost simultaneously by these Banks and the Banks of Philadelphia. In a short time, however, the Banks of Philadelphia again suspended, and their example was speedily followed by those of Baltimore. The Banks of Virginia above specified nevertheless continued to redeem their notes in specie in the sanguina k

7. January 24, 1842 New-York Tribune New York, NY

Article from New-York Tribune, January 24, 1842

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3,000 Indiana Bonds Messrs. Pepoon & Boffman have been appointed agents for the redemption of the notes of the Back of Lansing burg. We were misinformed in relation to the injunction said to have been laid on the sale of Illinois Bonds by the Me chanies' Banking Association. Due notice was given of the sale, and no injunction has been laid. We have seen private letters from Columbus, Georgia, which state that the populace were much excited against the Banks, and had threatened an attack upon the Bank of Columbus The Columbus Guards were prepared to resistant such exhibition of violence. It will be seen by reference to a letter from our correspredent at Columbus, that a Bill has passed one branch of the Legislature of that State to enforce the resumption of specie payments after the 4th of March next. The Farmers' Bank of Cauton, Ohio, has suspended payment. The Banks of Baltimore in answer to the queries of the Legislature Committee in relation to resumption, sn. nounce their readiness to resume. excepting the Fracklin, which is winding up, and the Farmers' and Mechanics.Most of the Banks, however, think August is early enough and that it would be injudicious to resume without Peansylvania and Virginia. LONDON MONEY MARKET.-The President's Message and the Speech of the King of the French. as well as the appointment of Lord Ashburton had had a very favorable effect upon the money market. and nearly every description of stock was buoyant. Money was more plenty. On the 3d inst. Consols were 893 for the account. The premium upon Exchequer Bills was 17s. on India Bonds, premium 5x-the highest point they have touched for some time. MARKETS.-The duty on Wheat had been advanced to 23s. Sd., ou Flour 13% 3d. per bbl. Wheat had declined about 1d. per bashel in bood. The transactions were limited. The receipts of Foreign Grain and Fleur had been heavy. The stock of Cotton at Liverpcol on the 31st HIL. was 499.930 bales. The demand was very active, both for consumption and speculation, and American wysquoted at an advance of R per lb. The sales for the six days preced. ing the sailing of the steamer reached 27,000 bales, and the market continued to have a buoyant feeling. The accounts from America were looked upon as being favorable for trade and a good feeling as :0 the future business was generally entertained by commercial men. At Manchester the feeling was also better. and an improvement both in demand and prices was looked for.Yarus had slightly advanced, and Cloths were held much more firmly.

8. March 17, 1842 Lynchburg Virginian Lynchburg, VA

Article from Lynchburg Virginian, March 17, 1842

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of the previous question, at about 7 o'clock, when the vote was taken-ayes 78, noes 40. So the House has virtually determined that the Banks shall resume before the 1st of January next. Successive motions were then made to fill the blank with the months of April, May and November; but, without taking a vote, the House adjourned. The action of the Legislatures of Pennsyl- vania and Maryland has doubtless exercised considerable influence upon the decision of this question-the former having passed a law requiring instant resumption, and the latter extending the period to the 1st of May. I shall not be surprised if the same day be fixed here; al- though it is probable that the 1st of August will finally be agreed upon. I hope we shall get through the bill on Monday. The debate took a wide range of course, involving federal politics as well as State policy. The last speech of Mr. Holleman, which occupied about two hours in its delivery, though conflicting with all my opinions, was ingenious, able and effective. In his first speech he had expressed his gratification that the mob of Cincinnati had taken the matter into their own hands, and referred, with a triumphant air, to the effect which the late tumultuary meetings in Baltimore had exerted upon the conduct of the Banks in that city-qualifying his remarks, however, by a rather contradictory expres- sion of his disapprobation of the mobocratic principle.- In other words, he thought mobs wrong in the abstract; but in the particular instance referred to he was glad that it had taken place. Nor did I see any thing, in his sub- sequent defence, to extricate himself from the awkward dilemma in which he was involved. It is in vain for a man to say that mobs are to be deprecated, when in the very next breath he expresses his delight that one has just taken place, by which houses were demolished, vaults broken open and robbed, and the books and pa- pers of the objects of its vengeance destroyed and scat- tered to the four winds of heaven. To-morrow, indeed, this same mob, or another, incited to action by its success might take it into its head that every man of wealth ought to be despoiled of the fruits of enterprize and in- dustry, to be equally divided among those to whom fu- tune had been more parsimonious, or who had wasted their substance by idleness and profligacy. How could a man condemn the latter, who had, in his legislative seat, expressed his gratification at the triumph of the former? Is he always to judge when they are right, and when wrong? And may not others approve where he condemns, and denounce where he defends? Of all countries in the world, our's is the last in which a mob can be justified, because our's is a government of laws, emanating directly from the people, who always hold in their own hand, the power of correcting mischiefs ori- ginating in bad law, by a discreet and wise exercise of the elective franchise. And yet in our country, above all others, is the mobocratic spirit most easily aroused and put into action, from the absence of that despotic ener- gy and summary punishment which it is certain to en- counter under other governments. Public opinion is its main restraint here; and hence the impolicy, not to say the danger of the avowal of such sentiments, even quali- fied as they were, such as those which Mr. Holleman thought proper to utter, shocking his own friends as well as others. For he not only said he was "glad" that the Cincinnati mob had occurred, and that the premonitory symptoms of a similar outbreak had awed the Banks of Baltimore into resumption, but he declared that here, in Virginia, there must be prompt resumption, or liquida- tion, or a like manifestation of popular indignation and resentment-which, indeed, it seemed, from the tenor of his remarks, he was prepared to justify and defend. Mr. Hiden, of Orange, took up the same note, and read a letter from one of his constituents, who declared that he was prepared to join a force for the purpose of marching to the Banks, and forcing them, by violence, to open their vaults, or to close their doors. To make no com- ment upon the atrocity of such sentiments-atrocious under any circumstances, but doubly so when it is re- membered that the Banks have been justified in the pol- icy of suspension by the repeated sanction of the law- making power, the question naturally occurs, of whom are these mobs generally composed? Do men who have any stake in society participate in, or lead them on?- No: they are for the most part constituted of the very dregs of the city sewers-"the cankers of a rude world and a long peace"-such as would have followed Jack Cade in his crusade against "reading and writing" as the most abominable crimes, and done honor to Falstaff's shirtless regiment. Of the mob in Cincinnati, for ex- ample, it has been estimated by those who saw the mot- ley throng of which it was composed, that all of them together had not a hundred dollars of the notes of the institutions which they were so eager to sack for specie, and from which they plundered more than they could have earned by a year's wages; while the character of the throngs in Baltimore may be inferred from the fact that one of their oracles-one who addressed them on the evils of a paper currency, and led the way in the great work of reform, had not finished his harangue, before, being hurried off to the police office, he was recognized as a petty thief, who had a few days before, in the ex- cess of his love for the precious metals, stolen a set of silver spoons! Precious reformers of the currency, these! Of vast importance must it be to them that the Banks shall speedily resume specie payments! But, in my estimation, however beneficial this mobo- cratic action may have been in Baltimore; and it is not unlikely that the apprehension of it may been equally influential in Philadelphia,-in facilitating a resumption of specie payments, a system of policy, based upon it, ought to have exerted no sort of influence upon the course of the Virginia Legislature, in hastening specie payments here. I know it has all along been said that our Banks were ready and willing to resume cotemporaneously with those of Philadelphia and Baltimore; but this opinion was based upon the supposition that the banks of those cities would not resume until, from an enlightened sur- vey of the whole field, and after a comparison of their resources with their liabilities they were convinced that they could maintain their ground-not that they would be forced to resume prematurely, against their wish- es, and with doubts and fears as to the result, under the coercive influence of an apprehension that they would be visited by a similar mob.

9. April 11, 1842 Lynchburg Virginian Lynchburg, VA

Article from Lynchburg Virginian, April 11, 1842

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117111 second hand.' The question of Peace or War will now, probably soon be settled. THE BANKS. We continue the statements embodied in the Reports of the committees of the Senate and House of Dele gates, during the last session of the Legislature, for the information of our readers, but few of whom, from the limited number printed, can otherwise have access them. In deciding upon the ability of the Banks, in extraor dinary times like these, to resume and maintain specie payments, it is essential that their immediate means and liabilities should be correctly ascertained and by the application of this test to the Virginia Banks, it will be at once perceived that, although in periods of gene ral confidence, they have maintained specie payments when the disproportion between their resources and their debts was much greater than it is now. yet that when distrust and suspicion so universally prevail as at present. it would be a hazaidous, if not an impracticable at tempt. When the chartersof the Banks were granted. giving them permission to issue an amount of paper much than the amount ofcointhey were required tokeepon hand, it was of course never intemplated would be prepared on occasions to redeen their notes, n spe cic, on emand, notw ithstanding the 1" mise so do on the face of each one of those notes. It was known that ordinarily no such demand would be made upon them. and we think it doubtful whether it was ever even suspected that a period would arrive when their issues would be returned upon them in such equantities as dangertheirsafity In this vie of the subject, it seems to us that the Legislature imposed upon its 11. by the terms of its own enactments, an obligation to protect the Banks from the consequences of a general rush of their notes for redemption in specie, when, from revulsions in trade or other causes, a panic should seize the public mind. by which the very existence of those institutions might be jeopardized. It may be proper to observe here, that the Tesuning Banks in Philadelphia, as well as these of Baltimore, which are to resume on the 1st of May. are in a much better condition, SO far as their circulation and their specia is concerned than those of Virginia-the Banks of Phil adelphia having about twodollars of specieforone of circu lation. while those of Baltimore haveabout dollar for dut lar. The condition of our Banks shown by the follow ing statements, madeup to January last: Immediate liabilities. Immediate means $3,967,063 Bank of Virginia, $1,288,884 Farmers' Bank, 3,536,755 1,094,305 Exchange Bank, 385,549 452,966 Valley Bank 970,407 479,397 N. Western Bank. 601,711 288,385 600,628 M. M M R of Wheeling, 206,321 In the term "immediate liabilities" is included notesin circulation, due other banks, due to other depositors, dividends and bonus- in the term "immediate means.' is included specie, treasury notes, due from other banks, and non. of other banks. But in order to render the subject still more intelliging, we subjoin a statement showing at a glance the relative proportion of liabilities and means. and also of the circulation and specie, in each wit: In the Bank of Virginia, the proportion of immediate means to immediate liabilities is as $1 to $3 21 ; and of coth to ciro ulation is as I to 3 07 Farmers' Bani -Proportion of immediate means to immediate liabilities is as e. to $3.23 and of coin to circulation as I to 3.39. Exchange Bank- Proportion of immediate means immediate liabilities is as $1 to $3.05; and of coin to eir culation as to 2.95. Bank of the Valley Proportion of immediate means to immediate liabilities is as $1 to $2.02; and of coin to circulation as I to 2.72. (From the available means should probably be deducted $32,313. it being the 3 per cent. dividend on the 4th of January, 1842, which would make the means to liabilities as $1 to 2.17.] Northwestern Bank.-Proportion of immediatemeans to immediate liabilities $1 to $2.08; and of coin to circulation as I to 2.31. Merchants' and Mechanics' Bank of 11 'heeling. Proportion of immediate means to immediate liabilities is as $1 $2.91: and of coin to circulation as $1 to 4.02. From these statements the people can judge, as well as ourselves, of the ability of the Banks to maintain spe cie payments under existing circumstances. I is, indeed an historical fact that, even in specie-paying times, they have been in a much worse condition than they are now , but it was because there was no want of confidence. and they knew that specie, to any large amount. would not be demanded, the holders of their notes being content to know that they could obtain it by asking. Now, how ever, the case is different-and the probability is that it the Banks were to open their vaults, they would be 11 drained of a large amount of the either to timid or to be by be brokers; hoarded and by the the necessary precious speculated metals, upon a the effect would be rapid curtailment of their issues, and a discontinuance of loans, while the channels of circulation would not be filled with the hard money abstracted from their vaults. The Banks would so crippled as to be compelled to cease business, while the cry of **hard times" would be a thousand times londer than it now is -and a thousand times more la just. If a coercive resumption of specie payments would have the effect. as all menbelieve it would. of compelling the Banks, in self defence. to withdraw its notes free m circulation, both in exchanging them for coin and by the reducI tion of their outstanding debts, one of its most injurious effects would fail upon the stockholders, in the discontin uance of their yearly dividends ; and as the Common I wealth would be an immense loser by that operation. it may not be improper here to show to what extent it would involve the necessity of additional taxation. The State owns: In the Bank of Virginia 13.756 shares. Farmer's Bank 9.609 ** .. Bank of the Valley 4,830 " .. Northwestern Bank 4,814 205 Merchants' Mechanics' Bank, Exchange Bank, 8,712

10. February 3, 1845 American Republican and Baltimore Daily Clipper Baltimore, MD

Article from American Republican and Baltimore Daily Clipper, February 3, 1845

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many an hon est Marylander, have seen with deep regret, the ejec tion of Joseph J. Speed, Esq., by the Whig Senate of Maryland, from the place of Public Director in the Bank of Baltimore. Mr. Speed has been elected for ten or twelve years by the unanimous vote, first of the House of Delegates, and then the Senate, to represent the State's interest: a quarter of a million of dollars in the Bank of Baltimore; and during the whole time, his name has been prominently connected, not only with the best measures of that respectable institution, but with the commercial and monetary affairs of the city, so far as they wereconnected with the Banks and depended upon the Legislature. Mr. Speed has been faithful to the trusts of the State. Upon very trying occasions, he has been selected by the Board of Trade, and Conventions of all the Banks, and placed in leading positions to confer, to Counsel and to negotiate with Committees of the Legislature upon subjects of the deepest public importance. We might instance the trying and dark period of March, 1842, when there was a general suspension of specie payments; the town and State flooded with a vicious and degraded paper currency; and the greatest discontent prevaried At a General Convention of the Officers of all the Banks of the city, Mr. Speed received the unanimous vote of the meeting, and was chosen Chairman of a Committee of five Directors from separate Banks, to proceed to Annapolis, to endeavor to adjust with the Legislature the important measure of resumption.The Committee presented a memorial proffering terms of resumption; these terms were accepted; the proposed law was passed; and in a very few weeks all the Banks resumed payments-the vicious currency dis appeared, and prosperity and safety were restored to the town and its commerce. The papers of the day show all this. Every paper connected with the procedure, as I have often been informed by other members of the Committee, were drawn up by Mr. Speed, and the Committee and Banks will bear testimony that he rendered the community a vice that it is the lot of few citizens to do The history o the Delegation sent to Annapolis some years ago by the Board of Trade, to promote the general interest of Baltimore, and Mr. Speed's connection with it, is fresh in the recollection of all. I know from conversation with the Bank Officers and Directors, that Mr. Speed's consection with them, has been of the greatest usefulness and advantage. Bnt, Messrs. Editors, in addition, what does not the State at large owe to Mr. Speed? Under the power his pen, our State Stocks have risen in the markets of Europe. He has been the champion of the honor of Maryland, and the Whigs of Maryland are proud of him His name has been connected with her best repute. But yet our Whig Senate, under what influence we know not, has ejected him from the poor and profitless place of Bank Director. What has been his sin against the public, or Whig Party? It is tine he opposed the selfish views of certain politicians by prefession. It is true his friends put his naine forward as candidate for Governor, and that upon an early ballet, he had a plurality of Votes in the nominating convention. It is true when another was nominated, he nobly caine forward and in a published letter, marked with his usual spirit and generosity, summoned his friends to the polls. It is true that in the counties where his friends were most numerous, the nominee re eived the greatest support. It is true that Mr. speed is in favor of preserving the state's faith and honor. It is true that he is in favor of reform. It is true that he is in favor of throwing into the public treasury a part of the receipts of certain officers of the state, when the agriculture and labor of the state is taxed to the atmost verge of endurance. It is true that he holds and has affirmed, that to discharge the duties of Clerks of Courts and Registers of Wills the very best talents and qualifications may be secured for all amount far less than the sums now received by some of them, and thas he is in favor of a law for the payment of all suns over a fair and fixed compensation into the public treasury. In a word, it is true that Mr. Speed has upheld himself like a pure and honorable man-that he has refused to bow to eliques, or any other knots of selfish men. It is true he denounces selfishness and treachery wherever he meets them. It is true that his strong reputation withstood the shafts of misrepresentation, malignity and gross vituperation-that he has calmly and truly imputed the aspersious that have been heap ed upon him to the desperate conditions of depend ents, if not to gnawing necessity- that he has considered those standers as the wages of want. In a word it is true, that he is at the head of the Reform and State Faith Party of Maryland. For these reasons he is assailed, and a high-minded, honorable gentieman, insulted. Mr. Speed's friends are prouder of him now than ever. Messrs. Editors, and the day is rapidly approaching when Maryland will award him all the honor that his high character and bearing 80 richly merit. Let him stand to his principles and dignity-his friends and supporters are multiplying with a rapidity he is little aware of. A WHIG FAITBKUL TO PRINCIPLE.