8335. Chesapeake Bank (Baltimore, MD)

Bank Information

Episode Type: Run → Suspension → Unsure
Bank Type: state
Start Date: January 27, 1842
Location: Baltimore, Maryland (39.290, -76.612)

Metadata

Model: gpt-5-mini
Short Digest: 09640276

Response Measures

Accommodated withdrawals, Full suspension

Other: Bank had large outstanding loan to State; other banks refused its notes leading to run and subsequent stopping of payments.

Description

Contemporary articles report a heavy run (late Jan. 1842) on the Chesapeake Bank of Baltimore, tied to the State's failure to repay a large loan to the bank and other banks' refusal to accept its notes. The bank later stopped payment (reports by Feb 10 and Feb 24, 1842). The sources do not state a reopening or receivership; therefore I classify as run -> suspension with outcome unsure. OCR errors corrected (e.g., dates and small typos).

Events (2)

1. January 27, 1842 Run

Cause Details: Failure of the Maryland Legislature to make arrangements to repay the large loan the State owed the Chesapeake Bank ($~167,000), causing other banks to refuse its notes and triggering withdrawals.
Measures: Bank continued to redeem tens and fives; allowed depositors to avail themselves of deposits for payments in other banks (exchanged notes).
Newspaper Excerpt: Yesterday, a heavy run was made ON the Chesapeake Bank...A crowd is now waiting before the Chesapeake Bank.
Source: newspapers

2. February 10, 1842 Suspension

Cause: Government Action
Cause Details: Inability to redeem due to prior run and the underlying problem of the State's indebtedness to the bank (lack of repayment) leading to refusal by other banks to accept its notes and liquidity strain; resulted in suspension of payment (stopped payment).
Newspaper Excerpt: The Chesapeake Bank, Baltimore, which had a run upon it on Wednesday last, has stopped payment, being able only to redeem its fives in other bank paper.
Source: newspapers

Newspaper Articles (10)

1. January 28, 1842 The New York Herald New York, NY

Article from The New York Herald, January 28, 1842

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Baltimore. [Correspondence of the Herald.] BALTIMORE, Jan. 27, 1842. Run on the Chesapeake Bank-The Storm Cloud Bursted-The late hinted Duel explained for the explicit benefit of the Parties, and your Baltimore Readers Another - Row among the Firemen-The Ball, &.c. MR. EDITORYesterday, a heavy run was made ON the Chesapeake Bank, over which John S. Gittings, Esq., presides. Its notes were refused in the morning by the other city banks. This at once gave the alarm, and I am told, at a few minutes before three P.M., some holders of notes were refused a redemp. tien of them in other bankable funds. There has been a little chisseling in the matter. Early in the day, the other institutions shoved off the obligations of the Chesapeake, and on getting rid of them, put up at their counters the watchword-repudiation. As you are aware, the State is indebted to this bank $167,000. Its President being the Commissioner of State Loans, and fostered by his locofoco State administration, negotiated too deeply. Thus with impunity has he been forsaken in the hour of tribulation. What to-day will bring forth, I am unable to divine, though the prospect is dark and gloomy. P. S -Five minutes before nine.-A erowd is now waiting before the Chesapeake Bank. Whether it will open or not, I cannot say. THE DVEL-aye the rumored duel, of which I made mention a few days since, has come to light in all its blazing, ferocious majesty. The "Duke" has indeed been in trouble. Rumor has it, that he who is familiarly known as the " Great Duke" of our city-the just admirer of Edwin Forrest, had like to have had an occasion the other day fer pistols and coffee for two," on account of his expressing an opinion touching the Tide Water Canal Notes, of which he holds the neat little amount of $30,000, shaved at a glorious rate. They are a perfect blank in the market, about equal to "Owl Creek. It having been known that the "Duke's" free use of his accustomed phrase "Spanish cloak to cover iniquity," gave offence to one of the Canal Directors, who, it is supposed, was ready to " show fight." Just at this time, the ilJustrious Duke, alias a noble Falstaff in size, corporation and wit, made a sudden exit to Washingtoo. The alarming cry was vociferated he is off to Bladensburgh.' Time, however, revealed new mysteries. Fortunately, no chivalric spirit, with wounded honor, followed in the chase. It turned out tha+ the great 'Duke" had only gone to eat terrapins and fat oysters (vegetables of which he is peculiarly fond) and to regale his fastidious, epicurian taste, with hot coffee and whiskey punches, in the company of certain bloods within the ten miles limits. Is it not strange how fancy and rumor will work up to a boiling heat, that which, when fully analyzed proves to be " cool as a cucumber. The names of the parties are J. W. and H.B, the former a distinguished financier, the latter a distinguished merchant. The firemen had another disreputable row last night in the streets. The Independent Dragoons' Hall came off at the Washington Hall, on Wednesday evening, in splendid style. The bright eyes that twinkled there, were like so many stars in the firmament of heaven, and the fairy forms as the nymphs that keep vigil at the shrine of beauty. The Stock Market is without change, though very dull. Exchange on New York 3 7.8 to 4 premium; Philadelphia 214 to 2 1-2 discount Virginia to 418 do, and getting worse. In the produce market I notice no change. The Resumption Bill has gone to the Senate, though not acted upon. It will doubtless be amended, probably tending the time. The Produce Market is dull The weather delightful. Yours, TWIST.

2. January 29, 1842 New-York Tribune New York, NY

Article from New-York Tribune, January 29, 1842

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The sales in State Stocks were : 231 754 3.000 do 1,000 N. Y. 518, 1861 71 4,000 do 2,500 Ohio Sixes, 60.. 23 70 4,000 do 23. 10,000 do 1,000 do 25 963 1,500 Cor. Bonds, 23 6,000 Ind. Boods 3.000 Illinois 241 222 10d 6,000 do 1,000 do 24 snw 22 2,000 do 3 000 do 24+ 1,000 do seod 233 5,000 do 21 213 2,000 do 2,000 do 10d 24, 5.000 do cled 24 231 1,000 do 1.00 do 23: 2,000 do 241 .10d 10,000 do 23 .3d 24 1,000 do $30d 22 2,000 do. The Long Island Bank has declared a dividend of six per cent. A letter from Philadelphia states that the value of the Girard stock was fixed by the Committee of the other Banks at 88 to $10 00. The notes were selling at 5 per cent discount. In consequence of the failure of the Legislature of Maryland to make arrangements for the repayment of the money loaned the State by the Chesapeake Bank of Balri more, that institution got into difficulty, and a run on it was the consequence. It is supposed that some arrangement will be made by which it will be enabled to proceed with its business as usual. The following was its situation on the third instant:

3. January 29, 1842 The New York Herald New York, NY

Article from The New York Herald, January 29, 1842

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ship in the House. He has been appointed Secrecary of State. The Hou. Daniel S. Beser, of Fred erick county, has been elected Speaker for the remaining term of the Session, in his place. Noaetion as been had in the Senate yet on the Resumption Bill. A murmuring whisper has been abroad that a strong run will be made on all the Banks to day, two of which are especially singled out as being under the same influence which causedthe suspen. sion of the Chesapeake Nearly all the small shinplaster Bankers are trembling on their last legs. Some of them will probably be closed to-day. The people are in a most exasperated state. Railroad Orders down to 20 discount. A destructive fire occurred yesterday morning, the facts of which I could not learn previous to the closing of my letter. Three houses in N How. ard street, one occupied by Mr. Charles Soran, as a dwelling, the other by Mr L H Magruder, as a store and dwelling, and the other by Mr. William Marshall, as a clothing merchant, were consumed. The loss is very heavy. Several of the inmates narrowlyescaped with their lives. The Rev. Mr. Maffatt lectured to a crowded house last evening before the Maryland Institute of Education. Business continues dull. I quote flour at $5 62 Nothing doing in grain. Exchange on New York 37-8to 4 premium; Philadelphia 134 to 21.4 dis.; Va. 4 to 5 ais. The weather is beautiful. TWIST. Yours,

4. February 1, 1842 Richmond Enquirer Richmond, VA

Article from Richmond Enquirer, February 1, 1842

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THE STATES LOUTISANA.-A Democratic State Convention New Orleans on the 8th instant. Gen. Joseph was elected President There were 38 Vice Pres elected, and 17 Secretaries. Resolutions were mously adopted, condemning the repeal of the Treasury, the distribution act, the creation of a al Debt, and the attempt made at the extra charter a National Bank. The Hon. Alexander ton, at present a Senator in Congress from: Loui was nominated as the candidate of the Democratic ty for Governor. OHIO.-A Democratic State Convention assemble on the 8th instant at Columbus. Col. Dowly Utter elected President. There were 19 Vice Presidents e ed, and G Secretaries. Wilson Shannon was USI mously nominated the Democratic candidate for vernorat the Octoberelections. Many res lations adopted, among which were the following "Resolecd, That the General Government the power to assume, directly or by indirect means debts contracted by either of the several States that all attempts to effect such an object are, and to be, regarded as violations of the Constitution handed acts of insurpation, and as precedents, ly dangerous. "Resolved, That the distribution of the proceed the public lands, provided for at the extraordinary sion of Congress, is unjust and corrupting in it. dencies and objects, productive of increased and lates sive taxation-evidence of which is seen in the tempt, by the Whig party, to tax the necessari life, even the tea and coffee used by the peopleit violates the compacts by which several of the St. relinquished their claims to said lands, is contrary spirit of the Constitution, and adverse to the wells the people. "Resolved That it is the duty of Ohio, to make quate provision to fulfill her engagements, and to tiously guard against any unnecessary increase State debt. Resolted, That the elective franchise is one most precious rights, and that we hold all attempts corrupt and obstruct its free exercise as a species of ral treason. "Resolved, That we regard the promotion of gener education and intelligence as the best means vating the standard and morals of political ethics the most effectual preventives of a recurrence of fraud, pipe-laying impositions and delusions, If characterised the successful party in the contact 1840." NEW YORK.-A curious case of Expunge place in the Senate. The Governor (Seward) had turned the Bank Receivers Law signed, but account his to the law itself. faced was evidently the nied by proceeding objections against This to Jane tion-which requires of the Governor, either the bill, or return it with his objections State tell!- He did both-upon which Mr. Foster of the it nate moved to expunge it from the Journals after much prevailed, by a vote of 1:10 Governor remonstrated this expunge another of 26th The message debate, January-which against message Senate refused to receive, by a party vote, and direct. the clerk to return it to the Governor. MARYLAND.-The House of Representatives passed a bill compelling the Banks to resume in & It is now before the Senate. letter in the Baltimore Patriot the ing hort time. gives The last accoss: of the prospects of its passage: Extract of a letter, dated "ANNAPOLIS, Jan. 29, 1812 "The Committee of the Senate, to whom was refer red the of the together with the bell from the House in relation to it. before the latter end of next week. port question currency, resumption, They will on is not : port a new bill, requiring our Banks to resume named ; in the mean time to resume, or resume before the for our The to be named for the Pennsylvania banks. and, Virginia day day it resump either fire tion of our banks, will give a liberal time for all interest 12 concerned to prepare, and will be satisfactory 10 discreet of all sides. The Chesapeake Bank had been severely run 913, Baltimore-That institution hadloaned about in

5. February 1, 1842 Richmond Enquirer Richmond, VA

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500 10 the State, but the state had not returned the money. The Bank informed the Legislature, that with the aid of it, they could meet resumption.-The Baltimore Patriot of Friday evening says: "The run on this institution to-day was not so great. It con. tinued to redeem its tens and fives. The American of this morning in an article upon the subject says: "We are authorized to add that the depositors in the Chesa. peake Bank have been enabled to avail themselves of their deposites in all cases for the payment of debts due in other Banks." GEORGIA.- The Governor has issued his Proclamation, declaring the election of Messrs. Cooper, Colquitt and Black. The following is the complete return, except the county of Glynn, in which no legal election was held: 30,668 31,872 Dougherty Black 30,410 32,199 Gilmer Colquitt 30,336 32,425 Wright Cooper The majority of Mr. Cooper over Judge Dougherty (the highest on each ticket) is 1,757, and of Mr. Black (the lowest on the ticket) 1,204 over Judge D.

6. February 2, 1842 New-York Tribune New York, NY

Article from New-York Tribune, February 2, 1842

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The steamer having left, there is but little inquiry for For eign Exchange. The rate for Sterling is 8 a St for first rate bills 7 a 73 for Southern: Francs, 5 30 a 5 281. Domestic Exchanges are rater dull. Alacama and New. Orleans have an appearance of improving. We quote: Philadelphia 7a7t; Baltimore 3) a 31; Virginia 9} a 10; Charles ton 12; Savannah 2) a 3; Mobile 14 a 14); New-Orleans 71; Cincinnati 13 a 14. Money is decidedly easier, and A No. 1 paper has been negotiated to-day at 7 per cent per annum. Dadley S. Gregory at Jersey City, E. D. B. Ogden of Paterson, and S. P. Britton of Elizabethtown have been appointed Receivers of the Morris Canal and Banking Compa. ny by Governor Pennington. The State Bank at Camden had a run upon it on Saturday, but was able to maintain herself. She deposited a large amonnt of valuable assets in one of the united banks in Phliadelphia, and yesterday the notes of the Bank were received in deposite in Philadelphia. In consequence of the excitable state of public opinion in Philadelphia, it is not difficult to get up a run on any bank. The Moyamensing and Penn Township Banks have been run upon to a considerable extent, but have, thus far, sustained themselves. A meeting of the directors of the several Philadelphia Banks was held yesterday, at which the Bank of Pennsylvania proposed to give security in bills payable and the additional sarety of an individual of known wealth, for the purpose of having the injunction raised and paying the interest on the State Debt. No decision was had on this proposal. Undoubtedly, after all the exertions made by the officers of the State in sustain its credit, to-day has passed away without the payment of the dividends, and Pennsylvania has thus been dishonored by the treachery of the Bank of Pennsylvania. The Bank, it is said, has used one half the amount provided for the payment of the interest, for its own purposes. Its capital was 2,500,000, of which 1,500,000 is owned by the State. Several of the banks refused to receive deposits on Monday. Pennsylvania Fives offered at 50, only 46 bid. Pennsylvania bank notes 20 to 25 per cent discount. Girard 30 per cent discount: United States Bank notes 45 a 50. Governor Porter had left Philadelphia for Harrisburg. The Chesapeake Bank of Baltimore had outlived the excitement, and confidence in its solvency had been restored. MARYLAND BANKS.-The Baltimore Patriot of Saturday evening has the following from Annapolis, under date of January 28: The committee of the Senate, to whom was referred the question of the currency together with the bill from the House in relation to resumption, will not report before the latter end of next week. They will report n new bill requiring our banks to resume on a day named. and in the meantime to resume if either Pennsylvania or Virginia resume before the day fixed for our banks. The day to be named for the resumption of our banks will give a liberal time for all interest concerned to prepare, and will be satisfactory to the discreet of all sides. OHIO BANKS-1842-A statement showing the proportion of specie on hand to the circulation of the banks of Ohio, as reported to the Committee on Banks and the Currency of the House of Representatives, during the present session of the

7. February 3, 1842 Martinsburg Gazette Martinsburg, WV

Article from Martinsburg Gazette, February 3, 1842

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MARYLAND. The House of Delegates of Maryland have passed a bill, by a majority of 55 to 15, to compel a resumption of specie payments by the Banks of that State, within twenty days, after the passage of the act. The bill is now before the Senate. It is supposed by many that it will hardly pass that body in its present shape. There are a variety of cogent reasons why the Legislature should extend the time for commencing the payment of specie, inasmuch as several of the Banks of that State have become large creditors of the State, by enabling her to pay the interest on her debt. For example the Chesapeake Bank in Baltimore is a creditor of the State, to the amount of $167,193, and in consequence became indebted rather heavily to several Banks in Baltimore, who during the last week, refused to receive its notes at their counters, and this, of course, produced a run upon the Chesapeake Bank for other paper than its own. The excitement in the public mind in relation to its notes seems, however, to have subsequently passed away. The Baltimore papers of Saturday say "there was no appearance on Friday, either in or about this institution, which indicated any excitement. Holders of notes occasionally made their appearance at the counter, and had them exchanged for other Bank paper." A letter from Annapolis to a friend in Baltimore, states that there is no doubt that the resumption bill will be modified by the Senate. What effect the present state of things in relation to Bank concerns in Philadelphia may have upon the Maryland Legislature, it is difficult to say, but the failure of so large an institution as the Girard Bank will no doubt inspire a proper degree of caution when final action is had upon the question.

8. February 5, 1842 Richmond Palladium Richmond, IN

Article from Richmond Palladium, February 5, 1842

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ape, and three baboons, CO AS to have enough left for a small yellow dog. "I'm in 8 grate scrape" AS the nutmeg agonizingly exclaimed to the grater. It is stated that the Chesapeake Bank of Baltimore has had a run made on her, and that she now refuses to redeem any thing over five dollars. It is also stated that the Towanda Bank, in Pennsylvania has exploded. The Great Eas. term mail from Wheeling to Cincinnati is hereafter to be carried through in two stages. The at. tempt to put down the Ladies Bustles has been a perfect failure-they still stick out a feet. A pair of silk gloves was lately manufactured at the price of 15,000 francs for the Queen of Belgium, but they were rejected on the ground of the enormous expense.

9. February 10, 1842 The Hillsborough Recorder Hillsboro, NC

Article from The Hillsborough Recorder, February 10, 1842

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Another Bank Stopped-The Chesa peake Bank, Baltimore, which had a run upon it on Wednesday la+i, has stopped payment. being able only to redeem its fives in other bank paper. The consequence was an excitement among is note holdere.

10. February 24, 1842 The Charlotte Journal Charlotte, NC

Article from The Charlotte Journal, February 24, 1842

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Another Bank Stopped. 1 The Chesapeake Bank, Baltimore, which had a run upon it on Wednesday last, has stopped payment being able only to redeem its fives in other bank paper. The consequence was au excitement among its note holders.