banks of Baltimore - Baltimore, MD

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: October 18, 1839
Location: Baltimore, Maryland (39.290, -76.612)

Metadata

Model: gpt-5-mini
Short Digest: 76e866d4

Response Measures

None

Description

Article (Oct 30, 1839) reports that the banks of Baltimore suspended specie payments as part of a broader set of suspensions (Philadelphia, Cincinnati). No mention of depositor runs or permanent failure in the excerpt; suspension appears to be part of a systemic episode (1839 panic). Reopening is not explicitly described, but historically such suspensions were typically temporary; classification chosen as suspension_reopening because there is no evidence in the provided text of a run or permanent closure. Date for the suspension is taken from an Oct 18, 1839 notice quoted in the article.

Events (1)

1. October 18, 1839 Suspension

Cause: Macro News
Cause Details: Part of a wider suspension of specie payments by multiple cities' banks amid a systemic financial disturbance; reported alongside Philadelphia and Cincinnati suspensions.
Newspaper Excerpt: we are in receipt of the information that the banks of Philadelphia, Baltimore, and Cincinnati have suspended the payment of specie
Source: newspapers

Newspaper Articles (1)

1. October 30, 1839 Morning Herald New York, NY

Article from Morning Herald, October 30, 1839

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Article Text

dis. dis. Rochester City Bank, Broome Co. Bank, Bank of Owego, Central Bk, Cherry V'ley, Livingston Co. Bank, Jefferson Co. Bank, " " Mohawk Bank, Bank of Monroe, " " Bank of Auburn, Montgomery Bank, " " Bank of Geneva, Ontario Co. Bank, " Utica Branch Bank, Ontario Brauch Bk,Utica, Leather Bank. Oneida Bank, " this. Steuben Co. Bank, Bank of Utiga, " Bank of Rome, Albany City Bank, The following are redeemed at the North American Trust and Banking Co. Commercial Bank,Troy, dis. Orange Bank, N.J., fives Merchants' and Farmers' and over. par. Bank, Ithaca, Farmers' Bank, Hudson. Farmers' and Drovers' Bank of Syracuse, Farmers' and Mechanics Bauk, at Somers, 3 pr ct. Genessee Co. Bank, 1 pr ct. Bank, By J. T. Smith, at 26 Wall street: Bank of Delaware, 1 pret. Herkimer Co. Bank, 1 pr ct. " Sackett's Harbor Bk, 2 Cayuga Co. Bank, All others not redeemed, including red back and safety fund, are bought at 28 Wall street, at 5 per cent discount. There are, however, many brokers who charge from 5 to 7 per cent according to the necessities of the sellers. Providence bills are bought at from 10 to 12 discount. The following are the rates of exchange, as near as may be: 18a20 112a12} dis. Mobile, Philadelphia, 9al0 New Orleans, 111x12 " Baltimore, 12:13 12 aló " Charleston, Richmond, The brokers will not buy the bills of these banks redeemed in the city at a less rate than 5 per cent, so precarious is the na ture of the redemption considered, being liable to be discon. tinued at any moment. These rates for the money, have led to the purchase of the bills for the purpose of demanding specie on speculation. An agent left here with $300,000 for that purpose, which was purchased at an average of 7 per ceut discount The operation, therefore, yields a profit of $21,000 in a few days This drain, but few of the banks can stand. While these operations are going on, what do the committee of the Western banks at the City Hetel, having failed in the objects for which they came here, passing resolutions that they have perfect con. fidence in the banks which they represent? Why do they not go home and provide means of payment, instead of staying here and saying they can pay? It is cash that is new wanted, not resolutions. The difficulty of procuring payment from the western banks daily increasing; a draft of the Erie County Bank, on a new bank in this city, called the Atlantic, for $326, was redeemed with some difficulty. There are many of the new banks at the west, which do net pretend te disco unt, but the bills are used by the proprietors in their individual business, and not a few of whom employ their funds in buying western money in Buffalo drawing the specie for it. The effects of the position of New York are beginning to be manifest in the influx of specie from the south. A large amount has been received today in this city, and was offered at a premium, which could not be obtained, and was then deposiited with one of the banks in the ordinary way. It is idle to suppose that our banks will give any thing for specie. They have as much as will make them perfectly safe, and more they do not care about keeping. From Philadelphia we learn that public opinion is fast changing in favor of the New York policy and against the United States Bank, which institu. tion is becoming unpopular as fast as the merchants understand the true bearing of her policy. Already the majority banks," or those which voted against a suspension, are making preparations to discredit her bills altogether. The moment that is done, she will stand as a broken bank. The practical effect of this feeling is explained in the fact that a person who was yesterday a large buyer of that stock in Philadelphia, at 86 cash, to fulfi: contracts, refused it at 84 next week. Statement of the Marine Ins. and Branch Bank at Macon, (Ga) and also the Planter's Bank of the State of Georgia, as com. pared with their condition at the time of suspension in May, 1937. Oct. 1839. May 1837. Loans. Specie. Loans. Specie. 78,450 445,188 Ins. Bank 925,823 161,516 164,766 755,827 Plr's Bank 1,030,739 367,760 Circulation. Deposites. Circulation. Deposites 76,995 80,468 Ins. Bank 496,770 224,370 171,525 108,699 Plr' Bank 354 613 689,493 The prevailing, but erroneous impression at the south, that the New York banks would follow in the wake of the United States bank caused, on the receipt of the news of the Phila. delphia failure at Nashville, the suspension of the Union Bank and the Planters' Bank, both of which are large debtors to the bank of Tennessee, which institution drew from them $100,000 in specie, previous to their suspension, and then addressed the following note to the Legislature now in session: BANK OF TENNESSEE, Oct. 18. 1839. To the General Assembly of the State of Tennessee. GENTLEMEN.-Bylast evening's mail we are in receipt of the information that the banks of Philadelphia, Baltimore, and Cincinnati have susp nded the paymen of specie, and probably the New York and Kentucky banks also. This morning the Union and Planters' Bank have also suspended. The balance due this institution from those banks is very considerable, and they have refused payments of the same. WM. NICHOL, President. I have the honor, &c. The following is a statement of the three banks at different neriods: