8452. banks of Baltimore (Baltimore, MD)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
September 26, 1857
Location
Baltimore, Maryland (39.290, -76.612)

Metadata

Model
gpt-5-mini
Short Digest
30465215

Response Measures

None

Description

Multiple Baltimore banks suspended specie payments in late Sept. 1857 as a precaution after Philadelphia banks suspended (preventing specie outflows). No run on Baltimore banks is reported. By Feb 1858 newspapers report the Baltimore banks had formally resumed specie payments.

Events (2)
1. September 26, 1857 Suspension
Cause
Local Banks
Cause Details
Suspension taken as a precaution after Philadelphia banks and other institutions suspended, to prevent specie being drawn out to Philadelphia and elsewhere; avoid one-way specie outflows and panic.
Newspaper Excerpt
the banks of Baltimore suspended specie payments to-day
Source
newspapers
2. February 10, 1858 Reopening
Newspaper Excerpt
the banks of Philadelphia, Baltimore, and of the District of Columbia have resumed formally and fully.
Source
newspapers

Newspaper Articles (8)
1. September 26, 1857 The Washington Union Washington, DC
Article from The Washington Union, September 26, 1857

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Article Text

WASHINGTON CITY. SATURDAY EVENING. SEPT. 26. 1857. BANK SUSPENSIONS IN PHILADELPHIA, BALTIMORE, AND WASHINGTON. By referring to the telegraphic column it will be observed that the banks of Philadelphia have partially, and in some instances wholly, suspended specie payments. As a matter of precaution-it i is 80 alleged-the banks of Baltimore suspended specie payments to-day ; and from the same cause a similar course was adopted this morning by the Patriotic Bank and the Bank of Washington of this city. It may reasonably be expected that a large number of new and irresponsible banks in the North, East, and West, taking advantage of the general panic, will nominally refuse to part with what they really do not possess. The sooner these worthless institutions are out of the way the better it will be for all classes of the community. As a general rule, the southern banks are in a sound condition; and, with large and increasing resources at command, they will be able, with few, if any, exceptions, to weather the present storm with undiminished credit. The condition of the banks in the city of New York is such as to warrant the belief that their resources are fully equal to meet existing emergencies. Their strength will force the suspending banks into liquidation or the speedy resumption of specie payments. Looking at home, we can see nothing in the financial affairs of this city to warrant alarm or distrust. Our citizens are not suffering from the effects of overtrading or over-speculating; and the cash means of our banks are not locked up in protested paper or the depreciated bonds and stocks of "fancy" railroads. At no period in the history of our city was the condition of our merchants, hotel keepers, mechanics, traders, and real-estate owners more prosperous and promising than it is at the present time. Never before were clerks, journeymen, and laborers as liberally and promptly paid as now; and we venture to say that the balance-sheets of our banks show as large net profits for the past year as for any previous year of their existence. Compared with Baltimore, Philadelphia, New York, Boston, Cincinnati, or any other northern, eastern, or western city, the financial condition of Washington should be a source of congratulation instead of a cause for alarm. But still, with all our substantial means at command, with general freedom from debt and general well-paid employment, we are free to confess that a money panic and a money crisis can be soon got up in the federal capital, if our citizens desire such an expensive luxury. Let each distrust the other-let the usual money accommodations be withheld-and let all engage in the confidence-imparting business of withdrawing specie from the banks and the ordinary channels of trade for 'hoarding" purposes, and not many days or even hours will elapse before the business men of Washington are suffering as their brethren of New York and Philadelphia now suffer. Let the citizens of Washington have a true, realizing sense of their really prosperous condition, and the troubles which they invoke by their fears and distrust will not come near them. A "run" was made on the Bank of the Metropolis to-day, but it was met so cheerfully and promptly by the custodians of its well-filled vaults, that confidence was soon restored to depositors and noteholders.

2. October 2, 1857 Daily Nashville Patriot Nashville, TN
Article from Daily Nashville Patriot, October 2, 1857

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Article Text

Suspension in Baltimore. It appears from the remarks of the Biltimore Patriot of the 28th ult., that the suspension of the banks of that city was not caused by the want of ability on their part to meet all the demands upon them, but to prevent their coin from being drawn out for Philadelpbia. The Patriot says: The suspension of specie payment yesterday by the Philadelphia banks and other banking institutions throughout Pennsylvania rendered it certain that a pressing demand would be made upon the Baltimore Banks for coin to-day, and henceforward-that they would be called upon to meet drafts from Philadelphia and elsewhere, without the prive lige of an ade quate reciprocation. Thus the odds must have been entirely against themspecie all going out and none coming in. An unnecessary excitement, too. might have sprung up at home, growing into a panic, the dil terious conseque nees of which could not be easily anticipated. Our Banks, therefore, b. ing in a condition of r markubi soundness, and having all along observed the " ost judicious and commen-able management, adopted the wiser plan of -uspending. The matter was accompl shed with great ease and unanimity. We record the fact with pleasure that no run Was mide and DO extraordinary excitement perceptible So decided and unshaken WAS the confidence of the entire community in the P rfeet solvency of our bank, their judicious management, and ability to pay, that ach person seemed to feel that it Was not only a protection to themselves individually, to the mercantil and business community generally, but to the banks, and to our future fi sticial prosperity, that all cheerfully acquiesced in the movement. Scarcely had the fact become known before a more cheerful asp et could be obServed upon ever countenance, evidently approbal ting the move, whilst a general sentiment prevailed that the crisis was past.

3. October 9, 1857 The New York Herald New York, NY
Article from The New York Herald, October 9, 1857

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Article Text

001 38 vesant Stuyesant Fire Insur sace Insurance Etna Fire Insur Insurance ance Co. 93a 100 At the second board the market was lower throughout. Virginia 6's fell off one per cest; Illinois Central bonds, 2; American Exchange Bank, 5; Park Bank, 9; Pennsylvania Coal Company, 2; Illinois Central Railroad, 3; MIT vankie and Mississippi, 1; Reading, 3 Date ware and Hudson, 1; New Haven and Hartford, 2; Erie, 1/4. The principal feature of the market to day was the great decline in bank stooks. The fall has been enormous The banks must be heavy losers by the umerous heavy failures. The Sheriff walked into the office of the wankie and Mississippi Railroad Company this morning. seixed all the books and papers, looked them up in the safe, put the key in bis pocket and walked off, leaving a net or astonished individuals to find out at their leizure what 11 all means The company appear to be just now in a bad way The failure of Bower, McNamee & Co., silk merchants. was *** unced this morning. Having a large ospital, and immense nominal reson resources, this house has struggled along, determined to go on If possible, at any sacrifice; but the country collections from 000 $10,000 a day having run do to just about DO bing at all, It was found utte dy impossible, under the present state of the money market to pay both sides of the bill book any imger, and . day or two since II became apparent to the connarn that it mus. sus suspend. temporarily The house shows. we understand asurpius of 1,200,000, and proposes paying in Tall, to oligi and interest. The immediate and direct cause of this suspension is the atter confusion in which the do mestic exchanges of the country are at this moment in volved. Their customers at the West write that they they have the funds in hand to pay their notes due here, but that " is impossible to get exchange at any price. We understand that Mesurs Harper & Brothers, book publishers, finding, in consequence of the disorganized state of the domestic exchanges, that they could not effect collections from their country customers without a ruinous loss, decided to day to suspend pay ments until the internal commerce of the country shall be again on such a footing that debis due in the distant cities can be made available at New York. We have reason to balieve that the assets of the firm exceed its liabilities by upwards of a million of dollars. Proposals for a loan of $1,700,000 were advertised for by the Water Commissioners of Brooklyn in August last, pursuant to an not of the New York Legislature, passed February 11, 1857. The bids were to have been opened to day at o'clock P. M., at the office of Corning & Co 63 Wall street; but no bids at all were forthcoming. The terms of the loan were six per cent bonds of the city of Brooklyn, and the terms of payment cash for the whole amount offered, or twenty per cent in cash-twenty per cent, payable November 2, 1857; twen'y per cent, payable December 1, 1857; twenty per cent, payable January 2, 1858; and twenty per cent, payable February 1, 1853-the purchaser to pay all accrued interest on the bonds to 1st of October, and the first payment to be reserved as coliate. ral security for the fulfilment of the contracts. The merchants of Bost n and Philadel have held meetings to take into consideration the condi ion of financial and commercial affairs, and to devise ways and means to alleviate, and if possible remove, the pressure At each of made of were these the reral : lead meeting speeches by ing merchants, and a general opinion excressed that the worst of the revultion was over. There the matter was ended. The pressure goes on, the banks pursue steadily the policy first established, failures take place daily, the scarcity of money is not relieved, and we are steadily pro gressing towards the point where all financial revulsions avariably land us. All sorts of remedies are proposed for the immediate removal of all our difficulties, but none seem to be popular, even in theory. Pablic meetings of the mer. chants do not amount to much in such times as these. A careful examination of the list of directors in our banking institutions will show that these m. neyed concerns are managed by our leading merchants. There is hardly a prominent merchant in the city who is not a director in some bank, and their best judgment is brought to bear upon the most important questions of the day, connected with the present revalsion, in daily consultation in the different bank pariors. The course of the banks is the result of the private consultations of these men, and when this is considered, we must take the speeches and the suggestions of the same parties, when in public, with a great deal of allowance. As acts speek louder than words, the action of these very men in the bank pariors should be taken before their speeches at public meetings, which really mean nothing, and are in. tended to allay for the moment any undue excilement As for the banks, we do not see how any sensible man-how any man not utterly regardless of the real interests of the city, and of the vast importance of sustaining these great interests-can for a mcment find fault with the conserva Ive policy these institutions are cow pursuing. We have only to look at the city of Philadelphia and the city of Bal timore to are the withering, biighting, terrible effects of a suspension of specie payments on the part of the banks, to learn such a lesson as can never be forgotten. Every sound business man, every man having at heart the true welfare and presperity of his native or adopted city, every man having the least pride in the prospertiv, credit and growth of the city in which he lives. must be willing to submit to the most serious sacrifices to preserve the fair fame and good rame of that city. We have no doubt that the people of Philadelphia and Baltimore to day would will lingly have sacrificed one half the commercial com munity to have preserved the public credit and the character of their banking institutions. They #00 now how much they have lest, and what a long, tedious, difficult matter It wi be to restore them again to their former position. It will, at the best, take years, and never again can the banks of Philadelphia recover what they ap parently so indifferently parted with. They must here after rank very low in the scale of credit, and have lost all power wer and influen ce in the financial world. The people of that city keenly feel the effect of the bank suspension, and are justified in the expression of such sentiments as were ultered at the public meeting of citizens a few days since There is class of people in this State who would gladly see our banks suspend-who are selfish enough to look solely to their individual pockets, perfectly regardless of public character or public credit. They are too narrow contracted in their views and ideas to look beyond the bearing upon private interests, and do not seem to under stand that the prosperity, growth, strength, wealth and position of the city, as great financial centre, will be sus tained and guaranteed more by preserving the credit of our banking institutions than in any other way. No saori fices are too great to accomplish this great object. We are now in the position of a besieged city, and the question is whether the city and the great bulk of people and proper ty in It shall be preserved by the sacrifice of a few lives, or whether the whole shall be given up to pillage and des true iom. The few that fall in defence of our character and our credit, M the fisancial and commercial metropolis the to = must be cause. will martyrst the of general Union, be 10 in all contests and struggles for great principles, whether of a political, financial or commercial nature. We have no particular regard for the banks. Our sympathies de not take that direction. Upon the contrary, we look upon them M useless, dangerous institutions; and any com. munity is much better off without them. We have op posed time and again their policy, and at the proper time shall doubtless do so again. M mths and m withs age, when they were expanding at the rate of one and two millions a week, upon a stendily decreasing specie reserve, we were loud in our denunciations, and predicted just what has since been realize i. We are not as all friendly to the banking

4. February 3, 1858 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, February 3, 1858

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Money Matters. The dullness in our stock market is unrelieved, but prices continue steady. While there continues to be decided activity at New York, with some enhancement of prices, the market here was never more spiritless. The accumulation of capital at New York is such that it seems they must need employ it in some way, it only in speculative operations, in many instances to actual values. Such is not the case in Baltimore however. Here the banks continue in a suspended state, and may not generally resume, as far as we can learn. for a month yet. Until this step is accomplished, there will be little change for the better in our midst. Things must remain in statu quo until resumption takes place, as all move cautiously in reference to that event. The banks of Philadelphia, we see it stated in a New York journal, have virtually resumed specie payments, and receive large amounts of specie over their counters, and pay every one in specie who demands it. There the money market is easy, at 8@9 per cent. on prime paper. Here in Baltimore it is 10@12 per cent. on the same class of paper The facts speak for themselves. The present minimum rate of discount, 5 per cent., to which the Bank of England reduced on Jan. 15, is just one half the figure which ruled previous to Dec. 24, and the lowest point touched since the 6th of October, 1856, a period of more than fifteen months. This is a striking change in the money market to occur within the brief space of about three weeks. Large amounts of bullion have been flowing into the coffers of the bank, for which there was very little demand, and it was evident that the position of the institution was strong enough to warrant the reduction, which was precipitated, too, by the fact that good bills were being discounted in the open market at 41@5 per cent. while the bank was charging 6 per cent. A further reduction is anticipated, but this will depend upon the continued influx of bullion for a few weeks-a result. however, which we may count upon with certainty, taking shipments from this side of the water as an indication. The importations at New York. since January 1st, amount to $5,085,644, against $15,090,801 in the same time last year. The export (exclusive of specie) amounts to $3,323,728, against $3,213,725 in the same period of 1857. Decrease of imports thus far this year $8,200,187. Increase of exports thus far this year $110,004. In favor of this country $8,310,191. We have besides shipped about $4,400,000 in specie last month more than in January last year.- Bult. Sun.

5. February 10, 1858 The Washington Union Washington, DC
Article from The Washington Union, February 10, 1858

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W3R FINANCE AND BUSINE ESS. OY The resumption of specie payments by the suspended banks of the country goes on. During the week, the banks of Philadelphia, Baltimore, and of the District of Columbia have resumed formally and fully. For some time these banks have virtually been specie-paying, although a full resumption had not been announced. The early resumption of the banks of Virginia and North Carolina is now anxiously anticipated. A strong disposition prevails throughout the country to take effective measures to put an end to the circulation and issue of small notes. The subject has been taken up by the legislature of Massachusetts, and a report made in the senate by the committee ou banks and banking, which closes by recommending the passage of a bill prohibiting the circulation of all bills under the denomination of five dollars. A bill is also before the New Jersey legislature for the gradual suppression of all bills under the denomination of five dollars. The following statements present the last weekly reports of the banks of New York, Philadelphia, and New Orleans. At New York the specie reserve has fallen off slightly-being the first falling off in this respect since the suspension of the banks. At Philadelphia and New Orleans the amount of specie continues to increase, although at Philadelphia the week was the first of the resumption

6. February 5, 1859 The Daily Exchange Baltimore, MD
Article from The Daily Exchange, February 5, 1859

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PRICES AND SALES OF STOCKS IN NEW YORK. BY TELEGRAPH. Through WILLIAM FISHER & SON, Stock and Bill Brokers. No. 22 South street. 1st Board. 2d Board. 00 9614 Virginia 6's Missiouri 6's 84 84 1/6 Illinois Central bonds 00 8634 00 1914 Canton Company Erie Railroad 135, 13% New York Central Railroad 821/2 8214 481/4 Reading Railroad 431/2 Panama Railroad 00 00 Cleveland and Toledo Railroad 303/ 00 00 Michigan Southern Railroad 18% Cumberland Coal 00 00 Harlem Railroad 00 13 00 Galena and Chicago 685/ LaCrosse and Milwaukie Railroad 00 1 1/6 Rock Island Railroad 59 00 Market inactive. steady. In New York to-day Virginia 6's advanced ¥: Missouri do., 1/6: Reading and Rock Island Railroads % each; Cleveland and Toledo declined 1/6; but all the other stocks on the list sold at yesterday's figures. The New York bill market is quiet and steady. There being no steamer on Saturday, remitters keep out of mar ket. Sterling is 109@109%; France 5.18%@5.13%. The New York Tribune of to-day says: There is no new feature in the money market. The changing of loans continues, and the movement for the advance in rates is spreading. A leading bank advanced the rate on Thursday to 6 per cent. on demand loans, preferring to have their means in paper rather than at 5 per cent. on call. Other banks and bankers are asking 6 per cent., but the current rate is still not above 5 per cent. to favorite borrowers on desirable collaterals. Paper is less plenty at the enhanced rates, many parcels being held out of market. The range for first-class well-known signatures is 5@7 per cent., with exceptional transactions at 4 1/2 per cent. of very short gilt-edged. The improved rates of interest have brought in private capitalists as lenders, who take the place of the banks, and money is still abun dant. There is a moderate demand for Treasury notes for Custom-House and investment purposes. and all kinds excepting the 5 per cents. are selling at %@y per cent. discount. The 5 per cents. are held at par. The Government loan presents a rather firmer appearance, but the absorption for investment is as yet limited. The movement in it depends almost entirely upon what action Congress takes in regard to supplying the deficiencies of the Treasury. The parties interested in the Bullion Bank had a meeting on Thursday night, but did not fully organise the institution. The Bank Presidents had also a meeting for consultation, but adjourned without any important action. The banks which, by their capitals, are admitted to this Association, are the Bank of New York, Manhattan, Merchants', Mechanics', Union, Bank of America, Phenix, City. Merchants' Exchange, National, Bank State of New York, American Exchange, Commerce, Broadway, Ocean, Mercantile, Bank of the Republic, North America, Hanover, Metropolitan, Market, >hoe and Leather, Corn Exchange, Continental, Importers' and Traders', Park. The receipts of the City Railroad of Brooklyn (Horse) were, in January, $32,529.92, against $26,880.12 in the same month of 1858. The following rather late admission of what was so fiercely disputed by New York, occurred in an editorial article about the banks, the panic, and the currency, published a day or two since in the New York Courier and Enquirer: "The only fault committed by the banks of Boston and New York was, that they did not suspend simultaneously with those of Philadelphia and Baltimore. You may call this conduct heroic, yet it was fruitless."

7. December 31, 1929 Quad-City Times Davenport, IA
Article from Quad-City Times, December 31, 1929

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Average Savings $1,000 for Each Local Resident Savings accounts deposits in the nine banks of Davenport have a per capita value of $1,000. Few cities thruout the country exceed this high average. No city of like population equals it. From The Democrat, Sept. 28, 1857. From a telegraphic dispatch received on Saturday evening, we learn that the bank panic is raging in Boston, Philadelphia, Baltimore and Washington. We also learn that the banks of the above places have suspended specie payments. This, however, will not affect bill holders, nor hinder the currency issued by those banks from being received by our banks on deposit. The banks of Hopkinton, Rhode Island, and Monson bank, Maine, thrown out. Don't take Eastern Exchange.

8. October 26, 1930 Quad-City Times Davenport, IA
Article from Quad-City Times, October 26, 1930

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verage Savings $1,000 for Each Local Resident Savings accounts deposits in the nine banks of Davenport have a per capita value of $1,000. Few cities thruout the country exceed this high average. No city of like population equals it. From The Democrat, Sept. 28, 1857. From a telegraphic dispatch received on Saturday evening, we learn that the bank panic is raging in Boston, Philadelphia, Baltimore and Washington. We also learn that the banks of the above places have suspended specie payments. This, however, will not affect bill holders, nor hinder the currency issued by those banks from being received by our banks on deposit. The banks of Hopkinton, Rhode Island, and Monson bank, Maine, thrown out. Don't take Eastern Exchange.