Girard Bank (Philadelphia, PA)

Episode Information

Episode UID
9521708890693
Episode Type
Run β†’ Suspension β†’ Reopening
Bank Type
state
Bank ID
952170889 hash
Start Date
September 25, 1857
Location
Philadelphia, Pennsylvania (39.952, -75.164)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
b658e4b898bfa7f5

Response Measures

None

Events (3)
1. September 25, 1857 Run
Cause
Local Banks
Cause Details
Run triggered by suspension of the Bank of Pennsylvania and related failures of dry goods houses causing depositor alarm
Measures
Refused to honor checks (paid specie for five-dollar notes only); later certified checks for some customers
Newspaper Excerpt
There is a heavy run on the city banks; Girard Bank refuses checks until 1 o'clock
Source
newspapers
2. September 25, 1857 Suspension
Cause
Local Banks
Cause Details
Temporary suspension of specie payments by other Philadelphia banks (Bank of Pennsylvania) and general panic prompted Girard to suspend or curtail operations
Newspaper Excerpt
The Girard Bank has entirely suspended business; refuses to do any business and gives no satisfaction to depositors
Source
newspapers
3. September 26, 1857 Reopening
Newspaper Excerpt
The Girard Bank has come to terms, and is redeeming its '5's' with specie, but refusing to honor checks; later paying specie for fives and certifying checks (Sep 26-28 reports).
Source
newspapers

Newspaper Articles (22)
1. September 26, 1857 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, September 26, 1857

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NUMBER 175. Telegraphed to the New Orleans Crescent. PINANOIAL. PHILADELPHIA, Sept. 25-The Bank of Pennsylvania has suspended. The President saya that the suspension is only temporary. The Girard Bank is paying specie for notes, but checks are not honored until 1 o'clock, P.M. There is a heavy run on the city banks. All our banks are besieged by depositors and note holders. There is much alarm, and business is almost en8 tirely suspended. Later. 0 The Girard Bank still refuses to pay checks or notes above $10. The Commercial Bank and other banks are taking the same course. The run will probably cause the entire suspension of specie. The excitement is becoming intense. NEW YORK, Sept. 25.-The Bank of Medina has failed. Bangs & Bros., book auctioneers, have failed. Later. PHILADELPHIA, Sept. 25.-Money matters this afternoon are worse, if possible, than ever. There is great demand for Eastern exchange at 2 per cent. premium. ; A general conference of the Banks, by their presidents, was held to-day. A temporary suspension of specie payments on checks and bills exceeding $10 was resolved upon un animously by all the banks in this city the rule to d commence to-morrow. Domestic Markets. Sr. LOUIS, Sept. 25.-Flour advancing. Wheat declining; Red $112}; White $1 25. Corn firm; Mixed d 50c; White 51 to 55c. Oats firm at 36 to 39c. Hemp $90 to $100. d Rock Island Bridge Case. CHICAGO, Sept. 25.-The case of the steamer Effie e Afton VE. Rock Island Railroad Company has been on I, trial for two weeks. The jary fails to agree and is d discharged. River Intelligence. VICKSBURG, Sept. 25.-The Judah Touro passed at al 3 and the Princess at 4 this evening. g-

2. September 26, 1857 Worcester Daily Spy Worcester, MA
Article from Worcester Daily Spy, September 26, 1857

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Suspension of Banks. SUSPENSION UB THE Bank OF PENNSYLVANIA.-Philadelphia, Sept. 25.-The Bank of Pennsylvania has suspended specie payments, by resolutionsof the Board of Directors. The suspension is complete. The President says it has been brought about by the action of other banks against it, and losses by recent failures. He further says the suspension is only temporary, and the capital is untouched. The Girard Bank is giving specie for its 0 wn notes, but checks will not be honored till one o'clock. There is a heavy run on the City Bank, and the counters of all the other banks are besieged with depositors and note-holders. The excitement is increasing, and there is almost a suspension of business. Philadelphia, Sept. 25.-The Girard Bank is only paying specie for fives and tens-large notes and checks being refused. The Commercial and other banks are taking the same course, promising to resume tomorrow. The excitemeut is intense. The Pennsylvania Bank has the State funds, and the Girard Bank those of the city. Later.-The Girard and Commercial Banks have failed.

3. September 26, 1857 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, September 26, 1857

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TELEGRAPHIC NEWS. REPORTED FOR THE DAILY DISPATCH. BANK SUSPENSIONS IN PHILADELPHIAFINANCIAL PANIC. PHILADELPHIA, Sept. 25.-The Bank of Pennsylvania has suspended specie payment. The Girard Bank refuses depositor's checks until 1 o'clock this afternoon. There is a heavy run on the City Bank and others. There is great alarm in the money market here, and business is almost suspended. [SECOND DISGATOR.] biladelphia, Sept. 25, P.M/-The President of the Bank of Pennsylvania says the suspension is caused by the action of other banks against it, and the recent failures of dry goods men. He says it is temporary, and that the capital is untouched. There was a heavy run at the counter by note holders and depositors. [THIRD DISPATCH.] Philadelphia, Sept. 25.-There is general confusion in the money market. The Presidents of all the banks held a meeting this afternoon, and after carefully canvassing all the circumstances of the pressure, and their resources, resolved on a temporary suspension of specie payments on checks. also on bills exceeding $10. This arrangement takes effect to-morrow. There was a heavy run on all the banks to-day, but the Girard and some others shielded themselves in the manner named. The public should discredit the reports about total failures, as it is known that highly exaggerated statements have been sent abroad during momentary excitement.

4. September 26, 1857 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, September 26, 1857

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New Orleans Daily Grescent. THE COMMERCIAL DEPARTMENT. Acto Orleans Money Market. CRESCENT OFFICE, No. 70 Camp street, Friday Evening, Sept. 25, 1857 If we were to take the line of offerings in the various Banks as a standard, we might have the pleasure of saying that there was a decided improvement in the general money market today, as in most of the Banks there was a falling off in the amount of offerings compared to the early part of the week. On the street there continues an active demand for money, without any real pressure being observable. The transactions in paper took a very broad range. There were sales of high grade at 10, 11@12 per cent., and there were sales of good and fair names from 15, 18@24 per cent. The receipts of cotton are, however, adding strength daily to the market, although exchange rules low and much in favor of New Orleans. It is a sure indication that whoever wants our great staples, cotton and sugar, must make the necessary negotiations for payment. From time immemorial, almost from year to year, for the last twenty-five years, with only one or two exceptions, have the months of September and October been noticed in this city as what are termed hard months for payment. Following the closing of one year's business and the commencement of another, it is conformable to the laws of trade that there should be more pressure in moneyed circles, or a change for better or worse, and it is hardly reasonable to expect that the present time should be an exception. The telegraph this evening advises of a great panic in Phila. delphia, and of the suspension of payment by the Bank of Pennsylvania. This Bank has a paid up capital of $1,875,000. The present President is Thomas Allibine, and Cashier George Philler. The Girard Bank was never a very strong concern, and we are not surprised at the reported suspension. Its capital is $1,000,000. Officers-William Wainwright, President, and S. C. Palmer, Cashier. We have been receiving for three weeks accounts of the very strong position of the Philadelphia Banks; in fact, the papers of that city have been boasting of the solidity of the Banks and the strongness of the mercantile community, but it appears they are succumbing to a very moderate blast from the financial horizon. It is very fortunate for our city that these disturbances and occurrences have occurred at this time-had they been procrastinated for four or five months, we can hardly estimate the losses which would have fallen on this community as it is, they will be comparatively light and harmless. We wonder if our Ajax does not wish the $400,000 in coin which was 80 injudiciously forwarded to New York through the Sub-Treasurer was not back again in its vaulte? We should also like to know if it is a paying operation to send money to the Merchants' Bank in New York to help that institution to loan on call on rotten railroads and other doubtful securities. Quien sabe. The Exchange market has no bottom-it is gone, entirely gone. We do not know where rates are going go. Clear sterling bills (good make) went down to-day to 51/@53/4. Some of the Banks purchased early in the day at 6. Bills with shipping documents rule at 4@43/that is, if any rate could be realized. Francs were taken at 5.40@5.3712-extreme rates 5.42/@5.36%. Sight fands on New York are firm at 1/1 per cent. premium for bank checks. Outside rates take a broader range, and rule from premium 15 days sight at discount; in fact there were all sorts of prices for short sight and 60 days sight, the latter from 31/244 per cent. discount, and 414 offered but the market is tending downward and may touch 5 or less. In stocks we do not learn of any transactions of note, with the exception of the sales of some Canal Bank on P.T., and to. day 100 shares Commercial Water Works at 51 /, and 10 shares Union Insurance Company at 25. We have not another sale. We annex our weekly quotations.

5. September 26, 1857 Evening Star Washington, DC
Article from Evening Star, September 26, 1857

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TELEGRAPHIC NEWS. FROM THE ASSOCIATED PRESS. The Financial Crisis in Philadelphia. Philadelphia, Sept. 26.-The corner of Third and Chesnut street is again the scene of excitement this morning. Ciowds of alarmed and interested persons surrounded the Savings Institutions this morning before 9 o'clock. These declined paying out their deposits, requiring two weeks notice to be given. The Banks were besieged before 10 o'clock by anxious and excited crowds. The Bank of Pennsylvania re-opened, doing its ordinary business, but paying out nospecie. The Mechanics' Bank paid specie for its "10's." The Girard Bank refused to do any business, and gave no satisfaction to its note holders and depositors. LATER.-The Giraid Bank has come to terms, and is redeeming its "5's" with specie, but refusing to honor checks. Most of the other banks are taking checks. ANOTHER Dispatch.-An additional excitement has been produced by the news of the suspension of the Baltimore Banks. The Tradesman's Bank pays checks and all. ADDITIONAL-There is no concert of action among the Banks, each apparently taking a different course. The North American is paying specie for its ten's, but is issuing no notes on checks. The Bank of Commerce is refusing specie, but is paying notes on checks. STILL LATER-The Bank of North America is paying all its notes, having received specie from New York last evening, and is now represented to have more in its vaults than the amount of its Mils in circulation, but is certifying its checks. The following Banks are redeeming its fives: The Commercial, the Philadelphia, and the Manufacturers and Mechanics The Farmers' and Mechanics' Bank are paying specie for "ten's." The Northern Liberties, and Western, Banks are redeeming its fives in cases of necessity. The Bank of Penn Township, the City, and Consolidation Banks pay nothing. Allothe Banks, how. ever. certify checks except the Girard, which is suspending business entirely. Some of the Banks WILL receive no deposits. 26th p. m.-Private advices say that the Banks of Reading nd Pittsburg have suspended. The Southwark Bank pays all its bills. The Kensington Bank pays its fives only

6. September 26, 1857 Nashville Union and American Nashville, TN
Article from Nashville Union and American, September 26, 1857

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BY TELEGRAPH. PHILADELPHIA, Sept. '25.-The Bank of Pennsylvania has suspended, the President says only temporary. The Girard bank is paying specie for notes. but checks will not be honored till one o'clock. A heavy run is made on the City banks, and all banks are besieged with depositors and note holders. There is much alarm and almost a suspension of business. Later.-The Girard bank still refuses payments of checks. Several other banks are taking the same course, and the run will probably cause a suspension of specie payment. The excitement is becoming intense. NEW YORK, Sept. 25.-The Bank of Medina has failed. Bangs Brothers, book auctioneers have also failed NEW ORLEANS, Sept. 25;-Cotton, sales 2500 bales; stiffer, 16}a16}; sales of the week 16,400 bales; to-day's receipts 7000 bales; week's receipts 19,600 bales; stock 36,216 bales. Flour $6. No wheat in market. Exchange worse. Sterling 61. NFW YORK, Sept. 25.-Cotton quiet; flour 5,45a 5,50 for State, 5,75a6.00 for southern. Wheat-white 1,27a1,40; red 1,26. Corn heavy; pork dull; beef declined 25c; hams 12Β½; shoulders 111; lard bouyant at 1/6 advance; coffee 104a12} for Rio; sugar declined & linseed oil 76; tea declined 2 to 5c. CINCINNATI, Sept. 25.-Flour 4 25a4 50; wheat declined; corn 50a55; whisky 17a171, good demand; sugar lower. PHILADELPHIA, Sept. 25.-Money affairs are worse, if possible, than ever. There is a great demand for Eastern Exchange at 2 per cent. (NOTE.-In the report of the Bank difficulties at Philadelphia, it should read-" The Girard bank still refuses payment on checks and notes above ten dollars. The Commercial and several other banks REPORTER.) are taking the same course," &c.

7. September 26, 1857 Wheeling Daily Intelligencer Wheeling, WV
Article from Wheeling Daily Intelligencer, September 26, 1857

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RAPHIC BY THE UNION LINE. OFFICE, CORNER WATER AND MONROE STREETS. [From the Intelligence# Extra, of Yesterday.] BANK SUSPENSION. EXCITE SENT IN PHIADELPHIA. PHILADELPHIA, Sept. 25.-The - Bank of Pennsylvania suspended this morning. Suspension complete, but the President says it is caused by the action of other Banks against it and losses from the recent failures of Dry Goods men; he says the suspension will be only temporary, that the capital is undoubted. The Girard Bank is giving specie for notes, but checks will not be honored until one o'elock.----------------Heavy run on the City Bank, and all Counter Banks besieged with depositors and note holders. Much alarΔ±n and almost a total suspension of business. The Girard bank still refuses payment for checks and notes above ten dollars.The Commercial and several other banks have taken the same course, and the present heavy run will probably cause all the banks here to suspend specie payments. The Pennsylvania Bank has charge of the State Funds, and the Girard Bank those of the city. The excitement is becoming intense. NEW YORK, September 25.-The Bank of Medina, New York, has failed, and the firm of Bangs & Bro.'s, Book Auctioneers of this city, also failed. CINCINNATI, Sept. 25.--Money affairs mo! e pressing if possible than they have been. Eastern exchange in demand at 2 per cent premium and tendency upward.

8. September 26, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, September 26, 1857

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SUSPENSION OF BANKS-RUN ON PHILADELPHIA BANKS. PHILADELPHIA, Friday, Sept. 25, 1857. The Bank of Pennsylvania has suspended specie payments by a resolution of the Board of Directors. The President says the suspension is caused by the aotion of the banks against in and its losses by the reHe also says it will cent failures of dry goo be only temporary, and that capital is untouched. The Girard Bank is giving specie for its notes, but checks will not be henored till 1 o'clock. There is a heavy run upon the City Bank, and all the counters of banks are beseiged with depositors and note-holders. There is much alarm and almost a suspension of business in the city. PHILADELPHIA--1:30 P. M. The Girard Bank only is paying special for fives and tens, larger notes and checks being refused. The Commercial and other banks are taking the same course, promising to resume to-morrow. The excitement is intense. The Pennsylvania Bank has the State funds, and the Girard Bask those of the city. PHILADELPHIA, 10 D. in. A general conference of the Presidents of all the Banks was held this afternoon, and after carefully canvassing all the circumstances of the pressure and their resources, resolved en a temporary suspension of specie payments on checks, and also on bills exceeding $10, to go into effect to morrow. There was a heavy run on the Banks to-day, but the Girard and some others shielded themselves in the above manner. All reports of total failures of any of our Banks are to be discredited. Brokers and others are highly excited, and circulate monstrous reports. There is no "Merchants' Bank" here, the repert in & New-York paper to the contrary notwithstanding. PHILADELPHIA, 11 P. M. It is now understood that the Back Presidents have unanimously resolved to recommend to the several Boards of Directors a total suspension of specie payments to take effect to-morrow. According to the law of 1850, this action will entail the forfeiture of the charters of the Banks incorporated or extended since that time. WASHINGTON, Friday, Sept. 25, 1857. The suspension of the Bank of Pennsylvania, and the refusal of the Girard and other Banks to make specie payments on bills over $10 and checks, excited surprise in commercial circles.

9. September 28, 1857 Worcester Daily Spy Worcester, MA
Article from Worcester Daily Spy, September 28, 1857

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Latest from Philndelphia-More Excitement about the Banks. PHILADELPHIA, Sept. 26.--Chestnut and Third streets, this morning, were again a scene of excitement. Before nine o'olock, crowds of people surrounded the Savings Institution, but they all declined paying out deposits, requiring the usual two weeks' notice. The other banking institutions were also surrounded by people before 10 o'clock. The Pennsylvania Bank is transacting business, but paying no specie. The Mechanics' is paying specie for $10's. The Girard declines to do business, and refused to render any satisfaction to depositors or note holders. Eleven elock.-The Girard Bank has come to terms partially, and is redeeming fives with specie, but refuses to honor the checks of depositors. Most of the other Banks are making checks good. 11. 30.-The Bank of North America is paying specie for its notes of all descriptions. It received a remittance of specie from New York last night, and asserts that it has no more in its vaults than the amount of bills in circulation. It is also certifying its checks. The following Banks are paying specie for fives, viz : The Commercial, Philadelphia, and Manufacturers' and Mechanics'. The Farmers' and Mechanics' pays specie also for tens. The Northern Liberties, and Western, pay specie for fives in assets of necessity. The Bank of Penn Township, and the City Consolidation Bank, pay nothing. All the banks, however, certify their checks, excepting the Girard, which has suspended business entirely. Some of the banks decline even to receive deposits. 11.40. The Girard is now paying specie for its fives, and certifying checks. The Tradesman's Bank is paying every thing, checks as well as notes. An additional excitement was produced, by the news of the suspension of the banks in Baltimore. LATER.-There is no concerted action among our banks, each apparently taking a course of his own. The North American is paying specie on $10's, and under, but issuing no notes or checks. The Bank of Commerce refuses specie, but pays out notes for checks. Private despatches say that the banks of Reading, and Pittsburg, have suspeuded. The Southwark Bank, (Phildelphia) pays all its bills. The Kensington pays fives only.

10. September 28, 1857 The Daily Gate City Keokuk, IA
Article from The Daily Gate City, September 28, 1857

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Telegraphic News. NEW York, Sept. 25.-It is reported that regulations are going on between the Boston Submarise Armor Company and the unders writer of the Central America, to raise her hull, which is supposed to be to about 28 fathom water. Additional names known to have been lost by the Central America. Capt. Dyer, Mr. Jerome, Engineer from Panama; L. T. Delano, Roston. Herald correspondence WASHINGTON, Sept. 24.-1 hear a rumor, and, from its source, (of which I am accustomed to place reliance,) that there is some renewal of ill-feelings existing between the government of Spain and this country. Recent advices from our Minister at Madrid, speak of a display of very' marked indignation towards him, the causes of which have thus been made public. It has been suggested that Mr. Dodge may have incautiously approached the Ministry on the subject of the purchase of the island of Cuba. A gentleman arrived here this evening direct from Kansas. He brought dispatches from Gov. Walker directed to the President. The contents will not probably be known until the return of the President, which will be on Monday. Everything resquiet when he left the Territory. The Governor had his proclamation ready for promulgation when he left. The Quarter-Master-General received a dispatch to-day from New Or. leans, stating that two companies had arrived there from Florida, en route to Kansae. Tribune correspondence: WASHINGTON, Sept. 24.-Col. Foreyth's conduct respecting the Grant is approved.β€” He is acting under special instructions to procure such modifications of the 8th article of the Gadsden Treaty, as will secure to the U.S. Army the right to convey over the Isthmus of Tehuantepec, mails, troops and ammunitions of war. Col. Forsyth explained that he wished this negotiation to precede any private grant. LOUISVILLE, Sept. 24.-The steamer Reacue is sunk at Vie Creek Rock, near Flint Iv. land. She will be a total loss. Insured in the Citizen's Company, Pittsburgh, for $50,000. No lives lost. The steamer John Tompkins has been raised and has arrived here. COLUMBUS, Ohio, Sep. 24.-The representatives of the Rail Roads west of the suspension bridge, Buffalo and the Ohio River, met to-day to consider the agreement of the four eastern main lines to reduce speed, increase fare and dispense with western R. R. ticket agencies in New York, and to dispense with runners, solicitors and the placard system generally. Gen. Wm. Robinson was lealled to the Chair, and E.S. Flint and Geo. Barnes made secretaries and a committee of ten appointed to report to-morrow, on the interest of the western connection with reference to new rates and the proposed reforms. Philadelphia, Sep. 25.-The Bank of Pennsylvania has suspended specie payment by " resolution of the Board of Directors.The President says the suspension is caused by the action against it, and its losses by the recent failures of dry goods men; he says also, that it will be only temporarily, and that the capital is untouched. The Girard Bank is giving specie for its notes but checks will not be honored till 1 o'clock. There is a heavy run of the City Bank, and all the counters of the Banks are besieged with depositors and note holders. There is much alarm and almost a suspension of business in the city. Philadelphia, Sep. 25.- The Girard Bank only is paying specie for fives and tenslarger notes and checks are refused. The Commercial and other banks are taking the same course, promising to resume to-morrow. The excitement is intense. The Pennsylvania Bank has the State funds, and the Girard those of the city.

11. September 28, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, September 28, 1857

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LATEST NEWS. THE RECEIVED BY MAGNETIC TELEGRAPH BANK DIFFICULTIES. THE BANKS OF PHILADELPHIA, PHILADELPHIA, Saturday, Sept. 26, 1857. Third and Chestnut streets are again the scene of excitement. Crowds surrounded the Savings Institutions before 9 o'clock 8. m. out two banks deposits, requiring weeks' They notice. decline The paying were besieged before 10 o'clock. The Pennsylvania Bank reopened, and is transacting business, but paying LO specie. The Mechanics' Bank is paying specie for tens. The Girard Bank has come to terms partially, re. deeming fives with specie, but refusing to honor the checks of depositors. Most of the other banks are marking checks good. There is no concert of action among the Banks each is apparently taking a different course. The Bank of North America is paying specie for tens, but issuing no notes on checks. The Bank of Commerce is refusing specie, but is paying out notes for checks. The following banks are paying specie for 5a: Commercial, Manufacturers and Mechanics', and PhiladelThe Farmers and pay The Northern Liberties pay specie phia. 10s. Mechanics' and Western specie for for bills in cases of necessity. The Bank of Penn Township, and the City Consolidation Bank pag nothing. All banks, however, except the Girard, certify checks. The Girard has entirely suspended business. Some of the banke will receive no deposits. 11:15--a. m. The Girard Bank is now paying specie for fives and certifying checks. The Tradesman's Bank pays everything, checks and all. The Bank of North America is paying all its notes. It received specie from New-York last night, and represents that it has more in its vaults than its amount of bills. It is certifying checks. The Board of Brokers passed a resolution this morning to the effect that all settlements in the purchase of stocks may be made by certified checks on any of the city banks current on the day of settlement. The Southwark Bank pays specie for all its bills. The Bank of Kensington pays for fives only. The Pittsburgh, Harrisburg, Lancaster and Reading banks have suspended. 7 p. m. A meeting of the presidents of the banks was hold this afternoon, and it is reported that a for want of concert of action they adjourned without arriving at any determination. It was thought they would determine on a full suspension, as practiced by some of the banks to-day, but which was not general on account of the North America, Mechanics', and some of the other banks receiving a supply of specie. There was also a meeting of the cashiers of the vs. rious banks, but their action is not yet known. 19 p. m. The bank presidents met to-night. They had & conference with the Governor, and asked him to call a special session of the Legislature for October 6, withthe view of affording relief to the banks from the penalty of forfeiture of charter imposed by the law of 1850. Several of the banks, however, as not acting under this law, including the Pennsylvania, Farmers' and Mechanics', Philadelphia and Western. The Governor expresses a desire to consult Attorney-General Franklin, who is not in town. No doubt the proclamation calling an extra session will be issued on Monday morning. PHILADELPHIA, Sept.27,1857. It is understood that the Governor has determined upon calling a special session of the legislature, to as semble on the first Tuesday in October. The prociamation will be issued to-morrow.

12. September 29, 1857 The Davenport Daily Gazette Davenport, IA
Article from The Davenport Daily Gazette, September 29, 1857

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LATEST NEWS Bank Matters in and Other Cities. Pennsylvania Bank & Girard Bank Re-opened. New York and Beston Banks strong. 1 PHILADELPHIA, Sept. 26. Third and Chesnut sts. are again the scenes of excitement, crowds surrounding the Saving's Institution before 9 a. M. They decline paying out deposits, requiring two weeks notice. The banks were beseiged before 10 o'clock. The Pennsylvania Bank: reopened, and is transacting business, but paying no specie. for refuses to The tens. Mechanics The Girard Bank Bank is paying specio do any business, and renders no satisfaction to depositors and billholders. The Girard Bank bas now come to terms, partially redeeming S's with specie, but refusing to honor checks of depositors. Most of the other banks were making checks good. There is no concert of action among the banks; each apparently taking a different cou s T ie Bank of Nor. h America is pay ing specie for 10's. but is issuing no notes or checks. The Bank of Commerce is refusing specie, but is paying notes for check PHILADELPHIA, Sept. 26.-11:15 A. M. The Girard Bank is now paying specie for fives and certified checks. Additional exeitement was produced by the Board of brokers passing a resolution this morning to the effect that all settlements in the purchase of stocks may be made by certified checks on any of the city banks current on the day of settlement. Private despatches say that the Banks in Reading and Pittsburg have suspended, the South Ward Bank pays specie for all the bills. The Bank of Kensington pays for fives only Boston Sept. 26 There are no signs yet of a bank suspension. Our Banks, as those of all New England, are unusually strong, and it is be lieved they will successfully resist all pres sure. New York, Sept. 26 Our Banks are all strong, and the utmost confidence is exhibited in them. The course of exchange on Philadelphia is at u complete an stand. The only figure heard of is of of fer to sell Philadelphia funds at 10 per cent discount. The Banks have issued n circular on account of the suspension of the Philadelphia banks, notifying their customers that all collections maturing out of the city of New York, will at the option of the dealer, be either recalled, or if paid, be subject to drafts of the banks payable in funds current at the point in payment.

13. September 29, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, September 29, 1857

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BANK DIFFICULTIES. THE PHILADELPHIA BANKS. PHILADELPHIA, Monday, Sept. 28, 1857. The Banks are pursuing the same course to-day that they pursued on Saturday. The Girard Bank is paying out specie on five dollar bills, and the Mechanics' and Southwark on all their notes. The Bank of North America suspended about 11 o'clock, and the suspension will now probably become general. PHILADELPHIA, 12 M. The Mechanics' Bank now redeems notes of $5 only. The following banks also redeem fives only: The Consolidation, the Northern Liberties, the Mechanics' and Manufacturers', the Commercial, the Western, and the City. The Philadelphia Bank pays out no specie, but redeems checks with its own notes. PHILADELPHIA-1 p. m. The Pennsylvania Bank is now paying out its own notes for checks, but refuses specie. The Mechanics' and Manufacturers' Bank is paying no specie. All the Banks of the city have changed their course since the opening hour. Some of them refuse to certify checks, but give due-bills to deposit with other Banks. It is just rumored on the street that the Governor refuses to issue a proclamation calling the Legislature together, unless the Pennsylvania Bank is placed OR & par with the other Banks, and her notes received on deposit. All is confusion and disorder, but it is not attended with the excitement that has existed in former days of trouble. Every kind of business is completely paralyzed, and it is impossible to make collections. 9 P.M. The Board of Trade have determined to call a meeting for & public expression of the various business interests of the city, with reference to the proposed legalization of the suspensions, believing that the best interests of the community and the State will be subserved thereby. It was suggested at the meeting of the Board this evening that where parties have notes protested only because they refuse to pay other than in par currency, it is the duty of the collecting bank or agency to have that fact made as public as the protest. The Presidents of the Banks have agreed to rectore the Bank of Pennsylvania to & position at the ClearingHouse and to receive its notes and discount liberally for their customers. Had this been sooner done there would have been no suppensions. SPECIAL SESSION OF THE LEGISLATURE. The proclamation of the Governor to convene an extra session of the Legislature will be published to. morrow morning. The proclamation saye: Whereas & perious financial revulsion resulting in the suspension of epecie payments by the Backs of this and other States, and wheresa, the fatlure of many long established commercial houses is leading to the destruction of confidence and to a general embarrasement and deprese on in trade, and is threatening to affect, disastrously. the credit of the Commonwealth and the great industrial interests of the people, and it requiring prompt and efficient action to relieve the alarmed and suffering community, therefore, I convene the Legislature, to meet on the 6th of October, and adopt such measure as the present exigency requires." The Governor has not yet determined what course to pursue regarding a special session of the Legisla. ture. Two Committees-one from the Banks-are now in private conference with him. Much feeling is said to exist between the banks-some, which are incorporated under the old law, and do not forfeit their charter, opposing the call of the Legislature. It is stated that if the Governor does not countermand his order, the proclamation will be issued to-morrow morning.

14. September 30, 1857 Smyrna Times Smyrna, DE
Article from Smyrna Times, September 30, 1857

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e THE MONEY PANIC-RUN UPON THE BANKS. was in a fever of excitement day, to the suspension of The city owing specie yester- payments by the Bank of Pennsylvania, and to the very general apprehension that other Banks would do likewise. At an early hour in the morning, crowds gathered in the vicinity of f many of these institutions, and their doors were not long open before it became evident that there would be a great run upon them. The announcement of the suspension of specie payments by the Bank of Pennsylvania was early made, and policemen were stationed at the gates to prevent the entrance of all who had not business with the officers. The following, signed by the Cashier, was conspicuously displayed at different points along the railing surrounding the building: Resolved, That this Bank suspend specie payments until further order of the Board." The crowd that gathered about the Pennsylvania Bank 8000 dispersed, and there was little or no excitement there during the rest of the day. In the neighborhood of the Girard Bank, was different. of were discussing however, there from it the the all-exciting topic, Groups gathered persons time of the opening to the close. It was in the course of checks would not be until the after morning, officially 1 o'clock. that announced, paid We learn that they were not paid, though the notes were redeemed up to the time of closing. In the course of the day there was more or less of a run upon all of the city banks, though in many instances it was made by the holders of one or more five dollar notes. In the morning, and up to one run the Farmers' and was There was a conchanics o'clock, the very upon heavy. Metinual stream into the and in the moin a line was formed to the from to paying banking teller's going desk, long composed bank, of fifty seventy five persons. Before two o'clock the excitement had abated, and but few persons were in the room. At the Philadelphia and the Western Bank, almost adjoining, there was a considerable rush throughout the day, as also at the Commercial and Bank of Commerce. It was understood that all of these redeemed their notes and paid depositors. The run upon the City Bank was probably greater than upon any of the others. All day there was a line reach. ing from the paying tellers' desk into the street, which at two o'clock was from fifteen to twenty yard> long. Policemen were stationed on the steps of the Bank to prevent persons from entering, all being compelled to take their places in line. The rush was considerable, but not so heavy, at the Northern Liberties, Manufacand Penn and Tradesmen's had The turers' Southwark and Mechanics Township.-- very little more than the ordinary demand for spe cie. The panic and the run upon the banks were everywhere the subje ct of conversationin the stores, counting-rooms, workshops and C market place...-Ledger of Saturday. 03 From modern N. Y. Rome comes a cheese, to be exhibited in the Pennsylvania State Fair, the weight of which is six hundred pounds.

15. October 1, 1857 The Weekly Ottumwa Courier Ottumwa, IA
Article from The Weekly Ottumwa Courier, October 1, 1857

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PHILADELPHIA, Sept. 26. 11.15, A. M. The Girard Bank is now paying specie for fives, and certifying checks. Additional excitement was produced by the news from Baltimore of the suspension there. The Tradesman's Bank pays everything, checks and all. The Bank of British America is paying all its notes. It received specie from New York last evening, and represents that they have more in their vaults than am'nt of bills, and they are certifying checks. The following banks are paying specie for fives, viz: Commercial, Manufacturers and Mechanics, and Philadelphia. The Farmers' & Mechanics' pays specie for tens. The North Liberty and Western pay specie for fives in case of ne cessity. The Bank of Pennsylvania Township, and the City and Consolidation Bank pay nothing. All banks, however, except the Girard, certify checks. The Girard has entirely suspended business. Some of the banks will receive no deposits.

16. October 1, 1857 Delaware Weekly Republican Wilmington, DE
Article from Delaware Weekly Republican, October 1, 1857

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THE MONEY PANIO-RUN UPON THE BANKS. -The city was in a tever of excitement on Friday, owing to the suspension of specie payments by the Bank of Pennsylvania, and to the very general apprehension that other Banks would do likewise. At an early hour in the morning, crowds gathered in the vicinity of many of these institutions, and their doors were not long open before it became apparent that there would be a run upon them. The announcement of the suspension of specie payments by the Bank of Pennsylvania was early made, and policemen were stationed at the gates to prevent the entrance of all who had not business with the officers. The following, signed by the Cashier, was conspienously displayed at different points along the railing surrounding the building: Resolved, That this Bank suspend specie payments until further order of the Board." The crowd that gathered about the Pennsylvania Bank soon dispersed, and there was little or no excitement there during the rest of the day. In the neighborhood of the Girard Bank, however, it was different. Groups of persons discussing the all-exciting topic, were gathered there from the time of the opening to the close. It was officially announced, in the course of the morning, that checks would not be paid until after 1 o'clock. We learn that they were not paid, though the notes were redeemed up to the time of closing. In the course of the day there was more or less of a run upon all of the city banks, though in many instances it was made by the holders of one or more five dollar notes. In the morning, and up to one o'clock, the run upon the Farmers' and Mechanics' was very heavy. There was a continual stream going into the bank, and in the banking room a long line was formed to the paying teller's desk, composed of from fifty to seventy five persons. Before two o'ciock the excitement had abated, and but few persons were in the room. At the Philadelphia and the Western Bank, almost adjoining, there was a considerable rush throughout the day, as also at the Commercial and Bank of Commerce. It was understood that all of these redeemed their notes and paid depositors. The run upon the City Bank was probably greater than upon any of the others. All day there was a line reaching from the paying tellers' desk into the which at two o'clock was from fifteen to twenty yards long. Policemen were stationed on the steps of the Bank to prevent persons from entering, all being compelled to take their places in line. While we were at the Bank, an old lady came up with a check, and was about to push her way in, when she was ordered back, and told that she must do as the others had done. The rush was considerable, but not 80 heavy, at the Northern Liberties, Manufacturers' and Mechanics and Penn Township. The Southwark and Tradesmen's had very little more than the ordinary demand for specie.The panic and the run upon the banks were everywhere the subject of conversation, in the stores, counting-rooms, workshops and market places. In all the crowds about the banks, laboring men, and others in humble circumstances, could be seen, who were there evidently for the purpose of obtaining specie for a single note or two. The panic seemed, however to have effected other classes. Throughout the day, notes of the banks held in bad repute were refused by shopkeepers, and the specie insisted upon in paymen of purchases made. -Ledger.

17. October 2, 1857 The Athens Post Athens, TN
Article from The Athens Post, October 2, 1857

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have reached us, in relation to the panie in commercial circles and the Bank suspensions at the East: Philadelphia, Sept. 26.-The financial exeitement continues. The Bank of Pennsylvania pays no specie-the Mechanies bank redeems its ten dollar notes-the Girard its $5'm, but refuses payment for checks. The majority of the Banks pay checks. The M.V. ing Institutions require two weeks notice be fore paying checks. Ballimore, Sept. 26.-A meeting of the Presidents of all the Banks took place this morning, and they resolved upon 12 total susP. nsion of specie payments. Philadelphia, Sept. 26.-The news of the suspension of banks in Baltimore has caused additional excitement. The Tradesman's Bank as well IIM the North American pay eve. rything. The following banks pav everything. The following banks pay their five dollar notes: The Commercial, Philadelphia Manufacturers and Mechanics, and Farmers and Mechanies-and the followi pay their $10's-the Northern Liberties and Western, and $5's in cases of necessity. The Penn Township and onsolidation Banks have sus pended. All pay certific d checks, except the Girard. Some banks refuse to receive deposits, The Washington Bank, Washington, pays only $5's and small checks Other Banks are hold ng conferences. Philadelphia, Sept. 25.-The Bank of Pennsylvania h N suspended specie payments. in conse quence of a heavy run. There is :1 general alarm ns to the solvency of the banks. The Girard Bank has temporarily refused pay depositors' checks. Busin NS is nearly suspended in consequence of the punie. Philadelphia. Sept. 25:-A conference of the Presidents of the Banks of this city was held today, and they resolved on a temporary suspension of specie payments on the checks of depositors, DN well as on all bank bills over the denomination of ten dollars. This arrangement goes into effect tomorrow. The Presidents desire the public to discredit al exaggerated reports in regard to anything like total failures in Philade lphin. The Brokers are highly excited. Washington, Sept. 28 -Several CANCE of yellow tever have occurr d at Key West. St. Johns, N. B.. Sept. 28-The screw steatner Jura arrived with London dates of the 15th. Consols 901: Money more stringent; Wheat active and firm; Corn active and steady: Flour buyyant. Philadelphia, Sept. 28.-There is still no concert at action among the Banks. They paid specie on five doll- bills till 11 o'etock. when the North American Bank suspended. The suspension iN now exp eted to become universal. The "Philadelphia Bank" has sus pended. Alexandria, Va., Sept. 28.-The Banks are paving on small notes only. Washington, Sept. 28.-The Metropolis Bank suspended. The "Washington" and "Patriotic" Banks are still paying small bills. Savannah, Sept. 28.-The Banks demand the six day's notice from depositors, Virginia bil 8 five per cent. discount. New York. Sept. 28.-There is a panie in the stock market. Philadelphia, Sept. 28.-Business is de r ng. d by the vacillating coursed the Banks. St. Louis, Sept. 28.-.. J. Anderson & Co. and Darby & Co., and Barksdale, Bank. ers, have suspended. New York, Sept. 28 -There is no truth in the reports of the failure of Clark, Dodge & Co. and Phelphs, Dodge & Co. The Metropolitan Republic, Merchants', Mechanics', AmerieanExehange,Union and Phoenix banks have issu d cirentars,stating their intention to maintain a specie busis, The Norto 1. and Richmond Banks are firm. The Staudon Bank and Bank of the Valley of Virginia have suspended. New York. Sept. 28 -Money very strin. gent. The Banks are firm. Some very heavy failures are reported. Albany, Sept. 28.-There has been a run upon the Saving bank by sm ill depositors. Boston, Sept. 28 -The Suffolk bank re. fuses to redeem the bills of New Engl and country banks. New York, Sept. 28.-Cotton dull, flour 5 to 525, whest decline 6 to 10 cents, e.rn offered at 70, mess pork declined 10c. Chiengo beef declined 25c, bacon 12 for hams, 11 for shoulders, whiskey 24, coff. e quiet, sugar heavy. Pittsburg, Sept. 28.-Every bank except the Pittsburg bank had suspended. The ..ffi cers of the bank adopted a resolution that temporary suspension of coin was necessary to protect business men. The excitement has nearly subsid d. Cincinnati, Sept. 28.-Business is paralized Exchange on the East of sums of $5,000. five per cent. N. gotiable P per unsaleable. Flour unsettled, wheat nommal. J. B. Holmes, manufacturers, have assigned. 0 her failures are reported, but names not disclos d. Boston, Sept. 26.-The banks have increas et their specie four hundred th insand dollars during the past week. and are stronger than they were a forthight ago, No panie. 11. B. Lovejov, clothier, has failed. The bills of the Hopkinston bank were refused by the Suffork bank. Trenton, N. J. S pt. 28. -J mes S. Sterfing h N miled. His assets are a ple. A he VV run was made on our banks,Th ir liabi ities were met. All are in good condition. WHAT A NEWSPAPER OUGHT To BR.....

18. October 2, 1857 The Athens Post Athens, TN
Article from The Athens Post, October 2, 1857

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P.P KILBY. Sec'y Philadelphia. Sept 25.-The The Bank of Pennsvivania his suspended, The President savs unly :- morary. The Girird Bank is paying specie for = notes, but eneeks will not be honored till I o'elock. A heavy run IS made ++ the city banks, and all bunks are b seiged with depositors and note holders.Th i'v is much alarm nd almost a suspension I business LATER- The Girard Bank still refuses payments of eneeks. Several other banks are taking the sume course, and the run " will prob.b y use a suspensi 11 of specie PAment. the excitement is becoming inters:

19. October 3, 1857 Republican Vindicator Staunton, VA
Article from Republican Vindicator, October 3, 1857

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BANK SUSPENSIONS IN PHILA DELPHIA-FINANCIAL PANIC. Philadelphia, Sept. 26.-The Bank of Pennsylvania has suspended specie payment The Girard Bank refuses depositor's until 1 o'clock this afternoon. There is great alarm in the money market here, and business is almost suspended. Second Dispatch. Philadelphia, Sept. 26.-The President of the Bank of Pennsylvania says the suspension is caused by the action of other banks against it, and the recent failures of dry goods men. He says it is temporary and that the capital is untouched. There was a heavy run at the counter by note holders and depositors. Third Dispatch. Philadelphia, Sept. 20. There is general confusion in the money market. The Presidents of all the banks held a meeting this afternoon, and after carefully canvassing all the circumstances of the pressure, and their resources, resolved on a temporary suspension of specie payments on checks, also on bills exceeding $10. This arrangement takes effect to-morrow. There was a heavy run on all the banks to-day, but the Girard and some others shielded themselves in the manner named. The public should discredit the reports about tatal failures, as it is known that highly exaggerated statements have been sent D. broad during momentary excitement.

20. October 3, 1857 Muscatine Weekly Journal Muscatine, IA
Article from Muscatine Weekly Journal, October 3, 1857

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THE NEWS. --Great excitement was occasioned in financial circles at Philadelphia, on the 25th. it by the suspension of specie payments by the Bank of Pennsylvania and Girard Bank h The President of the Bank of Pennsylvania sav the suspension is caused by the action against it, and its losses by the recent failures of dry goods men, He says also that it will be only temporary, and that the capital is untouched. The Commercial and other banks were taking the same course, promisresume next We learn that the 1 on the ing Banks to of Boston, Saturday, adopted same plan to save themselves from impending failure. -The following are additional names Capt from known Dyer, to be Mr. lost Jerome, by the Central Engineer, America reon between the Armor and ported Panama; Boston that L. negotiations Sub-Marine T. Delano, e going Boston. Company It is the Underwriters of the Central America, to raise her hull, which is supposed to be in twenty-eight fathoms of water. Col. Dell, collector of customs at Jacksonville, Florida, died suddenly on Sunday, 20th, of disease of the heart. It is reported a malignant disease is prevailing in Jacksonville. railroad convention of representatives of the railroads west of the Suspension Bridge, Buffalo, and the Ohio River, met at Columbus, O., on the 24th, to consider the agreement of the tour western main lines to reduce speed, increase fare, and dispense with western railroad ticket agencies in New York, and to dispense with runners, solicitors, and the placard system generally. The action of the Convention had not transpired at last accounts. -A dispatch from Washington dated the 23d inst. says Col. Benton has so far recovered as to be able to sit up. -The New York State Republican Convention was held a Syracuse on the 24th. The following gentlemen were nominated for the respective State offices: For Judge of the Court of Appeals-Timo.h Jenkins, of Oneida; for Comproller-~Robert Deniston, of Orange ; for Secratary of State-A. Clapp, of Buffalo ; For Treasurer-John B. Hogeboom, of Columbia: Canal Commissioner -A. S. Thurston, of Chemung; Attorney General-Wm Curtis Noyes, of New York: State Engineer and Surveyor-George Geddes, of Onondagua; State Prison Inspector-Thomas Kirkpatrick, of Albany. -A New York dispatch of the 21th announces the following additional failures, suspensions,&c. J & Barnes, Troy, Y, failed WP Swift & Co, Utien. as signed to G C Tallman B B Johnson. Palmyra, N.Y., failed and assigned; Samuel Holley, of New York, suspended; Ty.er Wilder, Rochester, failed; A Dernel, Herkimer, assigned; E B Angel, Oswego, assigned; W T Haskins, Horseheads, N. Y., failed liabilities about $80,000; E T Grant, Newark, N.Y., assigned; H W Chadwick, Jordan, N.Y., assigned ; Corwin & Tompkins, assigned Eli Merriman, Ladden, N. Y., assigned; W. P. Swift & Co Chicago Delaware and Lackawana and Western Railroad : S H Benedict & Co., paper dealers Fassett & Co., Philadelphia, an extensive concern; Long & Co., silk dealers; Smith, Murphy & Co., Philadelphia. FOREIGN.- By the arrival of the Canada a Halifax, on the 22d, we have later news from Europe. England.-Th Gazette oflicially announces the election of Macaulay to the title of BΓ‘ron Macaulay. Capt. Rogers recently condemned to death for murdering a seaman by reason of his cruelty to him on board his ship, was hung at Liverpool at at noon on Saturday. There was nothing later from India. authoritatively stated that when all the reinforcements now on the way and under orders reach their destination, the total force of Europeans in India will be 87,000 men. -Dispatches from New York, Philadel phia, Boston, and other eastern cities, dated 26th, represent great excitement in regard to Bank matters. The Pennsylvania and Girard Banksof Philadelphia havere opened, and the latter is paying specie for $)'s and certified checks. The banks of New York and Boston are represented as strong. The Pittsburg, Harrisburg, Lancaster and Read ing banks have suspended. Gen. Dodge, formerly Senstor from Iowa, but more recently Minister to Spain, has, it seems, made himself odious to the court of Madrid as he did to the people of Iowa, and has been discharged. A Washington dispatch of the 26th says a Southern man has been appointed in his stead. Ministers Mason and Dallas have also had successors appointed. Mr. Slidell takes the place of Mr. Mason in Paris. -A New York dispatch of the 26th says: "It is believed our banks have passed the erisis, and the market closed with a more quiet feeling." -John c. Thayer, Banker, Boston, died on the 25th. C RN SUGAR AND MOLASSES.-Mr. Studor, of Austin, Texas, has made sugar, of a very fine grain and color, from the Chinese sugar cane, also a very superior article of syrup. Mr. Baker, of Rochester Mills, Illinois, is trying the experiment with the new sugar t cane on a large scale. He has twenty acres growing on his farm, and is building a large mill. and procuring large cast iron tanks to

21. October 3, 1857 Republican Vindicator Staunton, VA
Article from Republican Vindicator, October 3, 1857

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Partial Suspension. ALEXANDRIA. Sept. 28.-The Banks of this city are determined not to allow a great run upon their vaults. While they have not announced a suspension, they are still only paying small sums. The Feeling in Norfolk. NORFOLK, Sept. 28 -Some feeling is manifested here in regard to the suspension of the Baltimore Banks. So far our Banks are all rectus in curia. Total Suspension of the Washington Banks. WASHINGTON, Sept. 28.-The Bank of the Metropolis paid out about $65,000 in specie on Saturday, but were obliged to suspend totally to-day. The Bank of Washington and the Patriotic Bank have followed the example of the Bank of the Metropolis. A heavy run is being made on all the Bankers; Virginia notes are at a discount of five per cent uncurrent money is wholdy unsalable; and business is paralyzed. Money Matters in Philadelphia. PHILADELPHIA, Sept. 28.-The Banks of this city commenced to-day by a repetition of the course pursued Saturday. The Girard is paying Fives only. The Mechanics and Southwark all. The Bank of North America suspended about 11 o'clock, and the suspension will probably become general. Money Matters 0. K. in Norfolk. NORFOLK, Sept. 28, 4 P. M.-There have been no suspensions here and all is quiet. No apprehensions of a run from abroad are entertained by the Banks of this city, and they feel secure. Finances in New York, Albany, Etc. NEW YORK, Sept. 28.-Money stringent. Banks firm Very beavy failures reported. Advices from Albany mention a run on the Savings Department of that city by depositors. No pressure elsewhere, and bill holders there are quite confident. LATER. The Metropolitan, Republic, Merchants Bank of New York, Mechanics, American, Exchange, Union and Phoenix Banks, have issued Circulars, assuring the public of their ability and determination to maintain a specie basis. Also expressing the opinion, that the tendency of specie and produce to that point will soon enable the Banks to relieve the pressure now prevailing. Later from New York. NEW YORK, Sept. 28.--Exchange on Philadelphia is selling at 10 per cent. discount. The usual weekly Bank Statement of this city shows a reduction of loans and a strong specie column. Rates on the streets for money, in some cases, reach six per cent per month. All Confusion-Importent Rumor. Philadelphia, Sept. 28, 5 P. M.-All is confusion, but there is little excitement. It rumored on the streets that the Governor refuses to issue his proclamation for a special session of the legislature, unless the Bank of Pennsylvania is put upon the same footing with others, and her notes received on deposit. She now pays out her own notes for checks. Banking Matters at Wilmington. WILMINGTON, N. C., Sept, 28.-No excitement here. The Banks are perfectly sound, and will continue as heretofore for the present, but their future action will be governed by the course of neighbors. Financial Matters in Massachusetts. BOSTON, Sept. 28.-The Suffolk Bank refuses to redeem the notes of the New England county Banks. The Baltimore Banks BALTIMORE, Sept. 28.-There is no material change to note in monetary affairs.The Banks in some instances are redeeming fives as an accommodation Specie commands from seven to ten per cent. premium when given for Baltimore funds. Washington Banks. WASHINGTON, Sept. 28.-The Washington Merchants take the notes of the city at par. There is no fixed charge for Virginia notes. More Suspensions. PROVIDENCE, R. I., Sept. 28.-The banks here have resolved to suspend Their liabilities to the public is not more than one-quarter of their capital. The Reason of Their Refusal. BOSTON, Sept. 28.-The reason the Suffolk Bank did not honor the notes of country Banks, was the want of a sufficient force of clerks to make change. The country Banks are well protected, and retain the public confidence. Heavy Failure in New York. NEW YORK, Sept. 28.-Messrs. Abbott, Dodge & Co., a large Southern Flour House, has suspended. There is no truth in private despatches affecting Messrs. Clark, Dodge & Co., and Messrs. Phelps, Dodge & Co., bankers. The Bank of Middlletown, Pa. PHILADELPHIA, Sept. 29.-The Directors of the Bank of Middletown. Pa individu-

22. October 10, 1857 Republican Vindicator Staunton, VA
Article from Republican Vindicator, October 10, 1857

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# Bank Suspensions. The paper currency issued by the government for the Revolutionary war, became worthless and was repudiated. After the long war against Napoleon, the Bank of England suspended and for twenty-five years refused specic payments. During the war of 1814, our Banks again suspended; and the currency which was issued was almost entirely worthless. Specie was at a premium of 20 per cent. (or in other words the paper currency depreciated one fourth;) and after alternate expansion and contraction, the banks resumed in 1817. There was a partial failure again in 1821. The calamities, risks, expenses, and obstruction to business, resulting from war, accounted for these suspensions. The failure of 1837 was the result of wild speculation, and the abuse of credit. Banks without capital were established in the West, whose notes were taken in payment for government lands; and it soon became evident that the lands would soon be bought up with irredeemable paper, when government issued its "spscie circular," requiring the payment of coin. For this simple, honest and salutary act, the government was assailed, and a systematised agitation waged against the administration. The U. S. Bank entered the field for the purpose of extorting a recharter. The combination was resisted by the administration of Mr. Van Buren, and Congress at its extra session, refused to repeal the specie circular. The political agitation was continued till 1840, when laborers were offered "two dollars a day, and roast beef," and the speculators were offered a bankrupt law to wipe out their debts. Four hundred millions of personal indebtedness was extinguished by this law; and full as large an amount by the failure of corporations and of individuals, who did not avail themselves of the white-washing process of the Courts. The suspensions of 1837 was followed in this State by a rapid resumption; and in 1838 all the banks of New York resumed specie payments. But the United States Bank, which had attempted to constitute itself a credit mobilier, and to speculate in cotton, in Western produce, &c., was constrained to fail again in 1839. The Pennsylvania legislature forced the banks of that State to resume in 1841; but after keeping up for three weeks the Regulator again failed, and went into final and irreparable bankruptcy. Relief measures by the State enabled the Banks to resume; but in 1842, the Girard Bank and the Bank of Pennsylvania suspended. These are the Banks that led off in the recent suspension in Philadelphia During the time of this suspension the community was afflicted with the "plague of shinplasters." Banks, companies, individuals and even cities issued a paper currency of denominations as low as a quarter dollar the effect of which was to drive specie out of the country. Most of this wretched currency was never redeemed; but gradually disappeared, the community suffering the loss of its depreciation and final extinction. The present condition of the country differs from the past, in the fact that we not only have a large gold currency, but are the main producers and exporters of gold. But we have had a new source of expenditure and of speculation in our railroads. No country can grow rich by making roads-Should any new community (like Australia for instance) devote its capital and labor for years to the constructing of roads, it would suffer all the evils which follow from misdirected energies and neglected production. A road is an addition to actual wealth only to the extent to which it facilitates the transfer of persons and products. An infallible sign that too much capital was invested in these roads and diverted from production was shown in the fact that, though the roads had multipled to an incredible extent and reached every channel of trade, the ordinary products of the dairy-remained at the highest prices. The community attempted to get rich by making roads, the rivalry became wild and unscrupulous, the stocks of companies were held at unnatural prices, and inflated by systematic exaggerations and sometimes by fraud. As every one in 1836-7, held city lots at unnatural prices, so now, every one has railroad scrips, at valuations from three to ten times their worth. It is the contraction of these false values to the standard of actuality that is now revolutionizing the country. England went through with the crisis a few years ago, and came out sound. And so will we, after a briefer experience, though we hope, not less a salutary one than that of the Bank suspension of 1837.-Albany Argus & Atlas.