Article Text
More Bank Suspensions. ST. LOUIS, Oct. 26.-The bank of the State of Missouri, Merchants' Bank, and Southern Bank, suspended this morning. The Mechanics' is still firm.
10817. Southern Bank (St Louis, MO)
Bank Information
- Episode Type
- Run → Suspension → Unsure
- Bank Type
- state
- Start Date
- October 26, 1857
- Location
- St Louis, Missouri (38.627, -90.198)
Metadata
- Model
- gpt-5-mini
- Short Digest
3291755d
Response Measures
Full suspension
Other: Legislature later passed a relief bill legalizing temporary suspension and setting conditions for resumption (mentioned in Article 11). The articles describe a run of about an hour preceding suspension.
Description
Multiple contemporaneous newspapers (Oct 26, 1857) report the Southern Bank of St. Louis suffered a heavy run and suspended specie payments the same day. The suspension was part of a wider monetary crisis and legislative relief was later considered, but the articles do not clearly state that the Southern Bank reopened, so outcome is unsure.
Events (3)
1.
October 26, 1857
Run
- Cause
- Macro News
- Cause Details
- Widespread money pressure and depletion of specie during the 1857 financial crisis led depositors to withdraw coin, producing a heavy run on the Southern Bank.
- Measures
- Paid out large amounts of specie while suffering the run; thereafter suspended specie payments.
- Newspaper Excerpt
- The Southern Bank also opened, as usual, but after suffering a heavy run, and paying out a large amount of specie, was obliged to submit to the common fate, and suspend specie payments.
- Source
- newspapers
2.
October 26, 1857
Suspension
- Cause
- Macro News
- Cause Details
- Banks suspended specie payments due to unprecedented demand for gold and silver and general monetary stringency during the 1857 crisis; Southern Bank suspended after heavy run and depletion of specie reserves.
- Newspaper Excerpt
- The Bank of the State of Missouri, the Merchants' Bank and the Southern Bank suspended specie payments this morning.
- Source
- newspapers
3.
November 12, 1857
Other
- Newspaper Excerpt
- The Bank-Relief Bill ... The provisions of this act in every respect apply to the Southern Bank of St. Louis ... to permit all Banks ... to take payment of debts, or receive on deposit bank notes of the Banks of this State ... until the 1st day of November in the year 1858, should it suspend before that day . . . . (relief/legislation related to suspension).
- Source
- newspapers
Newspaper Articles (11)
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Financial. ST. LOUIS, Oct 26-P M The STATE BANK, MERCHANTS' BANK, and SOUTHERN BANK Suspended this morning. NEW YORK, Oct 26-p M The Bank Statements of the week show an increase of specie $2,568,000; decrease of loan $1,652,000; decrease of circulation $1,202,000; increase of deposits $4,635,000. CINCINNATI, Oct 26-p M Missouri paper will continue to be taken, notwithstanding the suspension. Exchange on New York nominally the same. Rusiness moderately good.
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BY TELEGRAPH. BOSTON, Oct. 14.-Bank statement shows two million eight hundred and eighty-eight thousand dollars specie in the banks. Increase $437 since the suspension. NEW YORK, Oct. 24.-Provisions dull. Weather stormy. Rates for money lower and irregular; ranging from three to one and a half per cent. Business at the Clearing House 9,000,000; balances 600,000. Bebee & Bro., tea dealers, have sutpended. Stering exchange more active than in the morning, but there is a general decline in price. MORE SUSPENSIONS. ST. LOUIS, Oct. 26.-The State Bank of Missouri, the Merchants' Bank and the Southern Bank suspended this morning. The Mechanics' Bank is still firm. ARRIVAL OF THE BALTIC. NEW YORK, Oct. 25.-The steamer Baltic has arrived with Liverpool dates of the 14th. The American ship Lexington was totally lost near Venetia. Calcutta dates are to the 10th, and Bombay tc the 17th of September. The seige train was expected to reach Delhi on the 3d September, when an assault would be commenced. Sugar dull; Rosin steady, 4s 6da4s 7d; Spirits tur' pentine steady, 38s 6da$8s; Rice quiet. LONDON, 13-Flour declining; Wheat 2s lower; Sugar declined 2 to 3d. LIVERPOOL-Cotton sales for 3 days 19,000 bales; speculators took 7000, and exporters 1000 bales; opening buoyant, closing dull; prices unchanged. LONDON-Money decidedly more stringent. The Bank of England advanced rates to seven. Consols closed at 873a88. LIVERPOOL, 3 p. m.-Cotton quite steady; Flour steady; Provisions quiet; Breadstuffs slightly declined; Mixed corn 36s 6da37s, Yellow 37s 6d; White 41s a42s. FURTHER FROM INDIA. Havelook was at Cawnpore, and would be reinforced in a few days by Ontram, who has a large force at Al-la Ha-Bad. The Cawnpore garrison gallantly holds out. They will be relieved by the middle of September. Lord Elgin left Calcutta for China. The China mail failed to connect with the overland mail at Ceylon.
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Three of the St. Louis banks-the Merchants', the Southern, and the Back of the State of Missouri-surpended specie payments yesterday. The Mechanics' Bank is still firm. We have no particulars of the run, if run there was, upon them; but the result could not have been unexpected, since the last Bank Statement showed that there bad been a great depletion of coin, and the aspect of monetary affairs in the city was at our latest accounts very gloomy. Business is dull everywhere, and the market stringent, but there is no great change to remark in other cities or here. It is estimated that there have been 952 failures in the United States since the let of August, of which 448 were in New York, and that the total liabilities of the whole number were $90,000,000. Stecks in the course of yesterday exhibited a rlight ceclize. Fre ghts and foreign exchange were somewhat better.
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THE ST. LOUIS BANKS. Sr. LOUIS, Monday, Oct. 26, 1857. The Bank of the State of Missouri, the Merchants' Bank and the Southern Bank, suspended specie payments this morning. The Mechanics' Bank is still firm.
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SUSPENSION OF BANKS IN BT. LOUISState Bank cf Missouri Gone. St. Louis, Oct. 26. Bank the State of Missouri, Merohants Bank, and Southern Bank suspended this 8. m. Mechanics' still firm.
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Sucpeneium of Banks ⑉ Sc. Louis. Sr. Lovis, Oct 26 Bank of the State of Missouri, Merchants Bank, and Southern Bank suspended this A M. Mechanics' still firm.
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LAT EST. The Baltic with dates from Liverpool, reachel N. Y. 26 h. The India news is more fa orable. Cawnpore is holding out gallantly. The rebels were defeated in several battles. Prioles3, the American mare beat Elkh rn and Queen Bess by a length and a half. On the 1st trial the result wasa deadheat. The S cond race Prioress won the money $10,000, amid great rejoicing. Locompte is dead. Great money pressure in London, Dublin and Vienna. The Baltic bring S $73,000 sterling, and 160 passen ers. The Red Jacket from Australia reac' So tham ton with 70,000 ounces of gold. Liver ool market dull and clining.Rate of discount in Bank of England 7 per cent. The Chicago market is still dull-wheat at 65 to 70 for spring and winter. The Bank of Missouri, Merchants Bank and Southern Bank at St. Louis, suspended Oct. 26th. Mechanics Bank still firm. Se ere gale on the Lakes, much property destroyed. A fire at Port Stanly C. W. on the 26 h, destroyed the steamer Free Trader, Schooner Buchanan, with several valuable war houses. Aug. 30 h Kimball of Salt Lake made a speech announcing the determinatic n of the Mormons to resist the U.S. Troo sto the death. Women and children are called on to arm themselves. Sr. LOUIR, Oct. 26. A protest, signed by several prominent citizens of Kansas, was filed on the 15th, against fraudulent returns of the Oxford precinct, Johnson county, in re. to which, after personal investigation, Walker and Stanion ublished a proclamation in the Horald of Freedom of 20th, expressing the determinati n to reject the entire vote of Oxford, and give certificates to the free state candidates. The prodamation produced intense excitement among the extreme P o-slavery men. Threats of vengeance were made against the Gov. and Secretary. On the 19th a protest was made against the assembling of the Constitutional Convention at Lawrence.
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fidence of its correspondents generally, receiving daily remittances and bills for collection heretofore, With ite undoubted capital and reputation for integrity, the -eq u! ou basy **) JO spares pos upon u! united 002 regain Appeads TIME # Suisey person 2001 08 seq 7! esuangar Messrs. Win-low, Lanier & Co. will, on and after Monday next, pay the following coupons then falling due, VIZ Indiana Central Railroad Company P cent let Mortgage Bonds; the City of Cleveland P cents, issued to the Cleveland, Painaville cad Ashtabula Railroad Company. The bills of the Woodbury Bank, Conn., will be redeemed at the Mercantile Bank, New York, at 1 # cent discount. The following sales of stocks and bonds were made by Albert H Nicolay at the Merchants Exchange: $3,000 T Haute ton 1st Mort. cent. Int.added 50 tst OL papps sup 1879 enp spuog ques 4110 00018 200 aberes American Guano Company, $100 each sol 10 abares Phenix Insurance Company, $50 each {001 yese $29 nottud sereqe 04 The Philadelphia Ledger of this morning says the sq uo 20109 useq seq quick eqL Directo TH of the Bank of Pennsy Ivania, into its affairs, has been brought near 8 close. " We understand that the exhibit is not favorable. -man punos 01 9089 eq: 10 1 94L bers. independent of capital stock, we are informed, is 928 there yours 19901 02-218[10] Jo OM1 moor assets appraised at one and three-quarter millions. If this appraisement and amount of liabilities are correct, the bank would seem to be unable to pay its debts, leaving nothing for stockholders. The bank holds, we believe, about $175,000 of its own sto 8 portion of this however, has been pledged to one or more of the interior banks, through the agency of a third party, who now stands liable to the interior banks for the amount. The Committee representing the city banks in this 08:08 eq 01 ST ''' ge B 10 Aou Indications eqt pare 18 attentis TB 04 are that it will go into liquidation, and probably out of existence, leaving as little for its shareholders as did '80 % perjun em 10 Bank the " Noteholders and depositors will probably be paid.' Accounts from St. Louis of Detober 26, stateths the suspension of the Bank of the State, the Merchants and the Southern Bank, created but little excitement, The former voted to suspend on Saturday after the close of back hours; the Merchants' at the opening of the bark on Monday, and the Southern, after sus. taining a run of an hour or more. The Mechanics' continued to pay specie. It is expected that the Leglature will legalize the suspensions. The State Bank petuees suotenedens 1887 " crisis eq: poossion A to have no effect on the produce market. The Milwankee Wisconsin says: Throughout the pineries of Wisconsin they are dis charging their hands. Lamb has not been in large 1850' eouts 0.08 Jo Imp Os pus Kiddns -Ens beeq emergen V 01 bard pus chico at pended, and hence the glut in the market. The same JO sperpung 100 Michigan JO interies the 10 enn SI comember the 18 Jo no 1+ 012 1901 ment of the winter." We earn that there will be comparatively little lumber cut in Maine durit the coming Winter. The dn pasn being unag Jan 81 year pueq uo 10018 The Philadelphia American and Gazette considers it certain that the revenue for the ensuing year will not equal the expenditure by many millio and that a loan is inevitable. It bases its conclusion on the following statements: Only eleven months ago the late Secretary of the Treasury, Mr. Guthrie, in submitting his last annual report to Congress, stated the resources of the Government for the current fiscal year as follows: 00 000 000'99* Charges mo/1 00 From Lands L9 018 910 L9 [810] am at estimated pps quite OL 18 June 30, 1857 88 092'098'96$ jo was our Mathin 18 our Jo the JO "I the last ession of Congress. large importations were made and warehoused previous to the 1st of July, to profit by the reduction of duties. Hence, during July, August and the early part of September, the receipts from customs largely exceeded the average of Mr. Guthrie's estimato, made before the law Wds passed. That about twenty millions of revenue from cus toms were collected in all the ports of the United we,des JO 9391 pus sins jo 1ST TII between States ber, and allowing two millions from lands, of the sales of which no official statement has been published, 8 jough guess may be made at the state of the Treasury on the 1st of January next, when the first half of the current fiscal year will have expired. The receipts from customs have fallen down to half a million a week, or less than one third what they were a month ago, and they are not likely to increase materially for some time to come, no matter what may be the expecgue 07 100 81 I 10 tation cipate that the receipts from the public domain will be cut off almost entirely for a year or two-not because emigration to the West will be diminished, for we th LK, under existing causes, it will be considerably and substantially increased, but because the immense bodies of lands now held on speculation in the ne 7 States and Territories will be forced into market, to JO departments present pus competition serious em the Government. ano 'perate assuments 11 nodu that estimate for the six months of the present fiscal year is 8. follows: Balance in Treasury on Is: July, 1857 000'000'02 Revenue from Customs to 5th Sept THE 181 01 adas 4191 won smoteng mon Reverne 000'009'9 '8931 0000000'2 Revenue from Landsto 1st Jan 1858 000'009'81$ Total. 000 000 $1 Revenue fr m Customs from Jan. to July 1853 000'009'19$ Total. This estimate is some $31,000,000 below that of Mr. Guthrie. The appropriations for carrying on the Gov. einment next year amount to over $80 000,000; or nearly $20,000,000 II ore than the estimate of The Ameri. can and Gazette. The necessity of some measures for bringing forward the grain and produce of the West is daily more pressing. In the present state of financial affairs, the crops jo the Jo suveur &[ao 14" 918 the West to the seaboard cities. There is scarcely money enough in the West for the daily transaction of their own business. In & little more than a month, at the longest, the means of transportation in an7 quantity commensurate with therequirements of commerce, will be seriously impeded, if not rendered impossible. Last year, in the months of August, September and October, millions of dollars worth of produce were forwarded from the West to the seaboard. This year, October has nearly passed, and we have as yet comparatively nothing. Not & third 80 much has been
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From the St. Louis Evening News. Missouri Banks Suspended. The public were taken considerably by surprise, this morning, on learning that the Bank of the State of Missouri, though opening its doors at the regular hour, had ceased to pay specie on its notes. Of course this fact announced to the world the inability of the Bank to redeem its bills, for the course of the Directors had been deliberately taken to redeem as long as the Bank "had a dollar" in her vaults. This purpose of the Bank was not to be construed literally of course, The Bank had, on Saturday last, it is said, as much as $40,000 in specie. But depositors had as much, if not more, than this sum in the keeping of the Bank, and the institution could not claim as its own what it had on hand. The Directors saw that suspension was inevitable, and invited a conference with the other Banks of the city, with a view to genoral suspension. The Representatives of the Mechanics' Bank did not feel authorized to vote for suspension, and so the conference failed. It is understood that CLAIBORNE F. Jackson, the very faithful and efficient Bank Commissioner, was in the city and gave his opinion decidly in favor of suspension. Mr. JACKSON posse ssed personal knowledge of the fact that the Banks had kept themselves clearly within the letter of the law; that they had resisted every appeal to suspend while they had coin to redeem their notes with; that they had used extraordinary exertions to keep themselves supplied with coin; and that they only yielded, at last, to the unparalleled pressure, after nine-tenths of the strongest Banks of the Union had suspended. Under these circumstances Mr. JACKSON conceived that their whole duty had been done, and that the Banks could stand before the legislature with clean hands and an honest front to know the will of the legislature in regard to their fate, whether they should be closed up under the provisions of the Banking Law, or have an act passed legalizing their temporary suspension. Influenced by these considertions, and feeling that they had done their whole duty, the Directors of the Bank of Missouri, suspended the redemption of their notes in specie, this morning. The Merchants' Bank, knowing of this determination, opened, but did not pay specie. The Southern Bank also opened, as usual, but after suffering a heavy run, and paying out a large amount of specie, was obliged to submit to the common fate, and suspend specie payments. This leaves only the Mechanics Bank to decide upon its course. What it will do remains to be seen. If it does not suspend it will soon have no notes in circulation.
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The Bank-Relief Bill, as it Passed, the Vote on its final Passage. LOV NV For the Relief of the Bank of the State Missouri. and other Banks. WHEREAS, By a general and ted cedented demand for gold and silver coin, unexped and in the past history of the country entirely beyond the wants of commerce the Bank of the State of Missouri, in the mon with the oldest and strongest banks Union, has been compelled to suspen specie payments; therefore, Be it enacted by the General Assembly of State of Missouri, as follows: SECTION 1. All provisons of an act tled an act to regulate Banks and Bankin Institutions, and to create the office of Commissioner, approved March 2d, 1857 which subjects the said Bank to any penal of ty, by way of forfeiture of charter, becaus a failure to pay the liabilities of Bank, in specie, on presentation; and provisions of said Act which authorize and direct any proceeding to be commence prosecuted against said Bank, or which officer authorize or direct any proceedings by against said Bank, because of be suspension of specie payments by the til and the same are hereby suspended, time the 1st of November, 1858, or until of within said period as, in the judgmen with the Board of Directors of said Bank Bank the consent and concurrence of safe Commissioner, it may be prudent named to resume; and if, on or before the as aforesaid, the said Bank shall ly resume the payment of all its debts, the liabilities, with gold and silver coin, the fits said Bank shall have all the rights, and and advantages granted by its charter and may proceed to exercise the franchise privileges granted by the said act, shall be exempt from the penalty of forfei ture, ments as had if no taken place. suspension of specie SEC. 2. No person receiving or takin from the Bank after the passage of this ; any note or bill of said Bank issued for a the culation, shall be entitled to receive thereo amount of interest prescribed by is ninth section of said act, or any interes whatever, in consequence of the suspensio herein named. IV 4 SEC. 3. So much of the thirty-sevent section of the first article of said act, as quires that the amount of gold and silver hand of said Bank shall not be less tha 72 thirty-three and a third per cent. of p notes in circulation. and so much of section as directs the commencement of ceedings against said Bank because of be failure to have such amount of coin on hand and the same is hereby suspended in 1858. operations until the 1st day of November at pa SEC. 4. The forty-third section of in first article of said act is hereby so modifie its operation, until the 1st day of Novem p ber, in the year 1858, as to permit all Banks chartered under said act, in pu ua State, during the period aforesaid to take payment of debts, or receive on deposit pa notes of the Banks of this State. to au SEC. 5. During the period of suspensio 114 of said Banks, the Board of Directors, 114 order to afford relief to debtors, shall of debs jo perment Jo thin the exteed 10 ua them, upon the payment by said debtors na $9: twenty-five per cent. of the amount III by them, at each renewal or extension -0a Provided, said debtors shall fully sa: and the ultimate payment thereon; and upon be, future discounts of the Bank, it shall be "uc duty least of the Board to require in payment five per cent of the same in coin, which -p the shall be kept as a specie reserve to 4, early resumption of specie payment. Sxc. 6. The Bank Commissioners -u hereby required not to countersign, regist ba or deliver to the said Bank any addition ... amount of notes for circulation. beyond tho he already delivered, until the said Bank 10 fully resume specie payments. he SEC. 7. So much of the 25th section ir, the first article of said act as requires ial ment of the whole amount of stock he scribed to said Bank, to be paid with -Ja twelve months from the time of subscribin ore is hereby suspended in its operation the the first day of November, 1858, -ST SEC. 8. The provisions of this act 1sa in every respect apply to the Souther II! Bank of St. Louis, and also to the sit chants' Bank of St. Louis, the Farmer -B.1 Bank of Missouri, and the Mechanic its the Bank 1st of day St. of Louis, November should it 1858 suspend before