Bank of Delaware (Wilmington, DE)

Episode Information

Episode UID
7137640590478
Episode Type
Suspension → Reopening
Bank Type
state
Bank ID
713764059 hash
Start Date
October 9, 1839
Location
Wilmington, Delaware (39.746, -75.547)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
3100c0146f347e10

Response Measures

None

Events (2)
1. October 9, 1839 Suspension
Cause
Local Banks
Cause Details
Suspension followed the general suspension of Philadelphia banks, prompting Wilmington banks to suspend in concert.
Newspaper Excerpt
the Bank of Delaware and the Bank of Wilmington and Brandywine suspended.
Source
newspapers
2. March 22, 1842 Reopening
Newspaper Excerpt
The following Delaware Banks resumed specie payments, says the Philadelphia North American, to-day: Bank of Delaware, at Wilmington; Farmers' Bk. of Del. do.: Union Bank, do. do.; Wilmington and Brandywine Bk. do.
Source
newspapers

Newspaper Articles (3)
1. October 14, 1839 Morning Herald New York, NY
Article from Morning Herald, October 14, 1839

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Article Text

upon us, we delayed revisiting Europe, after we had taken a passage in the British Queen. We meant to remain and see this suspension through We watch its progress from this central city, through the ensuing winter and spring months, and next year again visit Europe, with a determination to be as useful to our readers in the United States in 1840, as we were in 1838, the dissemination of correct information on every useful subject. The present suspen sion and failure of the U. S. Bank will destroy the credit of all American securities in Europe. It will require years to regain what reputation we have lost in day. To rebuild the commercial edifice on a solid foundation ought to be the duty of all persons connected withingublic life. But first remove the ruins and rabbish. For any thing that we know, it might have been the emissaries of the United States Bank that set fire, on the same day, to New York and Philadelphia, in order to furnish them with a reason for suspending. Let all corrupt and fraudulent institutions be shut up, and let their managers be sent to the penetentiary if it be possible. Important from many parts of the Country Progress of Suspension and Reguery. We received intelligence yesterday from several important points of the country, the particulars of which will be found annexed. The banks in Delaware, Maryland and Washington, have all suspended-also the remainder of the banks in Pennsylvan and part of New Jersey. Boston has not suspended, nor likely to do so-Providence is deliberating, and Richmond, Virginia, is doubtful: The following are extracts: PENNSYLVANIA A PROCLAMATION FROM THE COVERNOR.-Th following was received last night from Harrisburg The tone is quite moderate, and therefore praiseworthy. We think the Governor mistaken, however, in relation to small notes, especially when we remember that New Jersey, New York, and all the New Eng land States enjoy the facilities of one, two and three dollar bills. EXECUTIVE CHAMBER, Harrisburg, Oct. 10 1839 To Ovid F. Johnson, Esq, Attorney Ceneral of the Commonwealth of Pennsylvania. all, Sir -The suspension of specie payments by most. if not of the banks of this commonwealth, seems likely to produce the same debasement and derangement of the currency of the coun try, that have attended the same on former occasions. It is my desire. therefore, that you, as the proper officer, should immediately adopt such measures as you may deem best suited to the attainment of the object in view, to wit:The entire suppression of all notes, bills. checks, Lickets or other papers, of the similitude of bank notes, or promises to pay money, or other things, under the ination of five dollars, from being issued or circulated within this Common wealth, so far as the law in relation to the subject, furnish ad. equate powers for that purpose. It is proper that should state that in directing this proceed. ing,I do not intend or believe it will operate to shake the confidence of the public in the ultimate ability of most, if not all, of the banks of this commonwealth to meet all their obli gations and to redeem their faith plighted to the community nor do I think it will throw any obstacles in the way of their doing : on the contrary, I firmly believe the exclusion of all small notes from circulation, will tend more directly than any other measure that can now be devised, to protect the public from frauds and imposition, and to enable the banks to fulfil their respective engagements. There is beyond question abundance of specie in the country to fill all the channels of domestic circulation, without dis tressing its private holders or the banks; and as the suspension of specie payments by these institutions, cuts off great per tion of the foreign drain upon it must readily find its way into the hands of the people. Respectfully, yours. &c. DAVID R. PORTER. CIRCULAR ATTORNEY GENERAL'S OFFICE Harrisburg, Oct. 10,1839 To the several Deputy Attorneys General, of the respective counties of the Commonwealth of Pennsylvania I received the subjoined letter from his Excellency the Gov ernor of the Commonwealth this morning, and hasten to com. ply with the directions therein contained. can perceive but one efficient mode of accomplishing the Haudable desires of the Governor on this subject, and that into assume at once the duty of resisting any infringement of the acts of Assembly You are th erefore hereby instructed to in stitute promptly, if notdone by any other person, the proper preceedings pointed out by the provisions of the several acts of assembly, against all individuals. or corporate bodies your respective counties who violate all or any of the provis ious of the acts of ass mb y, prohibiting the issuing and cir calating of notes, &c., of a less denomination than five dollars. You are further hereby instructed to be vigilant in ascertaining any such violations of the said acts of assembly, and un. oft. as flinching in the prosecution of the same, wherever. and en as such violations are committed or repeated. You are further instructed, after ducting from the portion of the fines or penalties accruing under said acts of assetably to the person instituting proceedings, such reasonable compensation as I may approve, to pay ovee the remainder of said fines or penalties to the use of the poo., or to such persons by paid act of assemply, are entitled to one moiety thereof. I am respectfully, yours &c. OVID F. JOHNSON, Attorney General. DISTRICT OF COLUMBIA. After the suspension by the Baltimore banks, preceded as it was by the suspension of the Philadelphia institutions, it might be anticipated that the banks of this district would necessarily yield to the force of circumstances, and suspend likewise. They therefore met, and came to the following resolution: Ata meeting of delegates from the banks in Washington and Georgetown, October 11, 1839, the following resolution was adopted, viz: Whereas information is received that the Banks in Baltimore and Philadelphia have suspended specie payments for the present, and it being the opinion of delegates of the several banks is the city of Washington and Georgetown here represented, that the safety of the banks and the interest of tbe com munity will not be promoted by an attempt to sustain specie payments hile suspension of the Northern banks shall con tinue: and whereas, although the banks here represented have abundant means to meet all their liabilities, yet consider able part of their means have become unavailable for the pres ent as specie funds by the suspension of the banks in Philadel. phia and Baltimore: Be it therefore resolved. That it be, and is hereby, recommended to the several banks here represented suspend specie payments for the present, with pledge on the part of said banks to resume suchpayments soon as the banks in Philadelphia and Baltimore The resolution is general in its terms, but we un derstand that the Patriotic Bank did not concur in the resolution, or in the adoption of the course proposed by National Inteiligencer, Oct. 12. DELAWARE. Immediately on the receipt, at Wilmington, of the suspension of the Philadelphia banks, the Bank of Delaware and the Bank of Wilmington and Brandywine suspended. The Union and Farmers' Bank continued to pay out small sums in specie until the hour of closing. A meeting of the City Councils was held on Thursday evening, and it was understood that proposition would be made to order another issue of small notes. VIRGINIA to acid that Jerse hetch of notes were

2. March 22, 1842 New-York Tribune New York, NY
Article from New-York Tribune, March 22, 1842

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Article Text

and Banking Company, claims the correction of the report that be was about to declare a dividend from the assets of that concern. The notes of the Bank of Ithaca are redeemed at the American Exchange Bank. The Receivers of the Union Insurance Company will make a second dividend on the 13th April. We have a letter from our correspondent in Cincinnati which states that business was very dull and money matters anything in a worse condition than before the resumption. The currency is composed principally of Indiana Bank Notes, which are 2 to 3 per ct. below Ohio country money, and notes of an unchartered institution, the Traders' and Mechanics' Bank, which are 2 per cent below Indiana.Merchants in Indiana pay their debts to Cincinnati in Indiana money which is 6 to 7 per cent. cheaper than Cincinnati exchange. New York 10 a 11, Indiana State scrip 45 a 50 dis. Illinois State Bank 60 per cent. Bank of Illinois 25 discount, all for bankable money, not specie. Letters from New Orleans speak in the most discouraging terms of the appearance of business matters in that city.Every one is much embarrassed, and in fact apparently "chaos is conse again." The Merchants' Bank has broken and refuses to pay the checks dra vn upon it by the Commercial Bank of Natchez. They were selling at 10 to 20 per cent. discount. Itis reported that the Merchants' Bank has misappropriated about 150,000 deposited for the redemption of these checks. The Exchange, Atchafaya and OrLeans Banks have been closed by the Attorney General and their assets are now in the hands of the Board of Currency. The Louisiana and Union Banks have been sued for a forfeiture of their charters. It was reported that the Board of Directors of the Louisiana Bank would all resign, but this was disputed. The Improvement Bank will be immediately put into liquidation. Proceedings had been commenced against ten of the sixteen banks by the Attorney General. It was supposed that only eight or nine of the New-Orleans Banks would weather the storm. The Cashier of the Atchafalaya had absconded, owing butn small sum, $500 to $2,000, unless a larger deficiency should be discovered. Matters in Philadelphia were wearing a better aspect than for some time past. There was HO excitement in relation to the Banks, and the difficulties which appear to surround and render resumption impracticable, had vanished before the attempt. In fact, it appears that both banks and people are easier than before the resumption took place. At a Convention of many of the Country Banks it was resolved not to resume, but to abide by the Relief Law. A majority of the Committee appointed to investigate the Towanda Bank have reported that the assets are more than sufficient to redeem all its liabilities. The Mechanics' Bank of Burlington, N. J., has made arrangements with the Bank of North Amersca for the redemption of its notes. The following Delaware Banksresumed specie payments, says the Philadelphia North American, to-day: Bank of Delaware, at Wilmington; Farmers' Bk. of Del. do.: Union Bank, do. do.; Wilmington and Brandywine Bk. do. The 20.08 of the Farmers' Bk. at Dover, and the Bank at Smyrna are received in deposit at the Smithtown M Bank. New-York Market. ASHES-The sales are only in retail lots at $6 75 a $6 621 for Pots, and $5.50 a $5.62 for Pearls. COTTON-The transactions to-day reach about 1,000 hales, at previous rates FLOUR-The market is firm to-day at SG 25 for Genesee. and some large holders refuse this rate No important sales. Ohio Canal $6 12} a $6 25. About 600 bbls. New. Orleans, afloat, sold at $6.061. In Southern there if not much doing. but the market is Arm. Georgetown and Brandywine, 5 871 a $6. Small sales Brandywine Corn Meal, to arrive, $15,4*mos. GRAIN-Corn is rather more plenty, and heavy sales on Saturday and to-day of about 8,000 bushels white Vir ginia and North Carolina, at 56 cents, weight, for distillery 800 bushels Jersey at 62k About 2,000 bushels Rye, for the East, sold at 61 cents. Oats are plenty and declining Nearly 8,000 bushels Southern are in the market. Wequate Northern 45 a 50; Southern 40 a 45. The last sale South ern 2,000 bushels at 45 cents.

3. August 23, 1894 Delaware Gazette and State Journal Wilmington, DE
Article from Delaware Gazette and State Journal, August 23, 1894

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Article Text

SPECIE PAYMENT SUSPENDED. It Happened in 1839 When All the Wilmington Banks Followed Suit With Philadelphia. It is not known generally that specie payments were suspended in Wilmington at a certain time. It was on October 9th, 1839, when committees from all the city banks met in the directors' room of the Bank of Delaware. There were present from the Bank of Wilinington and Brandy wine William Seal and Jesso Mendinhall; from the Farmers Bank, James A. Bayard, David C. Wilson and Charles 1. du Pont; from the Bank of Delaware, Joseph Baily, Stephen Bonsall and Edward W. Gilpin, and from the Union Bank, James Price and John H. Price. Mr. Bayard was chairman and Mr. Gilpin secretary. The meeting adjourned to the evening at 7 o'clock at the same place when the following were present: William Seal, Jesse Mendinhall, James Price, James W. Thomson, Joseph Baily, Stephen Bonsall, Edward W. Gilpin, James A. Bayard, Alfred du Pont and Charles I. du Pont. The following resolution was then passed : Resolved, That in consequence of the general suspension of specie payments on the part of the banks of Philadelphia the banks of this city suspend the payment of their notes in specie for the present.