Bank of Cape Fear (Wilmington, NC)

Episode Information

Episode UID
8440193190694
Episode Type
Suspension → Reopening
Bank Type
state
Bank ID
844019319 hash
Start Date
October 16, 1857
Location
Wilmington, North Carolina (34.226, -77.945)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
a68dc2c015f39d48

Response Measures

None

Description

Suspension clearly linked to the 1857 NY financial crisis; later mention of the bank declaring a dividend while suspended suggests it remained a going concern.

Events (1)
1. October 16, 1857 Suspension
Cause
Macro News
Cause Details
Confirmation of financial failures in New York and lockup of main resources led Wilmington banks to suspend specie payments.
Newspaper Excerpt
All the rest,-the Bank of Wilmington, the Bank of Cape Fear, and the Commercial Bank of Wilmington, suspended this morning.
Source
newspapers

Newspaper Articles (4)
1. October 16, 1857 Wilmington Journal Wilmington, NC
Article from Wilmington Journal, October 16, 1857

Click image to open full size in new tab

Article Text

Suspension of the Wilminton Banks. The confirmation of the deplorable financial affairs in New York, where the main resources of the Banks and merchants of this place are located, and now locked up, has been the means of driving three of the Banks of the town of Wilmington into a suspension of specie payments. This event has been anticipated for several days, and has not, consequently, come upon us-without some warning. Our Banks held out as long as it was deemed prudent, and come into the measure at last with great reluctance. The Branch of the Bank of the State, located here, yet stands unsuspended, awaiting advices, we presume, from the Mother Bank at Raleigh. All the rest,-the Bank of Wilmington," the " Bank of Cape Fear," and the " Commercial Bank of Wilmington," suspended this morning. The first named institution had been virtually suspended for several days, only waiting the decision of the other Banks before announcing the fact publicly. We hear this morning that a report is in town that the " Bank of Clarendon," at Fayetteville, suspended yesterday. We do not give this information as reliable. But we think, from the present appearance of things, that there will be a general suspension of the Banks throughout the State. One word of caution to bill-holders. We take this occasion to warn persons holding bills on any of our Banks not to be alarmed. We believe every one of them to be as sound to-day, as any institution of the kind in the Union. They can show as fair balance sheets as may be desired. This we have no earthly doubt about. The only difficulty now is, that every body seems to be afraid of their shadow. There is no necessity for alarm-the bills will all be paid eventually, and in the mean time they will pay debts just as well as ever. We have said this much in defence of the Banks -although we may not approve of all the measures they resort to in order to declare large dividends. We have stated what we believe necessary to do away with, as much as possible, an erroneous impression amongst a certain class who seem to be alarmed about the matter. We would advise all not to submit to a shave on what bills they may hold. Daily Journal, 15th inst. The Peoples' Bank in Charleston, S. C., suspended on Tuesday last. The list of suspensions for that city now stands Bank of the State of South Carolina, suspended October 10th. South Western Rail Road Bank, October 12th. Bank of South Carolina, October 12th. Peoples' Bank, October 13th.

2. October 17, 1857 Weekly National Intelligencer Washington, DC
Article from Weekly National Intelligencer, October 17, 1857

Click image to open full size in new tab

Article Text

BANK SUSPENSIONS AT THE SOUTH. VIRGINIA.-The "Bank of Virginia" suspended specie payments yesterday. It was the last to yield in the present crisis, though holding out only about twenty-four hours longer than the other banks of this city. We may now say that all the banks in Virginia have suspended specie payments.-Richmone Enquirer of Thursday. NORTH CAROLINA.-The confirmation of the deplorable financial affairs in New York, where the main resources of the banks and merchants of this place are located and now locked up, has been the means of driving three of the banks of the town of Wilmington into a suspension of specie payments. The branch of the Bank of the State, located here, yet stands unsuspended, awaiting advices, we presume, from the mother bank at Raleigh. All the rest-the Bank of Wilmington, the Bank of Cape Fear, and the Commercial Bank of Wilmington-suspended this morning. We have a report that the Bank of Clarendon, at Fayetteville, suspended yesterday. We do not give this information as reliable. But we think, from the present appearance of things, that there will be a general suspension of the banks throughout the State.- Wilmington Journal of Thursday.

3. October 20, 1857 The Western Democrat Charlotte, NC
Article from The Western Democrat, October 20, 1857

Click image to open full size in new tab

Article Text

SUSPENSION OF BANKS. The Wilmington Journal of the 14th, after announcing the suspension of several New York banks, says: While on this subject we had as well state that $7.000 of the " Bank of Wilmington" notes. sent down here by the Bank of Fayetteville," were protested yesterday. We have implicit confidence in all our banks, and persons owing us cannot do us a greater favor than by sending us the amount of their indebteduess. We will give receipts with no little pleasure for bills on any of them." Since the above was in type, the Journal announces the suspension of the Bank of Wilmington, the Commercial Bank, the Bank of Cape Fear, and the branch Bank of the State in that town. The Journal says: We take this occasion to warn persons holding bills on any of our banks not to be alarmed. We believe every one of them to be as sound to-day as any institution of the kind in the Union. They can show as fair balance sheets as may be desired." We learn that the branch Bank of Cape Fear at Salisbury has suspended. And we see it announced in the Petersburg Express that the Banks at Raleigh suspended last Thursday; but we see no notice of it in the Raleigh papers. All the Banks in Richmond, Petersburg and Norfolk have suspended specie payments. The Secretary of the Treasury does not anticipate that the revenue for the fiscal year ending the 30th of June next, will amount to more than thirty millions, from present appearances. This will not be a subject of regret to the Administration, as an empty treasury will be a strong argument in favor of economical legislation, and do away in a great ineasure with that lavish system of appropriations which were so well harvested by Weed, Matteson. Edwards & Co. last Congress. Photograph likenesses are now taken in New York the size of life.

4. November 18, 1857 Semi-Weekly Standard Raleigh, NC
Article from Semi-Weekly Standard, November 18, 1857

Click image to open full size in new tab

Article Text

Subscribers desiring their papers changed must mention the Post Office from, as well as the one to, which they desire the change to be made. Duplin Agricultural Fair. We copy to day from the Wilmington Journal the list of premiums awarded at the late Fair of the Duplin County Agricultural Society. We had the pleasure of attending the exhibition. It was highly creditable in every respect to the people of the County. The articles in the ladies department-evinced superior housewifery and domestic taste and skill; while the farmer's department was quite equal, in several respects, to that of the late State Fair. The hogs were certainly the Inrgest and best we ever saw; and the collection of poultry was numerous and superior. But we refer our readers to the list of premiums in another column, from which it will be seen that about three hundred and fifty dollars were paid ont in premiums. The attendance at the Fair was large, and the village of Kenansville and the houses in the neighborhood were crowded with visitors. The hospitality of the inhabitants was profuse, generous, unbounded. Frank Johnson's celebrated band, led by Frank himself, was in attendance; and on Thursday and Friday nights the ball room was crowded with the gallantry and beauty of Duplin and the surrounding Counties. A glance at the agricultural productions and at the swine and cattle of Duplin and Sampson, is at once suggestive of fine lands and successful farming. While in Kenansville and Clinton we heard of unimproved lands yielding from ten to fifteen barrels of corn to the acre. A farmer in Sampson gathered from one acre of improved land the present season one hundred and seven bushels, or more than twenty-one barrels of corn; and from an acre of unimproved land, seventeen barrels. Both Counties abound in marl and lime and other materials for manuring and improving land. The Agricultural Societies of the two Counties have undoubtedly been of service in stimulating the productions of the earth, and advancing domestic manufactures and the mechanic arts. We were glad to find a determination existing among all with whom we conversed to keep up the Societies with their annual Fairs, and to render them still more useful in the future. The Fair of the Agricultural Society of Sampson will be held at Clinton in the early part of next month. The Register attacks us for our notice of the fact that the Bank of Cape Fear, while in a state of suspension, had declared a dividend, and talks about Democrats having chartered the Bank, &c. This is all humbuggery on the part of the Register. Banking is not a party measure in this State, and never has been; and the chartering of this or that Bank bas had nothing to do with party, further than the action of the Democratic party in throwing some additional safeguards around these institutions was concerned. We mentioned the fact that the Bank of Cape Fear had made a dividend, not on account of any peculiar hostility to that particular bank, but to show the defect in the present system. Now, bank profits accumulate, notwithstanding violations of plighted faith. They lock up their specie and refuse to give you a dollar, but continue to make profits out of the intrinsically valueless paper they give you, and on which, to pay a distant debt, you must lose a heavy per centage. This is no loss to the bank, but may even prove profitable to it to a still greater extent, if it is disposed to send on its specie and buy up its own notes at a discount. The system of banking is evidently wrong when such things can occur. We must approach nearer to a specie basis, or we shall never stand or. safe ground; and we must render banks unprofitable when they cease to redeem their pledges. It is not right that the people should suffer and the banks prosper. ilmington and Weldon Railroad. The stockholders of this Road met in the Courthouse in Wilmington on Thursday last, and organized by calling Col. Owen R. Kenan, of Duplin, to the Chair, and appointing Patrick Murphy, Esq., of Sampson, and William F. Dancy, Esq., of Edgcombe, Secretaries. Col. Owen R. Kenan appeared as proxy for the State; and T. D. Walker, Esq., President of the Wilmington and Manchester Road, represented the stock held by that Company. The Reports of the President and Directors, of