Mechanics National Bank (New York, NY)

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Episode Information

Episode UID
125000939
Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
12500 national
Charter Number
1250
Start Date
March 22, 1878
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
f790d03adf764e3b

Response Measures

None

Description

Receiver appointed in 1878; directors agreed to revive and resume the bank in late 1881 according to later articles.

Events (6)
1. June 9, 1865 Chartered
Source
historical_nic
2. March 22, 1878 Receivership
Newspaper Excerpt
Felix V. B. Kennedy appointed receiver.
Source
newspapers
3. March 22, 1878 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank insolvency/financial failure leading to appointment of a receiver (court docket entry).
Newspaper Excerpt
The Mechanics' National Bank vs. Dubois-Felix V. B. Kennedy appointed receiver.
Source
newspapers
4. November 3, 1881 Other
Newspaper Excerpt
The Mechanics' National Bank in this city, has notes amounting to $441,491.65 belonging to the Mechanics' National Bank of Newark, on which the New York bank has claim for nearly $300,000.
Source
newspapers
5. December 3, 1881 Reopening
Newspaper Excerpt
The Directors of the Mechanics' National Bank have agreed to contribute $1,000,000 towards paying the creditors and reviving the bank. ... The bank will then resume under its old name.
Source
newspapers
6. January 1, 1882 Other
Newspaper Excerpt
Receiver Frelinghuysen, of the Mechanics' National Bank...investigation showed that funds had been absorbed in the Nugent business; teller losses and suspected misapplication discussed.
Source
newspapers

Newspaper Articles (7)
1. March 22, 1878 The New York Herald New York, NY
Article from The New York Herald, March 22, 1878

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Article Text

Arnott VS. Arbott.-Reference ordered. Ehas et at vs. Ruckert-Order denying motion. The Inquirer Printing and Publishing Company vs. Carcelery.-Order striking out answer. Sattler vs. The Knickerbocker Life Insurance Company; Wing vs. Dean et al; More V3. Regan.-Actions discontinued. Gardner vs. Dieterien.-Orfer granted. Lange vs. Gehe (No. 1.); Fisher vs. Lange (No. 2) Motion denied. Satterly vs. Herrick et al-Order appoin.ing Mr. John R. Flanigan guardian, ad litem, of infant defendants. COMMON PLEAS-SPICIAL TERM. By judge Larremore. New York Life Insurance Company vs. Westervelt; New York Life Insurance Company vs. Darrah; Same vs. Same; Same Vs. Same; Same vs. Same; Same vs. same; Same vs. Same; Same VS. Same; Same vs. Same; Same vs. Same; Same. vs Same; Orting vs. Orting; in the matter of Cantrell; Wattson vs. Perry; Clark V& The Mayor, &c.; Long VS. McCunn; Schroder V8. Bear.-Application granted. Schemernorn vs. Schulttreis; Same vs. Same; Same V8. Same; Same vs. Same.-Report confirmed and decree entered. New York Life insurance. Company vs. Foran:Same vs. Same; Same vs. Same: Same vs. SameJudgment ordered. in the matter. &c.. of Leipziger.-Order to show cause and injunction granted. Donaldson vs. Kent.-Boud approved. Reynolds vs. Sehmidi.-Applhication for leave to serve amended answer granted. Stewart vs. Dunton.-The order of March 18 is the proper and only order that should be made in the premises. Lord vs. Kitsell.-Order overruling demurrer granted In the matter of Fabbri.-Order to pay dividend, &c., granted. By Judge Robinson. Dugan vs. Bropny.-Demurrers of Mary C. Brophy, of Brophy & Crowe, and of Edwin Terry sustained and judgment absolute thereon except on terms stated in opinion. In the matter, &c., of Fitzsiminons and others.Matter of petition referred to Stephen H. Olin, to take proof of facts alleged and report his opinion thereon. Notice to persons interested to be published in the Darly Register ten days previous to day appointed for hearing to attend reference. MARINE COURT-SPECIAL TERM AND CHAMBERS. By Judge McAdam. Hoagland vs. Hoyt.-Motion granted. Galloway VS. Healy.-Order settled Daty vs. Carey.-Interrogatories settled. Spratt vs. Taylor.-Judgment vacated. Levison vs. Stedenback.-Judgment for plaintiff. Pearce vs. Pitcher; Clements Vs. Same.-Tried and judgments filed. Wheatcraft vs. Jacobson-Edward Woodward appointed receiver. Moore Vs. Clark; Greasen vs. Katski; Crum vs. Crum; Scharrom vs. Coon; Meyer vs. McColl; Huchman vs. Jacobs; Hegemeyer vs. Phyte; Winter vs. Jacobson; Bradley vs. Keller; Spiller vs. Barnett; Richrath Vs. Weir.-Orders granted. Crosley vs. Lung.-Decision tiled. Koppel Vs. Kochier.-Motion granted unless, within ten aays, plaintiff pays $10 costs of motion. Perdue vs. Cariton.-Judgment for plaintiff. By Judge Sheridan. Summers vs. Beach.-Findings signed. By Judge Sinnott. The Mechanics' National Bank vs. Dubois-Felix V. B. Kennedy appointed receiver. The Mayor, &c., Vs. Cornwallis.-Order signed.

2. October 25, 1878 Essex County Herald Island Pond, Guildhall, VT
Article from Essex County Herald, October 25, 1878

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Article Text

On the failure of Jay Cooke & Co., a general feeling of distrust was engendered, and the consequence was the utter failure of many of the Nat onal Banks, and the total suspension of all the National Banks in the city of New York. Now this was not suspension of specie payments, but was a suspension of payments in legal tender Lotes or greenbacks. The promises of the government in the form of greenbacks rose to a premium of four per cent. above the value of National Bank notes, and who can tell the extent of the disaster to the whole country if we had been doing business upon a spe ie basis, as it is called? The ruin would have been general, but as it was, everybody knew that there was precisely the same amount of paper money in the country af'er as before the panic, and consequently it was of short duration, and there was comparative-ly very little derangement in the movements of the products of the country. If the banks could not pay in greenbacks when there was in the country more in amount of legal tenders tean the entire national bank circulation, how can it be expected hat they can maintain coin payments? The fact is, his talk about specie payments is simply absurd, whether uttered by Mr. Greeley or the Solons of Congress. Mr. Greeley's saying that the "way to resumption was to resume," is not a whit more absurd than the more elaborate proposition pending in Congress. To maintain coin payments in this count.y, commercial as it is, is simply impossible unti the Almighty has changed the character and habits of the people-until, as a nation and as individuals, we become a frugal and economical people, sp nding, as a whole, less than our incomes; and until our national, state, railroad and commercial debt abroad is paid or largely reduced, we cannot be secure from the effects of the vicissitudes that creditor nations are liable to, and consequently, if our banks are on a coin basis, we are liabl at all times to a foreign drain, which would compel suspension, Allowing the national ba ks to issue any currency is an unmitigated evil, and is the real obstacle to sound, wise a d wholesome legislation, and and they ought to be divested of that power as speedily as it can be done without disturbing values. This real or fanced -interests are antagonistic to wholesome financial legislation. Capital is timid and selfish, and at the same time is influential, and it has been said (by Senator Sprague) that nothing is meaner than one million of dollars except two millions. The circulation enjoyed by the banks is a valuable privilege, ard to protect it they will overlook every consideration of public good. The evils of such special favors do not end with the banks, for to secure and perpetuate favorable legislation for themselves hey must not oppose legislation for the benefi of other interests: so, legislation becomes a matter of special favor to various interests, and not for the general good. Therefore, the sooner Congress is relieved of this insidious and baneful influence the better. We have at this session of Congress ample evidence of the baneful work of men blinded by the supposed interests, r led by those who have se fish interests to uphold. The men outside of Congress who have tendered their advice, and whose suggestions will probably be followed, have intere ts in national banks, and wish to be protected in the privileges they now enjoy; and the mistake that many congressnen make, no doubt honestly, is in treating the interests of the banks as the public interests, while, in fact, the public has no interest in them other than to divest them, as soon as practicable, of the power or privilege of issuing money. But giving to congressmen full credit for honesty and the best intentions, it is, after all, pitiable to see how little comprehension they bring to the consideration of financial questions. They seem to be trying how not to do it. They appear to be in a muddle, or else they are determined to keep matters in a muddle, and we really cannot make up our mind which. It is hard to believe that they are so much at a loss as they appear to be, and yet. t is equally past belief that they desire to do wrong on questions of finance, for upon questions outside of t eir duties as congressmen, they are certainly equal to the average of business men in ability and honesty. We have come to the conclusion that in this matter of finance their appare..t want of foresight comes from the fact that in all uch matters they yield their convictions to the vews of supposed experts, such as the officers, stockholders and attorneys of the national banks in their several districts. Now the banks have a valuable privilege to maintain and protect, every one of them receiving an annual bonus from government of more than 4 per cent. on their entire capital, over and above all national taxation, for furnishing a circulating medium for the country, which is printed and renewed at the expense of government, and which is no better than greenback, and amounting in the aggregate to an annual net bonus to the stockholders of the national banks of over $15,000,000. At the same time government is obliged to maintain a more complicated and expensive system than would be required if the government is-sued the entire currency of the nation. Sensible and honest men out of Congress ask why this is done, when the nation so much needs the $15,000,000 annually to pay current expenses? Of ou senators and representatives, each proposes a different remedy for financial evils and an empty treasury. One wants more "greenbacks;" another national bank notes; another demands specie payments on a day to be fixed by Congress; an-

3. September 8, 1881 Daily Globe Saint Paul, MN
Article from Daily Globe, September 8, 1881

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Article Text

ALL AROUND THE GLOBE. The New York produce and cotton exchange, clearing house, and all banks will be closed to-day. The mayors of New York and Brooklyn have issued proclamations calling on all to close their places of business, and trade will be suspended in both cities. Robert Steep, of Manville, Kan., nine miles west of there, while crossing the railroad track in a wagon, was killed by railroad train No. 3. Alex. Grey, of Allegheny City, one of the wardens of the western penitentiary, received serious injuries on the Pennsylvania railroad, at Seaman Place, yesterday, dying several hours afterwards.

4. November 3, 1881 Sacramento Daily Record-Union Sacramento, CA
Article from Sacramento Daily Record-Union, November 3, 1881

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GENERAL NEWS. LAST NIGHTS DISPATCHES TO THE RECORD UNPON DOMESTIC Sympathy from Guatem: la. WASHINGTON 21 State the his pathy his by Minist heart high wishes being rapid which, without hi parallel in dinary the the Arthur replied Mr Minister singularl ly touched as by gratified which the and to especially pleasing that fitted high station by bis Called which laid the Chief good aim and my carry still has further develop the manifested of good will friendship towards are which b bound in interest and material Minister G Mr. greet the person, of mala Gust people with they bless the that wishes which liberty prosperity United States earnestly desires to shared by all its neighbore. The Signal Service ber 2d W Genera Chief Signal Officer, Wm. Hezen, to the the report of Signal the 1881 the Hazer the the that weather fact coast the Pacific inade unsatisfact and specially the instruc Signa Corna tationed at San Fran make that study may and send of indications that city entire This Hazen coast, wind much will plan better than be thinks, the one of sending eather forecasts for the Pacific coast from Was hington A Cowboy Receives His Reward 2a vember CAMP (Texas), RICE somewhat named Wm into rode Edwar alias intent living the out of the mus He the Chinese said country them striking shooting Chinaman the on terfered. and the cowboy threatened shoot without him, effect. He tried then to run the Chipan citizens but from the the and became fered firing being riddled with bullets. None of the others injured Convict Labor Denoun CHICAGO Herald of Octobe 24th W the Lessens does ployment convicts from New Cal We the of people guilty mur hipped their is any madness sheer the Cashier Ba aldwin's Sue tions that Baldwin known National on shares money the and been has for street dabble and pointers Shipping Potatoes from Ireland to Amer ica. NEW YORK. November 2d The Commer had Already from E of beans high the On home. heels intelligence comes this the in being brough are this England from able quantities forty bar other and North of market President Arthur's Future Residence. to Arthur the the then He White not will there at the When ite tome. Soldiers House yesterday he selected his room in the of northw the Business of the Country No mber Clea NEW The YORK. aring the show for week that busi exchanges the ness th larger again generally last year. week show small cities cent., six-tenths others the gained twotenths of Coin Camp Ign in Virgin W Ma Senator ASHINGTON. for wit full Virginia pocke hone has left the money assist paving poll tax for Repu that fund to has Read the justers Money of the credit Virginia will depend the status Senate. the States United at Lynchburg 2d The Presi Strath dent Wilson vice of the tenure under Southern Bonds Wan ted 000 in Cor federate Return of an Embezzler. YORK D agustua NEW C J. S53 the with day from Europe and in $50,000. Pleasant Outlook Not rain drizzling were the the openi fall National As Fair the of meeting sociation Still Buying Bonds. Large 2d November (Ga. of Con here Receiver Appoint d. Comp 2d W The the Currency has appoi Fred erick relinghuysen the Me National Bank of Newark, Lewis M Price Almost Forgette Already NEW 2c Th November YORK, the of Bank ational Mechanics aff already President the Mechanic tional Bank of New York, the Agency of the broken bank says the lossea of his bank are small Died of Their juries Br ridget LOWEL (Mass.) vember 2d.and Thomas M lone died from received at the fire Rourke's house. Policeman Donnell. who from window, is thought to be fatally in jured. New Base Ball League 23 November new -The CINCINNATI, Base Ball League completed its organ day The home club fixes the rate of a pays regular game. Philadel phia. Louisvi lle and Pittsburg clubs have been admitted and several others applied for admission the Whole Amount Claimed

5. November 4, 1881 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, November 4, 1881

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The Mechanics' Bank. NEWARK, Nov. 3. Nothing new of importance in the bank failure today. Frederick Frelinghuysen was qualfied as receiver, his father, the ex-Senator, being his bondsman for $30,000. An injuction was served on President Hallacy from the Corn Exchange Bank of New York, restraining him from collection. The directors of the Bank have attached $100,000 in the hands of F. W. Diety, shoe manufacturer. said to have been loaned him by Nugent. NEW YORK, Nov. 3. The Mechanics' National Bank in this city, has notes amountinz to $441,491.65 belonging to the Mechanics' National Bank of Newark, on which the New York bank has claim for nearly $300,000.

6. December 4, 1881 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, December 4, 1881

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ITEMS. WEEKLY BANK STATEMENT. New YORK, Dec. 3.-The following is the weekly bank statement: Loans, increase, $502,900; specie, decrease, $1,703,300; legal tenders, increase. $269,100; deposits, decrease. $128,900; circulation, increase, $135,000; reserve, decrease, $1,401,975. The banks now hold $430,875 less than their legal requirements. FOREIGN GOLD. The steamship St. German brought $145,000 in gold. HAVE AGREED TO CONTRIBUTE S1,000,000. The Directors of the Mechanics' National Bank have agreed to contribute $1,000,000 towards paying the creditors and reviving the bank. The Directors will publicly announce their willingness to pay the creditors a percentare on their dues larger than any that could be hoped from the Receiver. If the creditors accept the amount offered. the sums will be paid In immediately and a receipt taken. The bank will then resume under its old name. FOUND TO HAVE BEEN ACCIDENTAL. The Coroner's jury found the shooting of young Weinmuller. the Poughkeepsie student,

7. January 1, 1882 New-York Tribune New York, NY
Article from New-York Tribune, January 1, 1882

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engaged in another direction, which, it is rumored, promises further disclosures. The answer to the bill of Receiver Frelinghuysen, of the Mechanics' National Bank, will be filed by the counsel of C. Nugent & Co. this week. DistrictAttorney Keasbey said yesterday that he had from the first believed Cashier Baldwín's statement that nearly all the bank'sfunds had been absorbed in the Nugent business. Baldwin had excepted $50,000 stolen by Marchbank, and another amount of $8,000 which Baldwin accounted for. It had not been proven. he said, that Baldwin lost money in Wall Street speculations. As regarded Theodore Baldwin, the teller, the investigation had shown f that he lost $100,000 in speculations in Wall Street. It was suspected, but not definitely known, that E this was the bank's money. LONG ISLAND. WESTBURY.-Mrs. Ann Titus, of Westbury, recently bought some cows in New-York. After she had received them it was discovered that they were afflicted with pleuro pneumonia, The farm has been quarantined, and Mrs. Titus prevented from selling milk. JAMAICA.-Long Island farmers who put away quantities of celery and spinach, in anticipation of freezing weather, have found indications of rot and The will be compelled to dispose of them quickly. recent rains have had a damaging effect upon the lettuce grown in hot houses. HEMPSTEAD.-Daniel Thomas, of Hempstead, 3 miser who went about half naked and picked up pieces of wood, rags and old iron in the streets, was sentenced to six months on Barnum Island on Friday as a vagrant. His house was searched and $254 found concealed under some rubbish. Dix HILLS.-Pla Smith. age sixty, of Dix Hills, spent Friday evening with some friends at the Greenlawil Hotel. About midnight he started to return home. In backing his horse from under the wagon shed he was thrown from his wagon, and struck his head on the ground with such force as to kill him almost instantly. SOMIHTOWN.-Henry Jones, a woodchopper, living in a small cabin in the woods near his work at Smithtown, on Monday last hired a strange man to help him. Yesterday morning Jones did not awaken until nearly 10 o'clock, and he felt as if he had been overcome by chloroform. He found that his best suit of clothes, silver watch, $40 in money, and the stranger had disappeared. STATEN ISLAND. NEW-Dorp.-Andrew Doyle, son of Justice Doyle, of Clifton, while gunning in the woods, near NewDorn, on Thursday, acct !entally@discharged both barrels of the gun into his right leg. The shattered limb may have to be amputated. New-BRIGHTON - A person passing Erastus Wiman's house at New-Brighton Thursday evening, saw through a window a blaze in one of the upper rooms. A masquerade party was being held in the parlors. Analarm was given and the names were extinguished with slight damage. The fire was caused by the window curtain igniting from a gas jet. CLISTON.-Thomas Miller and John Kelenis, captains of sand schooners, were arraigned yesterday before Justice Vaughn at Clifton, charged by the Highway Commissioners of Southfield with stealing sand from the beach. The commissioners alleged that the prisoners 111 removing the sand endangered the new boulevard running along the beach. The prisoners were committed to jail in default of $25 fine each. WESTCHESTER COUNTY. MERRITT'S CORNERS.-A post-office has been established at Merritt's Corners, in the town of Newcastle. and named Pocantico. PEEKSKILL.-Eugene Pringle, an employe of the Union Stove Works at Peekskill, fell dead while returning home on Friday evening. He was a prominent Odd Fellow and a member of the Grand Army of the Republic. He leaves a wife, but no children. The cause of his death was heart disease. WHITE PLAINS.-At the opening of the Court of Oyer and Terminer, at White Plains yesterday, District Attorney Baker moved that sentence be passed upon Onoferio Mangano, who was found guilty of murder in the first degree on Wednesday night, in having killed Charles Williams, a fellowconvict. in the State Prison at Sing Sing, on December 9. The counsel for the prisoner opposed the motion on the ground that the proper notice in such cases had not been given as required by the new Code, and further, they had moved for a new trial, on several grounds. Judge Dykman said that he was unwilling to pass sentence of death upon any one until the matter had been reviewed by the General Term. The argument on the motion for a new trial was postponed until Saturday next.