Bank of the United States

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: May 23, 1837
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 56ecd31774504f3f

Response Measures

None

Description

Article (NY dateline May 23, 1837) reports the Bank of the United States' notes being rejected, discounted, and the bank 'considered insolvent' — indicating a failure/closure due to bank-specific insolvency rather than a depositor run.

Events (1)

1. May 23, 1837 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Notes widely rejected and depreciated; widespread belief in the bank's desperate condition and insolvency; large losses expected to government and holders.
Newspaper Excerpt: The notes of the Bank of the United States ... are no longer current ... They are sold at a discount ... It is considered insolvent
Source: newspapers

Newspaper Articles (1)

1. June 17, 1837 Iowa News Dubuque, IA

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Article Text

BIDDLE'S BRITISH BANK. At last the idol is in the dust! The worshippers turn from the altar! and ashes arefound where bread was promised! The notes of the Bank of the United States, says the New York Cominercial, (Whig) are no longer current even among the notes of failing banks! They are rejected from all the Banks of New York, Whig Banks and all, except at the Merchant's Bank, and there they are only received in payment of debts to Biddle's agency! They are sold at a discount for other broken bank paper in the City of New York! This rejection of the notes, and this depreciation below the notes of other suspended banks, arisesfrom a thorough conviction of the desperate condition of the bank. It is considered insolvent, and the most culpable of all the broken banks, and the most injurious in its losses to the government and the country.-The government is expected to lose nine millions by her, and holders of her notes greatly. The conduct of the bank in sending her notes into remote and distant circulation, through agents and the express mail, for nine months past, has been truly ingenious, and makes her conduct far worse than that of the other broken banks. Surelv those who have praised those notes so much, and thereby induced the citizens to take them, ought now to redeem them, especially as they will still do for a remittance to Philadelphia. NEW YORK, May 23. Money Market.-The decline observable in the stock market may be attributed to the excesive rise last week, which cannet be maintained. The reaction has come again, because monev is not so plentv yet as to justify and great advance. Besides which, many people look to the next English packet for very bad news. The depression in the stock market may be occasioned too, in some measure, by a growing conviction that a National Bank finds less favor with the country as .people have time for reflection. of The proclamation of Gov. Ritner, of e Pennsylvania, has put a damper on a small notes.-Eve. Post.