14063. New Jersey Protection & Lombard Bank (Jersey City, NJ)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
November 18, 1825
Location
Jersey City, New Jersey (40.728, -74.078)

Metadata

Model
gpt-5-mini
Short Digest
b0abbf75

Response Measures

Full suspension

Other: Legislature repealed the charter and appointed trustees to settle the institution's concerns.

Description

Newspaper reports (Nov 18, 1825) state the bank 'closed their doors' and posted a placard 'suspended payment for the present' with a large crowd of depositors seeking redemption (a run). Subsequent report (Dec 2, 1825) says the state legislature repealed the bank's charter and appointed trustees to settle its affairs, and the cashier delivered books — consistent with suspension followed by permanent closure/receivership. OCR corrected minor punctuation and expanded dates using article datelines.

Events (4)

1. November 18, 1825 Run
Cause
Bank Specific Adverse Info
Cause Details
Bank unexpectedly suspended payment despite prior advertisement that bills would be redeemed in specie; indicates bank insolvency/financial failure prompting heavy withdrawals
Measures
Posted placard announcing suspension of payments; no emergency liquidity measures reported
Newspaper Excerpt
This morning the New-Jersey Protection and Lombard Bank closed their doors, and posted up on the window shutters the following placard: The New-Jersey Protection and Lombard Bank have suspended payment for the present ... The crowd, all this forenoon surrounding the building ... has been immense; and among them we saw a great many poor market women, mechanics, and laborers, with the bills of the broken Bank in their hands, begging to have them redeemed
Source
newspapers
2. November 18, 1825 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Suspension of payments by the bank itself following financial distress; contemporaneous crowds seeking redemption indicate illiquidity/insolvency rather than a mere rumors-driven pause
Newspaper Excerpt
The New-Jersey Protection and Lombard Bank have suspended payment for the present (placard posted on banking house)
Source
newspapers
3. December 2, 1825 Other
Newspaper Excerpt
The Legislature have passed a law repealing the charter of the New Jersey Protection and Lombard Bank at Jersey City, and appointing Trustees to settle the concerns of the Institution. The Cashier has accordingly delivered into their hands, all its books, papers and property in his possession. Steps will be now taken to redeem the bills, &c.
Source
newspapers
4. December 2, 1825 Receivership
Newspaper Excerpt
appointing Trustees to settle the concerns of the Institution. The Cashier has accordingly delivered into their hands, all its books, papers and property in his possession.
Source
newspapers

Newspaper Articles (2)

Article from Phenix Gazette, November 22, 1825

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Article Text

ANOTHER BANK BROKE. New-York, Nov 18- This morning the New-Jersey Protection and Lombard Bank closed their doors, and post ed up on the window shutters the following placard:"The New-Jersey Protection and Lombard Bank have suspended payment for the present" The bills of this Bank are signed D M'Laren, President, and Edw. I. Priest Cashier. It was only yesterday that this same Bank advertised in the papers that their bills would be redeemed in specie, at their Banking House in Jersey City. The crowd, all this forenoon surrounding the building in which this Bank transacted their business, in Pine street, has been immense; and among them we saw a great many poor'market women, mechanics, and laborers, with the bills of the brokon Bank in their hands, begging to have them redeemed, that they might have a shilling to buy a loaf of bread for their [Post. children.


Article from Richmond Enquirer, December 2, 1825

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Article Text

-The ship Swift after being out a little more than 28 months has landed at Nantucket more than 3000 bls. spermaceti oil, nearly equal to 100,000 gallons; said to be the largest cargo of sperm. oil ever carried into any port: it is worth about $80,000.--Salem, like Portland in Maine, has had her riots; owing to an attempt to put down houses of ill fame. They have been frequent for one or two years past, and in one instance death bas ensued. A legal enquiry was going on into a riot which occurred on Wednesday week. On the 22d, was the first snow storm at Boston this season. The snow fell to the depth of several inches. A part of Mr. Austin's MS. life of Mr. Gerry was burnt in the late fire. RHODE ISLAND. The Providence Journal speaking of the dispatch of business in the U. S. Circuit Court for that district, says, " it is now almost a matter of course, that a citizen of this state, having a cause of any magnitude in amount or principle, steps over the line and becomes the temporary resident of another state, in order to avail himself of the jurisdiction of the United States Court." CONNECTICUT. The Board of Commissioners of the Farmington Canal have established about 11 miles, commencing northerly of Farmington Village, and extending south through that village to the diverging point of two proposed routes, one through Cheshire, the other through Wallingford. The Superintendant was about to close the contracts for that whole distance. The Board have also laid out 11 miles more, terminating a little southerly from the centre of the town of Cheshire. Contracts are also advertised for this tract. There remain about 16 miles of the whole route from Massachusetts to New Haven harbor, which will be put under contract next spring. Thus the work speeds with great activity. The chaise of Mr. Caldwell of Hartford was run away with by his horse; and run at full speed against a travelling wagon. The shock was so great that it threw his little child from the chaise, 8 or 10 feet, into the arms of one of the men who was on the seat of the wagon, who caught the apparent victim of death and saved him from injury. NEW YORK. The Albany Argus estimates from actual returns the republican majority in the House as at least 20; and certainly $ in the Senate. And these majorities (says the Argus,) are in decided political opposition to Mr. Clinton and the federal party, and all the various names they have jointly assumed." There is every reason to believe that the district electoral ticket has prevailed in the state by a considerable majority. The navigation of the Grand Canal was interrupted on the 21st 18 miles west of Schenectady, by the ice. A few days of mild weather were expected to open it.--James Freeman, blacksmith at Waterford, hung himself with a common trace chain; pecuniary embarrassment supposed to be the cause. Mrs. Coon of Hallfmoon, has also committed suicide, in a fit of momentary phrenzy produced by violent pain. She had but a few days before been delivered of her first child; and while her husband was gone to a neighbour in the night to procure some medicine, for her relief, she accomplished her horrid purpose.--Application is to be made to the Legislature for the incorporation of a company to construct a railway from Schenectady to the Hudson, at Albany and Troy; with a view of avoiding the delay and expense of passing 28 locks which occur between the Hudson and Schenectady-The Derby Bank after a "fitful fever" of a few short months has expired-The New Jersey Lombard and Protection Bank has also stopped payment. All the money of the Western Banks (says the N. Y. Statesman) in consequence of these or other causes, is basking about Wall St. at 2 to 5 per cent discount. The Albany Patriot of the 23d states that the Canal is closed for the season by snow and ice several inches thick, and that there are some hundreds of freighted boats on the canal, which will be subjected to serious inconvenience and expense. The Albany Argus of the 26th states that in the Senate 20 and probably 21 are republicans, and the remaining 11 or 12 federalists and Clintonians: of the House, 69 are decided republicans, 52 Clintonians and federalists, 6 doubtful, and 1 lost in consequence of a tie: that on the electoral vote, 66,131 were given for districts, and 61,883 for General ticket plurality; majority for Districts 4,248. NEW JERSEY. The committee to whom were referred the proceedings of other states, relative to the colonization of people of colour, have reported that it was inexpedient to adopt any other measures than those of the last session: which was agreed to by the House. The bill incorporating the Union Bank of Rahway has been rejected by 23 to 18 votes. None of the applications for additionai banks promise to be successful-The Committee on the State Prison reports an actual loss during the last 9 months of $2730.90 including salaries of keepers, &c, There are 56 convicts, 36 whites and 20 blacks; 49 are Americans, 5 Irishmen, 1 Englishman and 1 Dutchman. They are employed in weaving, spooling, shoemaking, sawing stone, &c. &c. 13 in solitary cells, 3 sick. -The Canal will terminate at New Brunswick. The Citizens at a public meeting agreed to let it run as the Commissioners proposed, with a dam below the town to raise the water sufficiently to give 4 feet at Garret's valley, just above the town, where the Commissioners propose letting the Canal into the Raritan. Four men were burnt at Spotswood on the night of the 18th, in the house of R. Jobs: the rest of the inmates scarcely escaped with their lives-The Legislature have passed a law repealing the charter of the "New Jersey Protection and Lombard Bank at Jersey City," and appointing Trustees to settle the concerns of the Institution. The Cashier has accordingly delivered into their hands, all its books, papers and property in his possession. Steps will be now taken to redeem the bills, &c. PENNSYLVANIA.---George Tyson, who was condemned to 3 years imprisonment for stealing the check of Mary Stewart for $1022 50, and to reimburse the prosecution and to pay the costs of the Prosecution, being pardoned by the Governor, claimed his discharge without paying the restoration money or the costs. After argument before the Supreme Court, Judge Duncan remanded the prisoner. The managers of the Pennsylvanian Union Canal have made an elaborate and encouraging Report, leaving sanguine hopes to be entertained "that boats may pass from the Susquehanna to the Schuylkill by the close of the year 1826." This report seems to have roused the Baltimoreans, who are also anxious to bring the produce on the Susquehanna to their own town. The object of the Union Canal, is in the first place, to attract the produce of the Susquehanna river to Philadelphia, and by the same channel to furnish the supplies required by the return trade; and secondly, to complete a first and most important link in the chain of