Paterson Savings Institution

Bank Information

Episode Type: Suspension → Closure
Bank Type: savings bank
Start Date: November 20, 1865
Location: Paterson, New Jersey (40.917, -74.172)

Metadata

Model: gpt-5-mini
Short Digest: fa9843f6

Response Measures

None

Description

New-York Daily Tribune (1865-11-24) reports directors of Paterson Savings Bank issued card dated Nov 20 announcing they determined to close and go into liquidation because of heavy local taxes and large withdrawals for government securities. No run is described; this is voluntary liquidation/suspension leading to closure.

Events (1)

1. November 20, 1865 Suspension

Cause: Voluntary Liquidation
Cause Details: Directors decided to close and liquidate due to heavy local taxes and withdrawals for government securities that drained about one-third of capital over four months.
Newspaper Excerpt: The directors of the Paterson Savings Bank have issued a card dated 20th instant, announcing that they have determined to close that institution and to go into liquidation.
Source: newspapers

Newspaper Articles (1)

1. November 24, 1865 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, November 24, 1865

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Article Text

30,000 2d. Foreign exchange is strong. Bills at CO days on London are selling at 1081 @1083 for commercial; 109@1094 for bankers'; do. at short sight, 110.20 1101; Paris at 60 days, 5.171@5.183; do. at short sight,5.15@5.13} Hamburg, 36@368; Amsterdam, 4012402 Frankfort, 404@401; Bremen, 784@79; Prussian thalers, 711 @71). Dry Goods people are complaining that) "goods sold for cash on 30 daysare not promptly paid for, and a good deal of credit is being taken. The Chicago Tribune of Tuesday says: Business opens this week unusually dull. The grain and provision markets are stagnant. and there is little or no movement of produce of any kind. The mercan tile trade drags along slowly, with light sales to country dealers, whose stocks have run so low that further purchases were actually necessary to keep up a respectable assortment. Meanwhite the demand for currency keeps active, and our bankers, whose abilities to meet this demand have been 108 terially weakened during the past two weeks by large remittances to New-York. are forced to refuse accommodations to some of their best cus tomers and first class names. The rates of discount at the regular discount houses is steady at 10 per cent per annum but the private bankers are charging 12@20 per cent. While it is well known that our bankers at present are really short of currency, on account of the heavy demand for exchange, it is at the same time their true policy to keep their business in good shape, pend ing a period of such uncertainty as now prevails all over the country. The following table shows the receipts and shipments of flour and grain at Chicago from January 1 to November 18, for four years: RECEIPTS 1862. 1863. 1861. 1865. Flour, bblx 1,065,405 1.079.113 1,341,453 1,637,738 Wheat bush. 8,347,153 9,714,714 10,425.310 12,557,926 bush 24,473,259 12,843,060 25,774,670 30,566,784 Corn, Oats, bush 9,773,123 13.027.002 8,281,835 3 398,105 925,076 781,060 1,022,684 1,066,890 Rye. bush 713,702 1,020,834 704,832 Barley, bush. 1,220,651 SHIPMENTS. 1,575,318 1,461,911 998,878 902.606 Flour, bble Wheat, bush 6,444,259 10,390,043 9,155 234 12,855,189 Corn, bush 25,160,202 11,604,805 24.358.006 29,515,408 Oats, bush 9,168,806 14,010,444 7,351,929 2,823,643 767,762 562,405 756,889 760,480 Rye, bush 665,547 259,128 202,130 Barley, bush. 461,911 : The Cincinnati Gazette of Thursday reports: 1 There is a comparatively quiet but very sensitive money market. Capitalists are moving very cautiously, and the aim is to contract the discount lines rather than expand. In the present temper of the market, and 111. der the uncertain feeling that prevails in regard to the future. people who expect to do much business, and es. specially a speculative business, on borrowed capital will 1 be disappointed. The stringency that prevails results O about as much from this want of confidence as from a 1 scarcity of money. A settled feeling is not likely to prevail until the financial policy of the Government 1/2 shall be developed. Rates of interest are firm in the open market at 10@15 P cent. and speculative paper is not salable at these figures unless very stronzly backed. Exchange was very firm at par to 50c. prem. buying and 1-10 premium selling. The sales were in excess of the receipts. The largest cargo of cotton which has arrived at this port came to hand to-day from Florida. It consists of 3,000 bales. We learn that 30,000 bales more have been shipped, and are now on the way to New-York. The directors of the Paterson Savings Bank have issued a card dated 20th instant, announcing that they have determined to close that institution and to go into liquidation. They state that the small business of the bank is unable to bear the heavy local taxes, which, with internal revenue duties, constitute a duty of 3@31 per cent. They 4 add, moreover, that the attraction of Government I t. securities has caused the withdrawal of large sums already amounting during the last four months to one 51 third of the entire capital of the bank, and this drain is likely to continue while these securities Brein the mar. ket. The bank has good assets, to an amount exceed. ing the liabilities. sufficient in the judgment of the 39 managers to pay all their liabilities and meet all contingencies." 39, 394 The St. Louis Republican of the 21st just. mentions a report that "is railroad corporation is in process of 39 formation, with the intention of buying out the SouthWest Branch of the Pacific Railroad, and extending it to the northern border of Texas, where it will be met by the Texas Central Road, a pari of which is now under construction in a northerly direction from Galveston. The whole line, when laid. will be 900 miles long and will place St. Louis and Galveston in direct com munication."