14264. Commercial Bank (Perth Amboy, NJ)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
September 24, 1851
Location
Perth Amboy, New Jersey (40.507, -74.265)

Metadata

Model
gpt-5-mini
Short Digest
0d2df8b3

Response Measures

Full suspension

Other: Receivers were appointed (injunction served), so the bank was taken into receivership following the stoppage.

Description

Multiple contemporary articles (Sept–Oct 1851) list the Commercial Bank of Perth Amboy among broken or stopped banks after a panic triggered by a false/erroneous notice that its New York agent/Mechanics' Bank had ceased redeeming its bills. An injunction was served and receivers later appointed; receivers and claims-presentment deadlines are reported in April 1852. Sequence: misinformation-driven run → suspension/stoppage → receivership/closure.

Events (3)
1. September 24, 1851 Run
Cause
Rumor Or Misinformation
Cause Details
A notice in Thompson's Note Reporter (and communications from Mechanics' Bank) that agents had ceased redeeming Commercial Bank bills created a panic and rush to dispose of the bills; the notice was reported as not the case.
Random Run
Yes
Random Run Snippet
Notice said agents ceased redeeming Amboy bills; was not the case
Measures
None reported to restore payments in the immediate coverage; panic led to suspension/injunction and later receivership.
Newspaper Excerpt
Thompson's Note Reporter appeared with a notice ... that the agents had ceased to redeem the bills of the Commercial Bank ... which was not the case, but it, of course, created anxiety to dispose of the bills.
Source
newspapers
2. September 25, 1851 Suspension
Cause
Rumor Or Misinformation
Cause Details
Panic caused by erroneous report about redemption by correspondent/agent (Mechanics' Bank) led to the bank's stoppage/suspension and an injunction with assets taken by receivers shortly thereafter.
Newspaper Excerpt
The stoppage of this Bank was a perfect surprise upon its officers and directors ... any bank must have suspended under such circumstances.
Source
newspapers
3. April 15, 1852 Receivership
Newspaper Excerpt
The time fixed by the Receivers of the Commercial Bank, Perth Amboy, N.J., for the presentation of the notes and other claims against this bank, expires on the 22d inst. Receivers - T. G. Marsh, Perth Amboy; Cortlandt Parker, Newark; Oliver S. Halstead, Newark.
Source
newspapers

Newspaper Articles (5)
1. September 28, 1851 The New York Herald New York, NY
Article from The New York Herald, September 28, 1851

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Article Text

MONEY MARKE T. SATURDAY, Sept. 27-6 P. M. The panic in Wall street is rapidly increasing. Holders of fancy stocks looked blue enough to day, and there appears to be no bottom. A week ago, it was the opinion of many that the quotations for stocks could go no lower, since which time they have fallen five and ten per cent. At the first board, to-day, Erie Income Bonds declined 1/2 per cent; Erie Railroad, 1; Harlem, 11/6; Long Island, 1/6; Reading Railroad, 1)4; Norwich and Worcester, X. New Jersey Zinc Company closed firm at yesterday's prices, and it was the only stock sold that did not fall off materially. There were large sales of Erie Railroad, and plenty of sellers on time, notwithstanding the large depreciation. The bears seem to think that there is a much deeper depth than that already reached. We have heard of no new reports of bank failures. The People's Bank of Paterson, Commercial Bank of Perth Amboy, and Saliebury Bank, Maryland, are the only banks which have actually suspended. Thompson, at 64 Wall street, redeems the bills of the following banks, at % per cent discount:Government Stock Bank. Michigan; Bank of America New Jersey; Ocean Bank, do.; Atlantic Bank, do.; Merchants' Bank, do.; Farmers' Bank, do; Delaware and Hudson, do. The anthracite coal trade is still active, and prices are well sustained. The Lehigh Navigation Company brought down, for the week ending on Saturday last, 29,750 tons. and for the season 732,975 tons The Reading Railroad Company brought down, for the week ending on Thurs day, 36,141 tons, and for the season 1,290,168 tons. The Schuylkill Navigation Company brought down, for the week ending at the same time, 14,187 tons, and for the season 422,057 tons. The aggregate tonnage for the week by the three lines, is 80,078 tens, The steamship Pacific, for Liverpool. carried out $546,422 in American gold, and £12,887 in British gold, making an aggregate of about six hundred thousand dollars. The receipts at the office of the Assistant Treasurer of this port, to-day, amounted to $102,010; payments, $34,090 11-balance, $4,202,166 60.

2. October 3, 1851 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, October 3, 1851

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SECOND BOARD 74 100 Erie R. R 86 $2,000 Erie Conv 5 $60 b30 54 1200 Ports. D. D 200 Read. R. R 50 N. O. Canal B. Co. 90 100 N.J. Min. Co. $60 81 b4 90 66 do 25 5 Hud. Riv. R. R 510 90 50 do 74 100 Erie R.R 64 200 Harlem R. R do 50 opg 75 s30 64 do 100 74 do 25 64 do 50 74 do 25 100 Morris C. Co. b60 14 $30.74 do 100 b30 75 do 100 100 Reading R. R. b30 54 53 do 100 74 do 200 do s3 74. 25 THURSDAY, Oct 2-P. M. The influence of the uncurrent money panic has passed away and stocks have resumed their previously improving tendency. The market has been scarcely so active as it was yesterday, but the transactions show generally higher prices. Erie Stock shows an advance of two Pencent., an advance, owing, however, as much to the favorable statement of the receipts of the road which we published yesterday, as to the subsidence of yesterday's panic. The Convertible Bonds improved Harlem advanced 11 Erie Bands, 1859, H Reading,1 Long Island, 1, and Canton The Money market shows a feeling of gradual ameliortion. No Gold is going this week to Europe, and the declining rates of Sterling Exchange indicate the probability that little or none will go next week. Sterling is offering at 91 @101 P cent. for the best bills, and the supply is likely to be increased largely from the South before the next steamer sails. In Freights there is less offering, and the rates are hardly so firm. To London, 5,000 bushels Wheat was taken at 5d. to Liverpool, Flour at 7@ 7dd. Wheat, and Cotton and Heavy Goods at former rates. The Brokers have generally returned to the discount of our State money for the present, all uncurrent money is bought @@ P cent. higher than usual quotations. John Thompson publishes the following list of Broken Banks I P. M. Oct. 2.-Broken Banks.-List of Banks Already Failed James Bank, Saratoga County Bank of New-Rochelle Farmers' Bank of Mina Western Bank, White Creek Peoples' Bank, Paterson, N.J. Commercial Bank, Perth Amboy The Bank of Salisbury, Md. The Bank of Cayuga Lake, and State Bank at Saugerties are regularly taken by the Brokers to-day. The New-York Agent of these Banks has published the following notice The Bank of Cayuga Lake and State Bank at Saugerties are wholly secured by United States and New-York Stock and redeemed by Washburn & Co. at Peent. discount in specie,at the bank at par.and received by the Brokers at the current rates. The Albany Evening Journal, of last night, states that There was a little flurry in the street this morning, caused by a rumor that the bills of three free banks were not redeemed at their agency in this city. The rumor was true but the absence of funds will only be temporary, and scaused by an unusual and unexpected rush of the bills of these particular banks. They will, weare informed, probably be redeemed as usual, to-morrow. Or if they should not they are just as good as gold, inasmuch as they re secured by anabundance of first rate stocks." In respect to the Commercial Bank at Amboy, The Newark Advertiser states "We understand that an injunction was granted, Saturday last, against the Commercial Bank of New-Jersey. The injunction was served and the assets taken by Receivers on Monday morning. No full investigation of the affairs of the Bank could yet had, but it is the opinion of the officers, and those best acquainted with the matter, that there are assets more than sufficient to redeem the circulation, in which case the holders would do well not to sacrifice their bills too suddenly. The following explanation of the unfortunate occurrence has just been communicated to us: "It is said that the stoppage of this Bank was a perfect surprise upon its officers and Directors. The Mechanics Bank in New-York were its agents for redeeming $10's and upward. On the afternoon of the 24th of September, the same day on which the People's Bank stopped, Thompson's Bank Note Re. porter appeared with a notice pasted on it, that the agents had ceased to redeem the bills of the Commercial Bank also, which was not the case, but it, of course, created anxiety to dispose of the bills. The Mechanics' Bank had that day what was supposed to quite sufficient for all redemptions that were to be anticipated, and had besides in their hands some $40,000 of excellent paper for collection, and as secu-

3. October 8, 1851 The Democratic Sentinel and Harrison County Farmer Cadiz, OH
Article from The Democratic Sentinel and Harrison County Farmer, October 8, 1851

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Broken Banks. The brokers have generally returned to the discount of our State meney; for the present, all uncurrent money is bought Aa1 per cent, higher than usual quotations. J. Thompson publishes the following list of broken banks: 2 P. M., Oct. 2.-Broken Banks.-List Banks already failed-James Bank, Sarmers' Bank of Mina; atoga of County; Bank of Western New-Rochelle; Bank, White FarCreek; People's Bank, Patterson, N. J.; Commercial Bank, Perth Amboy; The Bank of Salisbury, Md. The Bank of Cayuga Lake, and State Bank of Saugerties are regularly taken by the brokers to-day. The New-York Agent of these Banks has published the following notice: The Bank of Cayuga Lake and State Bank at Saugerties are wholly secured by U. S. and N. Y. Stock and redeemed by Washburn & Co., at 1/4 per cent. discount in specie, at the bank at par, and received by the brokers at the current rates. The Albany Evening Journal, of last night states that 'There was a little flurry in the streets this morning, caused by a rumor that three free banks were not redeemed at their agency in this city. The rumor was true; but the absence of funds will only be temporary, and is caused by an unusual and unexpected rush of the bills of these particular banks. will, we are informed, probabe redeemed as bly They usual, to-morrow. Or if they should not be, they are just as good as gold, inasmuch as they are secured by an of first rate stock." In to the Bank at abundance respect Newark Advertiser Commercial states: Amboy, the "We understand that an injunction was granted on Saturday last, against the Commercial Bank of N. J. The injunction was served, and the assets taken by the receivers on Monday morning. No full investigation of the affairs of the bank could yet be had, but it is the opinion of the officers, and those best acquainted with the matter, that there are assets more than sufficient to redeem their circulation, in which case the holders would do well not to sacrifice their bills too suddenly. The following explanation of the unfortunate occurrence has just been communicated to us: "It is said that the stoppage of this bank was a perfect surprise upon its officers and directors. The Mechanics' Bank in N.Y. were its agents for redeeming $10's and On the of the same on upward. September, afternoon day of the which 24th Bank the People's Bank stopped, Thompson's Note Reporter appeared with a notice pasted on it, that the agents had ceased to redeem the bills of the Commercial Bank also, which was not the case, but it, of course, created anxiety to dispose of the bills. The Mechanic's Bank had that day what was supposed to be quite sufficient for all redemptions that were to be anticipated, and had besides in their hands some $40,000 of excellent paper for collection, and as security, belonging to the Commercial Bank. The morning of the 25th found them in possession of about $4,000 cash, and early after bank hours a draft for $5,300, held by a broker interested with Thompson, it was said, was presented, drawn the day before by cashier at of the Wall Amboy, street in and ignorance the the difficulty in panic about banks. "The President of the Amboy Bank had not at that hour, reached town-yet the Mechanic's Bank, notwithstanding their knowledge of this fact, and their large securities, not only dishonored the draft, but sent notes to all the banks in the city that they had ceased to redeem the Amboy bills. In this situation the President arrived in the city; but of course the panic so created could not be allayed, and any bank must have suspended under such circumstances. "We further learn that the people of Amboy sympathize greatly with the bank and its directors. The occurrence is indeed, for their sake, to be greatly regretted, for a n more useful institution did not exist in the State, and its officers were deservedly popular. n We understand that the most responsible e Director of the bank has alienated that portion of his real estate which is situated ni New Jersey.

4. April 15, 1852 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, April 15, 1852

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or Breadstuds at the Lake ports shall begin to arrive. In Cotton there is a good shipping movement. We have no change to note in Money. The abundance is rather increasing and with an active demand. A sale of Harlem Extension Bonds was made to-day at 801/2, which is an advance of 7 cent. within a few days. These Bonds are a lien upon the Road from Dover Plains to Chatham, and one million of them are convertible into the stock of the Road, and no doubt the company would be giad to convert them all. In case the earnings of the Extension should prove insufficient to meet the interest on the Bonds, the old Road is bound to disgorge three-quarters of its receipts from the business brought over or to the new Road, in order to make up the deficiency. The Extension, however, when fairly in operation, with sufficient through and local trains to accommodate the country through which it passes, can hardly fail to meet all the claims upon it. Another season will probably establish it as a profitable portion of the line from New-York to Troy. We notice little improvement in thestate of the Dry Goods trade since our report of last week. There are too many goods on the market, both foreign and domestic, in reference to the present demand, but large consumption has yet to be supplied, and a good trade is confidently expected to come with fine weather. In the meanwhile, holders of fancy seasonable goods become impatient, and hence a market more in favor of the buyers at wholesale. Jobbers are doing a fair business, but not to the extent expected at this period, and goods have accumulated in stock. One house in Broadway has, in consequence of the backwardness of trade, and of course its own inherent weakness from deficiency of capital, been obliged to suspend payments. The exports of Staple Goods still keep ahead of those of last year, being from the 1st January, 15,200 pkgs. against 14,000, same period of 1851. Brown Sheeting and Shirtings are dull, and prices heavier than a week or two ago. Holders betray more anxiety to sell. Bleached Goods are in fair request at steady prices. Drills are in active shipping request at very firm prices, which have an upward tendency. Osnaburgs are steady, with a supply limited to the demand. Denims have advanced under a good demand. Stripes and Ticks are without change; the inquiry is very limited. Printing Cloths are very dull. A few sales are making at 3c. 44/2c. Prints are inactive and prices declining, the stocks being large. Ginghams areactive and uniform in price at 10 4/cc. Lawnsare in moderate request firm prices. De Laines are loss active and prices nominal. Cloths are moderately active, but the stock is large and prices depressed below the cost of reproduction, of which the clothing trade are availing themselves. Cassimeres are not active; a few fancies and blacks are selling at old rates, but the demand is partial. Satinets are active with a reduced stock and full prices. Fine Jeans are active, at steady rates, but other kinds are dull. Tweeds are inactive. From first hands, at private sale, the demand is very idle, but jobbers and all second houses are doing some business and will do a greater, for which they have laid in heavy stocks, as soon as the eoming spring arrives. At auction more is doing, especially in French Goods, both for Fancies and Staples. The anxiety to sell is increasing. Ribbons are the only goods that are firm in price. Fine and choice styles of Silks and other Dress Goods are in demand, but the great bulk of goods is held at terms inviting offers from the trade. British Goods are in moderate demand, and prices are rather steady, yet with a disposition on the part of holders to realize at fair offers. The stocks, however, are not generally large. The time fixed by the Receivers of the Commercial Bank, Perth Amboy, N.J., for the presentation of the notes and other claims against this bank, expires on the 22d inst. Receivers-T. G. Marsh, Perth Amboy; Cortlandt Parker, Newark Oliver S. Halstead, Newark. All claims against the People's Bank of Paterson must be presented by the 15th May. The Receivers are, Jacob Van Arsdale, Paterson; C. S. Van Wagoner, Paterson; Wm. F. Day, Elizabethtown. The Judiciary Committee of the Massachusetta Legislature have agreed, it is stated, upon a bill to be reported to the House, in relation to stock. brokers. The bill provides that brokers shall be licensed, and give bonds for the faithful discharge of their duty that their meetings shall public, and that no time sales shall be made beyond a credit of five days. A law has been proposed in the Pennsylvania Legislature, authorizing the borrowing of $5,000,000 at 5 P cent., on 25 years coupon bonds, for the purpose of paying off the maturing Bonds. This movement has caused considerable speculation in the Stocks of that State. Money is very easy at Boston, and NewYork capital has been used in purchasing first-class paper at 6 P cent. The annexed statement will show the condition of the New-Orleans Banks, in the leading items on the 27th ult. Circul'n Deposite Special Discipts

5. April 16, 1852 The New York Herald New York, NY
Article from The New York Herald, April 16, 1852

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COMMERCIAL AFFAIRS. MONEY MARKET THURSDAY April 15-6 P.M. The weather. in the early part of the day. no doubt had a tendency to depress prices for stocks generally. There was lees activity in the leading railroad securities, and lower prices ruled. An additional movement was apparent in other stocks. The most prominent was New Jereey Zinc. which advanced % per cent with very large sales. New Haven Railroad went up 1/6 per cent: HarIcm, M. Erie Bonds, 1871. declined 1/4 per cent; Edgworth, V: Long Island, 14: Norwich and Worcester, 1/4 We have noticed. for some time past daily sales of bank stocks. to some extent. This is something new in Wall street, and is doubtless the effect of such a rapid increase of these institutions in this city. With the feeling that exists among stock speculators. the pause in the market cennet but be temporary. Money is 100 abundant and too cheap. and stocks of even the mo t uncertain value too easily hypothecated not to be made available by those who are involved in this species of excitement. The movement has now such headway that its own impetus will carry it some further. without the aid of any new influence or any increase of outside operators. Those who purchased at high prices are of course anxious to realize profits, or at least cost and charges. and they will therefore. make great efforts to extend the inflation. The boar influence in the street at this moment is not strong. The bears are not overanxious to involve themselves deeply in contracts before the market has touched its culminating point. and when the steam is up in Wall street it is very easy to keep the excitement on if the supply of fuel holds out. It is not difficult for weak parties to carry large lots of fancies at moderate ratee of interest. There is not a bank in Wall street that will not loan money ou fancy stocks, with a very limited margin for depreciation; and so long as such facilities can be obtained. there will not bean over quantity of stock pressing for sale The most un. favorable feature in the existing state of things is the absence of shorts. This must sooner or later have an in jurious influence on the market, as it removes all compulsion to purchase, and leaves it optional with all parties to buy or not, as they please. This will not do for holders at high prices. They depend upon the shorts. who are obliged to purchase for the fulfilment of their contracts, for not only sustaining prices. but for any improvement they may require to give a profit. The bulls have not this dependence this season. Sellers of stocks have generally been holders : at low prices; and even those who have sold on time. have held the stocks for the maturity of their contracts. The bears. therefore. occupy a strong position, and when the proper time arrives. will come into the market in great strength Until then the bulls will have the field entirely to themselves. The higher prices go. the wider the margin for depreciation. At the second board, Eric took quite a start, and nearly three thousand shares were sold. It closed firm at an advance of 1/4 per cent. In other stocks there was not much done; but prices current in the morning were fully sustained. The receipts at the office of the Assistant Treasurer of this port, to-day, amounted to $46,132 75; payments, $9.840 16-balance, $3,386.397 33. The members of the Stock Exchange refused to allow transactions to be made in the Montgomery Mining Company steck at the meeting of their board. until a committeo shall report on the respectability of the concern. which seems, at present, doubtful. The time fixed by the receivers of the Commercial Bank, Perth Amboy. N. J., for the presentation of the notes and other claims against that bank, expires on the 22d inst. Receivers-T. G. Marsh, Perth Amboy; Cortlandt Parker, Newark Oliver S. Halstead, Newark. All claims against the People's Bank of Paterson must be presented by the 15th May. The receivers are. Jacob Van Arsdale, Paterson; C. S. Van Wagoner, Paterson; Wm. P.Day. Elizabethtown. The Manufacturers' Insurance Company. of Boston. have declared a dividend of 15 per cent. The Neptune Insurance Company have declared s dividend of 7 per cent. The Washington Insurance Company have declared 3 dividend of 4 per cent. The Boylston Insurance Company have declared a semi annual dividend of 8 per cent, payable on demand. The Grand Bank, (Marblehead.) remi-annual dividend of 3 per cent; Marblehead do., 31/4 per cent. The steamship America. at Halifax. from Liverpool, brings seven days later intelligence from Europe. The news does not amount to much and what little there is cannet be considered otherwise than of an unfavorable character Quotations for cotton were drooping. Noaetotal decline since the last steamer had been realized. but the market was heavy. not only for this. but for all our most important staple exporting products.