14543. Washington Bank (New York, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 11, 1839
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
eafcaaa9a4a02d3d

Response Measures

None

Description

Newspaper articles from Nov 1839 report the Washington Bank's notes protested and speak of its failure; later items (1841–1842) record the bank enjoined/‘exploded’ and in bad repute. There is no clear description of a depositor run; primary cause appears to be deterioration of asset quality (mortgages, state stocks) and insolvency. Dates corrected/derived from article publication dates. No explicit receivership date mentioned, but the bank is described as failed/enjoined and in liquidation.

Events (4)

1. November 11, 1839 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Assets (mortgages and state stocks) had depreciated severely; bank became insolvent and its notes were protested.
Newspaper Excerpt
Yesterday the notes of the Washington Bank, of this city, were protested
Source
newspapers
2. November 12, 1839 Other
Newspaper Excerpt
The failure of that bank will be followed by many more...the case of the Washington Bank mentioned yesterday. The failure of that bank will be followed by many more.
Source
newspapers
3. November 2, 1841 Other
Newspaper Excerpt
We learn that the Washington Back has been placed under an injunction...Its operations have been so limited that whether enjoined or not is a matter of very little importance
Source
newspapers
4. September 7, 1842 Other
Newspaper Excerpt
a concern of straw in Wall-street...who are believed to have been concerned with...the exploded Washington Bank
Source
newspapers

Newspaper Articles (4)

Article from Morning Herald, November 11, 1839

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Article Text

# MONEY MARKET. Sunday Nov. 10-6, P. M. The stock market was again buoyant yesterday morning, and prices closed generally higher than on Friday. United States Bank improved ¼ per cent-Bank of Commerce ¾ per cent-Utica and Schenectady ⅜ per cent-Stonington 2¼ per cent-North American Trust & Banking 3 per cent-Harlem 1 per cent. Sales of Corporation bonds were made at 6 per cent discount, and drafts on Philadelphia at 12¼ a 12½-on Baltimore at 12¼. Southern Exchanges generally are a little better, but prices cannot be quoted with any pretension to accuracy. Uncurrent money remains without variation in price, but with a greater demand. Counterfeit notes purporting to be on the Mechanics' Bank of New Nork, of the following description, are in circulation-No. 1920, letter A. J. Hormer, cashier. H. V. Warren, Prest. pay to A. Hamilton. The legislature of Tennessee voted on the 29th, fourteen against instructing the banks to resume, and nine for it. It is however probable that the banks will resume of their own accord.-$50,000 arrived at St Louis from Galena, Ill. recently, for the bank at the former place. Also, 5690 pigs lead, to various firms. $20,00 in specie reached New Orleans on the 2d from Vicksburg, probably on its way to this city. Every New Orleans packet brings a large amount. It is confidently stated in the Ohio papers that the Banks of Cincinnati, within the thirty days fixed by law as the period of suspension, will resume. Yesterday the pressure was very severe, and the number of failures large, six or eight dry goods jobbing houses were reported, a shipping and importing house, chiefly in the grocery line; also a flour house, somewhat concerned in flouring at Black Rock. The failure of an eminent French importing house also took place. This is a wealthy house, and shows assets far beyond its liabilities, but its assets are, like a large proportion of our dry goods houses, maturing in Baltimore and Philadelphia, and in consequence of the fraudulent suspension in those cities, cannot be realised but at the ruinous loss of 12 a 15 per cent; to pay this would so far impair their means that the loss would ultimately fall upon their creditors. They have, therefore, suspended. These movements are all working out a healthy result. In all classes of business those who have not been very much curtailed must unavoidably go down. The dry goods trade, for reasons heretofore explained by us, are peculiarly exposed to the storm. Tne jobbers have most of them done business greatly beyond any prudent proportion to their capital; a loss amounting to a very small per centage on their aggregate business, therefore, renders them insel-vent; while importing houses of large capital, like the one here alluded to, have sold at eight months for notes payable in Philadelphia and Baltimore, and a loss of 15 per cent on their aggregate assets is a severe blow after the heavy loss sustained by many of them in 1836-7. This system will henceforth be entirely altered, and short credits for notes payable in New York in specie funds will be the only terms listened to. The credit of the south is gone with our merchants. While this revolution is going forward in the commercial world the weaker portion of the Banks is giving way. Yesterday the notes of the Washington Bank, of this city, were protested - The following is a copy:


Article from Morning Herald, November 12, 1839

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Article Text

$4,572,060 1,718,663 966,250 Many others have been started and failed, or got into disre pate, since these returns were made to the comptroller in July last. or these the following banks are of doubtful reputation:Erie County Bank, Manhattan Ex. Bank, Teath Ward City Trust & Banking Co. Staten Island a Bank of Commerce, Buffalo, The following have failed:Chelsea Bank, Wool Grewers' Bank, North Bank. Washington Bank. Since the period of this statement the amount of circula. tion has been increased to near $4,000,000. while their assets, chiefly motgages and stocks, have been constantly depreciating. The greater part of the bonds and mortgages amounting as above to $5,500,000 are the remains of the real estate mania of former years-during the suspension holders continued to sustain the nominal values. The mo tgage law was then inter. posed to sustain them, at the expiration of which, the present banking law afforded the opportunity to render the mortgages available. Accordingly, we find a large proportion of the capital paid in that description of securities, and stock issued for them at their then rates, which stocks have been pressing on the market to raise money. The State stocks represent loans of capital made to other States, and form the basis of a circulating medium for this State. Both of these descriptions are now worth at least 50 per cent less than when the associations were formed, and as the notes and liabilities of the institutions become dec for the real property they possess, they become bankrupt, as in the case of the Washington Bank mentioned yes. terday. The failure of that bank will be followed by many more. These banks have aboorbed near $1,000,000 of specie, which has taken much from the ability of the old banks to sustain their circulation, and have therefore much increased the pres. sere of the merchants open this city. Their notes have not increased the aggregate circulation, as they have been employw chiefly in purchasing the safety fund notes and returning


Article from New-York Tribune, November 2, 1841

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Article Text

There was a sale at the board of 5,000 Mexican at 1023 a 6,30, without interest. For the Federal Six per cent. Loan, 99 was offered at the Board. For Commercial Bank 15 was asked. We learn that the Washington Back has been placed under an injunction, the why we did not ascertain. This is the Bank with which Spencer, the defaulting Pension clerk of the Mechanics' Bank, was connected. It is one O. the Free Banks, and was formerly located in the Bowery, opposite Bond street, and either suspended while there, or came so near suspension as to be in very bad rcpu.e. Its operations have been so limited that whether enjoined or not is a matter of very little importance, excepting that the opportunity of doing harm, if any such intention was entertained, is taken away. Foreign Exchanges are inactive to-day, theremittances having been made by the steamer ou Saturday. Domestic Exchange is getting worse on some points, especially on Philadelphia. The following are the quotations :


Article from New-York Daily Tribune, September 7, 1842

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Article Text

demand for Virginia at 1: all. Mobile is rather better, and at could be sold at 28 discount. Central is worse, selling 25 discount County (N.J.) Bank, which we cautioned readers against some days since, on $5. It was a legitimate shinplaster The our Monmouth suspended concern, payment Buffalo to-day had Bank in Monmouth, but had agencies at possiand any Troy, where the bills were pushed off in every the title ble way. A concern of straw in Wall-street, under Earl & Co., who are believed to have been concerned with in of the exploded Washington Bank, have until amounts to-day cirmuch difficulty contrived to redeem the small time culated. As the notes have been in bad odor for some past, the public have not probably been swindled to any great extent. Thompson's Bank Note Reporter, which, by publications, the way, is one the authorship of the article in the in charges of the best, if not the best of its class known of Albany house Argusin relation to the safety fund upon a well Banks Wall-street. It states that this house and the Albany Reabout $500,000 of these notes. Mr. Blatchford, will held of the Commercial Bank, says that the Bank ceiver repay one dollar to the safety fund. The Lafayette never and Lewis County Banks were not included in the Comp- ju the troller's estimate, and should not have been included Argus's article. The time for the Banks to pay the whole tax in advance runs out on the 12th proximo, after which it is thought the discount will be greater. Bicknell's Philadelphia Reporter says: little change in the money matters of Philadelphia from 7 Very out-door rates may be quoted as heretofore, at little to The cent. for good paper. The brokers have very of un9 per , inasmuch as the Banks discount all short paper 60 exceptionable character that is presented to them. United States Bank Notes. 48 50 Girard Notes Pennsylvania Notes Relief Notes. 7A Penn Township Notes 15 Manufacturing and Mechanic Notes 13 i Treasury Moyamensing Notes, 6 Notes. per cent. interest, of late issue, par discount. The New-Orleans papers ridicule the idea promulgated is the Journal of Commerce that the Bank of England about by to establish an agency there, or that Bank of England one with this exception, notes are plenty. The Courier says: We have are procured total spe- the cie Banks enough of to city comply with the terms of the law, which three re quires all Banks to have one dollar in specie for every still dollars of their paper in circulation. The Bank which remains in default can comply with the law by purchasing procuring a little over $100,000 and, as specie is about Dior to be brought here in large quantities, we presume the rectors will not miss the opportunity for placing their what Bank is in a condition to comply with the law. Of course, Banks said here will not be considered as applicable to the in liquidation.' Tec dollar counterfeit notes of the Bank of Norwalk, Ohio, are in circulation in Cincianati. Date June 1st, Cash- 1833, A, signed E. Lane, President, John Gardner, letter The Rank has no issues signed by Gardner, Cashier, ier. and none as late as 1858 with Lane's signature. An of the Nashville Banks in Mississippi, who home has agent to the amount of $60,000 to collect, has written notes he cannot even get money enough to pay bis traveling him that expenses, and requesting that a small be forwarded pay his way Louis business is very much depressed. One house At been St. selling exchange at 10 per cent for City Scrip, had had refused to sell more. Every day the difficulty Bank pa: of but obtaining specie funds is increased. Illinois Quotationsnoin- State 37c to the dollar. Shawneetown35c. The Perper Exchange on the East 11 a 13 for specie. inal. and Messrs. Benoit & Co. have met the payment of petual deposits, 1. e. their SH day certificates, and, 95 well as to the their Gas Light reduced their liabilities to their depositors very low amount. planters in Fayette, Cometa, Troup and Talbot for Counties, The Ga. have determined to sel their Cotton only goods funds, and not to take Central money. Markets. ASHES.-There are rather more offering to day, but are not very plenty, and the market generally bbls. can- Pots buyers considered very firm. About 75 to 100 which not be taken at $5 ST1, and 40 do. Pearls at $5 75, bbls. is the were market price, although a very prime parcel of 74 brought $5 87 COTTON. The demand is not so active to-day, and almost exclusively to spinners. reached Exporters about seem 500 confined left the market. The sales have to have full rates. We quote Mobile 64 a 91 fair bales, New-Orleans at 61 92; fair 91 a 9 ; Upland 61 a 91 fair 81 61 a s} Florida FLOUR-This being Tuesday, there are no boats yesterday, in this and the receipts not having been large proportion morning, the stock remaining afloat small. A large there is PO round of the afloat. The demand for the or to the British Provinces. to- is Ohio receipts for Michigan shipment are Genesee, and we believe The former which rate is been $4.75 a 4811 for Genesee Most holders ask $4.81 been made at $4 75, a but good day further sales has have decline. including and Ohio, for bbls. lot Genesee, of Ohio, 500 for the B ritish Provinces. A parcel of 400 bbls. extra brand, brought $4873, adecline of 12tc. and for shipment, $4 75. One or two small lots Michigan we quote 69. About 1,800 bbls. good brands Ohio been wet by the sinking of a sale of In Southern there is not much doing. which Troy $4 25. sold had at $4 tow-boat, was Genesee, made A sold for at bbls. New-York, from Southern Wheat, New of shipment S00 at $4 75, which is decline of 6d. per bbl. Georgetown $5 $5 12 old $5 STR. go inferior North Carolina Wheat, 2,300 for milling at 75c: also 600 bushels, GRAIN.-A reported sold yesterday at 99c, and 500 bushels new new Geneseeal market. Ohio, saine as Very little Wheat now in the was nearly all taken at and S,S00 bushels Yellow Jersey at 58j, 105c, The Corn all for Sales offering milling. about the West previous 59 la prices. the East; 4,000 do. White at 62jc, for 54c, 60c, for or Virginia and Maryland, 1,306 bushels sold 53c, at meadies. 1,400 do. at 551, weight, and 900 do at and 1,000 measure; for distilling. Not much Rye offering imprevement sure, part sold for distilling at 60c, which is an of Canal bushels plenty and somewhat heavy. A cargo Oats are River are worth 29 aSO; new Canal SO. but Very 26c brought S0t few new in. A cargo of Southern has been stored, offered for it. There is a demand for Pork to some exPROVISIONS. dealers are endeavoring to obtain an advance, old tent, but has prevented operations. A lot of 800 bbls. for Haliwhich County Pork was taken, supposed there other descriptions of barrel fox, moderate business. For Lard there 5,000 Prime at $5. Lower In about Provisions is inquiry kegs, for is but and bbls. and kegs, equal to taken at 62 65 and 7c, made at have of common Western Butter was rates. shipment, been A sale principally at the good lower bar- 9c. much doing to-day. A sale of marketWHISKY.-N 21c, which is rather above the rels The is not very large and not was stock nade at lbs. increasing. 29c. WHALEBONE. Sales 28,000 at LEAD.-About 3,000 pigs have been taken for export on private terms. SUGAR-A sate of 250 boxes Brown Havana was made COFFEE.-Sales- 400 bags Bio at 81 a 94. SEEDS.-A parcel of S00 lbs. Clover has been taken for shipment on terms not made public. Style of Gentlemen's Hats.-BIRD ready for inspection corner DC and Fall of sale Pine the and Fall Nassa Standard u-streets, Pattern has now for sl F,S,M&W Gentlemen's Hats. September 1. The Cheapest Cash Tailor Chatham yet !-PETER Square, D Merchant Tailor, No. 1 V. HUSTED, Catherine-street, continues to make Clothing than the to Tailor in the city. A corner order in of the neatest style, 10 per cent. good cheaper fit warranted,