14699. Banks of Albany (Albany, NY)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
October 14, 1857
Location
Albany, New York (42.653, -73.756)

Metadata

Model
gpt-5-mini
Short Digest
4518bb3c

Response Measures

None

Description

Multiple newspapers report that the banks of Albany suspended specie payments on Oct 14, 1857 as part of the wider 1857 panic and then resolved to resume specie payments in mid-December 1857. Articles describe regional/systemic action rather than a depositor run specifically on a single named bank in Albany, so classification is a suspension with reopening (no clear bank-specific run). 'Banks of Albany' appears to refer collectively to the city's banks.

Events (2)
1. October 14, 1857 Suspension
Cause
Macro News
Cause Details
Part of the widespread suspension of specie payments across New York and other cities during the financial panic of October 1857; banks resolved to suspend en masse.
Newspaper Excerpt
ALBANY, Oct. 14.-The Banks of this city have all resolved on an immediate suspension.
Source
newspapers
2. December 14, 1857 Reopening
Newspaper Excerpt
The Banks of Albany have also resolved to resume specie payments to-day; also, the Banks in Boston.
Source
newspapers

Newspaper Articles (8)
1. October 15, 1857 The Day Book Norfolk, VA
Article from The Day Book, October 15, 1857

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Article Text

SECOND DISPATCH. BOSTON, Oct. 14, noon.-The Massachusetts Bank continues to pay specie.A meeting to consult upon the propriety of redeeming small notes with 'specie takes place at 1 o'clock. Bank Suspensions. NEW YORK, October 14.-In pursuance of the resolution adopted yesterday, our Banks have all suspended, and steps have been taken to procure relief through the Legislature. TRENTON, N. J., Oct. 14.-The Banks here have all suspended. There is no excitement. ALBANY, Oct. 14.-The Banks of this city have all resolved on an immediate suspension. They will take the notes of all the country banks at par. BOSTON, Oct. 14.-The banks of this city have voted a general suspension of specie payments.

2. October 15, 1857 The New York Herald New York, NY
Article from The New York Herald, October 15, 1857

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Article Text

OUR TROY CORRESPONDENCE. TROY, Oct. 14, 1857. Suspension of the Albany and Troy Banks-Intense Excitement. Contrary to all expectations entertained forty eight hours since, the banks of this city and Albany suspended specie payment simultaneously this morning, and the result, of course, was, when the anneuncement became prevalent throughout this municipality, an extensive run upon them. w a very early hour the banking houses were besieged by n large and apparently riotous crowd of bill holders, who were determinedly clamorous for specie payment, blockading all the entrances, as well as the street (First) where the bulk of our monetary business is done. In a very short time the excited bill holders became no de. ranged in their notions as to give evkience of intentions to do violence, in consequence of which the entire police force of the city was immediately summoned as a guard, and entering upon duty, were compelled to eject the "Molly Macguires" vi et armis. The action of the banks of your city yeiterday left no alternative for those of this city and Albany but to suspend at once. In consequence of this de. termination the representatives of the banks of Troy and violaity held a meeting this morning, at which the fellowing preamble and resolutions were adopted without a dissenting voice-Hon. Alfred Wotkyns in the chair:Whereas, we are advised that the banks of New York and Albany have suspended the payment of specie across their counters, it is, therefore, Resolved, That the banks of the city of Troy and vicinity adopt the same measure. A. WOTKYNS, Chairman. CHAS. P. HARTY, Secretary. After the adjournment of the meeting Mayor Wotkyns addressed the multitude from the steps of the Athenteam, as follows:-He announced that the banks of this city were all compelied to suspend specie pa ments after the news received from the ony of New York, from Albany and from other parts of the State. He anticipated that the bank suspensions would become general, and would ex. send to nearly all the banks that had not already suspended. This measure was resorted to, he remarked, with extreme reluctance on the part of the banks of this city, all of which were believed to be sound The step seemed to be the best one-indeed the only one possible at the present time. It would relieve the distresses of the commercial community, and would go far towards giving an impetus to business-reaulting in the employment of laborers and mechanics in industrial pursuits, who would otherwise be without work during the cold winter that was coming. New every industrious laborer would receive for his work the means to purchase BUS. tenance (or himself and those dependent upon him. He admonished them to receive this announcement of suspension of specte pay ments as a result that could not be avoided, and advised them as good citizens to repair to their homes and usual avocations, and calmly await the events of a few days, when business would proceed in its ordinary course again. He pledged bis word M a man that they need have no apprehensions of ultimate loss by any of the savings institutions of the city. These remarks at once satisfied the crowd, and they gradually dispersed. The opinion is that the Governor will call the Legislature together at an early day. the good effect of the suspension already begins to be felt with renewed sonfidence between man and man, and the high hope en. tertained everywhere that a brighter financial era is dawning upon the country.

3. October 22, 1857 Marshall County Republican Plymouth, IN
Article from Marshall County Republican, October 22, 1857

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Article Text

Suspensions. NEW YORK, Oct. 14.-In conformity with the determination of the Board of Bank Presidents, last evening, the banks of this city have suspended specie payment. BOSTON, Oct. 14.-The Banks of this city have susponded specie payment, The Presidents met this morning and unan: imously agreed to do so. The banks of Hartford have adopted the same course. ALBANY. Oct. 14.-The banks of this city, have this morning suspendod specie payment.

4. December 14, 1857 Evening Star Washington, DC
Article from Evening Star, December 14, 1857

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# RESUMPTION OF SPECIE PAYMENTS The Banks of the city of New York have unanimously resolved to resume specie payments for all their liabilities, the resumption to commence to day. It is said that their condition was never so strong as at present. Having twenty-six millions of dollars in their vaults, they will sustain the resumption with ease. In the meeting which resolved on the resumption thirty-eight of the city banks were represented. Eight of the un-represented banks are now understood to be also ready to fall into line. It is now just two months since the suspension. The Banks of Albany have also resolved to resume specie payments to-day; also, the Banks in Boston. The Banks of New England and other States, will, no doubt, soon follow example. On the 31st of October the Banks in New Orleans had an actual coin basis of nearly four million dollars. They now have eight millions. They resumed several weeks ago.

5. December 14, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, December 14, 1857

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Money continues easy for good collateral loans and undoubted paper. or this last there is as unusual scarcity, and as this becomes more and more apparent, lenders manifest less hesitation in negotiating, and there is decidedly less severity in the serutiny of paper. The figures for very choice names range from 7 to 12 per cent, but there is still very fair paper to be had at from 15 to 18. The great feature of the week in money matters is the rather sudden resumption of specie payments by our City Banks, followed by those of Boston, Albany and New-Haven. The movement has been for some time in contemplation, and as specie has accumu'ated and 88 the session of the Legislature drew nearer, the desire to resume became stronger, until at last the institutions opposed to the movement gave in together, and even anticipated the step by one day. Opinions are very much divided in regard to the effect of this important measure. Many of our leading merchants and bank mausgers regard it as premature, while others look upon it with indifference, anticipating RO essential change in the general course of monetary affairs. In one day's experience no satisfactory teet is afforded, but there is something in the total lack of disturbance or excitement which justifies the anticipation of & quiet and easy return to the specie basis. It must be taken into consideration that since the suspension of specie psyments our back loans have undergone no expaision- standing in point of fact, in the weekly returne, nearly $1,000,000 less, in a comparison of the figures of Oct. 17, a few days after the suspension, with those of Dec 5, the date of our last returns. During the same time the specie reserve has rue up from $7,848,230 to $26,069 852, an increase of $18,221,602, and the deposits from $52,894,623 to $78,492,065, a gain of $25,597 442. Thus, while in loans the position of our Banks has not materially changed, their resources have been strengthened to an enormous amount within a very brief space of time. Now the question arises as to the necessity of contraction, and upon this hangs the solution of the whole matter. It is quite probable, nay almost certain, that the first movements of the banks will be those of caution and restriction, to guard against any possible contingency; but with the present business stagnation, the limited warts of business men, the general deadness in matters of enterprise, it is not reasonable to anticipate a continuance of this policy, or even its practice to any important extent. Between this resumption and that which followed the suspension of 1837, the differonce in the position of the banks is very marked. Then a large expansion had followed close upon the heels of the suspension, and at the period of resumption business had revived greatly, and the demand for discounts was of course active. The consequence was a contraction, which was felt severe. ly. It would seem in the present case that the change, though important enough to require the watchful attention of business men, cannot be attended by any decidedly adverse results; and we are rather inclined to adopt the views of those who regard the movement as one not to be regarded with alarm or useasiness. In foreign Exchanges a decline of perhaps I P cent is the immediate result, while in domestic Exchange an advance of 1@} P cent, varying according to the distance of the points upon which bills are drawn, is already established. As to Specie Exports, it is not apparent that 8 large increase must follow of necessity, unless discount facilities are more freely extended to im porters, and when we bring in to this part of the consideration the fact of a very large decrease in our imports for several months to come, there is nothing to excite apprehension on this point. Nor can we expect much demand for specie to pay for daties in the withdrawal of goods from warehouse, so long as trade remains in its present insctive condition. The banks are not, therefore, likely to be subjected to any pressing calls for coin, and are well prepared to furnish all that will naturally be required. Whatever the results of this new movement may be, however, whether for good or evil, the responsibility of the measure must rest upon the broad shoulders of the Bank of Commerce, which not only took the lead throughout, but bas been most urgent and pressing in its persuasions and in fluences. So determined has this bank been to carry the matter, that if necessary it would have been alone in resumption at once. The banks of Philadelphia and Baltimere have signified by telegraph their inability to follow the movement at present-but we trust it may not be long before they, also, come into line with the rest, for there is much of difficulty and embarrasement in conducting business in the present state of exchanges between those cities and New-York. A large sale of Sovereigns was madeto-day 99. Small lots bring $4 88@$4 89. Some considerable purchases of gold have been made for foreign shipment next week. We annex & comperative statement of the Foreign Imports at New-York for the week and since Jan. 1:

6. December 20, 1857 Nashville Union and American Nashville, TN
Article from Nashville Union and American, December 20, 1857

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Monetary and Commercial. The banks of New York city, Albany, Bostonand New Haven resumed specie payments on Monday, the 14th inst. The New York Tribune of that date says: The banks of our city and State have fully resumend specie payments. They have done this in the face of our still heavy indebtedness to Europe, and of a prospect that specie will continue for some time to be drawn from their vaults to discharge a portion of that indebtedness. For, though our im ports are, and must for months continue to be light, the amount of grain and flour to go forward is in considerable, while cotton, tobacco, pork, and almost every thing else we have to sell, are 80 depressed in price as seriously to impede their movement as well as diminish their productiveness. Farmers naturally hold back, hoping for better prices; while the charges for transportation which were tolerable on the prices of last year, nearly eat up the proceeds this year. We must continue to export specie, there fore, and the strain of such export is felt primarily by the Banks of our City. Their resolve, therefore, to take the lead in anearly resumption, evinces courage and a consciousness of enduring Opinions are very much divided in regard to the effect of his important measure. Many of our leading merchants and bank managers regard it as premature, while others look upon it with indifference, anticipating no essentialchangeit the generalcours of monetary affairs. In one day's experience no satisfactory test is afforded, but there is something in the total lack of dist urbance or excitement which justifies the anticipation of a quiet and easy return to the specie basis. It must be taken into considerations that since the suspension of specie payments our bank loans have undergone no expansionstanding in point of fact, in the weekly returns, nearly $1,000,0001ess, in a comparison of the figures of Oct. 17, a few days"after the suspension, with those of Dec. 5, the date of our last returns. During the same time the specie reserve has run up from $7,848,230 to $26,069,852, an increase of $18,221,602, and the deposits from $52,894,723 to $78,492,065, again of $25,596, 442 Thus, while in loans, theposition of our Banks has not materially changed, their resources have been strengthened to an enormous amount within a very brief space of time. The Louisville Courier of the 17th inst., says: The hog packing season is progressing slowly, and the market is of a quiet character just now, though hogs may be quoted from 5}a5}e net, cash and time. The total number killed around the Falls, up to this evening, is littleover 100,000 head, with but few left over in pens. The season is very backward, and it is some three weeks later than the last, which closed before the 1st of January, with the slaughter of 216 838 hogs. It is anticipated'by many, that the present season will fully equal the past in numbers, while it will exceedit in weight. At Cincinnati, the market early in the week wasbuoyant, but it rapidly declined. The advices from New Orleans produced a dull and heavy market both for the hogs and product; and at the close there were several anxious sellers, but no buyers. The number of Hogs which arrived from Ohio and Indiana during the week, is quite small. In fact the Ohio, Indiana and Illinois Hogs have not yet commenced to arrive fully, and it is clear now that a large business will be done in January. The receipts at Cincinnati are vastly behind those of last or any previous year, but but this, taken in the abstract, is u usually backward, farmers being anxious to feed their hogs as long as possible, and this is both logical and prudent, because even $3 50 net for pork, would better than to sell the corn at 10a15c per bushel in the field. The slaughter at that point, upto yesterday had amounted to 162 hogs, against 250,213 the previous year at the same date. We learn that the corn crop has been very seriously damaged throughout the West, in consequence of early frosts and wet weather. Through a large portion of Indiana, we learn that farmers are very alarmed. The corn that has been put in cribs is heating. and purchasers refuse to buy it for any purpose except where it can be used immediately in feeding hogs. In many places it is said to be difficult to find sound corn to answer for seed. We are aware of the general tendency to exagerate reports of this character, but are satisfied that the corn crop has suffered very serious injury in Ohio, Indiana and South Illinois. The present erop, however, is far greater than that of any previous year, and the damages will have to be immense to bring it below the usual average. Nashville Market, Dec. 19. Corron.-The market still continues depressed under the unfavorable advices from Southern ports and Europe. To-day sales were madeat though G. fraction higher might be obtained for a very supemior article. We quote the market at 9@9fe, though holders, unwilling. submit to the decline, resulting in but few transactions. TOBACCO.- heard of the sale yesterday, of one hogshead of new crop, the first of the season, of second quality. at the warehouse of A. Hamilton. The price obtained was $6.05. Loose is selling at 3@5c. WHEAT.-The market continues quite brisk, our millers paying 70@75c for Red, and 80@85e for White. These prices being considered fair by farmers, receipts during the past week, have been quite liberal. FLOUR. We hear of no change in prices, and continue to quote superfine at $4@4.25, and extra and family at $5 per barrel. GROCERIES- market presented a more animated appearance to-day than for some time. We quote New Orleans, Sugar at 7@9c. in bbls. and hhds; Molasses 30@32, and Coffee 11}@12c. The stock on the market is ample to meet the demand. are offering 4c gross and 5c. net for Hogs. New Bacon is selling at 9c., and Lard at 10c. New Orleans Market, Dec 12 SUGAR.-We remarked in our semi-weekly re port that the weather for several days previous had been of the most unfavorable character possible for the crop. being warm and wet, codsing the cane to sour, and it is now estimated that the damage to the crop will be fully 75,000 to 100,000 hhds. The money pressure however, prevents speculativ movement, and prices gave way in the early part of the week. though they inverecovered slightly since. We noticed sales of about 2500 hhds. in the first three days of the week. but on Wednesday, only a limited business was done, cwing to the rain, which fell heavily nearly the whole Since then, with a return of fair weather, a renewal of demand and less free receipts, the advantage in prices has been on the side of sellers, who have obtained a slight advance in the Fair and Prime grades upon the rates current in the early part of the week. The sales of the past three days sums up about 3000

7. December 22, 1857 Nashville Union and American Nashville, TN
Article from Nashville Union and American, December 22, 1857

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NEW YORK CITY BANKS. A year ago, say December 13, 1856, the New York City Banks stated their condition, as follows: Loans and discounts, $108,336,586 Specie, 10,832,543 Circulation, 8,516,854 Deposites, $89,590,680 Soon after the suspension of specie payments, October 17, 1857, the same items were given, as follows: Loans and discounts, $97,245,826 Specie, 7,843,230 Circulation, 8,087,441 Deposites, 52,894,623 The last statement which has reached us-that for December 12, 1857-is as follows: Loans and discounts, $96,526,037 Specie, 26,058,877 Circulation, 68,348,494 Deposites, 75,365,134 The noticeable feature in this statement, is the great increase in specie, not only over the amount held at the time of suspension, but over the amount of the quiet and flush times of a year ago. At no time during the year before suspension did the specie in the New York City Banks come within twelve millions of the amount now held by them. The Banks of New York resumed specie payments on Saturday, the 12th, in pursuance of a resolution unanimously adopted by thirty-eight of their number, on Friday afternoon. Eight of the Banks were not represented. The Banks of Albany resumed on Saturday also, and those of Boston the following Tuesday. It would be a, source of sincere satisfac tion, could we announce a like determination on the part of our Banks. They are believed to be abundantly able, but as yet no movement has taken place looking to S0 desirable a result, and we shall, in all likelihood, be compelled to submit to all the injuries of a state of entire suspension for some time. The results upon our trade will be exceedingly disastrous.

8. December 22, 1857 The Western Democrat Charlotte, NC
Article from The Western Democrat, December 22, 1857

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SPECIE PAYMENTS. The Banks of New York, Boston, Albany and New Haven have resumed specie payments. The amount of specie on hand induced them to resume. If they do not have to suspend again, the move will have a good effect; but if they should be compelled to stop again it would have been far better to have remained in suspension a while longer.