15319. Atlas Bank (New York, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
December 30, 1847
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
bf365958

Response Measures

None

Description

Contemporary reports (Dec 30, 1847 and early Jan 1848) state the Atlas Bank 'failed' or 'stopped redeeming its bills' for lack of specie. The coverage describes it among the New York free banks that ceased specie payments and effectively gave way; there is no indication the bank later resumed business in these articles, so classified as suspension leading to closure. Corrected/used Dec 30, 1847 mention from Article 1.

Events (2)
1. December 30, 1847 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank had insufficient specie to redeem its expanded circulation; described as stopping redemption because it 'had no more specie' and being a small 'free bank' overextended against securities; insolvency/illiquidity of the bank itself triggered suspension/failure.
Newspaper Excerpt
To-day there has been a real panic ... The failure of the ATLAS BANK ... were matters of course
Source
newspapers
2. January 5, 1848 Other
Newspaper Excerpt
After all the panic, it turns out that but two of the free banks, the 'James' and 'Atlas,' have given way. The others promptly pay the specie on demand.
Source
newspapers

Newspaper Articles (5)
1. December 31, 1847 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, December 31, 1847

Click image to open full size in new tab

Article Text

FIRST CLASS Banks secured whotty by New York State Stacks Amenia Bank, Henry Keep's Bank, American Bank, Chautanq CoLong Island Bank, Back of Commerce, N.York, Mech. Banking Association Merch. Bank, Canandaigue, Bank of New Rochelle, Merch. Bank, Erie Co. Bark of Bainbridge, Merch Bank, Chautauq Co. Bank of Saratoga Springs, Mere Far. Bk. Potnam Co. Bowery Bank, Metch Bank. Poughkeepsie, Bank of Cayega Lake, McIotyle Bank, Commercial Bank, Albany, N. State Stock Securi ty Bk Chemical Bank, Cayler's Bank, N.Y. Stock Bank. Durham, North River Bank N Y. Champlain Bank, Commercial Bk, AlleganyCo.Northern Bank Madrid, Commercial Rk, Friendship,Northern Exch Bank, Commercial Bk, Lockport, Oliver Lee & Co's Bank, Prattsville Bank, Drovers Bank, Olean. Pratt Bank. Buffalo, Exchange Bank, Buffalo, Farm & Mech. dessburg, Rochester Bank. Suffolk County Bank, Fulton Bank. New-York State Bank, Saugerties, Franklin County Bank Farmers' Bank, Chatauq. Co Unadilla Bank, Franklin Bk, French Creek, Warren County Bank, Fort Stepwix Bank, Rome, White's Bank, Buffalo. Hungerford's Bank, SECOND CLASS. Banks secured by v-York State Stocks and Bonds and Mortgages. At'asB'kofN. York broke, Farmers' Bank, Amsterdam, Kirkland Bank, Bullston Spa Bank, Luther Wright's Bank, Bank of Vernon, Mohawk Valley Bank, Bank of Whitestown, Palmyra Bank, Black River Bank, Patchin Bank, Bank of Kinderhook, White Plaina Bank, Commercial Bank, Troy, Wooster Sherman's Bank, Chester Bank, Security Bank, Huntaville. Exch. Bank, Lockport, THIRD CLASS. Bankssecured by New. York State Stocks, Stocks of other States, and Bands and Mortgages. Exch. Bank, Generee, Agricultural Bank, Farmers' Bank, Hudson, Albany Exch. Bank, Far. & Drov. Bank, Somera, American Exch. Bank, Far. & Mech. Bank. Genesee, Bank of Albion, Far. & Mech. Bk, Rochester, Bank of Attica, Bank of Central New-York, Fort Plai nBank, James' Bank broke. Bank of Dasville, Lockport Bank & Trust Co. Bank of Lowville, Mech. & Far. Bank, Ithaca, Bank of Sliver Creek, Middletown Bank, Bank of Syraccuse, Pine Plains Bank, Bank of Waterville, Commercial Rochester, Powell Bank. Delaware Bank, FOURTH CLASS Banks secured by Bonds and Mortgages and Stocks of other States. Genesee County Bank. Bank of Corning, Washington County Bank, Bank of Watertown. A list of sixteen banks was circulated in the 8 reet, which were reported to have suspended redemptions at Albany. We telegraphed immediately for information, and received in answer that not one bank had suspended The following slip we received at a late hour: OFFICE OF THOMPSON'S REPORTER, 64 WALL-ST.2 December so, 8 o'clock, P.M To-day there has been a real panic in the Uncurrent money Market, without any adequate case. The failure of the ATLAS BANK, and of the JAMES BANK. were matters of course: and it is no misfortune, except to those who were 80 unfortunate as to have their notes on hand. The BANK OF CORNING, and the BANK OF WA. TERTOWN, may fail. What if they do? They will about we or fail, but make two more four. may in all; possibly the number the New-Yo expected- Banks generally are good, especially those which are secured wholly by New-York State stocks. Now one word in relation to the course of the Brokers. At 10 o'clock to-day they commenced discounting at per cent-before 12 o'clock their means (current funds) were exhausted, at which time some declined buying any more. others raised the rates to three, four and five per cent. and commenced shipping and kiting to raise the means. This caused an impression that no banks were good, and that the brokers dare not buy, when the fact was they could not buy. To-morrow the panic will continue. Saturday being New-Year's and the day following Sunday, there will be time for a little reflection, when the whole community will calm down, and those who ran PO greedily to sacrifice on money which is just as good 88 gold, simply because three or four rotten concerns have broken, will wish they had reasosed sooner We advise our readers to take all New York money, except the four banks above named. for anything they may have to sell, and not go into Wall st. until the middle of next week, when the brokars will have current funds to buy with, at fair rates. The New-Jersey Insurance Company at Newark have declared a semi-annual dividend, payable on the 4th of Jan. the Franklin Bank, Baltimore, three per cent do. payable 6th of Jan.: the Western Bank of Baltimore, three per cent. do. do 10th of January. The dividend of the Phenix Bank is three, not three and a half as stated yesterday. An attachment has been issued by Mr. Charles G. Imlay against the w-Hope and Delaware Bridge Co. as a foreign corporation. on notes of the Bank to the amount of $10,254.

2. January 6, 1848 The Daily Union Washington, DC
Article from The Daily Union, January 6, 1848

Click image to open full size in new tab

Article Text

EDITOR'S CORRESPONDENCE. From our New York Correspondent. NEW YORK, Jan. 5, 1848. The message of Governor Young is in town. Its most Absorbing topic is the war question, which his excellency has treated in a manner that has awakened for his message an interest not before felt. On this great point he takes ground moderately, but not the less decidedly, against his party, and against Mr. Clay and the Loxington resolutions. He reiterates the language used by him in May, 1846, in the house of assembly, "when the first intelligence was received that American blood had crimsoned the waters of the Rio Grande," which, as coming from a whig leader and a whig governor, in this quarter, is so remarkable as to be worth quoting in full "That our country is in a state of actual war with Mexi30, none can doubt. The causes of that war are to me now unimportant. All here know that, from the first, I was opposed to the annexation of Texas ; that is now a matter foregone. Texas is now bone of our bone, and flesh of our desh, and they who invade any portion of that country; invade the United States; and I will as soon vote for the enolment of troops to protect the soil of Texas, as to protect the spot on which I now stand. Whether the conduct of the government, in ordering our army to march into that country, has been such as it should be, or not, is also a foregone conclusion. Our country has been invaded, and the blood of our citizens has been shed: and I will sustain that country and those citizens against a foreign enemy, at all times, and under all circumstances, right or wrong. On the vexed question of indemnity he is still more decided, and foilows substantially the positions assumed by the President in his message: The country, always indisposed to war, would receive with joy intelligence of an honorable peace; but to render a peace honorable, I think she would demand, and has a right to require, that it shall be accompanied with such indemnity as, upon the page of history, will be evidence of an acknowledgment by Mexico of the superiority of our armies; but of the character and extent of such indemnity I may not speak in this communication." Again-for it is hard to get away from a whig governor who does up the work for us locolocos" so effectually : "With the return of peace will come a season of calm deliberation and searching inquiry-the causes, the conduct, and the result of the war may be then properly and usefully investigated; but until our enemy shall have been subdued, discussions involving collisions of opinion at home, cannot fail, by exciting false expectations in Mexico, to embarrass negotiations for peace. I confidently trust, therefore, that such discussions will not be allowed to distract your deliberations so long as there is an enemy in the field. I feel assured that we shall look only to the honor of our dag." This is, indeed, talking right out, John Young! Its effect upon the whigs at large may be judged by the deep wrath with which it is received by the Tribune of this morning. Of course it is equivalent to a declaration of revolt against Harry of the West," and that Gov. Young, in the schism which, for the first time in our politics, seriously divides the Weed and Greeley sections of the whigs, prefers to join his fortunes with the former. The caldron thickens; we shall see sights soon. Mr. Calhoun's great speech on the Mexican war is in the morning papers, by telegraph, from Washington. It commands that attention which any production, so carefully digested and prepared from so great a man, must always receive in the country at large; and yet it is probable that no portion of it will be read with halt the interest which its ominous speculations on the monetary embarrassments to flow from the war will excite among the bulls and bears of Wall street. The Caledonia's commercial news has not produced, as yet, any marked effect on the markets here. It is generally considered as good as could have been expected, except as respects produce, which appears, at the latest dates, to have been in a very unpromising state. The news of the safety of the French steamer New York has been received with one general sensation of relief. Every friend ofhumanity will rejoice to hear of the intended visit of Father Mathew to this country early in March. The telegraph develops every day more wondrous capabilities. The city newspapers to-day have, by telegraph, the message of Gov. Young from Albany, and Mr. Calhoun's speech from Washington, both of great length, and occupying some seven and a half columns of the closest and smallest type. This is really a great achievement; and one, the whole length and breadth of which, we cannot just yet fully appreciate. One derives a very lively idea of the size of Lord Rosse's great telescope from the statement in an English paper, that the Dean of Ely, with his umbrella raised, has walked through the tube. In relation to the country banks, the wise men of Gotham begin to find out that they were more frightened than hurt. After all the panic, it turns out that but two of the free banks, the "James" and "Atlas," have given way. The others promptly pay the specie on demand. The deaths last week in the city were 275-a marked increase on the week previous, mainly caused by fever, and pulmonary and bowel affections. Another effort was made, this morning, before the full bench of the supreme court, to have the woman Restell adZED. mitted to bail. It was unanimously refused.

3. January 7, 1848 The Daily Union Washington, DC
Article from The Daily Union, January 7, 1848

Click image to open full size in new tab

Article Text

COMMERCIAL. From our Commercial Correspondent. NEW YORK, Jan. 5-Wednesday, 4 p. The markets generally have, as usual, for holyday week. been exceedingly quiet. The imports are small, and ex e ports have been checked in some degree, through the diffi 8 culty of valuing against shipments. The money market has become somewhat relaxed, not by reason of any in creased disposition to loan, but through a considerably les soned demand. Some of the banks have discounted al that was offered; but, in so doing, did not increase the line of their accommodations. The dry-goods jobbers, whose wants have an important influence, are generally easy money are not until Grea Their demands for large March. progress has been made in the last sixty days in diminishing outstanding obligations, and it is a matter of surprise and congratulation that the commercial com munity have so promptly and firmly met the pressure. The export of specie still continues considerable, $393,000 having gone in the Hibernia, and about $100,000 in the Siddons-the disposition being not yel to place confidence in London credit. The paper money market, during the week, has exhibited a curious panic of one or two days' duration, and isexceedingly iltustrative of the operation of paper currency. In my letter ol November 24, in remarking upon the pressure, which wa: then severe, I described the position of the New York free banks, in regard to their expanded circulation, stating, "a soon as specie becomes actively in demand, the bills will return rapidly, and these concerns blow up' About 2: banks had a capital of $200,000, a circulation of $2,500,000. and about $32,000 of specie to redeem it. These notes are all secured upon New York stocks, and are worth their face to the holder; henoe are as good as any property can be. But property is not money; and hence the great distinction between money for circulation, and property. The latter is good to the cap italist who can hold it. The former is only good to the mass of the people when they can part with it at par. The banks held out very well during the pressure, until one or two papers, in mere excess of folly, and in the boldness of ignorance, proclaimed the approaching failure of all the banks. The public were somewhat startled and, at that juncture, the Atlas Bank (so called)-a little shaving concern-stopped redeeming its bills because it had no more specie. The only effect of this, under ordinary circum stances, would be for the comptroller to sell the securities in his hands, and pay the holders of the notes in full. As the public had been alarmed, however, by hollow clamors, the holders of all country notes rushed to Wall street to get redeemed their money. Now, the extent to which this money can be redeemed is of course the amount of current money that the brokers in the business can command. If the offerings for redemption much exceed these means, they charge a high price; con sequently, instead of buying as usual at 1 discount, they charged from 5 per cent. to 10 per cent. discount; and invested all their means in these notes, well knowing that they were perfectly good. Probably $2,000,000 were redeemed in this way, in two days, at a profit of $150,000 to the brokers, at the expense of the bill-holders. This was precisely the same as selling New York State stocks at 10 per cent. dis count; and the folly of the thing was too great to last. It is to be remarked, that the law requires these banks to redeem their bills either in New York or Albany at 1/2 per cent. discount. Many of them have redeemed in New York; but when this panic took place, these "cute boys" notified the comptroller, by telegraph, that the agencies were removed to Albany ; and they left this city for that place, when, the river being closed, they could not so readily be got at. This saved them from breaking. This is undoubtedly the best paper money that can be devised; and yet, the want of convertibility at the centre of business subjected the laboring people of this city to a loss of $1 in $10, because they must sell their money on the moment to buy bread. The following table shows the description of banks whose issues have swollen the State circulation Country banks. City banks.

4. January 14, 1848 The Democratic Pioneer Upper Sandusky, OH
Article from The Democratic Pioneer, January 14, 1848

Click image to open full size in new tab

Article Text

Banks of New York. The New York Herald gives the following as the condition of four of the discredited New York Banks--the best system in the world:" We annex a statement showing the condition of the suspended banks on the 1st of November:SUSPENDED BANKS, STATE OF NEW YORK. Loans. Specie. Circl'n Deposit. Atlas Bank 100 178,205

5. January 28, 1848 The Ottawa Free Trader Ottawa, IL
Article from The Ottawa Free Trader, January 28, 1848

Click image to open full size in new tab

Article Text

# New York Banks. We are persuaded there is no occasion to lose much on the paper of the New York banks that have recently failed of which there is considerable in circulation in this region. The very able New York commercial correspondent of the Washington Union, gives the subjoined history of the recent panic in reference to these banks, and explains their position exactly: In my letter of November 24, in remarking upon the pressure, which was then severe, I described the position of the New York free banks, in regard to their expanded circulation, stating, "as soon as specie becomes actively in demand, the bills will return rapidly, and these concerns blow up." About 25 banks had a capital of $200,000, a circulation of $2,500,000, and about $32,000 of specie to redeem it. These notes are all secured upon New York stocks, and are worth their face to the holder; hence are as good as any property can be. But property is not money; and hence the great distinction between money for circulation, and property. The latter is good to the capitalist who can hold it. The former is only good to the mass of the people when they can part with it at par. The banks held out very well during the pressure, until one or two papers, in mere excess of folly, and in the boldness of ignorance, proclaimed the approaching failure of all the banks. The public were somewhat startled; and, at that juncture, the Atlas Bank (so called) - a little shaving concern - stopped redeeming its bills because it had no more specie. The only effect of this, under ordinary circumstances, would be for the comptroller to sell the securities in his hands, and pay the holders of the notes in full. As the public had been alarmed, however, by hollow clamors, the holders of all country notes rushed to Wall street to get redeemed their money. Now, the extent to which this money can be redeemed is of course the amount of current money that the brokers in the business can command. If the offerings for redemption much exceed these means, they charge a high price; consequently, instead of buying as usual at ½ discount, they charged from 5 per cent. to 10 per cent. discount; and invested all their means in these notes, well knowing that they were perfectly good. Probably $2,000,000 were redeemed in this way, in two days, at a profit of $150,000 to the brokers, at the expense of the bill-holders. This was precisely the same as selling New York State stocks at 10 per cent. discount; and the folly of the thing was too great to last.