Bank of Commerce - New York, NY

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: December 31, 1861
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: f29f0483

Response Measures

None

Description

Multiple contemporaneous newspaper articles (Dec 31, 1861–Jan 1862) report that New York banks including the Bank of Commerce suspended specie payments following instructions from Treasury/Assistant Treasurer and amid the Mason & Slidell controversy. There is no mention of depositor runs on this specific bank or of permanent closure; suspension appears to be temporary, so classified as suspension_reopening.

Events (1)

1. December 31, 1861 Suspension

Cause: Government Action
Cause Details: Treasury/Assistant Treasurer directed suspension of specie payments; banks voted to suspend in response to government instructions and the Mason & Slidell controversy that precipitated the move
Newspaper Excerpt: The Bank of Commerce, Mercantile, Leather Manufacturers', City, Chemical and America are (we believe) now paying specie. ... The Secretary of the Treasury has directed the Assistant Treasurer of this port ... to suspend specie payments
Source: newspapers

Newspaper Articles (4)

1. December 31, 1861 Evening Star Washington, DC

Article from Evening Star, December 31, 1861

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Article Text

THE SUSPENSION.- The New York Post of last evening says: Wall street wears a new face this morning The adjustment of the Mason and Sildell controversy, followed by a suspension of specie payments by the banks, has produced a marked effect in Wall street. The Stock Exchange is rampant, and prices of the speculative shares are two per cent and in some cases five per cent higher. There was great excitement on all the active stocks when called, the transactions being largest in New York Central and Erie. After the extravagant effervescence early In the day, the stock market since is flat, and prices are Kaly per cent., and in some cases 21/2 per cent below the highest points touched at the board The foreign exchange market is at a standstill this morning, pending the rise in the value of gold. The premium on gold will in a great measure regulate the rate of exchange, and in the present transitied state of things among the butlion dealers it is difficult to quote the rate on Lon. don. Some of the leading drawers name 118, but as yet no business of moment has been accomplished. The Secretary of the Treasury has directed the Assistant Treasurer of this port, and instructions of a like nature have probably been forwarded to the government officers at other prominent points, to suspend specie payments on all claims save the principal and Interest of the public debt, failing Jue on the 1st of January. Public creditors, with the exceptions named, are now paid in United States demand notes. The Assistant Treasurer at the same time ceases to redeem these notes, but receives all denominations, whether payable at New York or elsewhere, in payment of debts due the Government. We hear of some Jarring among the banks this morning, several of the leading Institutions re. fusing to step into the line of suspension. The Chemical, City and America, and one or two others, are paying specie to-day whenever do manded, but whether this course is making seri. ous inroads upon their reserves we are unable to ascertain. The Chemical, it will be remembered, maintained specie payments in 1857 and in 1860, and somecuriosity is manifested whether the present effort will be equally successful. We hear as we go to press that the dissentients to the bank suspension of Saturday evening are getting new allies, several other large banks beIng about ready to try their strength for some time yes. The Bank of Commerce, Mercantile, Leather Manufacturers', City, Chemical and America are (we believe) now paying specie. The Government will pay on the 2d of January the interest on the public debt in gold, the banks having responded to a further call of $3,500,000 on the new funded stock, on condition that it be se applied by the Secretary of the Treasury.

2. December 31, 1861 The Sun New York, NY

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Article Text

SECOND BOARD. 20 Harlem R..... 18% 5000 U.S. 6s, '81. rg 88 do ....... 1936 18000 Tenn. 6a, '90. 481/4 100 4000 Mo. 6s. do 50 42% 12% da 2000 100 Harlem Pf.,beo : 81 42% 5000 M. 6a. I toSt.J. 45 50 do 30% 4000 Cal. 78. 49% 50 Mich. Cen 81 1/2 88 do 1000 Ohio 6a, se 100 49% 2000 Minnesota 8s.. 75 20 M.& P.D.C. P. 57 76 1000 E.R. 4th M 10% M.S. . N. Ia.g 41K 8000 do 960 do 4136 75% do 94 100 145 Pacific M. S. #30 41% 95 do #10 94 50 Pattama R .ex 113 50 do do #30 94 95 11236 100 15) ml Cen. R. 8p 62 do . b30 94% 80 775 N Y. Cen R 150 Gal. & Chi. R.. 661/6 do 550 Erie R. 32 b30 06% 100 200 do do 25 66% 1330 3916 L 200 8546 do 360 Cle. & Tol 160 323 50 Erie Pf. 200 do 51% 50 do 200 do 3616 514 50 200 do do 51% 35% 50 do 100 Chi. & R I b30 51% 50% 110 51 do 200 Chl. B. & Q. R. 56 do 50 150 Hud. Rv. R 8836 b30 5616 5 39 do The suspension of specie payments, which has been agitated ao long, and so strongly recommended by brokers and business men. has had a very exhilirating effect on the stock market. and all kinds of securities have gone up with a run. The suspension had been so long looked for that it excited ut little comment. and has Indeed proved but partial, some of the leading institutions having refused to suspend, after the vote to do so had been passed by the majority. These were at first the Chemical Bank, City and Bank of America, Later in the day they were joined by the Bank of Commerce, Leather Manufacturers', and Mercantile Banks. Gold. AS yet, has not commanded more than half per cent. premium, there being little demand for it, the debts due upon the other side have been greatly reduced. and there is little disposition to contract more The desire to remit specie to Europe has also ceased in consequence of the surrender of Slidell and Meson, which is regarded as ensuring peace. The question of necessity of suspension is not by any means acquiesced in, either by the banks or the community. The banks commenced business, this morning, with $23,100,779 in their vaults. Had direct taxes been commenced to be collected from the people, by the government, as ) abort time as two weeks since, by which the funde taken from the banks and disbursed throughout the country at large, could have been collected in, and returned gradually towards the large business centres, and to the cities, it is thought that the necessity of suspension would have been entirely ob visted. The government will pay the interest on the public debt, in gold, on the 2d Jan. The Grocers' Bank has declared a dividend of 816 per cent. The half-yearly interest on capital will be paid by the United States Life Insurance Co. on Thurs) day, at the rate of 7 per cent. per annum. The Mariners' Savings Institution. 2d Avenue, opposite Cooper Institute, pays dividends on 20th Jan. of 6 per cent. yearly on sums under $500, and 5 per cent. on sums over $500. The Michigan Central Directors have passed a resolution to postpone dividend at the present . period. There is little or no excitement at the banks, or broughout the city, at the course which things are taking in a financial point of view. I

3. January 4, 1862 The Weekly Sun New York, NY

Article from The Weekly Sun, January 4, 1862

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Article Text

SECOND BOARD. 1936 20 Harlem R..... 5000 U.S. 6s, 81. rg 88 do 19% 100 13000 Tenn. 68, '90. 4314 4000 Mo. 6a. 50 do ******* 18% 42% 2000 do 100 Harlem Pf..b60 31 42% do 30% 5) 5000 M. 6a. I.toSt.J. 45 4000 Cal. Ts. 49% 50 Mich, Cen 81 1/2 88 1000 Ohio 6s, '86 do 100 49 75 2000 Minnesota 8H.. 20 M.&P.D.C. P. 57 1000 E.R. 4th M 76 100 M. 8. & N. Ia.g. 4136 3000 do 250 do 75% 41% do 94 100 145 Pacific M S.... 30 41 25 #10 94 do 50 Panama R .ex 113 50 25 do do 830 94 .11936 100 do b30 94% 150 III. Cen. R. 8p 69 80 775 N Y. Cen R 150 Gal. & Chi. R.. 6636 do 32 100 550 E:1e R. b80 66% do 200 do 25 66% 1.30 3216 200 do 15% 300 Cie. & Tol 160 31% b10 D 6-4 Pf 200 do 35% 51% 5 do do 35 1/6 51% 200 50 do 200 do 35% 51% to 100 Chi. & R. 1 do 50% 1330 511/1 tie do 51 200 Chi. B. & Q. R. 56 do R 50 Hold. 15 Rv. 8814 b30 5616 5 39 do The exeppnsion of specie payments, which has been agitated so long, and 40 strongly recommendof brokers and business men. has had a very exeffect on the stock market, and all kinds securities have gone up with a run. The sussension had been 80 long looked for that it excited at little comme t. and has Indeed proved but parlid. some of the leading institutions having refused to suspend. after the vote to do so had been passed by the majority These were at first the Chemical But k, City and Bank of America, Later in the day they were joined by the Bank of Commerce, Lesther Manufacturers', and Mercantile Banks. Gold, as yet, has not commanded more than half per cent. premium there being little demand for it, M the debts due upon the other side have been greatly reduced and there is little disposition to contract more. The desire to remit specie to Europe has also ceased in consequence of the surrender of Sidell and Mason, which is regarded as ensuring peace. The question of necessity of suspension in not by any means acquienced in, either by the banks or tue community. The banks commenced business, this morning, with $23,100,772 in their vaulta. Had direct taxes been commenced to be collected from the people. by the government, as slort time as two weeks since, by which the funda taken from the banks and disbursed throughout the country at large, could have been collected in. and returned gradually towards the large business centres, and to the cities, it is thought that the necensity of suspension would have been entirely obvisted. The government will pay the interest on the pubHe debt, in gold, on the 2d Jan The Grocera' Bank has declared a dividend of 316 per cent. The half-yearly interest on capital will be paid by the United States Life Insurance Co. on Thursday, at the rate of T per cent. per annum. The Mariners' Sivings Institution. 2d Avenue, opposite Coo, er Institute, pays dividends on 90th Jan. of 6 per cent. yearly on same under $500, and 5 per cent. on sums over $500. The Mich lgan Central Directors have passed a resolution to postpone dividend at the present period. There is little or no excitement at the banks, or throughout the city, atthecourae which things are taking in a financial point of view.

4. January 18, 1862 The Richmond Palladium Richmond, IN

Article from The Richmond Palladium, January 18, 1862

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Article Text

Among the banks in New York reuring to suspend specie payment, are the Bank of Commerce, Merchantile. Leather Ms. a. facturers', City Chemical, and America.