15407. Bank of the United States (New York, NY)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
October 9, 1839
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
ad3a7a95

Response Measures

Public signal of financial health

Description

Articles from Oct 1839 describe the Bank of the United States in New York posting a notice refusing to receive/post notes of the U.S. Bank of Pennsylvania, which sparked heavy withdrawals and run for small amounts. There is no clear statement that the New York branch suspended or went into receivership; later accounts describe external assistance and measures to shore up position. Classified as a run only.

Events (1)
1. October 9, 1839 Run
Cause
Local Banks
Cause Details
Announcement that the U.S. Bank of Pennsylvania's post notes would not be received in New York (perceived as equivalent to a failure of the Philadelphia banks) sparked panic and withdrawals.
Measures
Posted notice refusing to receive notes of the U.S. Bank of Pennsylvania; concentrated resources in Philadelphia (per article commentary) and New York banks resolved to sustain payments.
Newspaper Excerpt
Notice is hereby given that notes of the United States Bank of Pennsylvania will no longer be received at the Bank of the United States in New York...Many depositors in the U. Bank demanded the sums due them in specie, and the run for small amounts was increasing up to the close of the day.
Source
newspapers

Newspaper Articles (5)
1. October 10, 1839 Morning Herald New York, NY
Article from Morning Herald, October 10, 1839

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Article Text

6P.M. The storm has burst in Wall street, At 10 o'clock this morning, the United States Beak in New York, posted up the following card. BANK OF THE UNITED STATES in New York. New York, Wednesday Morning, Oct. 9, 10 A.M.S Notice is hereby given that notes of the United States Bank of Pennsylvani no longer be received at the Bank of the United States in New York." as This caused tremendous excitement, being considered the forerunner of and equivalent to a failure of the Philadelphia Banks. Accordingly at the stock exchange, the price of the United States Bank stock fell 14 per cent-Ohio Life Trust # per cent-Harlem 1/2 per ent-Delaware & Hudson improved 1 per cent-North American Trust & Backing 1 per cent-Kentucky 2t per cent. After the board it was ascertaind that about $800,000 in United States Bank post notes made payable at the bank in this city, fell due today, and were included in the bank notice. The announcement increased the excitement in a very great degree, many holders had them immediately protested without waiting for three o'clock; great many more sent their notes on by express to Philadelphia, with the intention in case of non payment of having them protested and placed in Chancery. The excitement momentarily increased, and the thousands of rumors which were put afloat seemed to heighten the panic.Many depositors in the U. Bank demanded the sums due them in specie, and the run for small amounts was increasing up to the close of the day. Some of the bills of the bank sold at five per cent discount in the fore part of the day, but were af terward unsaleable and United States Bank stock was dull at 95. Rumor stated that the Philadelphia banks had suspend. ed, and probably it is the case. This has been the state of the market-panic, rumor and excitement ruled the hour. The great question which is propounded at every corner of the street, is, has the bank actually failed? or will the bills be paid in Philadalphia? This will be decided by the arrival of the Philadelphia mail -night. The measure, as it now stands, does not involve a failure. Merely ceasing to redeem in New York may be means of concentrating er resources in Philadelphia, and thereby strengthening her position. This view receives support from the recent movements of the bank, which have been those of concentration. It is, however, in any light, a breach of contract with those who purchased notes with the understanding that they were to be cash in this city. Should even this be the case, the credit of the bank will have received a blow from which it cannot recover. The probability is, however, that it is a regular failure, and will involve the solvency of the other Philadelphia banks, and the attending panic will carry down the banks throughout the south, with the exception of those in New Or. leans, which are strong in specie. The banks of this city have. however,determined upon sustaining themselves at all hazardseven at a sacrifice of one Sourth part of their capital. This, how. ever,they will not be obliged to do. The contraction is so vesevere at this time. that their circulation can readily be ry and the great bulk of the depositors are men so far interested met, in the standing of our institutions- which are now the sheet auchor of the banking system of the country- -that they will, in all probability, stand by the banks, and any effort to force a suspension will be fruitless. The New York banks will now cut adrift from all connection with southern and speculating banks, and firmly persevere in estraight forward course all of meeting their engagements faithfully, and compelling these who have dealings with them to do likewise. As a pre liminary measure, they refused any longer to receive, on deposite, the certified checks on the banks under the general banking law. Their practices for the last few months have indeed laid open to animadversion, and have exasperated the mer. cantile them community against them. The well known fact available that made loans on stocks at par, which are not that they hav the market at 20 per cent discount, at the same time they have refused in to discount mercastile paper, may have The embarrassed them to a greater extent than is now supposed. they opinion is, however, that in their present position general impregnable, unless a panic spreads among depositors.are is a contingency which depends entirely upon the news which This will reach here tonight from Philadelphia. The anxiety, excitement,and growing panic in Wall street were very great United of business. A mob was collecting round the the States bank, the close and all mereantile mea seemed to feel that at which have predicted for the last few months, The storm crisis, risk of being called " croakers," is now upon The the break up the whole paper system of the country. prudential may course of the New York banks is now the only safe guard. demand for sterling exchange for the Liverpool taken will, The be very heavy. The heavy imports which have that doubtless, in July and August, are chiefly to be paid for by complace Some idea of the amount may be formed by first a and parative packet. table of the Custom House returns for the second quarters of this year and last, as follows Amount of duties paid in the District of New $3,688,885 York during the second quarter of the present year, 2,184 090 30 Second quarter, 1838, $1,504,795 14 $22,748,183 Increase, Imports for the same District, second quarter of the present year, 10,321,859 Exports, same period, $12,426,324 Importe This returnshows over exports vast increase, perhaps greater than difficulty we anti in July last, when we mentioned the probable due before the cipated would arise from foreign payments falling heavier specie which ready to meet them. A much this time had creps were have taken place before cause would undoubtedly This for drain been able to command the money. the the merchants the sale of any very heavy amount to likely to prevent consequence of which will be an is at injury a stand, next packet-a credit abroad. Business of every kind absorbe American news from Philadelphia is that which the arrievery and the one's next at tention, and is more important than even rival of the Liverpool. Sales at the Stock Exchange. Bank $9750 Corporation dos Bonds 15 96. ds 86.25 20 shares 981,76 United do States 15 ds 974 tw do set 105- 40 do Atlantic 851-60 Mechanics Bk of Com do Union Bk do Ohio Life & Trust 89-50 nw 574. do 574 Bk'g Acco Del Hudeon 678. 100 do dois tweet, 50 do 15ds 58). 100 do 571. M nw do 58, 584, 200 50 do 58j. 50 de : 125 58,45 do 58). N A Trust 64, 15 ds 581, do 58}- 50 do 54. 15 do 541, 10 do 54j, dob4. 5 de 684. 834, 60 de 32, 25 do 341-M do Vicksburg 73,250 do 10 do 724,90 341-80 do Kentucky b Mer ds Ex 35-10 do Utica & Syr 51-50 108-20 do b 10 724-18 do Mohawk 624-95 do Paterson 244.25 do s do Canton 30- 60 do 60 99-5 do Stonington Bost & Prov do Harlem Rail Read 42. do 342), 100 do nw 421,50 491,95 10 211-85 42, bnw 42 100 do tm 42 MARRIED. J. the Rev. Rev. Dr. Schroeder, of On Tuesday of Watertown, evening, by N. the Y., to Julia Antoinette, daughter John F Fish, 1. Mumford, of this city.

2. October 17, 1839 The Ohio Democrat and Dover Advertiser Dover, OH
Article from The Ohio Democrat and Dover Advertiser, October 17, 1839

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N. Y. Banks.-The J. of Commerce, of yesterday, says As to the Banks in Wall street, we have just been to several of them, and if they has been ever so determined to suspend, it would have been imposible, for every thing is as calm as a summer morning. THE GREAT REGULATOR HAS EXPLO. ED. - Stoppage of the United States Bank Notice IS hereby given that the notes of the United States Pank of Pennsylvania will no lon ger be received at the Bank of the United States in N. York."

3. October 18, 1839 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, October 18, 1839

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constantly increasing since morning. of the of conversation is relating to post notes due United toStates Bank given* out that the amount day is very large. Private letters from high authority at Philadelphia in timate that the banks there will have to suspend specie payments 4 o`clock, -The pressure in the money market this not abated, and the following notice, issued York: morning has by the Bank of the United States in New has letided to increase the lightness in Wall street. S. in New York, BANK or T Meaning, Oct 9. A M. Notice hereby dnes given that notes of the U.S. Bank of Pennsylvania will no longer be received at the Bank The Bank of of the U S in New York S. in this city has, as promised refused to redeem the notes of the Bank of the U. just States of Pennsylvania, even in cases in which course they their tenor made payable here This of great excitement. In this state has to be able to any, on good were is occasioned satisfactory by been authority, for of things, long it banks of this city, which have a main time that the strengthening themselves, are in a position to tain payments under any circumstances specie effect of this movement will be, that the drain Bank of One by the negotiation of the post notes of the the money United States will now cease. and money be of market, the WP may safely conclude. will in a few days more than it has been for months past. We easy hope that no attempt will be made to run upon the Banks for specie, or to do any thing that can impede only their efforts to sustain themselves. as wellas The give effect the can banks be unnecessary hurtful to trouble, the community, and excite alarm for which there nondequate cause-N Y. Express. (From the Baltimore Post ) S. BANK - The developments this made by the Intelligence institution THE U. by the show relative Liverpool, to the to sawith its operations at home, shifts and of every body the course S. has for expedients the Bank of the exist short tistaction connected sighted of artful U. of its time resorted to for the maintenance Hottinguer a long Although drafts The Measts. already have ence. been covered by specie which has may it that others falling due are not progone out, and appears will all probability be returned, conduct subject vided for, damage of 20 per cent. Concerning the of Satur of to the the Measts. Hottinguer, the U. S. Gazette days says: be proper to look for a moment at the conduct States "It Mesers may Hottinguer & Co towards the United the of That house was under agreement to accept hands the which it refused, and had in in very to guarantee it from in security Bank. drafts necessary of loss; panic its and, most a of nervous excitement, a sort and moment about, it violated its own faith, that of those rules for mercantile are most sacred by gentlemen terestedly broke deemed one brought who regulations occupy the place to which that house aspires. is the story of the Bank relative to the protested has in This The Washington Globe on the other hand drawn after bills. which states that the bills were if formation notice that they would not be accepted, which intendue shows the Bank to have been guilty of an sold.true tional fraud upon those to whom the bills were The Globe says: dishonor of the Bank's bills by the Hottinguers, "The was not only proper as regarded those the bankers public at Paris, but it was necessary as a caution to under themselves. home and abroad. The act of drawing the bills, who WAS A gross fraud on those pur in the them here, and on those who the chased circumetances, negatiated saying them that We have the best authority for had no authority to draw on he had expressly w.itten to Bank England that not only them, of Hottinguer, eaying letter he their bills- that the receipt this bills acknowledged by the Bank, and had been drawn without any could but had been not accept explanation." that the to its of the Bank a few days previous N. The proceeding as related in the following from the of the Y. suspension, to corroborate the above statement frauds Post, goes for an institution capable of the gross falter at the committed Globe; in the terinstances, would not former. The Post says: notes of the U S. Bank of Pennsylvania, dated Post only one day previous to its suspension of 7th made their appearance in A flood specie Is this any better than bills, just put in circulation, in yesterday. October, payments, swindling? bundles, Wall street also and of new in regular order, made their appearance had numbered having come from Virginia, where specie, they and the yesterday, at premium and turned into the been sold remitted a to Philadelphia just previous in contein- to proceeds Must this not have been done that the bank suspension of insolvency? It is understood ago, plation the idea of suspending thirty days by but postponed had entertained the event 10 make a further struggle means of facts its post offer notes abundant explanations of the late These of the Bank; and yet there are a few persons, to conduct few hope. who have the presumption and has been say, very suspension we is for the public good. the sus. that its by a too early resumption after Mr. brought about of 1837. We ask such persons to read let. pensions own opinion on that subject, expressed we in find a in Biddle's John Quincy Adams. which subjoin ter the addressed National Intelligencer to of June 4, 1833. We the letter: "PHILADELPHIA, May 31, 1938. of the 7th ult., I stated "My Dear Sir-1 there could my letter be sale not permanent the re my sumption belief, of that specie payments towards by the them banks, was changed. until policy of the specie circular by not "The I see now. what until now, 1 that change. of repeal the Government Congress have makes seen, the means very of sincerely restoring the at the currency termination CO operate of this rejoice and shall cordially banks unhappy Government controversy. by promoting what the of with the anxious to ffice-an early resumption specie am sure, payments throughout the Union With great respect, yours, N. BIDDLE. Hon J.Q ADAMS, time Washington." the National Gazette announced circu At the consequence same of the repeal of the specie establish lar. that, "in the U. S Bank has determined to a branch in New York.

4. November 2, 1839 The Native American Washington, DC
Article from The Native American, November 2, 1839

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Correspondence of the National Intelligencer. NEW York, OCTOBER 30. Eight days' later news from Europe we rcceived last night by a. packet ship from Liverpool, by which we learn that the Rothschilds had agreed to protect the drafts for 10,000,000 franes of the Bank of the United States, refused by the Hottinguers. That Mr. Jaudon had been obliged to ask assistance of the Bank of England, some accounts say to the amount of £100,000 sterling, and others 300,000, which he had obtained partly under the guaranty of the Barings. The £100,000 were advanced for a term, and £200,000 more were to follow, it was said, on a loan of 30 days, in order to allow time for the arrival of the Great Western. That vessel, it is said, carried from here two millions of stocks, of the State of Pennsylvania, and from $800,000 to one million in specie, on account of the Bank of the United States, so that there is but little doubt that the Bank will have a fair account. No bills have been drawn by the bank since the 24th August, so that, if this-turns out as expected, all the liabilities incurred by Mr. Jaudon will be at an end. The fears of those who have purchased U. S. Bank Exchange will therefore now be nearly at an end. For ten days prior to the sailing of the packet ship, the weather, with some exceptions, had been so favorable as to strengthen the hopes for an average crop, and in consequence whent had receded. American flour, duty paid, was quoted at 39 to 40 shillings per barrel, and in bond 35s. to 38s. 6d. Wheat is 6d. to 9d. lower. Wheat was high in France, and the crop was not turning out to be as good as expected. The Hon. Mr. Macauley had been appointed Secretary at War in the place of Lord Howic resigned. Feargus O'Conner has been arrested Manchester for a seditious conspiracy. One of the Paris papers asserts that the intended marriage of Queen Victoria to the young Coburgh Prince has been officially announced to the French Government. Miss Julia Webster, the daughter of Daniel Webster, was married in London to Samuel Appleton, Esq. of Boston. Mr. Linn, of Missouri, and Mr. Young, of Illinois, with a great number of distinguished Englishmen and English ladies, being present at the wedding. The corn riots in France have been all suppressed. There is nothing new from the East, and Mehemet Ali has not yet given up the Ottoman fleet. From Spoin there is nothing remarkable. Don Carlos was journeying in France, and order was beiag restored in Spain. The cotton holders here have but few encouragements for an advance in price over sea. The drain of bullion was going on, and the probabilities of a suspension were anxiously discussed. The effect of the news here has not been favorable. 10 per U. cent., S. Bank but other stock stocks has fallen have partially to-day nearly maintained their ground. The rate of interest-in London was 7 and 8 per cent., and one pound notes were talked of. The Burnt District in Philadelphin. We observe with pleasure, that preparations are making, in Front and Chesnut streets, and upon the Wharf, on the ground covered with ruins by the late disastrous fire, for the erection of new buildings which.: soon to rise phonix-like, as from the ashes of the desolate district. Nearly two hundred workmen are at present employed, ing away the rubbish raising new walls,preparing the frame-work for the floors, new roofs, &c.Tel. & Observer. Fall of a Great Bridge. The Florence (Ala.) Gazette says that the great bridge recently erected over the Tennessee, at Muscle Shoals, and which was nearly two miles in length, fell down on the 6th instant with a tremendous crash. Mr. J. R. Henry, its projector, was on the bridge at the time. He was thrown off, but not seriously injured.

5. April 30, 1840 Herald of the Times Newport, RI
Article from Herald of the Times, April 30, 1840

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high hand hich banking of and specie vinch alike in every of hoarding encourage the the the public caused a system was again columns the of to commence same Kendall through and colleage 1833, time had short by this organ of himself In December been made to bring message against the Globe vite newspaper. after the President the charge the of anrea- Bank been adopted in his curtailment measures had would in raction their sonable after the which rigid contra the -and the conspiratocare of of the Bank. same by opinion render the a salvation articles of the pros necessary for other columns of that do hitherto followingpeared among 10 the journal, the Globe. to upon nature, and infamous) had bank nothing in the cast him tituted " We have Mr. Biddle's plainly. embarrass- if he per on the ment with west. runs But we tell to ruin bring on his debtors what is exorbitant the public depositos, or sists in his countryments and beyond WE or law use fully his by to pay ineads up we can effects of can nece-sary by every bank feel the than one the people in and the muggest, WILL, make his In more make ways their pow manifest in when the hive people, reckless course. of this country trepidation displayed a portion be movement, us has taught of the conduct of the Kentucky, bank by cash effect, paper, whenever necessary the from above article how gan last to make year war bank with shall make it the the by "how or expedient seems then by the had through learned their of feel" Globe,that It the they had tried to make war intended with to so prosecute Bank, which found they it neces that about Just ex expedient." the in the friends!! the U. S. soon as they the time SecreGlobe. appeared the tary deposite at New certain to gary this article of the Treasury points, furnished tarly particular the amount of Bank, Banks at with illegal on the dratts United unsferring States to law the deposits York, some millions purpose of agreeable regular 10 be U.States.br merely for (not the drafts payment drawn of branch govern Banks to refuse should distant of or for in the tanches posite, 10 meet used the in case receive the the notes liquidation of State from deposit bank balances the new of now these pet called banks. of the the Bank drafts Bank, generally matton of the and bank New Mechanic's America for one each held York, dollars. $500,000 in the for City dollars making $1500,000 he all (" ask readers re facts lating of New the York. writer acquainted with States the Bank) in in Now not alreacy on Kendall, U. written of of are to the attack letters of the Globe the and compare with the the article the Secretary days after October, transfer drafts forth about see furty whether than it is Treasury, the last put letter, and other conclusion same scheme. earing in nator? Kendall's possible to come all to parts any of the master and 18th origi- of Kendall / great tenderness hat, they the were impress of his one letter of the for the expresses its and explosion, to full hands I October, Bank, and fears of will have back her and read hat of she (the Bank, Then look of " the ,shewing receipts ave hersell." about the effects the bank it e says branch paper believed by by the conspirators to receive istant it was fully bank continued New York, hat at in case the its branches sustain" in itself the Now turn bills of all difficult to article from the Hobe which threatens on attacks ankdistant would he find back it and read the make war branches on by of of Isaac beans Hill's opin species "public for of out the occasion manufactured to be and then, draft i m," friends of look Gen. at the creatures of the banks conspirators: n and New York : ap the climax, the hands of of the the deposite be present d U. to the the and Bank States placed in at the other head cities, to specie de i for the them that sanded moment institution of weak any signs manifested branches, the of is bills distant receive t of balan es h from of ilure their ess its by refusing to or in payment It seems branch by the attempt à the ranches in the deposito Pet Banks.- to break the had beconspirators to d not intend t success. Savannana that and until did they infidence were sure of the " solvency t the me inko more another But attempt such was the and treacher integrity is h plans at ere to h last e community in Bank, that all failed, and they forced of a ead and the being broken the U. States of the conspirators that bank in " as too strong. fr sure have been must Kendall for to the break plans w the the Bank, in extracts, published To show ultimate how success writer of will refer the in the reader N. de by addressed at N. g the following from a letter editor of the cc h ork Star. ENDALL taken to date the of Oct. public 9, 1839. mo tli ni MOS Standard, K consider under that the $9,868. 000; withdrawal m " rk When you bank were about would private carry in of ys their in the sudden 3,000,000 about of the $8,000,000 n th at it probable two or three in as posites now has now cents, pay deferred cur be m llions at the of bank the three upon per 80 extensive millions a of its in it and business, that many must soon you irope; |ment of in circulation that sudden at CC moneys eteen millions will perceive would no giant sh hdrawal urn upon of the Yes. public sir, this boasting feel of the sec. at 18 in ce destroy but a replie it. beneath which the he can and crush will. dis Pr now ary of the treasury by his forbearance, great forbearance tre crists forty days and destru be the the next require to save it from the bank will towards per- the te of institutions it is the the which easure policy / tted But it do pursue not suppose a and hostile thereby course of produce the admin that ab of such Manifestations the bank will undoubt the to no to the ration course on to prevent. the a part of the make transfer the bank of the feel bu haughty of try the step blic y be money, met by which consequences shall of institution its own policy. been the the l . Thus to has this knees at the result first of a necessity of W night banks. to its But the foresight and energy is now, the ced upon it by the of the treasury, set down to de ind M despotic 1 new account secretary racteristic of its own impudence. liberality and forbear- removal the the public subsel'he panic caused deposites, by the and by the