15436. Banks of New York (New York, NY)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
October 14, 1857
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
7f7f1ecc

Response Measures

None

Description

Multiple contemporaneous articles (Oct 14, 1857) report that the banks of New York adopted a qualified suspension of specie payments. Later reports through Dec 1857–Feb 1858 indicate the New York banks resumed specie payments. No single-bank run on a particular institution is described; this is a coordinated suspension by the city's banks in response to the Panic of 1857 (systemic).

Events (2)
1. October 14, 1857 Suspension
Cause
Macro News
Cause Details
Coordinated suspension by New York banks in response to the nationwide Panic of 1857 and heavy withdrawals of specie; action taken by Board of Bank Presidents/Clearing House to suspend specie payments while continuing other business operations.
Newspaper Excerpt
In pursuance of the resolution adopted yesterday, our Banks have all suspended ... Our banks have resolved on a qualified suspension. They have determined to suspend the payment of specie over their counters for the time being
Source
newspapers
2. December 12, 1857 Reopening
Newspaper Excerpt
Less than two months after, ... towards the middle of October all the banks of New York ... suspended their payments. The 12 December, the banks were reopened ... The Banks of New York, Boston, Albany and New Haven have resumed specie payments.
Source
newspapers

Newspaper Articles (16)
1. October 1, 1857 Delaware Weekly Republican Wilmington, DE
Article from Delaware Weekly Republican, October 1, 1857

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For the Delaware Republican. The New York Banks have, say in round numbers, 8 millions in circulation; 13 millions in specie, and 57 millions in deposit. Now as a general and safe rule, when a bank has specie on hand equal to its circulation, it is ample to meet all contingencies, especially as when, as in the present state of the N. York Banks, the whole country is indebted to them, and the foreign exchanges in their favor. Under this condition of the N. York Banks, we consider that the excess of five millions of specie over circulation, an unnecessary accumulation of coin, and that its effects have proved disasterous to the pecuniary affairs of the whole country. Such superfluous acquisition and retention of specie is beyond calculation, is worse than the conduct of the miser, who hoards his gold and gloats his purblind vision, while with diurnal chucklings, he "counts and recounts it o'er." There is no expressed or implied understanding that the miser will loan out his money at legal interest, and in a spirit of accommodation to the public commensurate with safety to the lender, ho lives for himself alone. The Banks are conducted upon the social principle "to live and let live," and it is the derilection from that principle by the banks in New York and the citizens in Philadelphia, that has occasioned the suspension of specie payments. The origin, however, of the disaster is traceable to the Banks of New York. They are the arterial heart of the Bank circulation in this country, and when they retain an unnecessary proportion of specie in their vaults, and reduce their circulation far below their stamina, the whole circulation of the country is weakened by the process, and the shock vibrates from the centre to the circumference. Since writing the above the evening papers of Philadelphia announce that the Banks of New York, have determined to extend their discounts to the amount of 5 millions, which is their present excess of specie over circulation and we consider it equivalent to an admission of error in financial administration. We have no practical knowledge of Banking, and hope this brief and feeble essay will prompt others, especially a certain Director in the Delaware Bank, to give their views. It has often occurred to us, that a semi-annual convention of Bank Presidents would tend to harmonize Bank action, and prevent much evil; and also that the President of the Convention should have power to recall is to meet any impending crisis in monetary affairs. FETTERLOCK.

2. October 15, 1857 The Day Book Norfolk, VA
Article from The Day Book, October 15, 1857

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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.

3. October 16, 1857 The Union and Eastern Journal Biddeford, ME
Article from The Union and Eastern Journal, October 16, 1857

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Financial Matters. NEW YORK, Oct. 14. Our banks have resolved on a qualified suspension. They have determined to suspend the payment of specie over their counters for the time being, but otherwise to continue their regular business operations, including such mutual advances of specie from bank to bank, as may be required to meet the laws of the Clearing House, and to escape the constitutional interdict against an absolute suspension. The suspension has calmed down the feel ings of the community; and the tone of the banks, bankers, merchants, and indeed all classes, is decidedly more cheerful. A notice was posted to-day at the various Banks which are enabled to continue business, stating that business will be continued as heretofore, excepting the paying of specio. Checks will be received on deposit, and in the payments of notes and bank notes, will be paid and received as usual. Many of the Banks have still a large amount of specie on hand. Gold is selling by the brokers at 4 or 5 per cent. premium. BOSTON, Oct. 14. The Pacific Mills Corporation at Lawrence, J. Wiley Edmands, Treasurer, reported suspended to-day. Also, Little, Alden & Co., large dry goods importers. The announcement of the decision of the Boston banks to suspend specie payment, was well received on 'Change to-day, the measure, in view of the circumistances, being deemed most advisable. The news spread with great rapidity throughout the city, but did not cause 80 much excitement as was anticipated. Lower prices ruled at the Stock Board and the market quite unsettled. It is probable suspension will extend throughout New England, with few exceptions. The Banks of New Bedford, Fairhaven, Worcester, and other principal towns, have suspended. At Nantucket and Lowell, the Banks continued to pay specie throughout the day. The crisis appears to have been met everywhere this way with entire philosophy, and no exhibition of excitement. The Boston Banks will pay their balances at the Clearing House in specie, as usual, 80 that the suspension merely amounts to the suspension of paying gold at their counters. DETROIT. Oct. 14. In consequence of the suspensions in the east, the Michigan Insurance Companys' Bank in this city, discontinued specie pay. ment this morning-otherwise its business will go on as usual. The action of the Bank is almost unanimously approved. A meeting of the citizens to consider monetary affairs will be held this afternoon in the City Hall. CONCORD, N. H., Oct. 14. The Banks of Concord have not yet suspended. The Banks in Manchester, N. H., and in Lawrence and also in Methuen, Mass., suspended to-day, and the Pacific Corporation of Lawrence, was unable to pay off its hands in consequence. TROY, Oct. 14. Under advices from New York this morning, all our City Banks, eleven in number, suspended specie payment. They are open, however, and are doing business as usual. PETERSBURG, Oct. 14. The Branch Farmers' Bank of Petersburg, suspended specie payment to-day. The Virginia and Exchange Banks are still paying specie. TRENTON, N. J., Oct. 14. The suspensions of the banks here produced no excitement, and there is a favorable feeling towards the banks. They accommodate the public with specie for change. There is some talk about convening the Legislature to repeal or modify the stringent law against bank suspensions. BATH, Oct. 14. The Presidentsand Directorsofour Banks, at a meeting this evening, resolved to suspend specie payments for the present. BANGOR, Oct. I4. At a meeting of the Directors of the sev. eral Banks in this city, held this afternoon, it was unanimously agreed to suspend specie payments during the present crisis. The following resolutions were adopted, together with one expressing contidence in the Suffolk system, and refusing to take bills of Banks not redeeming in Boston Resolved, that it is expedient for the banks of Bangor to be governed by and act with the New England Banks during the present crisis, and continue to redeem in Boston as usual. There has been no run upon any of the Banks, and the greatest confidence is felt by the community 80 much 80, that the Banks have increased the amount of specie in their vaults during the past week. The measure has created no excitement, and it was adopted simply as a measure of protection, in view of the suspension in New York and Boston.

4. October 16, 1857 The Daily Gate City Keokuk, IA
Article from The Daily Gate City, October 16, 1857

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BANKS ALL SUSPENDED.-The Banks of New York and Boston have all suspended, according to a private despatch received at Burlington. The indications in the despatches published in our columns tend strongly in that direction, and we presume by this time all the banks of the country have suspended.

5. October 17, 1857 The Cecil Whig Elkton, MD
Article from The Cecil Whig, October 17, 1857

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The Banks of New York and Boston have followed the lead of those in Philadelphia and Baltimore and suspended specie payments. The Legislature of Pennsylvania has legalized the suspension of the banks of that state up to the second Monday of April next.

6. October 17, 1857 Delaware Democrat Wilmington, DE
Article from Delaware Democrat, October 17, 1857

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The New York and Boston Banks. The Banks of New York and Boston after being greatly weakened by the continued run to which they were subjected yielded to the pressure early this week, and announced their determination to sub pend specie payment. The banks of these cities held on as long as there was the slightest hope of keeping up their credit through the panie, but when they saw a set purpose and determination on the part of the people to drive them to suspension, they reluctantly adopted that measure as their only course. The suspension of specie payment, will now, no doubt, become general and extend to every bank in the country. A system, radically and inherently bad is fast working its downfall and must soen give place to something less corrupt and treacherous. A writer in the Philadelphia Press in a very elaborate and forcible article on the rottenness of banks and the dishonest trickery of Banking Associations says "We protest that we have no interest in this matter beyond our relations as a citizen to the general good. We throw all party considerations to the winds. The great object we have in view is that all men, bowever rated in the political vocabulary, should feel that, as, in this mighty question of finance, they have common intesests, 80 too have they a common call to act together in the future. "It is high time that the business of secret, partial and corrupt banking should cease. "It is time that the losses to labor in the midst of universal prosperity, plenty, and peace, as a result of failing banks should be ended. "The practice of plundoring industry by making men work for a paper dollar one day, which the next is worth only fifty cents, must stop. The practice of making the merchant sacrifice his property and credit to make his note 'good at a bank which refuses to do the same thing for its creditors, must be forever abandoned. "The favoritism of the banks must be given up. "Every paper dollar should be represented by a silver dollar, and every man who wants to open a Bank should do so just as he now opens a store-his OWL means, credit and character being his capital, and the law being his restraint. "If there must be paper money, let us have it OR these terms. They would no be regarded as harsh among men of business. They should not be regarded a hard upon the banks; and especially now that for fifty years, the banks have had their full share of the people's money.Let us consider these notions at any rate They cannot be worse than those which have failed. "The country never was in a better con dition, as to all natural advantages tha now. If the banks fail, crops do not fai If suspensions of specie payments occu there are no Bussensions of the rewards the seasons. Our State credits are intac Our United States securities are soug after in all the marketsof the earth. The is no epidemic desolating the land. TI banks alone have filled the country wit lamentation and WGB, This is the time consider whether they can be amended left to die out entirely."

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

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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.

8. October 24, 1857 The Weekly Minnesotian Saint Paul, MN
Article from The Weekly Minnesotian, October 24, 1857

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Oct Financia the New York Times, Oct. 15. The state York Money Market-The Day After Suspension. circle III No WEDNESDAY, Oct. 14. is ome de new order of business through the extract of a of the city of New York, rendered neto ommer and convenient by the stoppage of payments yesterday, was inaugurated My DEAR evening by the following proceedings at - fusion, as of bank officers held at the Clear"N THE House. New York. esolved, That we will take, at par, notes as me -h as on the State of New York, secured New York, Bank Department, at Albany, and tions at pres of each Safety Fund Banks as may to all you ha matters to esignated, from time to time on deposits of our customers only, and in payment trust any bod due our Banks, respectively anything like we will receive, or pay balances, at a parallel, W Clearing House, in such notes, the same adv counted, enveloped, tied and sealed, sidered whol the amount certified on the parcel. never the sum shall exceed $1,000 000 proTh the same be certified by an officer apby the Clearing House Association OHIO.-T will be seen that they recognize the egraph that of all the solvent banks of the City and Ohio, we reg of New York as part of the basis of have seen no are to be known. in ordinary dealings, the defeat of Funds. These and the certified ticipated cl of the bank dealers, payable in CurRepublican Funds as well as Gold and Treasury O victory. at the option of the bank, holding eiapprised the or all, will be employed in the adjust Democrats a of the daily balances growing out of lovingly in 0 inter exchanges through the Clearing Pro-Slavery The Bank of America will continue Democratic the key to the common vault in repugnance h the specie of the Associated Banks is opposition to and represented by certificates, and the didate. But opolitan Bank, it is understood, will be truth to say, the common depository of the country them gave tl notes. belonging to the Association, and racy also will be represented by certificates, Fremont's new arrangement will extend to all fall, was 16,6 bank paper secured at Albany, and 28,126. 28. It registered notes of the old Safety 10A banks as the Committee of managewould almos on this subject-aided by the experality. ^s of the Metropolitan system- shall deslast Tuesday and overeffect of the suspension upon the ex Chase's grea was not fully seen to-day. The steamtheir ticket. closed before twelve o'clock.and only thousands st transactions, and at very irregular tend to othe were made on London. We heard of The finance thousand pounds at 108 per cent. and vulsion that quotations at 105 per 107, banking men. withdr And few produce bills, with the local polities documents attached, were done at their influen but whether to carry out previous enas four-fifths ments or not, we could not ascertainBut the pe rellef to the market, however, is very mustered for and the improvement in the rate on That class and not because of the apprecia vote. As \ of gold, as compared with current funds. the telegrap could not be sold to the Brokers better unreliable. from 1a21 per cent. premium, and there tual vote is a limited market to supply Customthe telegrap wants and a few of the banks exhausilton county their supply before three b'clock yesterDemocratic, Several considerable parcels were rethe truth on general deposit to the banks free 611 Spuo remium. Most parties are disappointed 35; Ottawa indifference in the market. As 1837, fiance repor went to 13 per cent. premium immedigan is repo after the suspension. A close survey Chase 583. the circumstances attending the presties in which led us to anticipate yesterday that We think would be worth in the market not exocrats have 3 to 5 per. cent. The advice by telehaving carri that $1,250,000 is now at hand from The Repub fornia, and the general conviction to-day House bu the daring of the past few days on the nor any imp was from no popular attachment to gold legislative distrust in our New York paper currenwhich side 1 the sudden withdrawal of confidence We shall mercantile sympa thy with the City Bank count. that agement, no doubt influenced thedullness elected and market. And this will continue, unML Chicago the Southern Banks, particularly at New IOWA hold on to the specie basis, and gold changes fe equired for the purchase of cotton, or the enough, we aoption of New York State currenthat Judge bankable funds, should greatly enhance by four to fi value of foreign bills. publicans h: Democratic Exchanges will continue Legislature, ttled or immovable only a few days lonSenator, S. On the near cities little was done the present Philadelphia and Baltimore appretory more to 96a98. The Pennsylvania Legislais settled, tl has afforded the relief asked for by the yond all per in that State. They have until the April and A Monday in April next to prepare for general apa mption. The act provides for weekly strength.ments by the city banks of Philadelphia Pittsburgh, similar to the New York Important also It the jo currency equalizes The follow State in all banking operations, and it retorney Gene the depositors to the credit of the postmasters monwealth to be made specie for the SIR: You of the interest of the public debt received. in telegraph announces a general suspension aghout New England. right of post cases for sta Discount market, except in Bank, has returned not taken shape. There was not much the act of 0 paper offering to day. The failures partment, Monday have fallen off, whether from Court upon relief, or by reason of temporary exto live over a few days in the hope 578, 11 How it would be difficult to say. We ples of law brought me sure, however, that several impendfail res have been thus far averted, ing rules ou clear. cessation of such disasters fora few days A post will, from the present opinion atnong liscount brokers, bring down the rates on stamps cost them made, paper very materially. The sense of Their value from panic, if not from dear money, is general. them repres of postage. Sub- Treasury balance is down to $5,The reduction would have been no apprecial thus far in the week but for the withno gain at a ought not to of several large drafts by the Savdent hich Banks. As these institutions resolved 2. But it morning to pay only in City Bank notes lost, and g they will pr bably now re-invest proceeds of United States Stocks in oth may use the curities. ment of SO should be he Bank of Commerce yesterday seemed custody of olested by the run, and was so reported But notice of the Wall street scene. is paid for t it it by showin to-day that the quiet draughts made He insu the Specie reserve of the Bank amount ils of that k about $400,000 This reduced the 3. If he left belonging to the bank below $300, ton act. or n There appeared to be little or no run stroyed, he Corn Exchange Bank yet we hear that no man amount drawn out before 3 o'clock was The old Fulton Bank did not vantage from 4. When before 3 o'clock, as rumored in the street bank of the State, and Republic, po-tmaster him at the run pretty low, before the closing hour. sumption is was a hot purs pursuit after the gold in the demand ct ropolitan and American Exchange, an er got them, obtaining that they were weakened by the presump country bank redemptions. Both held all other pro and the American Exchange, on the he can pro of figures in the evening conference, General is S nja $400000 him, he oug more remarkable feature in the bank Wall street yesterday was that the responsibility has them in Bank of New York was the first to give 5. If he This announcement alone would have the of continuance payment by to the Depa

9. November 28, 1857 Shepherdstown Register Shepherdstown, WV
Article from Shepherdstown Register, November 28, 1857

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Good News.-There are reasons for believing that the Banks of the country will resume specie payments much sooner than has been anticipated. Within a few days past we have received numerous indications in support of such belief. Already the Banks of New Orleans has resumed-and it is stated that the Banks of Boston are prepared to resame. It is be. lieved, too, that the Banks of New York will be ready on the 1st of January, if not sooner. The New York "Journal of Commerce" estimates the specie in the banks of that city at $22,000.000; a larger amount by several millions than was ever in the banks before. A letter from New York says: "Our city banks are now so strong in their specie reserves ($20,000,000) that they are abundantly able to resume specie payments. Some of the prominent bank men in the street to-day said they are willing to take that step as soon as the country banks areready to 'second the motion.' In point of fact, specie payments at the counters of the principal banks are already resumed. Gold is SO plenty that the suspension is only nominal." Both North and South there are signs of speedy resumption. The panic is nearly over-failures have eeased-confidence is taken the place of distrust-and specie coming from its biding places. Resumption by the Banks of New York, Philadelphia and Baltimore will no doubt be the signal for similar action by all the Banks of the country.

10. December 3, 1857 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, December 3, 1857

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The New York Herald vauntingly refers to the alleged fact that the fifty-seven suspended banks of that city have ,000,000 specie in their vaults. It has been more than hinted that a very considerable proportion of this specie belongs to special depositers, and not to the banks themselves. But, assuming that it does really belong to the banks, how do they stand in strength when compared with the specie paying banks of New Orleans? comparison of facts makes the boastings of the Herald as valueless as the idle wind. According to the statement of last Saturday, the specie in nine of the banks of New Orleans -the other two having not yet commenced businessamounted to nearly eight millions of dollars. Now, to make the banks of New York relatively as strong, so far as coin is concerned, as the banks of New Orleans, and proceeding on the Herald's proposition or rather boast, the banks of the former city should have, instead of twenty-five millions, something like fifty millions current coin in their vaults! Thus is exploded one of the principal assertions of the vain-glorious boaster of the Gibraltar of the commercial world." The reference to the banking institutions of England, France and the other States of Europe, is on a par with the rest-just about as devoid of fact. But, for a self-constituted champion of suspended banksbanks that toppled over at the very beginning of the commercial crash-banks that were so weak that they could'nt meet a run of forty-eight hours' duration-to stigmatize other financial systems as rotten is the very heighth of impertinence. But, continues the Herald, pursuing untruth with a perseverance that would be admirable in a truthful cause The Banks of New York are now the only sound financial institutions in the world." If suspensions of specie payments-if deranging the currency of a continent-if dragging hundreds of solvent institutions down to their own insolvent level-and if giving forth no earnest of an early resumption of debt-paying to the public-make the New York Banks the only sound financial institutions in the world"then they are indubitably sound, sound as a drum, a hollow log, or à questionable saddle of mutton. 4 The Banks of Mobile never suspended specie payments on any of their liabilities. Does the editor of the Herald consider them sound ? Evidently not, for he asserts that the suspended banks of New York, are the only sound financial institutions which exist anywhere. But three of the nine banks of*New Orleans suspended temporarily, and all are now paying specie, and occupy positions that are impregnable, yet if the proposition of the Herald be well founded, they are not as sound as the banks of New York because they have not repudiated their obligations to the public and their customers, and suspended ! If they would only suspend, perchance some portion of the respectability exclusively enjoyed by the sound financial institutions of Gotham might fall to their share. With one recommendation of the Herald we cordially agree, and hope it may be carried out at an early day, viz: that the Banks of New York "at once resume specie payments." If they, and the Western banks would only resume, the Banks of New Orleans would be enabled to afford that ample relief to the commercial community it so deeply requires. But until they do, any great expansion on the part of our institutions is out of the question. The products from which the Herald is going to make New York "the leading commercial metropolis" of the world do not happen to be raised in its section of the country. Its premises being wrong, its conclusions must also be wrong. " We have the cotton, corn and coin in abundance," quoth the Herald. Not so. You haven't any cotton at all. All the cotton is raised in slave States, and without cotton your " commercial" fabric would quickly fall to pieces. Perhaps you'll lose the cotton sooner than you imagine. As for corn, according to the last census, the slave States raised three or four millions of bushels more than the free States and nine-tenths of the coin comes from California. So it appears that the three great products by means of which New York is to be transformed into " the leading commercial metropolis" of the world, are not indigenous to its portion of the confederacy, and the two most important of them-cotton and coin-are liable to be turned into other channels any year. Should a disruption ensue, the cotton of the South will not be employed to build up the mercantile greatness of New York as it now is; and all far-seeing men admit that the probabilities are ten to one that California will set up for herself within a decade, and if she does, she will certainly take care of her own native coin, and build herself up by the use of it-not New York. THE SUNDAY School. CONCERT The NICHT The

11. 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.

12. January 22, 1858 Evening Star Washington, DC
Article from Evening Star, January 22, 1858

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Exchange on New York... 1/2 a x Do. Philadelphia Do. Baltimore This indicates but little difference in exchange between the cities, and looks to an early resumption of specie payments by the three cities yet suspended. The banks, having this fact in view, are doing but little to accommodate their customers. Money, however, is more abundant, and persons with known ability to make prompt payment find no difficulty in getting what money they want, of private bankers, at 6 a 8 per cent. Second-class rates. paper is hard to be negotiated at any Treasury notes are refused to be ta ken in New York by the banks, and arequoted at 99 and 99½ The same rates will govern here. We hear of but few sales of Corporation stock. No Inquiry for Bank stocks, and, as usual, we omit quotations. Land Warrants are in active demand, and have advanced 4 cents per acre since our last report. The General Land Office has advertised to be restored to market, in Juneand July next, the land on the railroads in Iowa within the six miles, and offer for sale a large quantity iu the same State, aot heretofore subject te entry. APPOINTMENTS BY THE PRESIDENT-By and with the advice and consent of the Senate.Beverly L. Clarke, of Kentucky, appointed Minister Resident of the United States to the Republic of Guatemala; to be also Minister Resident of the United States to the Republic of Honduras, pursuant to the 9thsection of the act of Congress of the 18th of August, 1856, entitled "An act to regulate the diplomatic and

13. February 17, 1858 Weekly North Carolina Standard Raleigh, NC
Article from Weekly North Carolina Standard, February 17, 1858

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1858. NORTH-CAROLINA. WED NESDAY. FEBRUARY 17, Nat e RESUMPTION OF SPECIE PAYMENTS.- The Banks of The late Fight in the House. The following let We have seen several accounts of the late unfor. New York, Philadelphia, and Baltimore have resumsentative, the Hon ed specie payments; but those of Richmond and tunate difficulty in the House of Representatives beD attention of the fr Petersburg have not yet done so. We presume that tween Mr. Keitt, of South-Carolina, and Mr. Grow, e tional Foundry on 1 of Pennsylvania, and in which other members were the Banks of this State are awaiting resumption by h involved before it was terminated. Mr. Keitt was the Richmond and Petersburg Banks. The Baltimore American of Saturday last says, clearly in the wrong. Mr. Grow had a right to any b SIR: Since the p part of the hall, at least to make a motion and but "though the measure was an important one, and nec1 called for by His ] e essary to place our exchange on a par with the cities for the rude remark made to him by Mr. Keitt, the peeting the advanta e for the site of a Na scene would not have occurred. We say this as north and west of us, whose Banks had already rea been directed more journalists aiming to be truthful and just, though we sumed, its effects here were scarcely noticable. Our had been to an int detest Mr. Grow's principles and associations, and banks have for some time past met all the local deh occurs at the Tyser can have no sympathy with him. mand for specie, and therefore no urgency was exAs I deem the re As the danger increases-and it is increasing-it hibited upon the part of any one yesterday to obimportance, I have cate them to you f becomes the representatives of the Southern people tain gold or silver for their notes. The suspension , tached to the repor in both houses of Congress to address themselves to of our Banks, following immediately upon that of The ore is of a d their duties with more than ordinary calmness and the Philadelphia institutions, occurred in the latter 5 respect it closely r dignity. Our cause is too momentous-it involves part of September, and has lasted therefore about but it is distinctly , e The powder is an too many great and vital interests to be put to hazfour months, a shorter period than any previous both from the haem ard, or to be injuriously affected by the mere passuspension, and proving that though the crisis was n as from the commo sions or resentments of individual members. Let severe the recovery has been proportionably rapid. d black. But, like t The example of the Baltimore banks will no doubt us meet the aggressions of our enemies with firm. and hence it is pro be shortly followed by those of Maryland, Virginia ness, but the halls of Congress are not the places for tion is not very unl from the common : and North-Carolina; and these indications of returnthe exhibition or the exertion of physical force. erous system, in th ing confidence will give vigor in time to the slowly The Washington Correspondent of the New York n several other partio progressing revival of trade." Times gives a somewhat amusing account of the the Blackband ore

14. February 17, 1858 Edgefield Advertiser Edgefield, SC
Article from Edgefield Advertiser, February 17, 1858

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"THE REACTION." The reader's attention is pointed to the following very cheering paragraph from the Charleston Ecening News, of the 8th instant: "The times are improving. The prices of American produce are advancing. Cotton has again reached a paying point, and assumed steadiness at all points. It has also commenced to come forward freely, and planters, with a certainty of remunerating rates, can now powerfully aid in effecting and sustaining a monetary reaction. The banks of Philadelphia, Baltimore and Washington have just resumed specie payments, following the previous action of those of New York, whose money plethora begins to find relief in even low rates of interest-less than G per cent. on first class paper. A similar condition and process exhibit themselves in England. France still earlier recovered her equilibrium, and the return of confidence throughout Europe is marked in its progress. Consols have gone up to over 95, showing that capitalists, where they can have confidence, are assenting to the most moderate rates of interest. The advices from Manchester are favorable, and trade indicates revived activity and steadiness. The receipts of gold from California and Australia continue full, and the flow of a re-swelling credit is everywhere felt. Our cotemporary has watched the moneyed crisis with constant concern, and from his position, is enabled to estimate shrewdly its probable duration and results. That he has reckoned aright in his present observations, is most earnestly to be hoped. With him, we think the indications decidedly good for a happy clearing-up of the financial 'spell,' which has hung so gloomily over the people for the last six months. In the country, as in the cities, matters are becoming easier every day. The rise in the cotton market will at once throw a large amount of bank bills into circulation. The crop will be no longer held back. Every planter will sell, and ought to sell. If he has no debts to pay on his own account, he probably has friends who have. To these he might lend his funds on good security, at 10 per cent if he will not do so for less. The moneyed troubles of '57 and '58 may end in a happy jubilee, if every one will thus act. Such in point of fact is the course now being adopted by the planters. On our side of the State there has not been, after all the threats to creditors, anything like the sueing that was anticipated. Return-day, for Edgefield at loast, is passed, and no great harm done. almost hundreds of thousands,-of indebtedness, will be liquidated amongst us by the proceeds of the large remaining portion of our cotton crop. At 121 cents per pound, there is enough of the staple yet unsold to make money abundant. The cotton-buyers in Hamburg are up to the mark, as usual the Hamburg Bank too is liberal in furnishing them the ineans of paying full prices. And Hamburg money, suspension or no suspension, is as good as Mr. Dorn's gold in these parts. Treasury Notes could be no better. Only let there be enough of it, and all will be well. We warmly congratulate our readers upon the promising appearances of the hour, and wish them a happy issue out of their monetary afflictions.

15. May 19, 1875 Watertown Republican Watertown, WI
Article from Watertown Republican, May 19, 1875

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Clearing House Association the banks could not have furnished the funds. The first critical test to which the Clearing House was subjected was during the panic of 1857, when was demonstrated in the most satisfactory manner its strength and permanency. During that memorable financial tornado the banks of New York were unable to make settlements. They would make their exchanges, but the gold was all gone, and it was impossible to adjust differences. It is a matter of history that the precious metal was as completely drawn from circulation as though it had never been a medium. The banks held plenty of assets but they were not available for the emergency. It became necessary therefore to devise some means whereby the temporary embarrassment could be relieved, and a committee was appointed for that purpose. At that time there was in circulation a large amount of currency issued by the state banks. The Metropolitan Bank of New York was appointed by the association to receive all of this state money, and certificates representing it were issued, known as Metropolitan certificates. They bore interest, and, by a vote of the associated banks, were used in the payment of balances due at the Clearing House. By this combined action of the New York banks, not only was the general ruin of themselves averted, but it was also of incalculable benefit to the state banks, for as soon as the excitement subsided they wereable in a short time to redeem their own notes. The largest amount of Clearing House certificat S in use in the city of New York at any one time was $36,000,000. THE PANIC OF 1873, and from which the country has not yet recovered, is still fresh in the memories of the people, and a short narration of the action of the Clearing House Association at that time will be found of more than ordinary interest. While in 1857 it was gold which suddenly was withdrawn from circulation, in the latter panic it was United States legal tender notes. In accordance with a resolution, each bank was compelled to report to the manager daily its liabilities and the amount of legal tenders in its possession. The object of this was to equalize the strength of the associated banks. If it was found that one bank held more than its proportion of legal tender notes it would receive for the amount it had in excess a loan certificate, which hore interest. The weaker banks drew from the Clearing House the amount required to make up what they were short, and by thus acting in concert all were saved and a terrible disaster prevented. THE CLEARING HOUSE AND THE GOVERNMENT. The experience gained in 1857 was turned to good account in 1861, and contributed largely to the organization of the Loan Committee, through whom loans were made to the government of $105,435,903, its proportion of the $150,000,000 loan, by the cities of Boston, Philadelphia and New York. During the war the government issued certificates of indebtedmess bearing interest, which were found to be desirable as a reserve for banks. Accordingly, an arrangement was made for the issue of special certificates bearing interest, available only to banks, members of Clearing House Associations, and which were recognized in the National Banking act as a part of the lawful reserve of a national bank. The principal was made payable in legal tender notes on demand at the office of the Assistant Treasurer of the United States in New York, and the interest to the manager of the Clearing House and the chairman of the Clearing House Committee jointly. The interest was made payable semi-annually. The certificates were made payable by a vote of the Association in the settlement of balances at the Glearing House and were SO used, thus daily changing the amount held by each bank, and frequently by the presentation of them by individual banks to the Assistant Treasurer of the United States for payment of the aggregate amount issued. The interest was collected and disbursed every six months by the Clearing House, and each bank received theexact amount of interest due it, notwithstanding the fact that the amount held by each bank had changed almost daily during the entire period. The amount of loan certificates issued in 1873 was $26,565,000, but the largest amount outstanding at any one time was $23,200,000. The emergency over, these certificates were, of course, gradually retired. There are fifteen banks in the city not members of the association with a capital of $3,500,000. Some idea of the magnitude of the business be authored

16. December 4, 1890 Echo De L'ouest Minneapolis, MN
Article from Echo De L'ouest, December 4, 1890

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y firent faillite dans un laps de temps de deux Gu trois semaines, et le même fait se produisit à proportions gardées à Boston, Philadelphie, New-Orleans et dans tou. tes les villes de la République Américaine. Les états de l'Arkansas, de l'Il linois, de la Pensylvanie cessérent de payer leurs dettes; celui de Mis sissipi fit mieux il repudia purement et simplement toutes celles qu'il avait contractées. Ce fut sans contredit la plus terrible calamité financière qu'aient jamais éprouvée les Etats Unis. La cause première de la troisième panique fut la faillite de le "Ohio Life & Trust Company de Cincinati", qui eut lieu le 24 août 1857. Le passif de cette société, qui jouissait d'un crédit illimité, fut de plus de 77,000,000 de dollars. Moins de deux mois après, vers le milieu d'octobre toutes les banques de New York à l'exception de la "Chemical" suspendirent leurs paiements. Cette dernière seule fit face à ses engagements, comme elle l'avait déjà fait, du reste, en 1837. Le 12 Décembre, les banques fu rent rouvertes mais les effets de cette crise monétaire se fit sentir jusqu'au commencement de la guerre de sécession. Une des plus audacieuses cons. pirations financières qui aient jamais éclos dans un cerveau humain fut sans contredit celle qui arriva à un cheveu de la réussite le vendredi 24 septembre 1869, connu depuis sous le nom du "Vendredi noir." Une clique de spéculateurs au nombre desquels se trouvaient James Fish qui, trois ans plus tard fut tué par E. O. Stokes et le non moins fameux Jay Gould entreprirent, vers le milieu de l'année, d'arriver à monopoliser l'or du monde américain. Les conspirateurs achetèrent au début l'or à 131; quelque temps après il était à 141 puis à 150. Le matin de ce vendredi péfaste entre tous, on apprit à la Bourse de New York que la clique avait accaparé l'or du marché pour une somme variant entre 120 et 150 millions de dollars. A l'ouverture de la Bourse, de 150, le cours monta à 155, à midi il était à 160, et quelques minutes plus tard à 162. Dans tous les Etats- la stupéfaction fut profonde indescriptible, le pays se trouvait pour ainsi dire à la mtrci de ces audacieux spéculateurs. Mais ceux-cl avaient compté sans le Trésor de la République Américaine, tenu fort heureusement, au courant des menées de Gould et consorts. Au cours de 162, le gouvernement fit acte de présence, vendit pour 1,000,000 de dollars. Ce fut comme une traînée de poudre, "Le trésor vend" cria t-on de toutes parts et quelques minutes plus tard de 162, le cours était redescendu à 135, puis à son taux normal. La conspiration avait échoué, mais le nom de Jay Gould était illustré?? à jamais. Enfin la dernière de ces crises financières, celle de 1873 fut causée par la construction excessive et anormale de nouvelles lignes de chemin de fer. Dans les trente mois précédents, on avait établi plus de vingt mille milles de voles ferrées, coutant plus de mille millions de dollars. Or, ce ne fut que dix ans plus tard que le besoin de ces nouvelles communications se manifesta d'une manière tangible. On comprit cette imprudence et un sentiment de malaise général se fit sentir dans les cercles financiers dès la fin de l'été 1873. Le 8 Septembre la "New-York Security" sombrait, anéantie par le Missouri, Kansas & Texas R. R.; le 13, la banque Daniel Drew, subissait le même sort dû au "Canada Southern R. R.;" le 17, celle de Jay Cooke disparaissait, ensevelie par le "Northern Pacific R. R." et comme en 1837 la plupart des ban ques fermèrent leurs portes, et la plupart des manufactures cessèrent de fonctionner. Tel est grossomodo le résumé des crises financières qui sévirent depuis 70 ans aux Etats-Unis.