Banks of New York (general run)

Bank Information

Episode Type: Run → Suspension → Unsure
Bank Type: state
Start Date: October 20, 1857
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 2035e2a5

Response Measures

Full suspension

Other: Collective/specie suspension by the 'Banks of the City of New York' as part of panic of 1857; Clearing House conference mentioned but failed to secure unanimity of mutual aid.

Description

Article (Burlington Weekly Hawk-Eye, 1857-10-21) describes heavy withdrawals and crowds at New York banks followed by an announcement that the Banks of the City of New York have suspended specie payment. This is part of the 1857 panic — a run preceded suspension of specie payments. The article does not state whether banks permanently closed or later reopened, so I label as run_suspension_unsure. Bank name is a general description of multiple city banks rather than a single chartered institution.

Events (2)

1. October 20, 1857 Run

Cause: Macro News
Cause Details: Widespread financial panic of mid-October 1857 caused heavy withdrawals and crowds at New York banks; systemic panic reduced specie reserves.
Measures: Heavy payment of gold/specie to depositors; paying out until specie depleted; led to suspension of specie payments.
Newspaper Excerpt: the scene was utterly and for three hours ... brought into the street ... a multitude ... Every bank ... crowded ... the paying out by the old Bank ... paid hundreds of thousands.
Source: newspapers

2. October 21, 1857 Suspension

Cause: Macro News
Cause Details: Clearing House failed to secure unanimous mutual aid; heavy withdrawals and reduced specie reserves forced suspension of specie payments by city banks.
Newspaper Excerpt: The Banks of the City of New York have suspended specie payment
Source: newspapers

Newspaper Articles (1)

1. October 21, 1857 The Burlington Weekly Hawk-Eye Burlington, IA

Article from The Burlington Weekly Hawk-Eye, October 21, 1857

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Article Text

surances of the safety of the city the banks Park which an other had previously, banks, been during the ren esterly on failed in on the je sho Red shat have afters depenitors yesterday, found the bank doors class stainst i 1 1 that shrough queq sur posulting yes Ave DAY 100 regard, Each I of servid : first being to and now another, (se) 1 Bre, the and I the exclument alarm $ person settle but as the extent of the failures down came into to be realized, lest despendency and at the close banks of business grad hours the arowds sound the smaller ually dispersed, heavy with the pressage that the morrow was destined to bring increased bank Probably che I aby the xa qoant os persons Amployed jo termal avidence of alarm may be traced the fact that the pressure fell пров - many ental depositors just that class whose fears are most easily wrought upon, and whose interests will suffer most seriously of loans, specie, The following is the amount circulation and nominal deposits of the eighteen banks which suspended: Loans, $20, $20,963,468 Specie, 2,432,265 Circulation, 2,607,109 Nominal Deposits, 11,678,866 The condition of the thirty-three hauks which did not suspend DD. Tuesday, but did on Wednesday, I = follows: Loans, $90,419,822 Specie, 10,015,018 Circulation, Nominal Deposits. 51,222,888 ANOTHER Account.-The ACCOUNT Banks of the City of New York have suspended specie payment the it in ones state This announceme is not yet of official, the case at prac- the in . tically of it bank hours this afternoon. We have long close expe experience, witnessed any catnever, astrophe so sudden, or one attended with such wide-spread popular excitement. The public generally prepared for it by the week. were not of the past week which appear ly bank average morning. The statement showed an average specie reserve od this of $11,467,000 -not well distributed, to be sure, yet showing to no more inequality than had often before been exhibited. But the average of the week was known to bes The sum total, which might declining been one. the true test of the reserve in the middle have of the week had shrunk to ten millions on Monday (yesterday) morning. The generally steady run on that day, and the presquiet but in particular banks, are supsing redemptions to have reduced the sum total actually on posed hand at the close of business to about $8,500,- 88, The Clearing House Association, it seems, 000. failed to secure unanimity of action and mutual and aid, such as were reflected by the preamble did resolutions published this morning. They notstand up to mutual assistance. At least one, important concerns on the if not two of the town were virThey West or North River side of the all probably concerted taally denied together assistance. last night, and with the susto-day of the Ocean Bank, with a capital pension of early $1,000,000, $1, came the stoppage of the the North Merchant's Exchange, capital 200,000, River, 101 MON pus Banks. This was well known in Wall general street run, by the hour of noon. Then set in the indethe scene was utterly and for three hours comscribable, attended as it was by a popular from Broadmotion that brought into the street, only be to Hanover, a multitude that could numbered by fives of way thousands. Every bank nable, crowded, the strong and (boasted) impregjo New was and the weak. The American Exchange, York one of the redeeming mediums circulawas first set upon. Mr. State country bank and New David England Leavitt, the they the tion, President, (now an officer and Director, jo 52 No. steps Wall street, of the Bank, appeared and addressed upon the erowd. He for his own, manifested game, speaking other not Wall only street banks. but for six or eight pressed into each banking. room But still the crowd tellers were went in the vicinity. The paying out by kept actively employed. The gold old Bank hundreds of thousands. The tens and seventy years ago, and of New York, chartered thouwith a o'clock. capital of two million six hundred This way about two sand dollars, gave of the key jo the stone pus arch, struck the crowd as the the giving successive away announceof the Fultor Market, ments, of Manufacturer, the suspension Tradesmens', and half a Leather town banks, ceased to excite surprise. dozen up of the run Attention was turned to the progress in Wall street. at The crowd upon the other the large Bank concerns of the State of New York, was the William street and Exchange Place, in gold. most quiet; yet $325,000 were paid Mechanics' out the At the Bank of America and Each lost heavily. pressure was more marked. day, the At the Union and National, late in the each pay. applications for gold were numerous, the Merchants', the ing about $75,000. considerable, At but not numerous. drafts were were heavily The Republic and the Metropolitan American Exchange. upon, as well as the the Wall street But we believe that nearly York, all wentinto conbanks, except the old New not killed ference this afternoon only lamed, serious The Commerce was not very not esoutright. Continental, though molested. The the close. of teemed ly very strong, paid above up to the Metropolithe Banks on Broadway, Chemical, Shoe tan, the Mercantile, Importers', into conference Leather, and Pacific went and The Broadway gave without letting down. Park and Nassau On the east side, the Park way. Artizans stopped payment paid through. The Seventh Ward paid through. at 21 o'clock. The stopped FurThe Fulton and Market reported side, the Oriental ther up town, and on the Mechanics' same and Traders', we paid through, The Citizens' and Butchers way believe. did the New York in the forenoon, and so to a early at o'clock, pointed County. The result, in the morngeneral declaration of suspension of such of the banks as ing, and the re-opening in doubt as to the closed their doors to-day day of the City Banks. course of the great the body Specie standard will be The currency one from of Current Bank Notes or Cur. changed to and business transaction in every rent department Funds, of trade, will at once be conformed to the change. hour of writing, we do not question At the conferences now going the result of the bank event struggle is notlikely, not in any on. But the the conclave, to be prothat may transpire standard has ceased to be longed. The Specie New York for the present rule in business in the Clearing-House House Associated Banks in a The averted this catastrophe or week days use ore might possibly have by yielding to counsels with surely that sympathized more closely controlling minds feeling than the inthe popular is even probable, as in the Association. It of yesterday that timated in our weekly review one with the other, by making common cause, of averages which and that the aided by the statement danger might appeared this morning, week. But isnow quite have been passed this concert, mutual aid, and quite : certain that sensible much wanting forbearance were practical decent House as harmony and in the Clearing conferences with the mergood sense in the confere Troy delegation last chants and the Albany and the mad conweek. From all we can yesterday gather, that half clusion was arrived at town on the North River side could be dozen or more banks thrown up out with impunity. Of course this was fatal. GREAT our city STEALING IN New York. councils Some time apago one of the boards of way of an experiment, nointed a committee, by of the financial departto look into the records Corporation, in order ments of this blessed how the peothereby to ascertain, if possible, for the last few E ple's money has pursuance been of going their duty, the papers, committee years. have been inspecting the books, for the last or or six DAY years $1 &d., touching our city more, expenditure and their discoveries seems, have been perfectly overwhelming. disclosures, that within from these astounding years, sums of money amounting to stupendons the skis period of five or six aggregate of eight