Banks of New York (specie payments suspended)

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: 94f8f570

Response Measures

None

Description

Article (Oct 1857) reports that banks in New York suspended specie payments amid a broad financial crisis (Panic of 1857). The article does not explicitly state reopening, but historically these suspensions were temporary; I select suspension_reopening as the most likely outcome given the context. Bank type not specified in the text.

Events (1)

1. October 14, 1857 Suspension

Cause: Macro News
Cause Details: Widespread financial crisis/panic (severe week, heavy withdrawals and diminished specie) leading multiple banks including New York banks to suspend specie payments.
Newspaper Excerpt: The banks of the following cities have suspended specie payments to-day: New York, Albany, Brooklyn, Boston, Hartford, Trenton, Portland and a general suspension throughout New England is anticipated.
Source: newspapers

Newspaper Articles (1)

1. October 20, 1857 Arkansas True Democrat Little Rock, AR

Article from Arkansas True Democrat, October 20, 1857

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Article Text

Financial Matters St. Louis, Oct. 12.-Dean, King & Collins, and Kirby & Co., have suspended-a million each. A. J. McCray, dry goods merchant, has failed. New York, Oct. 12.-Corning & Co., bankers, have suspended. The banks will not increase their discounts until they have gained large accessions of specie, as increased loans, with diminishing specie, would be suicidal. The past week was the most severe ever experienced here. Enormous Defalcation. A recent examination of the financial department of the city corporation shows the disappearance, in the past five years, of eight to ten millions of dollars, for which no account is rendered. New Orleans, Wednesday, October 14. The Union Bank has just suspended. There is a heavy run on all Free Banks and great excitement. The Branch Mint has purchased of the Banks $200,000 in silver and bullion and are paying gold, thus affording some relief. New York, Wednesday, October 14. The banks of the following cities have suspended specie payments to-day: New York, Albany, Brooklyn, Boston, Hartford, Trenton, Portland and a general suspension throughout New England is anticipated. Buffalo follows to-morrow. Wall street is comparatively quiet. There is a moderate run of the Savings Bank of this city, which WAS promptly met, but those in Brooklyn were obliged to close. The officers of the New York Savings Banks are in consultation, and propose paying the per cent. on deposits. The Bank of America and Chemical Bank continue specie payments. The Manhattan is said to be doing the same. Other Banks will probably follow in making partial payments. Nearly two million in specie were paid out yesterday, exclusive of that paid by Savings Banks. Gold is selling at 4 and 5 per cent. premium. The Brokers' Board passed a resolution to receive certified checks for stock, which rose 9 Ther cent, and at Second Board was still firm Mechanics' Bank Directors held a meeting and expressed entire confidence in the New York Banks, and paid dollar for dollar.