Banks of New York City - New York, NY

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: May 1, 1837*
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 719db4bd

Response Measures

None

Description

The article describes the collective suspension of specie payments by the banks of New York City in May 1837 and their resumption of specie payments in May 1838. This refers to multiple state-chartered banks (pre-National Bank era). Cause is macroeconomic/policy shock tied to Jackson's Specie Circular and broader credit collapse.

Events (2)

1. May 1, 1837* Suspension

Cause: Macro News
Cause Details: Specie Circular, removal of deposits and wider credit contraction under Jackson administration led to suspension of specie payments
Newspaper Excerpt: In May, '37, the Banks of this city suspended specie payments, which was followed by all the Banks of the country
Source: newspapers

2. May 1, 1838* Reopening

Newspaper Excerpt: In May, 38, the banks in this city recommenced specie payments, which was followed, after a short a time throughout the country, and there seemed prospect of some little prosperity to the country
Source: newspapers

Newspaper Articles (1)

1. October 29, 1839 The Caledonian Saint Johnsbury, VT

Article from The Caledonian, October 29, 1839

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Article Text

refused A TRUE BILL A correspondent of the New York American has condensed into a small space, the results of the experiments of the last eight years. When our currency tinkers first set about their blessed business there was no country on the face of the globe that could boast of 11 better currency or sounder credit than the United States of North A merica. The lapse of eight years has brought us to the end of their experiments and our prosperity. This proud country now reels beneath the blows which have been dealt by wicked and imbecile rulers. Credit blasted, currency destroyed, enterprise prostrated, and industry paralyzed, are the fruits of the present season. The party' have sown their 'wild oats, and the people are reaping the harvest. Since Gen. Jackson, in 1837, 'left this great people prosperous and happy," the Govern. ment has broken once, the Banks twice, and the better currency which we were promised seems more remote than ever :-Albany Daily Advertiser. From the New York American. 'My humble efforts to restore the constitutional Currency.' 'I leave my people prosperous and happy. It is now ten years since that illustrious and sagacious man, Andrew Jackson, commenced his efforts to reform and improve our currency. The success and prosperity of his measures are before the country, and as his successor is pledged to follow in his footsteps, I may be be excused for recalling to the minds of the public some of the prominent acts through which he has endeavored and succeeded, in restoring us to the situation of the country at the time of the adoption of the Constitution, viz: one could not travel more than fifty miles without going beyond the credit of this money. In September, 1833, the Secretary of the Treas ury (Mr Duane) and the deposits were removed together, he from his place, and the deposits from theirs, and the latter put into State Banks, they pledged themselves to supply the place of the Bank and keep the currency in a wholesome condition. We all know the outery raised throughout the country, and that Congress awoiding erapproving or condemning it. leaving all the monied power of the country in the hands of the President, pledged himself to supply us with a better cur. rency.' very extensive bankruptcy took place through out the mercantile community, great doubts were expressed of the solvency of our State institutions, and a rapid change took place against the administration in the public mind, to divert which through foreign influence, a bill was brought into Congress to reduce the value of gold in the eagle, which was passed; immense amounts were coined, every retainer of the Administration furnished with them, and the people were told that they were to have nothing but "yellow boys," and taught to shout, "huzza for Jackson, down with the Banks!' In this warfare many Bank Presidents, Cashiers, and Directors, were engaged-not foreseeing that the storm they were raising would ultimate ly overwhelm them To fill up the void about to be occasioned by the withdrawal of so much capital, applications were made to the State Legislatures for Bank Charters;-and in this State, every patriot who wanted an office for services rendered in the Administration party, was paid in the profits arising from Bank charters. The Bank of the United States, whose charter expired in 1836, applied in the winter of '35-36 to the Loco Foco Legislature of Pennsylvania, and succeeded in getting a charter from the State The Girard Bank was, I believe created about the same the Unietd States Bank ceased its functions as an United States' institution, and became that of State. InFAugust, '36, General Jackson issued his Specie Circular against received any thing but specie for public lands, and the government official com. it mencedits lectures on overtrading; doing all could, while credit was extended, to destroy it. In February, 37, the Loco Focos of the city of New York, headed by an officer of the customs, met in the Park with inscriptions upon their banners down with the rags, 'give us g Id and silver," &cc, and after an address from this officer, proceeded and broke open several flour stores. In May, '37, the Banks of this city suspended specio payments, which was followed by all the Banks of the country In July, Gen. Jackson wrote his denouncing their as "fraudulent institutions, forgeting how much character some of his friends in them had lost on his account. Prior to this, Mr Van Buren refused to call Con together. denying that there was any neces. sitv of so doing. but the moment that the salaries of the office holders were affected, he saw the necessity of calling it together, & laid before it his famous bill, for the protection of the office holders salaries, or the separation of the government from the people. In May, 38, the banks in this city recommenced specie payments, which was followed, after a short a time throughout the country, and there seemed prospect of some little prosperity to the country In the early part of this year, Mr Benton, who has suffered by Bank notes, commenced his war cry of specio gold, &c. Mr Van Buren, the moment he'put his foot on the shores of his native State, began the old song of "irresponsible institutions." The New Era, and all kidney, recommended that they should be run upon, and a general dis. trust was caused. This month the Banks of Pennsylvania have atopped, and no doubt the southern and southwestern Banks will follow: here and at New England we shall stand firm. I now sum up the results: In March '37, General Jackson left the Presidential chair with the above declaration, since then the Government has broke once and the Banks twice, and the better currency which was promised, seems more remote than ever. I write this in a spirit of seriousness, trusting that the above plain recital of facts may call back my countrymen who have wandered after the evil spirit of Loco Focoism to the proper path. To the Editors of the Courier & Inquirer. To put an end to the enormous quantity of Locofoco misrepresentations and falsehoods afloat in the community, I request that the following plain facts may be stated: 1. The U.S. Bank of Pennsylvania is a state.