15460. Banks of New York City (New York, NY)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
October 17, 1857
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
55b652c5

Response Measures

None

Description

Multiple articles describe the collective suspension of specie payments by the banks of New York in mid-October 1857 and a resumption on Monday, December 14, 1857. This is a citywide, collective suspension (not a single bank run). Cause attributed to the Panic of 1857 / systemic liquidity shock.

Events (2)
1. October 17, 1857 Suspension
Cause
Macro News
Cause Details
General suspension of specie payments by New York city banks during the Panic of 1857; systemic liquidity strain and interbank clearing arrangements prompted suspension
Newspaper Excerpt
The general suspension of specie payments by the banks of this city
Source
newspapers
2. December 14, 1857 Reopening
Newspaper Excerpt
On Monday the Banks of New York city resumed specie payment on all their liabilities.
Source
newspapers

Newspaper Articles (6)
1. October 17, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, October 17, 1857

Click image to open full size in new tab

Article Text

The above named banks, fifty in number, now constitute the Clearing- House Association. The receiving and paying out of State money makes considerable additional labor for bank Tellers, but gives general satisfaction to the public. The system has not yet been sufficiently long in operation to allow of an opinion being formed of its practical working, but some bank officers predict that great evil will flow from little good. How the banks are to prevent the accumulation of this money in their vaults is a question which has embarrassed some of them; but this accumulation could be easily prevented by paying it on checks instead of certifying them. The American Exchange Bank has issued the annexed circular. THE AMERICAN EXCHANGE BANK, NEW-YORK, Oct. 15, 1857. DEAR SIR: The general suspension of specie payments by the banks of this city has 80 changed the regular current of business as to render it proper to arrest the operations of our uncurrent department as hitherto conducted. A temporary arrangement having been made by our city banks to receive and pay out, at par, the notes of solvent banks in the State of NewYork, this bank will thus receive such notes for &Ccount of their correspondents, excepting such &S are named below, which are at present excluded from the Clearing-House.

2. October 24, 1857 Republican Vindicator Staunton, VA
Article from Republican Vindicator, October 24, 1857

Click image to open full size in new tab

Article Text

# The Suspension of Specie Payment. The Banks announce, through the morning papers, that they have resolved, one and all, to suspend payment. This is cool, to say the least. When an individual stops payment with a large amount of money on hand, if he happens to owe a bank anything he is sued before night. But the Banks, after paying out about half their specie, got together and "resolve" that they will not pay any more, and then coolly and smilingly say to their creditors, "gentlemen, we have concluded, on the whole, that it is best to suspend." But this is not the worst of their conduct. They not only suspend payment with money in their vaults, but they get together and resolve to pursue a course that will cheat and defraud the poor out of their hard and honest earnings; they "conclude" to go on issuing their broken promises to pay to palm off their certified checks on the community, as representatives of money which they have not, and to utter to the world a most stupendous lie with the hope and expectation that they will be believed. They open their accounts-one of the specie that is for their own use and the use of their friends-one of certified checks for merchants; to enable them to carry out their policy of "make believe," and a third account of currency, that is to pay out, or, as one of them expressed it this morning, for the working classes. If ever villainy was practiced in any community, the Banks of this city are now practicing it. We hope the farmers and working men will not touch their stuff, nor in any way encourage their rascality. - New York Day Book.

3. December 19, 1857 The Ottawa Free Trader Ottawa, IL
Article from The Ottawa Free Trader, December 19, 1857

Click image to open full size in new tab

Article Text

# Resumption of Specie Payment. On Monday the Banks of New York city resumed specie payment on all their liabilities. The Boston Banks immediately followed their example, and next day the New Haven and the suspended banks of New York and the New England States gererally, also resumed. The banks of New Orleans resumed a month ago, as did most of the Southern banks, so that the Pennsylvania banks, and a few others scattered here and there, are the only exception to a general resumption. The resumption in New York and New England, aside from the little aid it may give, on account of the mere name of the thing, to the work of restoring confidence, will have no immediate effect to benefit business. The circulation of these banks has for a long time been regarded as doubly secure and at no time after the first week of the suspension in New York, has gold commanded over ½ to 1 per cent. premium above the city bank bills. Indeed most of the New York banks at no time ceased wholly to redeem their bills. When the New York banks suspended, they had about $7,000,000 of specie in their vaults; at present they have $26,000,000. Ordinarily from ten $12,000,000 are considered a safe reserve, It is plain, that with such an enormous amount of specie on hand, with nearly the whole cotton and grain crop still in the country to be exported in the spring and upon which to rely for balances of specie and exchange from abroad, the New York and New England banks will meet the opening business in spring in a stronger concition, and in a condition to afford ample facilities to trade, than they have presented for many years. If they will use the enormous means at their command in the legitimate way of business, and not again plunge into doubtful railroad and other fancy stocks, there is every reason to look for as active, heavy, and prosperous a business in this country in spring as we have ever witnessed.

4. December 20, 1857 Nashville Union and American Nashville, TN
Article from Nashville Union and American, December 20, 1857

Click image to open full size in new tab

Article Text

Monetary and Commercial. The banks of New York city, Albany, Bostonand New Haven resumed specie payments on Monday, the 14th inst. The New York Tribune of that date says: The banks of our city and State have fully resumend specie payments. They have done this in the face of our still heavy indebtedness to Europe, and of a prospect that specie will continue for some time to be drawn from their vaults to discharge a portion of that indebtedness. For, though our im ports are, and must for months continue to be light, the amount of grain and flour to go forward is in considerable, while cotton, tobacco, pork, and almost every thing else we have to sell, are 80 depressed in price as seriously to impede their movement as well as diminish their productiveness. Farmers naturally hold back, hoping for better prices; while the charges for transportation which were tolerable on the prices of last year, nearly eat up the proceeds this year. We must continue to export specie, there fore, and the strain of such export is felt primarily by the Banks of our City. Their resolve, therefore, to take the lead in anearly resumption, evinces courage and a consciousness of enduring Opinions are very much divided in regard to the effect of his important measure. Many of our leading merchants and bank managers regard it as premature, while others look upon it with indifference, anticipating no essentialchangeit the generalcours of monetary affairs. In one day's experience no satisfactory test is afforded, but there is something in the total lack of dist urbance or excitement which justifies the anticipation of a quiet and easy return to the specie basis. It must be taken into considerations that since the suspension of specie payments our bank loans have undergone no expansionstanding in point of fact, in the weekly returns, nearly $1,000,0001ess, in a comparison of the figures of Oct. 17, a few days"after the suspension, with those of Dec. 5, the date of our last returns. During the same time the specie reserve has run up from $7,848,230 to $26,069,852, an increase of $18,221,602, and the deposits from $52,894,723 to $78,492,065, again of $25,596, 442 Thus, while in loans, theposition of our Banks has not materially changed, their resources have been strengthened to an enormous amount within a very brief space of time. The Louisville Courier of the 17th inst., says: The hog packing season is progressing slowly, and the market is of a quiet character just now, though hogs may be quoted from 5}a5}e net, cash and time. The total number killed around the Falls, up to this evening, is littleover 100,000 head, with but few left over in pens. The season is very backward, and it is some three weeks later than the last, which closed before the 1st of January, with the slaughter of 216 838 hogs. It is anticipated'by many, that the present season will fully equal the past in numbers, while it will exceedit in weight. At Cincinnati, the market early in the week wasbuoyant, but it rapidly declined. The advices from New Orleans produced a dull and heavy market both for the hogs and product; and at the close there were several anxious sellers, but no buyers. The number of Hogs which arrived from Ohio and Indiana during the week, is quite small. In fact the Ohio, Indiana and Illinois Hogs have not yet commenced to arrive fully, and it is clear now that a large business will be done in January. The receipts at Cincinnati are vastly behind those of last or any previous year, but but this, taken in the abstract, is u usually backward, farmers being anxious to feed their hogs as long as possible, and this is both logical and prudent, because even $3 50 net for pork, would better than to sell the corn at 10a15c per bushel in the field. The slaughter at that point, upto yesterday had amounted to 162 hogs, against 250,213 the previous year at the same date. We learn that the corn crop has been very seriously damaged throughout the West, in consequence of early frosts and wet weather. Through a large portion of Indiana, we learn that farmers are very alarmed. The corn that has been put in cribs is heating. and purchasers refuse to buy it for any purpose except where it can be used immediately in feeding hogs. In many places it is said to be difficult to find sound corn to answer for seed. We are aware of the general tendency to exagerate reports of this character, but are satisfied that the corn crop has suffered very serious injury in Ohio, Indiana and South Illinois. The present erop, however, is far greater than that of any previous year, and the damages will have to be immense to bring it below the usual average. Nashville Market, Dec. 19. Corron.-The market still continues depressed under the unfavorable advices from Southern ports and Europe. To-day sales were madeat though G. fraction higher might be obtained for a very supemior article. We quote the market at 9@9fe, though holders, unwilling. submit to the decline, resulting in but few transactions. TOBACCO.- heard of the sale yesterday, of one hogshead of new crop, the first of the season, of second quality. at the warehouse of A. Hamilton. The price obtained was $6.05. Loose is selling at 3@5c. WHEAT.-The market continues quite brisk, our millers paying 70@75c for Red, and 80@85e for White. These prices being considered fair by farmers, receipts during the past week, have been quite liberal. FLOUR. We hear of no change in prices, and continue to quote superfine at $4@4.25, and extra and family at $5 per barrel. GROCERIES- market presented a more animated appearance to-day than for some time. We quote New Orleans, Sugar at 7@9c. in bbls. and hhds; Molasses 30@32, and Coffee 11}@12c. The stock on the market is ample to meet the demand. are offering 4c gross and 5c. net for Hogs. New Bacon is selling at 9c., and Lard at 10c. New Orleans Market, Dec 12 SUGAR.-We remarked in our semi-weekly re port that the weather for several days previous had been of the most unfavorable character possible for the crop. being warm and wet, codsing the cane to sour, and it is now estimated that the damage to the crop will be fully 75,000 to 100,000 hhds. The money pressure however, prevents speculativ movement, and prices gave way in the early part of the week. though they inverecovered slightly since. We noticed sales of about 2500 hhds. in the first three days of the week. but on Wednesday, only a limited business was done, cwing to the rain, which fell heavily nearly the whole Since then, with a return of fair weather, a renewal of demand and less free receipts, the advantage in prices has been on the side of sellers, who have obtained a slight advance in the Fair and Prime grades upon the rates current in the early part of the week. The sales of the past three days sums up about 3000

5. October 21, 1858 Nashville Union and American Nashville, TN
Article from Nashville Union and American, October 21, 1858

Click image to open full size in new tab

Article Text

# THE CONTRAST Refering to the fact that just one year ago the Banks of New York city suspended specie payment, with less than six millions of specie in their vaults, and that property of every description was depreciated to the standard of a previous generation, the Evening Post presents a pleasing contrast in the present condition of things. It says: "Doubtless many are yet suffering from the pinch of last year; but, putting their losses at the highest, the country has gained more than it lost by the revulsion. It has taught merchants a lesson about speculating in railroads and wild lands with their business capital; it has opened the eyes of multitudes to the folly as well as sin of stock gambling; it has created a healthy suspicion of all corporate property not managed by men of probity and character; it has relieved the country of a mountain of debt which was rising higher and higher, and which was rapidly destroying legitimate business, by placing fictitious prices upon all marketable commodities; in fact it has brought the country to a condition of good sense and prosperity which should be the subject of universal congratulation. Indeed, Gov. King might, with great propriety, have selected to-day for the annual thanksgiving of the State."

6. December 12, 1860 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, December 12, 1860

Click image to open full size in new tab

Article Text

# LATEST NEWS reducing the latter to grain gives a total of two mil- lions of bushels. Comparative Statement of the Exports (exclusive of Specie) from New-York to Foreign Ports, for the week and since January 1: 1858. 1859. 1860. For the week... $1,069,063 $1,000,969 $2,147,413 Previously reported... 57,347,658 61,897,704 92,587,806 Since January 1... $50,417,221 $63,564,673 $94,735,219 The amount of goods in warehouse shows a consid- erable increase during the past month, over $3,000,000. The figures were $13,605,385 on the 1st inst., against $10,334,627 on 1st December, 1859, and $8,564,238 on 1st December, 1858. The business of the Clearing House was $17,547,000. Mr. Thomas Morrell has been appointed President of the Jefferson Insurance Company, vice Mr. Moses Tucker, deceased. To-morrow is the anniversary of the resumption of specie payments in 1857 by the banks of this city, after a suspension of two months. Do- mestic Exchanges show no important change, but are no better; on Philadelphia 2@2½ cent, and on Bal- timore 3¼@4 cent. At New-Orleans the sight rate on New-York is ½@¾ cent discount. Foreign Ex- change was unsalable, and Cotton very heavy. The Money market is precisely as reported yesterday. On call money is abundant at 6@7 cent, and paper con- tinues to go slowly at 15@18 cent for best signa- tures in the open market. The Banks have discounted liberally to-day in all cases, as far as we can learn, in advance of their receipts, but the pressure for money is still great; the difficulty of getting exchange in the in- terior cutting off the receipts of the merchants. We hear of no gold sent away to-day, but some parcels have been received from the South and West. It is stated that the next English steamer to arrive has five hundred thousand dollars in gold on board. We think, however, that this is a mistake, but we anticipate some arrivals within ten days. We shall also have another California arrival this week, so that our banks should increase their specie considerably between this and Christmas. The Bank Exchange Committee are in session again, and have bought a few Sterling Bills. They will receive offers of bills daily at the Bank of Commerce. Our Western railways begin to show the effect of the political panic in diminished traffic, but comparisons are now, fortunately, made with a period of great dull- ness last year. The bulk of the Wheat crop of 1859 moved rapidly to market, and but little remained at the close of navigation; but the immense crop of 1860, although crowding the avenues to the Lakes, and em- ploying every vessel and boat on navigable waters be- tween the East and West, through the Autumn, still remains more than one half in the hands of the farmers. The dead lock in domestic and foreign exchange, and the extinction of ordinary credit facilities, obstructs the most important cereal crop movement we have had for years, and paralyzes business for the time; but the interruption cannot be so complete for any length of time. The crop is wanted for consumption, and must come forward, and an interval of dullness in lines of transportation must be followed by a compensating activity. The Buffalo and New-York City Railroad is to be sold under the decree of foreclosure on the 16th of Jan- uary next. The following is an estimate of the movement of Specie at this port for the eleven months of 1860, end- ing with November: California receipts... $31,419,420 From interior and coastwise... 13,162,956 From foreign ports... 2,678,269-47,290,545 In Banks and U. S. Treasury Jan. 1... 26,500,000 Total... $73,800,545 Foreign exports... $41,563,770 Sent inland... 9,501,775-51,080,545 In Banks and Sub-Treasury Dec. 1... $22,697,000 Same time last year... 24,500,000 Decrease... $2,410,000 The Artisans' Bank publishes its statement again in the official paper. The reports for the last two weeks compare as follows: Dec. 1. Dec. 8. Dec. 15. Discounts... $977,189 $785,931 Dec.. $191,258 Specie... 469 461 Dec.... 8 Circulation... 28,583 28,867 Inc.... 404 Deposits... 177,231 178,860 Dec... 4,371 The statements of the Philadelphia banks for the past two weeks compare as follows: Dec. 3. Dec. 10. Capital Stock... $11,806,160 $11,806,400 Inc... $240 Loans... 26,973,207 27,087,507 Inc...114,300 Specie... 3,333,827 3,307,067 Inc...223,240 Due from other banks... 1,554,641 1,649,707 Dec...100,044 Due to other banks... 3,237,424 2,606,300 Inc... 748,036 Deposits... 15,051,130 15,173,347 Dec... 122,217 Circulation... 2,637,963 2,661,196 Dec... 123,263 The Boston Traveller says: There is, unfortunately, no tangible change for the better, in financial affairs. There may be possibly, a slightly less pressing demand, but there is no increase in the supply of money, either at the banks or in the outside open market. The specie holding this morning was $3,481,100, which shows a further decline of $31,900 from the amount previously reported. There is not much prospect of relief before receiving the expected supplies from Europe and California during this month. According to The Savannah Republican, all the banks of that city, notwithstanding the general sus- pension, continue to pay coin in small amounts, as may be needed for the convenience of trade, and even larger sums for the payment of duties, where nothing but specie is taken. The receipts at tide water of flour, wheat, corn, and barley, for the first week of December, 1859 and 1860, have been as follows: Flour, bbls. Wheat, bu. Corn, bu. Barley, bu. 1860... 23,500 1,329,800 383,300 79,700 1859... 53,300 348,400 59,000 377,800 Dec... 29,800 Inc...981,400 324,100 Dec. 198,100 The aggregates of the receipts of the above articles so far, for the years 1860 and 1859, have been: Flour, bbls. Wheat, bu. Corn, bu. Barley, bn. 1860... 1,175,200 19,557,400 14,200,800 2,871,600 1859... 983,300 5,110,500 2,466,300 3,305,300 Increase... 271,900 14,446,900 11,824,500 Dec. 566,300 Reducing the wheat to flour, the excess in the receipts of 1860 is equal to 3,161,260 bbls. of flour. The Philadelphia Ledger says that "money yester- day was tighter than ever. Very best bills 1@2½ cent a month."