Banks of New-York - New York, NY

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: May 18, 1837
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: b1363d0a

Response Measures

None

Description

Articles report that the Banks of New-York suspended specie payments in mid-May 1837 as part of a broad, politically-driven financial disturbance tied to Jacksonian policies. No specific depositor run, receivership, or permanent closure is mentioned; suspension appears temporary/systemic rather than bank-specific.

Events (2)

1. May 18, 1837 Suspension

Cause: Macro News
Cause Details: Broad national financial crisis tied to Jackson administration policies and resulting specie drain; banks suspended specie payments to avoid being drained of specie amid widespread pressure.
Newspaper Excerpt: The Banks of New-York, Philadelphia, Baltimore, and Richmond, have suspended specie payments !
Source: newspapers

2. May 23, 1837 Suspension

Cause: Macro News
Cause Details: Systemic contagion: New York suspension prompted others to suspend to avoid having specie drained by agents and 'shavers' buying up notes; described as protective, statewide/national response.
Newspaper Excerpt: To begin, then, the banks of New-York stopped specie payments - and probably for a reason ...
Source: newspapers

Newspaper Articles (2)

1. May 18, 1837 Staunton Spectator, and General Advertiser Staunton, VA

Article from Staunton Spectator, and General Advertiser, May 18, 1837

Click image to open full size in new tab

Article Text

SPECTATOR. STAUNTON THURSDAY, MAY 18, 1837. THE PUBLIC CALAMITY! is -The grand "Experiment" is fairly out !-The State Banks, by means of which Gen. Jackson promised to give the country "a better currency" than was afforded by the United States' Bank, are at length yielding to the general pressure and embarrassment, produced by his most lawless and outrageous acts! The Banks of New-York, Philadelphia, Baltimore, and Richmond, have suspended specie payments !-and there is no question that the same measure will be adopted, if not from necessity, at least in self-delence, by the banks generally throughout the Union. None of them could withstand a general run upon them for specie, cut off from the ordinary sources of supply-and if they foresee that they shall be compelled ultimately to stop, they will consider it less injurious to their credit and future solvency to do so before they are drained of their specie. This, we doubt not, has been the consideration which governed the Richmond Banks-though the necessity must have been most stern and unrelenting, since it involves a forfeiture of the charter of one of them; a consequence which would certainly not have been incurred but to avoid a greater evil. We allude to the Farmers' Bank, which we believe is the best of the two. The same provision is contained in the charters of one or two other of our banks. What, then, is to be done in this emergency To compel the Banks to wind up their business, as is required on a forfeiture of charter, would greatly aggravate the public distress. And yet nothing else remains for them should they stop specie payments. without an immediate act of the Legislature to relieve them from their disabilities. Under these circumstances, we shall not be surprized to hear that the Governor has called an extra. session of the Legislature. In our opinion, the crisis imperiously demands it. So much for the Golden humbug, and the silly and wicked "Experiment" OD the currency, the bitter fruits of which were so early foretold So much for the servile submission of the People and their Representatives to the insurpations of the Executive !-Wide spread bank ruptcy and a ruined Currency, are DOW to be superadded to the abiding curse of violated Law, and a broken Constitution!

2. May 23, 1837 Vermont Watchman and State Journal Montpelier, VT

Article from Vermont Watchman and State Journal, May 23, 1837

Click image to open full size in new tab

Article Text

" Oh the banks ! the wicked banks !" Dear sir, what is the matter? What have the banks done? "Done! sir why, they won't give me specie for my bills; and in this golden age of Tom Benton, I can't get specie enough for a lawful tender, on a twenty dollar debt !"Well, sir: perhaps you are a Van Buren inan; we won't hurt your sensibility by telling you, in this article, the first causes which have led to this state of things: it is our purpose to explain bri. fly the causes of later occurrence.To begin, then, the banks of New-York stopped specie payments-and probably for a reason satisfactory even to you, inash:uch as a government bank, alias a pet, led the way.At that time the city was filled with bills of other banks which had not stopped, and the Shylocks and harpics bought them up at a premium of from five to ten per cent. and started off expresses to draw out the specie from these other banks in Boston, Albany, &c. &c. Now, what would be the result? For instance, turn to Boston : the banks of this city had bills in New York to the amount of perhaps a million or two of dollars--and this amount in specie would of course be immediately drawn out by the harpies. At the same time Boston had New York bills to an equal amount, and could not draw back a single dollar of specie. The effect would be to drain Boston of epecie, and carry it to New York, when in fact Boston did not owe her a single To prevent this-10 four-pence-ha*penny! defend themselves and the people of Boston,-the banks there resolved to suspend specie payments also and the New York shavers, who had come on just after the banks had shut up for the day, with their pockets crammed with bills bought up at a large premium, went back with "fleas in their ears,"-just as they deserved. Now what is true of the Boston banks, is true of every country bank. We will take the bank of Montpelier, for example. Our merchants had just been to Boston and bought their spring goods, carrying Montpelier bills. Of course a large share of these bills were already redeemed when specie payments were stopped there, yet perhaps a few thousande were in circulation. These would have been bought up by the shavers, had not this bank also stopped paying specie, and the specie would have been demanded of the bank; the bill-holders here also would have taken the alarm and drawn out specie. But this bank could not diaw on Boston, although it might have bills enough on foreign banks to redeem its own.The inevitable effect would be to strip it of its specie, stop its discounts, and perhaps depreciate its paper, bringing a large loss, not so much upon the bank, as upon the farmers and mechanics who have its bills. The salvation of the bank and of this community, then, demanded of it to stop specie payment for the present. Had not this bank and the other state banks pursued this course, the result would be nothing more nor less than draining the state of specie, and crippling all its banksa misfortune most to be dreaded by the people, who would have been the greatest bufferor If, in this view of the matter, people must complain-let them complain of something beside the banks: they have evidently acted, not only in defence of themselves, but for the protection of the people.