Banks of the City of New-York (collective)

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: August 15, 1837
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 0d330950

Response Measures

None

Description

Article (Sept 1837) describes the New York city banks having suspended specie payments after the panic and discussing a convention and timetable to resume (between Jan–Mar 1838). This is a collective account of city banks rather than a single chartered bank; cause is macroeconomic (panic, foreign exchange/specie drain). No individual depositor run is described.

Events (1)

1. August 15, 1837 Suspension

Cause: Macro News
Cause Details: General panic and adverse foreign exchange/specie drain following the 1837 crisis forced banks to suspend specie payments; discussed as a collective suspension of New York city banks and need for coordinated resumption plan between Jan–Mar 1838
Newspaper Excerpt: The suspension of specie payments was forced upon the Banks, immediately by a panic and by causes not under their control
Source: newspapers

Newspaper Articles (1)

1. September 13, 1837 Constantine Republican Constantine, MI

Article from Constantine Republican, September 13, 1837

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Article Text

From ine New York American # Bank Convention-Resumption of Specie Payments. We referred some days since to a meeting held by our city banks on the subject of some general measures for bringing about a resumption of specie payments. In the Madisonian of Wednesday we find the circular addressed by the committee of the New York banks, to banks in other states. We copy it below. It proposes, it will be seen, the latter end of October as the time, and this city as the place, of holding a general Convention of Banks. The most distant period suggested for resuming payments is between January and March of next year. New-York, August 18, 1837. SIR-At a general meeting of the officers of the Banks of the City of New-York, held on the 15th of this month, the following resolution was unanimously adopted-viz: Resolved, "That a committee be appointed to correspond with such Banks in the several States as they may think proper, in order to ascestain at what time and place a convention of the principal banks should be held, for the purpose of agreeing on the time when specie payments should be resumed, and on the measures necessary to effect that purpose." Having been appointed a committee in conformity with that resolution, we beg leave to call your attention to the important subject to which it refers. The suspension of specie payments was forced upon the Banks, immediately by a panic and by causes not under their control, remotely by the unfortunate coincidence of extraordinary events and incidents, the ultimate result of which was anticipated neither by Government, nor by any part of the community. But it is nevertheless undeniable, that, by accepting their charters the Banks had contracted the obligation of redeeming their issues at all times, and under any circumstances whatever; and that a depreciated paper, different in value in different places, and subject to daily fluctuations in the same place, has thus been substituted for the currency, equivalent to gold and silver, which, and no other, they were authorised, and had the exclusive right to issue. Such a state of things cannot and ought not to be tolerated any longer than absolute necessity requires it. We are very certain that you unite with us in the opinion that it is the paramount and most sacred duty of the Banks to exert every effort, to adopt every measure within their power, which may promote and accelerate the desired result; and that they must be prepared to resume specie payments within the shortest possible notice, whenever a favorable alteration shall occur in the rate of foreign exchanges. We are quite aware of the difficulties which must be surmounted, and of the impropriety of any premature attempt. No banking system could indeed be tolerated, which was not able to withstand the ordinary and unavoidable fluctuations of exchange. But the difference is great between continuing and resuming specie payments; and we do not believe, the banks of the United States can, without running the imminent danger of another speedy and fatal catastrophe, resume such payments, before the foreign debt shall have been so far lessened or adjusted, as to reduce the rate of exchanges to true specie par, and the risk of an immediate exportation of the precious metals shall have thus been removed. The appearances in that respect have become more flattering; and it is not improbable that the expected change may take place shortly after the next crop of our principal article of exports shall begin to operate. Yet we are sensible that we must not rely on conjectures; and that the banks cannot designate the time when they may resume, before the ability to sustain specie payments shall have been ascertained by the actual reduction in the rate of the exchange. But even when the apprehension of a foreign drain of specie shall have ceased, the great object in view cannot be effected without a concert of the banks in the several sections of the Union. Those of this city had the misfortune to be, with few exceptions, the first that were compelled to declare their inability to sustain for the time specie payments. It appears that it became absolutely necessary for the other banks to pursue the same course; and it would be likewise impracticable for those of any particular section to resume without a general explanation of at least the principal banks of a great part of the country. A mutual and a free communication of their respective situation, prospects, and opinions, seems to be a necessary preliminary step, to be followed by a convention at such time and place as may be agreed upon. As relates to the banks of this city, we are of opinion, that, providep the co-operation of the other banks is obtained, they may and ought to, we should perhaps say that they must resume specie payments before next spring, or to be more precise, between the first of January and the middle of March, 1838. Both the time and place of meeting in convention, must of course be determined in conformity with the general wishes of the banks. In order to bring the subject before you in a definite shape, we merely suggest the latter end of October as the proper tine, and this city as the most eligible place or the proposed convention. A sufficient tire will then have elapsed To enable us to judge of the measures which Congress may adopt in reference to the subject. Whatever may be its action on