Banks of the city of New York

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: April 26, 1861
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 9720e502

Response Measures

None

Description

Article (Nashville Union and American, Apr 30, 1861) reports that the banks of New York have resorted to the same subterfuge they did last fall when a general suspension of specie payment took place, i.e., an effective suspension of specie payments driven by fears from the Civil War. No run or permanent failure is mentioned; the action appears to be a temporary suspension of specie payments. I classify as suspension_reopening because the text frames this as a precautionary/suspension measure (not a failure) likely temporary, but the article does not state a reopening date.

Events (1)

1. April 26, 1861 Suspension

Cause: Macro News
Cause Details: Fear of financial consequences of the Civil War and Lincoln administration policies led banks to suspend specie payments (arrangement seen as suspension).
Newspaper Excerpt: It is a singular fact that the Banks of the city of New York have resorted to the same subterfuge they did last fall when a general suspension of specie payment took place. This arrangement is, in effect, a suspension of specie payment
Source: newspapers

Newspaper Articles (1)

1. May 1, 1861 Nashville Union and American Nashville, TN

Article from Nashville Union and American, May 1, 1861

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Article Text

# COMMERCIAL. Monetary and Commercial. TUESDAY EVENING, April 30, 1861. A rumor has been put in circulation upon our streets that Gov. HARRIS contemplated seizing the stock owned in the Planters' and Union Banks by Northern citizens. Such proceeding has never been contemplated by the Governor, and it is singular how such a rumor could have originated. An authoritive contradiction of the rumor is made in another column of this paper, which was due to all concerned. The only sale of Tennessee Bonds in New York on the 26th was $1,000 at 42c. No sales were made at the first board on the 27th. The telegraph reports sales of Tennessee Bonds at the second board yesterday at 50c. It is a singular fact that the Banks of the city of New York have resorted to the same subterfuge they did last fall when a general suspension of specie payment took place. This arrangement is, in effect, a suspension of specie payment, and shows the fears felt in financial circles in New York. They evidently fear a terrible crash as the result of the war inaugurated by the LINCOLN Administration. The LINCOLN policy is beginning to tell fearfully upon the business of the North already. The New York Evening Post of the 27th says: "The Money market is again closer on paper, and buyers shun dry goods names, even at a large discount. Leading names which were current ten days ago at 6 per cent are now unsaleable at 12 per cent. Only choice short bills are taken at 6@7 per cent. On call the rates are 5 to 7 per cent." A motion was made at the morning session of the Board of Brokers of New York on the 26th, to strike from their list all Southern stocks. No definite action was reached, notwithstanding the motion, in the debate which followed, received the support of most of the members. With the view of acting for the best interests of holders, the subject was postponed for the present, but will probably come again before the Board in a more definite shape. The New York Evening Post reports Exchange ori London weak with a downward tendency on the 26th. The quotations were 105@105 per cent. This is a decline of about 4 per cent since the inauguration of LINCOLN's war policy. The total shipment of Gold from Europe from November 1 to March 30, inclusive, was: