Banks of this city - New York, NY

Bank Information

Episode Type: Run → Suspension → Unsure
Bank Type: state
Start Date: May 10, 1837
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 823f5c87

Response Measures

Full suspension

Other: Multiple New York banks voluntarily suspended specie payment; military ordered to preserve order.

Description

Article (May 10, 1837) describes the failure of the Dry Dock Bank triggering universal runs on the banks of New York and a collective suspension of specie payments. The item refers collectively to the Banks of this city rather than a single institution, so I flag bank_name_unsure. It is unclear from this article whether banks subsequently resumed specie payments, so I classify as run leading to suspension with outcome unsure.

Events (2)

1. May 10, 1837 Run

Cause: Bank Specific Adverse Info
Cause Details: Failure of the Dry Dock Bank (public loss ~ $260,000) precipitated universal runs on New York banks.
Measures: Banks met and decided to suspend specie payments; military called out to preserve order.
Newspaper Excerpt: If the banks had not taken this course voluntarily, they would have been compelled to do it to-day, for the run was universal, not only of bill-holders, but of depositors also.
Source: newspapers

2. May 10, 1837 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Collective suspension of specie payments by New York banks following runs triggered by the Dry Dock Bank failure.
Newspaper Excerpt: The Banks of this city, each and all, have suspended specie payment! The bankers met last night, and deliberated till a late hour, when all but three resolved to suspend specie payment. This morning the other three did the same thing.
Source: newspapers

Newspaper Articles (1)

1. May 20, 1837 South Branch Intelligencer Romney, WV

Article from South Branch Intelligencer, May 20, 1837

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Article Text

AND NINETY. The catalogue was swelled last evening to the number of THREE HUN- DRED AND FIFTY-TWO. From the National Intelligencer. The first of the Deposite Banks to give up the ghost is the Dry Dock Bank in New York. The amount of public money in its custody was about two hundred and sixty thousand dollars. This amount may, we suppose, be con- sidered a total loss. It is a small be- ginning; but, it should be borne in mind, it may be, and probably is, only the beginning. Sooner or later, with a Bank conducted as this Bank appears to have been, (having incurred liabili- ties for 1,500,000 on a capital of 200,- 000, and having in its credits an item of overdraws to the amount of $400,000,) this catastrophe must have happened. So that the failure of that bank cannot be by itself as great an evil as the Bank itself was. The only light in which the incident is of serious importance to the country in general, is that of the forerunner of a more or less general failure of the weaker deposite banks, whom the Executive of the U. States will have lured to their ruin by the temptation of profit, not merely upon the public money, but upon the addi- tional credit given to them by their known connexion with the Treasury. NEW YORK, May 10. The Banks of this city, each and all, have suspended specie payment! The bankers met last night, and deliberated till a late hour, when all but three re- solved to suspend specie payment. This morning the other three did the same thing. The Common Council being in session at midnight, the banks making a representation to them of what was to be announced in the mor- ning papers, they, in concert with the Mayor, ordered out two regiments of the military, who were on parade this morning as soon as the morning papers were in circulation. The city is, there- fore quiet. There is no alarm. Wall street has been thronged with great crowds. The excitement is great, but there are no riotous movements. I have some anxiety about the night, but I presume the military will be kept at hand. If the banks had not taken this course voluntarily, they would have been compelled to do it to-day, for the run was universal, not only of bill-hold- ers, but of depositors also. There is no doubt that all the Safe- ty Fund Banks in this State will now suspend specie payment. Gold and silver being at a premium, and paper being necessarily the circulation of this great city, the State must inevitably follow. The Chamber of Commerce meet to-night to deliberate upon the crisis. The banks have agreed to send a com- mittee to Albany to ask for a suspen- sion of the safety-fund law, which in- flicts upon them a forfeiture of their charter if they suspend specie payment 90 days. The merchants held a mee- ting to-day at the Exchange, and a- greed to stand by the banks in uphold- ing confidence as far as possible. "Stocks have gone up of course from five to ten per cent. People who have money to pay are much happier, as they can pay it now. There is no rea- son why people should be alarmed, and as yet they are not. There is confi- dence in the solvency of the banks. Failures will cease in a great degree after this week is over. I hope the Government at Washington is now sat- isfied with their "EXPERIMENT."