15556. Central Bank (New York, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
October 14, 1857
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
724caf26

Response Measures

None

Description

During the Panic of 1857 the Central Bank in New York was among the first to stop specie payments (suspend). Subsequent reporting and a January 1858 letter refer to it as the late Central Bank with receivers appointed, indicating it did not resume normal operations and entered a closure/receivership. Cause is the general 1857 banking suspension/panic (macro news). Dates estimated from newspaper publication (suspension reported 1857-10-15; likely suspension occurred 1857-10-14).

Events (2)

1. October 14, 1857 Suspension
Cause
Macro News
Cause Details
Stopped specie payments as part of the general suspension of banks during the Panic of 1857; action taken alongside other New York banks to suspend specie payments.
Newspaper Excerpt
The Central Bank is situated at the junction of Fulton and Washington streets, and was the first to stop. It is stated that this bank is endeavoring to make settlement, of which it will in due time apprise depositors...
Source
newspapers
2. January 2, 1858 Receivership
Newspaper Excerpt
These questions relate particularly to the late Central Bank, of your city; and as the receivers appointed had some connection with your unprincipled municipal cabal, the thought that they should be looked after ... A SUFFERER. Poughkeepsie, Jan. 2, 1858.
Source
newspapers

Newspaper Articles (3)

Article from New-York Daily Tribune, October 15, 1857

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Article Text

PROGRESS OF THE RESSURE EFFECT OF THE GENERAL SUSPENSION. EXCITEMENT ABATED. New-York City Bills taken at Par. ARRANGEMENTS IN REGARD TO STATE MONEY SAVINGS BANKS FALL BACK ON THE LAW. DEPOSITORS REQUIRED TO GIVE NOTICE. The Run Running Out. MERCHANTS ASK ACTION FROM THE LEGISLATURE THE EFFECT OUT OF THE CITY. From the unparalleled excitement of Monday, Wall street yesterday fell back to comparative apathy. Everybody seemed satisfied that the suspension was the only course to be pursued, and, although the event was the leading theme of conversation, no surprise and but little dissatisfaction was manifested. The ordinary course of business, which had been in a condition of derangement and uncertainty, began to take its usual form, and from the chaos of the past week some promising signs of order began to appear. Of course, the run on the Discount and Circulation Banks in a great measure ceased; but the Seamen's and Bowery Savings Banks were besieged at an early hour. In order to avert the serious consequences which would inevitably result from the exhaustion of their specie, the officers of the various Savings Institutions held a meeting, and resolved to take refuge behind that clause of the law which requires depositors to give notice of their intention to withdraw their money. This course materially checked the flow of specie, and will probably terminate the unwise panic among depositors. In the course of the day our reporters visited all the Banks in this City, Brooklyn and Jersey City. Below we give the result of their inquiries: ARTISANS' BANK. The Artisans' Bank is doing a very quiet business. It is restored to the Clearing-House, and stands now on a par with its fellow-suspenders. BANK OF AMERICA. The business was conducted at this bank as at the others-no specie being paid out. But few persons were in attendance, and there was no excitement. AMERICAN EXCHANGE BANK. The business transacted at the counter of this bank was large. The line of persons numbered over fifty Checks were certified and received on deposit, and, as in the case of the other banks, no coin was paid out. BANK OF COMMERCE. The Bank of Commerce has paid checks in the bills of other banks, received considerable deposits of gold, loaned $30,000 or more, and conducted business as usual, with the exception of paying specie. The Bank of Commerce receives special deposits of specie, checks drawn against which will be paid in specie. BANK OF THE REPUBLIC. The Bank of the Republic refused our reporter information on Tuesday. It was not applied to yeeterday. BULL'S HEAD BANK. Notwithstanding the reports which have been circulated for some days past relative to the suspension of this bank, it continued to pay specie upon its notes, as well as upon checks, until about 2 clock p. m. yes. terday, when it complied with the advice given by other banking institutions, and suspended specie pay. ments, having between $10,000 and $11,000 in its vaults. Quite & number of deposits were made in the bank yeeterday. BUTCHERS' AND DROVERS' BANK. The Butchers' and Drovers' Bank, which suspended Tuesday, with considerable specie on hand, opened again yesterday for business, on the non-specie paying baris, giving bills for some checks, certifying others. The officers of the bank express confidence that in the course of a few days they will be enabled to cash checks where the amounts are small. BROADWAY BANK. At the Broadway, the usual business was transacted, with the exception of paying specie. There had been 8 run on the United States Marshal's office, and Capt. Rynders came around about noon for a pile of bills. A large amount was drawn out in bills. CENTRAL BANK. The Central Bank is situated at the junction of Fulton and Washington streets, and was the first to stop. It is stated that this bank is endeavoring to make settlement, of which it will in due time apprise depositors, checkholders, and others having business to transact with it. CITY BANK. This institution resumed business on Wednesday morning in all its branches except the payment of specie. CHATHAM BANK. The business at this bank is carried on as usual, specie payments excepted. Checkholders exchanged largely for bills cn Wednesday morning. A few small specie deposits were made. On Tuesday $17,000 were paid out before stopping. Only $800 remained at the time of suspension. When our reporter called at 4 m. for further information, the officers had gone home. CITIZENS' BANK. The injunction which was recently put upon this bank, and precluded it from transacting any business whatever, was removed yesterday morning, when it immediately resumed operations, except paying out specie. CHEMICAL BANK. The Chemical Bank paid specia all day. It resolutely refuses to suspend. There was quite a brisk run from 10 to 12; it fell off then to almost nothing. The business of the day resulted in & diminution of specie of, say $35,000, a much less sum than was expected. The officers feel an increased confidence in their ability to meet everything in coin. They have received deposits to a large extent, principally in specie. One man deposited $9,000. One man said yesterday that he had about $15 000 locked up in his safe, which he would send round in the morning. When it becomes generally known that it is determined to pay specie, there can be no doubt that its specie will be largely increased. The average amount of coin in its vaults last week was $343,000. To-day it has $400,000. The Chemical Bank receives the bills of other banks on deposit; checks on these its are payable in currency only. This will protect the bank from depositors who deposit merely for the purpose of running it, and will preserve the specie value of the old deposits. The President of the bark, Mr. Jones, assures us that he voted against suspension in every instance at the meeting of the banks on Tuesday evening, and that he can by no means be held as acquiescing in the


Article from New-York Daily Tribune, October 15, 1857

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Article Text

BROOKLYN SAVINGS BANKS. BROOKLYN SAVINGS BANK. The Brooklyn Savings Bank at Fulton and Concord streets is closed. The following notice is posted in front: In consequence of the suspension of Specie Payments by the Banks, the Trustees of the Brooklyn Savings Bank have concluded that their duty to their depositors demands that they should, for the present, discontinue receivingor paying deposits. In this emergency they cannot convert their securities into money without sacrificing the property held in trust by them for you. They assure the depositors that their money is in vested in Bonds and Mortgages, secured by Real Estate, worth double the amount of the Loans, and State Stocks, County and City Bonds of undoubted security, bearing interest. As soon as circumstances will perm the regular business of the institution will be resumed, of which due notice will be given." The surplus in this bank on the 1st of July amounted to $209,544.28 The President stated that at the present time the surplus is about the same, as it does not vary $10,000, either more or less, at any time. This bank is waiting to see what the other institutions will do. It will be open to-day for the purpose of giving information to such depositors as may visit the institution. CENTRAL BANK SAVINGS DEPARTMENT. This Central Savings fund has gone down with the Central Bank, of which it was an important limb. FARMERS' AND CITIZENS' BANK SAVINGS DEPARTMENT. The same as the Central. SOUTH BROOKLYN SAVINGS INSTITUTION. Tne South Brooklyn Savings Institution, at Atlantic and Clinton streets, is closed for the present. The following notice is posted on the door: In consequence of the suspension of specie psyments of the banks of the City of New York and Brooklyn, the Trustees of the South Brooklyn Savings Institution feel bound, in duty to the der ositors, for the present to discontinue the receiving and paying of depositors. In this emergency they cannot convert their securities into money without a sacrifice which they do not feel at libery to make, because their secutities consist of bonds and If ortgages on real estate in this city worth double the amount loaned, and of New York and Brooklyn City bonds, and Kings County bonds, bearing interest. No security is more un questionable, and therefore not a dollar has been sacrificed. As soon as circumstances permit, the regular business of the bank will be resumed. This institution publishes the following statement of its affairs: STATEMENT OF THE SOUTH BROOKLYN SAVINGS INSTITUTION, October 1, 1857. Bonds and mortgages on property in the City of Brooklyn, with double the amount loaned there$192,765.00 on, and interest accrued on the same Stocks of the Cities of New-York and Brooklyn and 131,600.00 Kings County, and interest 40,850.00 Loans on Stocks 23,000.00 Real estate 18,927 49 Cash on hand 407,142 Total $397,752.04 Liabilities THE WILLIAMSBURGH SAVINGS BANK. There has been an "almost constant run upon this Bank for two weeks past, and on Tuesday they paid out more specie than on any previous day, but notwithstanding this they opened the doors yesterday afternoon with a larger amount of specie in the vaults than on any previous day. At the meeting of the Directors on Tuesday night, the following resolution was passed: Resoived, That it is expedient and for the best interests of the depositors in this Bana to avail ourselves of the right secured to us by the by-laws of this Institution, to require one month's notice before payment on all drafts amounting to over fifty dollars. Before adjourning, the Directors learned of the action of the officers of the New-York Banks to suspend specie payment, and accordingly decided to pay depositors current bills, should they prefer them to waiting 30 days. At 3 o'clock, the hour of opening, there were about fifty persons in waiting, and up to 7 o'clock there was no press. A majority of the depositors received bills, while a few gave the required month's notice. THE WILLIAMSBURGH CITY BANK. The excitement in the vicinity of this bank, caused by the suspension of specie payments of the NewYork City banks, was almost entirely allayed. For a hile in the morning the business was interrupted in consequerce of the bills having been exhausted the evening previous. Mr. Field, the cashier, visited some twenty banks in New York, and, with one exception, was unable to procure any bills on the best security, the banks being all in the same condition. After the returns of the Clearing-House had been made business went on as usual. The amount of deposits was about equal to that withdrawn. Shortly after closing & large amount of bills was received for the operations of to day. Mr. Field states that this bank has never been on a firmer basis than at present, and there would not have been a suspension of specie payment but for the action of the New-York banks, as they have a plenty of specie in their vaults. The circulation of this bank, it is stated, amounts to $140,000. They are receiving on posit all the bills of New-York and Brooklyn Backs, except the East River, Bowery, Grocers, and Marine, and the Central of Brooklyn.


Article from New-York Daily Tribune, January 5, 1858

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Article Text

Tothe To Editor of The N. Y. Tribune. SIR: Will the Editor oblige manv by informing the writer, through THE TRIBUNE, whether it is customary for those appointed to close the business of a bank to keep that business in its progress a profound secret from holders of the scrip! And if so, whether there are not legal means to bring such to & statement ! These questions relate particularly to the late Central Bank, of your city; and as the receivers appointed had some connection with your unprincipled municipal cabal, the thought that they should be looked after A SUFFERER. seems pertinent. Poughkeepsie, Jan. 2, 1858.