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BEGINNING OF THE End.-The Cheisea Bank, which has au office in Exchange street, suspended cash payments yesterday-for particulars see our money article. The line wilsoon be drawn between the bubble and the real banks.
15597. Chelsea Bank (New York, NY)
Bank Information
- Episode Type
- Suspension → Closure
- Bank Type
- state
- Start Date
- October 1, 1839
- Location
- New York, New York (40.714, -74.006)
Metadata
- Model
- gpt-5-mini
- Short Digest
726ed0c5
Response Measures
None
Description
Multiple October 1839 newspaper items report the Chelsea Bank (NY) suspended specie payments and the State Comptroller was to sell it out; notes were protested and small specie demands ($2, $50) are described as the immediate triggers. No clear depositor run is described and papers state the Comptroller would wind it up—interpreted as suspension leading to closure (wind up/ liquidation).
Events (1)
1.
October 1, 1839
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Bank lacked specie; notes were protested and small specie demands were refused (e.g., $77 protested; later demands of $2 and $50 on presentation), leading to suspension and Comptroller action to sell it out under the banking law.
- Newspaper Excerpt
- The Chelsea Bank ... suspended cash payments yesterday
- Source
- newspapers
Newspaper Articles (11)
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o N R Y n A R K E T. Monday, Sept. 30-6 P.M. The weather has been very inclement today, and the sales at the stock exchange were small, at fluetuating prices. Bank of Commerce improved 1, Del. & Hudson 1, Mohawk 1 per cent. Kentucky declined t per cent, Harlem 1/2 per cent. The Chelsea Bank, one of the institutions under the new banking law, has suspended specie payments. On Friday las: they permitted their notes to be protested to the amount of $77, by Mr. Cooper, a notary public, and $100 more were refused payment to-day. Matters are rapidly approaching a crisis with the bubble banks. The next movement is for the note holders to have them regularly protested ; and the Comptroiler must sell their out, stock and fluke, in ten days, according to law. The following were the leading items of this institution, according to the returns made on the 1st Monday of July last, by the cashier, E. D. FooteCirculation. Loans. Specie. Deposites. $47,000 $7,500 $23,800 $35,278 The circulation was secured by a pledge of Arkansas six per cent stocks, to the amount of $58,000. The last sales of this description of stock were made in London at 95 per cent on accourt of the N. Am. T. & Bk'g Co. It is undoubtedly as good as the stock of any state in the Union, and throwing the amount held by this institution upon the market now, will fully test the security which the bil! holders enj y under the new law.The Chelsea Bank has never enjoyed much credit the last sales of its stock were made. we believe, at $20 per share.The present crisis will separate the sound from the speculative banks. In sterling exchange there has been 110 great amount of busi. ness done. The supply of private bills is apparently greater today at 10 per cent, $4 88 the £ sterling. At this rate the Manhattan Bank is drawing. The 90 day bills which the banks offered in the market do not find purchasers. They therefore do not check the export of specie, which will be near $800,000 by the British Queen. As the steamboat sails at 12 o'clock to morrow, there will be opportunity for further transactions. The current of specie. which is setting towards England, has now become so strong that a turning point in the present crisis will be soon reached. The following table of exports of specie will show how the current has gained streag h during the last three months: A Table of the shipments of specie from this port. from the 10th July 1839, to 10th October.
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or Meantime, the megroes are enjoying themselves the prisons of Connectient. In : day or two weshall give some sketches of scenes which recently place between these negroes in prison, and the philothe ladies, and abolitionists who pretty maiden that sophers, At first, every visited their visit them chagrin, them. was to shake hands. eyfound, to of the Africans had the damp eager that many circympathetic itch-thi put old gloves on did not shook hands with them still in a advise one of our famous itch would and few doctors for months to we go to to Connecticut-le find business year or we are much mistaken. The to the platform a pretty come, down lady little other boy of day four by to Cinguez to be kissed and new she enjoyed the scene so years the sent old, Othello; up six caressed well that old sent a pretty little girl of years a kiss also, of the same desirable every moment she to she We get thought up also would much have thick modesty kissed lips. fellow herself but she had too the the for the heroic act-she only prayed and made chief a present. OUR POLICIC MEN AND PUBLIC MEASURES. of of all our public men in all parts York the On. The eyes are turned to the state of New weeks, country, and movements for the next five for its measures the fate of the two great political parties and five as well as all their The preparations for the the depends movements. next years, coming meetings; measures contest and this week in the ward till the November election, commenced time reguery. there will and from this succession of trickery and a and swearing and kind, all perpetrated from lying be constant and cheating, the rascality most country patri- of the tallest motives imaginable, for the good of the means and otic the preservation of the party; which self-interest thing and connected scoundrelism. with the political depend aspect upon of Every for the next four years, will will deterthe country November election. That After the the coming the question of the next presidency. whether Mr. mine shall be able to determine or whether election Buren we is to be the next President, Scott. Nor it is Van be succeeded by General will go. Des he is at to all certain which way the state and boastings not spite of all calculations, the lies, and and braggadecias, follies that will be till perpany the trated and stupid by rascally politicians from this it will time be imsecond Tuesday in November; returns are in, whether possible to say until party the will regain the state against or not. the administration go for Mr. Van Buren as his him. It is as But likely which to ever way it does term. go, so Governor goes chance for the next presidential on thisevent He is the only the Seward's fate also bangs still travelling little public men, small potatoes. one of the prating great about politics and himself in this General country, Scott has never committed at work the whole way; he has been hard and honor foolish preserving the peace, prosperity remove summer, he is new busy and with refractory plans to Indians the country; all the troublesome effect all these delicate and within quiet our border. and He finish will the Florida war the (if alto take it in hand), in time is quietly studylowed and difficult tasks, Calhoun to ascend chair his White House. Mr. metaphysics on in South down, and is mending plantation ing his at the senses, intellectual become philosophy Carolina. sobered Ashland. and Mr. Mr. Ciay Van has Buren recovered rise and his for fences on his busily farm at engaged in watching cabbage plant the in his he present of a new species of intervals calculating progress garden at Kinderbook; most effectually and get at And General small Scott potatoes out of how he can of public popularity Long Island,trying has been that be him; is Seward the way running the general- Gover to ly " You! of the replying you State, the the when take Governor! but me he they for, says, don my You " fine believe I'm be feller." the d! Governor;" I am not " LADIES' raw as you FAIR-The Ladies Some Fair of the the articles Apollo are of elegant quite a and pretty recherché. affair. The following are a few the 24.by them: painting presenting framed a South dimension, view of 26 by 36 24 by 36 The lost Supper Child. famous A large The Hill landing of Tara of Columbus' richly in embroidery 20 by 36 The Virgin and resentation of Washington, the best style of Tuiting. A pair A represe of Swansdone in work, and beautifully with Queen framthese are tapestry beauty, ed. A rocking the back in worsted, kind Victoria All of drabeloth, worked chair on is another; of exquisite with the a rich Queen landscape pollium is OR represent- the and view best ed seated on side-her her throne crown, corenet, are worked in gold. There isalso a fire a mohagany frame and other large on either portion mounted of on her screen drapery executed work and in the stand Spanish 3 fancy feet of the Fair. articles. style, high; with These a variety are of only shell a few of the attractions the DINNEFORD meeting the purpose of of Benefit William TO Dinneford, for on tomorrow friends of benefit, will take place at 8 o'clock. He merits a real giving evening him at the a Shakespeare at the Bowery Hotel, Theatre-stock and was fluke-and burned out benefit. have not beDRAWINGS. Those who drawings, AUDURON'S the grand collection of original have no idea of their they seen to this truly greatman, There are over 500, and room longing beauty and splendor. $50,000. They fill the opposite large Niblo's, of valued at in Broadway, nearly Every bird known the Lyceum only be seen by there, day light. drawn the size of life. and in North can America neglect is to visit such a collection. Banking ON A New suspension that ever was a person holding Who would the funnient PLAN The Yesterday Chelsea in heard Bank he of has in made the their history hills of to banking. the amount of as EAST
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in 1830-The the New System. For the last fortnight a great deal has been said in Wall street, and in various papers, about the proba. bility of another suspension of opecie payments. Well, after all this talk, some cider has made its appearance. The suspension of specie payments has actually commenced in this city. In different parts of the country it has also commenced. That is to say, those banks that have not money enough to go on with a wholesome business, have either forfeited their character, shut up shop, or refused to redeem their notes, and, consequently, ceased to issue. Amongst these we may name a few that we recollect at this moment: the Boston Middling Interest bank, a bank at Brooklyn, the Jewett city bank, the Middlebury bank of Vermont, several of the Southern banks, and the Chelsea bank of New York city. These must be included in the category we have alluded to. And as the latter more nearly concerns our citizens than any other, we here subjoin a copy of one of its bills:-
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L The Chelsea Bank, one of the institutions under the new Banking Law of New York, has suspended specie payments. The Comptreller of the State, under the provisions of the statute. will proceed to sell it out. The circuiation of this Bank, which on the 1st Monday of July last, was $47. 000, is secured by a pledge of Arkansas 6 per cent, stocks, to the amount of $58,000
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COMFORT FOR PHILADELPHIA.-Our good friends in Philadelphia have been looking towards New York for a suspension, till their eyes ache. Rejoice and be glad-long looked for is come at last. Two banks have suspended here this week. Yesterday the immortal Chelsea Bank suspended finally, on a bill of $2, for which specie was demanded by a locofeco. On the day before yesterday, the Woolgrower's Bank also suspended on a demand of $50, and is Bow gone a wool gathering. Wont these frightful suspensions gratify Philadelphia and astonish Providence ?
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The N. Y. Herald states that "The Chelsea Bank, one of the institutions under the new banking law, has suspended specie payments. On Friday last, they permitted their notes to be protested to the amount of $77, by Mr. Cooper, a notary public, and $100 more were refused payment to-day."—Troy Mail.
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# THE PROGRESS OF SUSPENSION. -All the Banks of Pennsylvania, Delaware, Maryland, District of Columbia, (except the Patriotic Bank of Washington,) and Virginia, suspended immediately on hearing the news of the Philadelphia suspension. We are disappointed in Virginia, and hope she will very speedily retrive the mis-step, on becoming assured that New York and the North stand firm. Throughout these States, we believe that the Banks still pay out specie for change, but they have mainly conformed their Exchange to the Philadelphia standard. North of the Delaware, every thing looks well. The Camden Bank, opposite Philadelphia, suspended of course, but those of Trenton have not, though scarcely two hours' ride from the Shinplaster Emporium. We do not hear that any other New Jersey Bank has given way. Boston offered aid to this city if needed to prevent Suspension, (which was not;) and Portsmouth proclaims her ability to hold out even should New York and Boston give way. The Providence Banks voted to suspend, on first receiving the news from Philadelphia, but we believe she has not put the resolve in practice. In Connecticut, none but the Bank of Norwich has talked of Suspension; though a specie draft of $13-000 appears to have been most unwisely but harmlessly made in New Haven from this city. We presume the Norwich Bank has returned, or will speedily return, to its proper position. Not a whisper of faint-heartedness from Maine, New Hampshire, or Vermont. In this State, all is firm, and our exchanges will be arranged again, ere long. Two sixpenny affairs in the city-the Chelsea and the Woolgrowers' Bank-have failed to cash their notes on presentation, and will probably be wound up by the Comptroller, as the Willoughby Bank has been by the act of its owner. The Providence Banks have finally concluded to suspend, and their notes were down here to ten per cent. discount on Thursday morning; but so great was the demand for them that they rose to three per cent. before night. We suspect our Providence friends have done a very silly thing. The vote on suspending was fourteen for, four against, and two divided. The Norwich Bank, Conn., it is now said, has not suspended.-New-Yorker.
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NEW YORK, Wednesday, 16th Oct. P.M. Our banks maintain their ground, and there is now a prospect almost amounting to a certainty, that they will continue to pay specie. This con. viction proceeds from many circumstances-one is the certainty that the generai government will sustain them with all its resources, if they require it; another is that specie is coming in fast, even from Canada, to which we generally send specie, but which, in consequence of the British Commissariat making all its disbursements in dollars imported from Mexico, now sends us; and lastly, that the Bank of the State of New York and Bank of America, are drawing on England at 9 1-2 a 10 per cent. premium, to prevent any exportation of specie by the steamer which sails on Saturday. The Chelsea Bank and the Wool Growers Bank, both established in this city under the late General Banking Law, stopped payment entirely two or three daysago, but their combined circulation does not exceed $10,000, for which stocks to three times the amount are pledged with the Comptroller of the State,-and of so little account was this OC. currence considered, that I only learned it accidently to-day. The Eastern, New Jersey, and all the country banks in this State, express a full reliance on their ability to continue. The Providence are, how ever, an exception to the first named; the Norwich [Ct.] Bank, it is said also suspended. Philadelphia and Baitnmore notes continue at a discount of 9 to 11 per cent. The Liverpool packet which sailed to.day, th United States, has 11,800L sterling in specie on board. The stock market has improved a little this morning, US bank shares sold at 80 a 81; Delaward-and Hudson 56 a 57; Vieksburg 34 a 34 2; Kentucky 71 1-2 a 72; New Jersey R. R. 85; and Caaton Co. 30. There are but one or two arrivals, and they of mi or importance. The packet ship. President, from London, Sept. 10, will be up by the time this is before your rea ders. 1.
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BANK FAILURES.--The Chelsea Bank, New York, and Willoughby Bank, Brooklyn, which went into operation under the general banking law, suspended specie payments on Wednesday last. The notes of the Free Banks--or RED BACKS ofNew York, cannot now be sold, except at high rates of discount. This state of things must must be attributed to the failure of their banks.--BICKNELL
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$4,572,060 1,718,663 966,250 Many others have been started and failed, or got into disre pate, since these returns were made to the comptroller in July last. or these the following banks are of doubtful reputation:Erie County Bank, Manhattan Ex. Bank, Teath Ward City Trust & Banking Co. Staten Island a Bank of Commerce, Buffalo, The following have failed:Chelsea Bank, Wool Grewers' Bank, North Bank. Washington Bank. Since the period of this statement the amount of circula. tion has been increased to near $4,000,000. while their assets, chiefly motgages and stocks, have been constantly depreciating. The greater part of the bonds and mortgages amounting as above to $5,500,000 are the remains of the real estate mania of former years-during the suspension holders continued to sustain the nominal values. The mo tgage law was then inter. posed to sustain them, at the expiration of which, the present banking law afforded the opportunity to render the mortgages available. Accordingly, we find a large proportion of the capital paid in that description of securities, and stock issued for them at their then rates, which stocks have been pressing on the market to raise money. The State stocks represent loans of capital made to other States, and form the basis of a circulating medium for this State. Both of these descriptions are now worth at least 50 per cent less than when the associations were formed, and as the notes and liabilities of the institutions become dec for the real property they possess, they become bankrupt, as in the case of the Washington Bank mentioned yes. terday. The failure of that bank will be followed by many more. These banks have aboorbed near $1,000,000 of specie, which has taken much from the ability of the old banks to sustain their circulation, and have therefore much increased the pres. sere of the merchants open this city. Their notes have not increased the aggregate circulation, as they have been employw chiefly in purchasing the safety fund notes and returning