15605. Chemical Bank (New York, NY)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
state
Start Date
May 16, 1837
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
1c3513e5

Response Measures

Accommodated withdrawals, Full suspension

Description

Newspaper pieces from May 1837 describe Chemical Bank paying out specie to women, experiencing heavy pressure/crowds, and then suspending specie payments. The texts show a depositor run/heavy withdrawals (May 16–18, 1837) followed by suspension; there is an expressed intent to resume soon but no firm documented reopening in these excerpts, so I classify as run → suspension with reopening unsure. Cause judged as macro panic/specie-resumption pressure affecting many banks in 1837.

Events (2)

1. May 16, 1837 Run
Cause
Macro News
Cause Details
Heavy public demand for specie tied to the 1837 panic and resumption attempts; crowds and great pressure for small-specie redemptions.
Measures
Paid out specie to depositors (five-dollar redemptions) until funds exhausted; then suspended specie payments.
Newspaper Excerpt
I opened my bank for the resumption of specie payments ... a number of very respectable ... females ... each received the specie for Chemical Bank bills, five dollars apiece ... a number of beings ... crowded for a few minutes round the door ... such was the pressure on our bank yesterday ... that we had long before the hour of three o'clock entirely to suspend specie payments
Source
newspapers
2. May 18, 1837 Suspension
Cause
Macro News
Cause Details
Suspension of specie payments amid the wider 1837 panic and the general suspension of New York banks; heavy withdrawals after attempted resumption exhausted specie holdings.
Newspaper Excerpt
Having thus completely beat both Biddle and Van Buren and resumed specie payments before either ... we had long before the hour of three o'clock entirely to suspend specie payments for the present.
Source
newspapers

Newspaper Articles (4)

Article from The Herald, May 16, 1837

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Article Text

THE HERALD. TUESDAY. MAY 16, 1836. FEMALE PUBLIC-RESUMPTION OF SPECIE been PAYMENTS.-Great and unmerited injury having done to many of the gentler sex, by the suspension of specie payments and the difficulty of procuring far as I small change, I have resolved to mitigate, as aid to can, the evils of the day by contributing my little upon help poer females out of a difficulty brought them the extravagance and folly of us men. popularity and the The by extraordinary such, increase alone, of Herald is that during the last week reover eleven hundred dollars in more which was in specie, such as ceived half of cash, dollars, in specie than half dollars, quarters, &c. For these amounts I offered 10 per cent premium broWall street, but, on dozing one on my kers have in been evening by the in had a dream, in which a good angel, the a soft, sweet woman, told me ensofa, shape I of do in her such accents Deares: Bennett, no to do with the for the five dollar notes of your chanting thing-have my sex nothing brokers-redeem favorite as far as you can, and trust me, my the of earth and of be showered head, bo here and friend, Chemical upon Bank, blessings your heaven hereafter. will in a transport, and a So so sweet, so so dream. I awaked soft, enchanting, lo! it was affectionate the fair creature appeared to me in the quiet and slumbers of the night, that started was about 12 o'clock by innocent up (it St. 1 resolution instantly Paul's)walked my solitary chamber, and formed a on the instant to obey the celestial mandate. will, therefore, tomorrow, Wednesday, between the hours of 11 o' clock and 1 o clock, at my office, in 21 Ann street, redeem the five dollar netes of the little in specie, to every female, widewood, pretty little girls and marrieder Chemical Bank, single, all, who five dol- will come in person and present their demands, lars cach so as to diffase the as as to the extent of 8500 or possible, for one, thereabouts, good wide being the remaining of last week, after paying my their salaries and wages, cash employées receipts principally also in specie. this offer, I hope no lady or young woman will the notes of any broker, or In take making become the inof speculation. My object is to furnish, as much as ean, the gentler sex, with to make their in the shops strawent little purchases, and change markets, of shavers and many as can from the arts and now flooding the city. rescue speculators as little Be Chemical's it recollected also, that I only redeem the I have full confidence in the character and of John Mason, Esq., its notes, integrity because institution. worthy Presi- Unthe other directors of that der of this good man, a dent, the and auspices old who school, is gentleand a man of business of the who man, all the kiting inventions the Chemical will resume abominates have no doubt of other Wall specie street, bank pay- in I ments as soon, if not sooner than any city. The hours of redemption are between 11 and 1 'clock tomorrow, at 21 Ann street-five dollars for each person. Be punctual, and be pretty, fair onesthe world is not yet at an end. JAMES G. BENNETT. BE COOL-BE PRUDENT- good physician always his medicine to the In to this ancient as tempers obedience prescription-as disease endeavor of the patient. to old treat the age of Hippocrates-we shall our patients in Wall street-the several presses there -with soothing lotions-gentle purgatives-and mild aperients. Yesterday the Courier" had a fresh paroxysm, however, did no harm to any body but itself. It of blood, gunpowder, immediate cause of this was the tion. which, talked The salipetre, outbreak and revolucircular from the Treasury, directing the officers here to discredit and paper public new specie would refuse overturn all currency. The Courier in its fury se. ciety-break up the social system, and begin a bloody revolution. hard, we admit, that the importing merchants should have to pay in a specie their It is very harder currency than the the government-but is it conor three hundred thousand persons the and lower ranks of life, who are middling dition debts to of two wandering forth in with the paper money put by the and finding obstacles at every in the very necessaries of life? buying about banks, the streets, We sympathise corner and with the we sympaand feel as deeply for the of thise feel as much deeply merchants-but easily great body the community. The merchants can convert their paper money into specie-they may even get it from the banks -but the poor and middling classes have none of those facilities-none of these advantages. In such a time as this, it would be wisdom in the teach moderation, and not to asIs it aware of the deep and general perities. Courier to banks? inflame The feeling of mergenerating against the chants to be the last to precipitate into indignation ought They lose and society revolution. have every thing to nothing to a revolt-an insurrection- of The " Courier" and the government. gain by feel the dissolution Wall the terrible street press generally are just beginning to reaction of the credit system. When men and editors are losing their property and prespects by over-action, they ought not to throw away their senses also. Keep something to begin business upon again. If the Wall street papers endeaver to run the preembar assments into action, they will lose in the end. The great mass peosent financial political of than the they more hostile to the banking system are If the general of pleare to the government. political suspension we now payments is used as a weapon, that it will bear more Van Buren, in a contest at specie dle tell than all, Mr. heavily against the pells-or Mr. Bidin the field. With all its faults, we are not sure the doctrine open but war specie currency of of old its last Jackson shift, will completely strip paper currency before two years have elapsed. We advise the Wall street prints to be cool and cal-tious in such a crisis as the present. They are treading or a sleeping volcano. PUBLIC MEETINGS.-Ne are sorry to see the Equal Righte" party call meeting tonight M


Article from The Herald, May 18, 1837

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Article Text

ment--Another Calamity--Suspension of Specie Payments. Yesterday morning, under one of the most brilliant skies-the sur in high heaven shining in all his glory, and the brighter beings looking down from a still greater height, I opened my bank for the resumption of specie payments at No. 21 Ann street. Punctual to the hour, a number of very respectable, modest, well dressed females, came in succession and each received thespeciefor Chemical Bank bills, fivedollars apiece The business was transacted throughout by my cashier. A little before 11 o'clock a number of beings, called men, but without a single attribute of the gentlemen, crowded for a few minutes round the door, and the Bulletin board, by which the approach of the gentler sex was improperly impeded. I discovered in this group several persons that I knew, and that ought to have known what belonged to gentlemen better than to interfere, even by their presence, with the execution of a good thing to this suffering female community, as far as a singular individual can accomplish. Among civilized beings, not corrupted by banks and paper money-not under the influence of the big rogues in Wall street, the appropriation of a certain space of time to change the paper money of poor industrious women, would be signal sufficient to call forth all the delicacy and propriety of which man, in an improved state of existenceis, capable. We are sorry to say, from the experiment we made yesterday, that there are beings in New York, falsely and improperly called human, some with whiskers and some without, who are incapable of feeling or behaving as gentlemen. Several of these creatures we learn come from the great loafer tavern, kept by Boyden, others from various places that we have recorded for future reference. Hereafter we shall take care to change our plan of redemption, and entirely cut off the loafers and barbarians from ever more being capable of impeding us in the execution of a benevolent deed. Having thus completely beat both Biddle and Van Buren and resumed specie payments before either of these charlatans can, we confess with heartfelt emotions, that such was the pressure on our bank yesterday, by some of the sweetest creatures that New York contains, that we had long before the hour of three o'clock entirely to suspend specie payments for the present. In this general calamity, in which I am involved along with the rogues of Wall street, I have the consolation to believe that I have the sympathy of every pretty woman of New York, and also of the whole Union when they shall hear of it. I have not failed, however, like the Wall street banks, in order to save my gold and silver, and cheat the community. I paid out the last dollar, like an honest man, with the fear of God before my eyes, and the love of woman stereotyped in my heart, and then quietly and with Roman dignity gave up the ghost. Yet in this calamity I seek no law of exemption from the legislature-no protection from Congressno invasion of the U. S. Constitution. I shall go to work like an industrious citizen, and with the aid of the public-the efforts of my assistants, writers, reporters, printers, engineers, pressmen, and ragged, rascally newsboys, I trust I shall be able next week again to resume specie payments-again to help and assist the fair from getting into the hands of shavers and extortieners. When I do so, I shall give proper notice-and I shall also take care to arrange the resumption in such a way as to put an extinguisher entirely on the loafers, no gentlemen, whiskered vaga) bonds, barbarians and others, who dared yesterday to impede the entrance and egress of the fair creatures to get the real stuff for their Chemicals. Thus much for the present.


Article from The Daily Gate City, November 14, 1857

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Article Text

TESTIMONIAL TO A HEBREW PRIEST.-In a Prussian village where the inhabitants are all Jews there lives a rabbin who justly en- joys the general esteem. In order to evince their gratitude sor his good deeds, the com- mune determined to make him the gift of a cask of white wine; and, in order to make it a general affair, it was decided that each householder should bring one bottle of wine and pour it in turn into a common recepta- cle. The rabbin was of course very grateful for this spontaneous testimonial of the affec- tion of his people, and with great care re- moved the precious beverage to his cellar.- But, alas! when he came to taste it, he found that a miracle had been wrought, rather re- versing that of Cana, for instead of wine he found only water! The Prussian journal from which we borrow this anecdote (says the Siecle) undertakes to explain this mar- vellous event in this wise: The fellow-be- lievers of our worthy rabbin had each of them made up their minds privately, that one bottle of water in a tun of wine would matter very little; but, unhappily, inasmuch as they all had the same idea, the pipe was filled with pure water only. ### THE SOLID BANKS OF 1837.- It has been stated by one of our cotemporaries that the Chemical Bank of New York City, did not suspend in 1837. This is incorrect. Every bank in the city suspended at that time, as well as nearly every bank in the United States-East and West, North and South.- The exceptions, as far as we can recollect, were the Bank of Pittsburgh, and the Bank of the State of Missouri and five branches. - [N. Y. Courier & Enquirer.


Article from The Washington Herald, October 12, 1913

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Article Text

Famous New York Financial Institution, Chartered in 1823, Has Shown an Almost Phenomenal Growth. The "History of the Chemical Bank," privately printed for the Chemical National Bank by Doubleday, Page & Co., shows that the bank. starting ninety years ago with a capital of $300,000. now has a capital of $3,000,000, a surplus of $6,000,000, undivided profits of more than $1,400,000, and total assets of $40,000,000. The Chemical Bank originally was incorporated as "The New York Chemical Manufacturing Company Without Banking Privileges." The high motives and the safe, masterly methods of the founders and succeeding directors of the institution are set forth in the volume. Besides being a striking lesson in sound finance the book brings forth in a stirring and illuminating way a comparison between New York of today and of ninety years ago. As a part of New York and as one of the institutions that led in the development of the city the book/reads like a romance rather than a statement of actual business facts. The history begins in the days when John Jacob Astor lived in a home on the site of the old Astor House, when it took a whole day to make a trip to Philadelphia and when real estate speculators were rashly prophesying that some day Broadway would be built up as far as Tenth Street. Charter IN Obtained. On February 24, 1823, the founders of the Chemical Bank obtained a charter for twenty-one years from the State Legislature. The charter authorized the manufacture of blue vitriol, alum, oil of vitriol," &c., and contained a provision that the company should not engage in banking, as New York City already was overrun with banks, having twelve. In the next year, however, the directors obtained an amendment that permitted banking. The grant of the franchise, however, aroused bitterness. as banks in those days were regarded with suspicion. The capital was increased to $500,000, with the provision that at least $100,000 must be employed in the manufacture of chemicals. It was not until 1832 that the trustees transferred their main energies from the manufacture of drugs to the work of establishing firmly their banking house. Furrthemore, the founders did another unusual thing, for they opened their bank. not in Wall Street, but in Broadway. at No. 216. Balthazar P. Melick, a grocer and director in several insurance companies, was chosen the first president. The cashier was William Stebbins, who lived over the bank. Only two of the officers received more than $1,000 a year. Among some of the early stockholders were James Fenimore Cooper, Robert Lenox, Thomas Lippincott, William B. Astor, Leonard Bleecker. Girard Beekman, John W. Hamersley, and Peter W. Livingston. Merchant Prince President. John Mason. one of the "old New York merchant princes," next became president of the institution. Of him the book says: "Upon the conduct of the Chemical Bank President Mason firmly stamped his own methods. old-fashioned and conservative in the extreme." In the panic of 1837 the Chemical "followed the other twenty New York banks in the suspension of specie payments. It had not yet