Commercial Bank - New York, NY

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: January 29, 1878
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 91fb40ec

Response Measures

None

Description

The Commercial Bank at 38 Pine St., New York, voluntarily wound up operations after a State Bank Department examination found capital largely impaired by bad loans. Depositors were asked to withdraw and were being paid in full. No run is described; this is a voluntary suspension/closing (liquidation), not a run or government receivership.

Events (1)

1. January 29, 1878 Suspension

Cause: Voluntary Liquidation
Cause Details: Bank Department examination found capital largely impaired from losses on bad loans; bank decided to wind up and requested depositors withdraw funds.
Newspaper Excerpt: The Commercial Bank ... yesterday put up a notice requesting its depositors to withdraw their money, and also stating that no further deposits would be received.
Source: newspapers

Newspaper Articles (4)

1. January 29, 1878 The New York Herald New York, NY

Article from The New York Herald, January 29, 1878

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Article Text

OUT OF BUSINESS. THE COMMERCIAL BANK WINDING UP-ITS DEPOSITORS TO BE PAID. The Commercial Bank, a State bank doing business at No. 38 Pine street, in this city, yesterday put up a notice requesting its depositors to withdraw their money, and also stating that no further deposits would be received. The immediate reason for this step was an examination made by Mr. Orvis under the direction of the Bank Department of the State. Tue capital stock is largely impaired, owing to losses by bad loans. The bank commenced business in July, 1875, with a capital of $100,000. Its deposits have always been limited and its business circumscribed. The deposits were about $50,000, but yesterday they were liquidated to within a small amount. In the case of this bank the public or depositors, it is understood, will not be the losers, the stockholders alone having to suffer.

2. January 30, 1878 The Dallas Daily Herald Dallas, TX

Article from The Dallas Daily Herald, January 30, 1878

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Article Text

[Night Associated Pyeas Report.| The full committee on ways and means will hear their sub-committees on Thursday. Senator B. H. Hill to-day procured 200 stand of arms for the state of Georgia from the secretary of war. General Young, of Georgia, was ap pointed commissioner to represent the southern states at the Paris exposition. John J. Knox, controller of the currency, argued before the committee in favor of the remission of the tax on insolvent banks. The finance committees of the senate authorize Mr. Allison to offer an amendment to the silver bill to fix the relative value of gold and silver. House-Proceedings entirely uninteresting. Mr. Wallace addressed the senate at length in favor of the silver bill. Confirmations-Baldeye, receiver of public moneys, New Orleans ; Ray, receiver of public moneys, Monroe, La.; Miss Roddy, postmistress, For sythe, Ga; Bandu, postmaster, Thibe. deau, La., Demar, postmaster, New Iberia, La. BRANDON, VT., January 29.-Bas com, cashier of the Brandon National bank, is irregular to the extent of its surplus and ten per cent. of its capital. NEW ORLEANS, January 29.-Arrived steamship Alice Allo from Liverpool. She reports passing in latitude 47° 43' north longitude 16° 35' west, the Norwegian bark Vision, of Ezersund, water-logged and abandoned, with her foremast standing. NEW YORK, January 29.-It has been decided to wind up the affairs of the Commercial bank. It is a small institution with a capital of $100,000. The depositors will all be paid. ST. LOUIS, January 29.-Cotton peo. ple are cautioned against Adler, Rupert & Koch, whose names are associated with bogus cotton exchanges. CINCINNATI, January meeting of the creditors of Talle, Halton & Co., who recently failed, a proposition to pay thirty-five cents on the dollar, was made by the attorney for the company. Net assets, $155,000. ALBANY, January 29.-The senate to-day passed the house resolution against the Bland bill. Vote 23 to 3. LONDON, January 29.-The Times Rome dispatch says the pope is preparing an allocation against Russia for the persecution of the church in Poland, and against King Humbert, on his accession to the throne, for the assumption of the tittle king of Italy. The queen of Portugal, daughter of the late King Victor Emanual and the pope's god-daughter, is refused admission to the pope because she is residing at the quirinal. A German newspaper states that I & G. Kitterhause, the Hamburg cotton importers, whose failure was announc. ed last week, have both committed suicide. An unfavorable change took place in the pope's condition this morning; he is, however, receiving some cardinals.

3. January 30, 1878 The Sun New York, NY

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Article Text

CLOSING THE COMMERCIAL BANK. The Reasons for Stopping Business-No Money to be Made on Small Capital. The teller of the Commercial Bank at 38 Pine street was busy yesterday paying checks as fast as they were presented. Less than $10,000 remained due the depositors at the close of the day, and the cashier expects to have all the deposits withdrawn to-day. or by to-morrow at furthest. The depositors. he says, will be paid in full. The determination to close the bank was arrived at a month ago, and withdrawal of the deposits was begun then and has been continuing since, but public announcement to that effect was not made till Monday. The bank was started two years and a half ago, with the following board of directors: Austin M. Knight, John W. Mason. Orson Breed, Charles H. Taylor, C. G. Rodgers, and J. H. Crosby. Some of these directors acted rather sore yesterday over the ill success of their financial venture. They had found by experience, they said, that there was no money in the business, and that was why they had determined to close the bank. The depositors would not suffer. the loss coming out of the stockholders. The bank's capital when it began in the summer of 1875 was $100,000. The amount originally due depositors is given as about half that sum. The cause of the bank's closing is understood to be losses on unfortunate loans. Its business was at no time large.

4. January 16, 1879 New-York Tribune New York, NY

Article from New-York Tribune, January 16, 1879

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Article Text

THE STATE BANKS. SUPERINTENDENT LAMB'S REPORT. COMPARATIVE CONDITION OF THE BANKS-THEIR TAXATION-INVESTMENTS AND CIRCULATION. FROM THE REGULAR CORRESPONDENT OF THE TRIBUNE.) ALBANY, Jan. 15.-Superintendent Lamb, of the Banking Department. transmitted to the Legislature to-day his annual report. on the State banks, of which the important parts are included in the following abstract : ABSTRACT OF THE REPORT. The number of banks and banking associations organized under laws of the State, and reporting to the Bank Department on the 30th of September. 1878, was seventy-five. The total number which reported at the close of the previous fiscal year was eighty-one. During the last fiscal year one new banking association, to wit. the New-York State Banking Company. Syracuse, was formed. Seven banking associations were closed during the year, viz.: Brewers and Grocers' Bank. New-York; Bull's Head Bank, New-York; Bank of Caenango, Norwich; Commercial Bank, New-York: Commercial Bank, Rochester; State Bank. Olean : Bank of Wappingers' Falls. Five of these voluntarily closed their business, and two closed as State banks and reorganized as National banks. In compliance with the requirements of chapter 324. Laws of 1874. eleven trust, loan and mortgage companies reported to the Superintendent on June 30, 1878. During the fiscal year one company, the National Trust Company. New-York, failed, and is now in the hands of a receiver. During the same period the Equitable Trust Company, organized under the laws of the State of Connecticut and doing business in this State, and the United States Mortgage Company of New-York, first reported to this Department, as required by chapter 324, Laws of 1874. THE COMPARATIVE CONDITION OF THE BANKS. Below are presented the tabulations of the two quarterly reports of all the reporting banks and banking associations for the dates respectively stated, which were near the close of the last two fiscal years: