15671. Commonwealth Bank (New York, NY)

Bank Information

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

Metadata

Model
gpt-5-mini
Short Digest
e98758fc

Response Measures

Full suspension

Other: City clearing house meeting adopted resolution that banks suspend specie payments; coordinated suspension across many banks.

Description

Articles from Oct 14, 1857 report a (relatively mild) run on the Commonwealth Bank and that it joined other NYC banks in suspending specie payments on the morning of Oct 14 as part of a coordinated reaction to widespread panic (Panic of 1857). The sources do not state whether the Commonwealth subsequently reopened, so outcome is uncertain.

Events (2)

1. October 14, 1857 Run
Cause
Macro News
Cause Details
Heavy withdrawing pressure tied to the broader October 1857 financial panic and local excitement; mercantile depositors' demands and rumors intensified withdrawals.
Measures
Paid out specie through early afternoon; later joined other banks in suspending specie payments (see suspension event).
Newspaper Excerpt
HANOVER AND COMMONWEALTH BANKS. The run on the Hanover and Commonwealth banks was not very active, and both banks paid promptly up to 3 o'clock.
Source
newspapers
2. October 14, 1857 Suspension
Cause
Macro News
Cause Details
Coordinated suspension by New York banks in response to widespread panic, heavy demands by mercantile depositors, and circulating rumors during the Panic of 1857; Clearing House resolution led banks to suspend specie payments.
Newspaper Excerpt
In accordance with the resolution adopted on the 13th, on the morning of the 14th. the following banks suspended: ... Commonwealth ...
Source
newspapers

Newspaper Articles (2)

Article from New-York Daily Tribune, October 14, 1857

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Article Text

officer and clerk was buay with bis pen, and all remained at work long beyond the usual hour. CITIZENS' BANK. Here, too, the crowd and excitement were great, and the "drawing" large, and 80 long continued that before the close of office hours the Paying Teller was compelled to announce a temporary suspension of specie payments. Most of the depositors in this bank (it is located at No. 58 Bowery) are small traders, likely to feel most sorely a bank suspension, however brief; but such as failed to obtaintheir deposits yesterday took the matter with seeming coolness, hopeful that it would " all be right in & few days." BANK OF COMMERCE. The Paying Teller of the Bank of Commerce did not feel authorized to give the amount of specie paid out. CONTINENTAL BANK. At the Continental Bank a heavy run commenced at about 11, o'clock, which was continued until 3 o'clock. The greater portion of the run was from bill holders: No gold was paid to depositors. The run was very quiet; there was no call for a policeman. At 3 o'clock people were assured that the bank would open in the morning. About $75,000 in gold was paid out. DRY DOCK BANK. The Dry Dook Bank was also compelled to seek protection from the calls of its depositors by a suspension of speoie payment. Nothing particular attended the circumstance, A few who applied early received their deposite, but only a few. The great majority were doomed to depart empty-handed; with the assurance, however, that they would not be losers by the painful but necessary step which the Bank, like meny others, felt compelled to take. GROCERS' BANK. Charles D. Garrison has been appointed Receiver of the Grocers' Bank, and will immediately enter upon the discharge of his duties. HANOVER AND COMMONWEALTH BANKS. The run on the Hanover and Commonwealth banks was not very active, and both banks paid promptly up to 3 o'clock. IRVING BANK. This bank, located at the corner of Greenwich and Warren streets, suspended specie payment very soon after opening their doors yesterday morning. The run upon them was commenced on Monday, and 80 vigorously continued that $42,000 in specie were drawn from them during the day. They opened on Monday morning with $75,000 in specie. When the doors were thrown open yesterday morning they were at once besieged by a crowd of people who had been for some time in waiting, and the checks presented were 80 lange and numerous that $9,000 was paid out in less than fifteen minutes. From outside indications it was evident to the officers that they could not long breast the current, and they determined to close at once. This caused a good deal of dissatisfaction and grumbling among those who were awaiting their turn," but the excitement soon subsided and the crowd dispersed. The demand upon this bank came almost wholly from depositors. IMPORTERS' AND TRADERS' BANK. The Importers' and Traders' Bank have paid out $60,000 in specie; but they have received $15,000 in gold on deposits. They run out of bills between 11 and 12 o'clock, and were consequently obliged to pay out much more specie than they would otherwise. The statement of the bank on Tuesday morning was: $1,425,525 Capital 100,000 Surplus $1,525 525 Total $1,627,447 Loans 182,000 Circulation 215,000 Secured on State Stocks, par value 421,102 Deposits 194,000 Spucie


Article from The Weekly Pioneer and Democrat, October 22, 1857

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Article Text

ing the day-irrespective of the vague rumors with reference to others flying around through an already over excited community -it is no wonder that the equanimity of the city should have been seriously disturbed. In another article the Herald of the same date.-the 4th-says: Considering the tremendous pressure brought to bear upon these banks, the course is, perhaps. the best which they could have adopted. But for the overwhelming demands by mercantile depositors of the speculative and overtrading class, resolved upon forcing the banks to an expansion or a suspension. this alternative of a substantial suspension of specie payments might have been avoided. The result, as it is, will probably be equivalent to the direct loss of a hundred millions to the business community of this metropolis, from the inevitable reaction of this movement upon the banks and the financial and commercial interests of the State and the Union. Thus, in the interval to the meeting of Congress and the several State Legislatures, our city, our State, and all the States will be reduced to an irredeemable paper curreney ; for the example of this metropolis will doubtless be seized upon immediately by the interior banks of the State, and by the remaining open banks of all the other States, resting upon the faith and solidity of our city banks. Thus we approach the climax of the revulsion. On the evening of the 14th. ameeting was held by representatives of the various banks at the Clearing House, at which the following resolution was adopted : Whereas. in view of the excitement prevail ing in this community, and the fact of the ac tual suspension of a number of the banks of this city, Resolved. That it expedient that the banks of this city suspend specie payments to morrow. A Committee was also appointed by the meeting. to wait upon the Governor of the State, and request him to convene an extra ession of the Legislature. In accordance with the resolution adopted on the 13th, on the morning of the 14th. the following banks suspended : Merchants, America. Mercantile, Am. Exchange, Metropolitan. Atlantic. Nassau, City, National. Commerce. Commonwealth, New York County, North America. Continental, Oriental, Corn Exchange. Park. Dry Dock. Pacific, Fulton, Phonix, Greenwich. Hanover. Republic, State, Imp. & Traders. Seventh Ward. Manhattan. Shoe and Leather. Mechanics, Union. Mech's and Traders, In reference to the excitement on the streets, the Herald says: "The crowd in the street was no greater