15676. Continental Bank (New York, NY)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
October 13, 1857
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
d67d734d

Response Measures

Full suspension

Description

Multiple contemporary accounts (Oct 13–14, 1857) describe a heavy run on the Continental Bank with specie paid out (~$75,000) but no clear, subsequent suspension of the Continental itself. Many other New York banks suspended, but the Continental is reported as meeting demands or intending to open next day. Therefore classified as run_only (run occurred, bank remained open).

Events (1)
1. October 13, 1857 Run
Cause
Macro News
Cause Details
Run occurred amid the broad 1857 financial panic and citywide panic/suspension of multiple banks (general financial crisis and contagion).
Measures
Paid out about $75,000 in specie; officers assured depositors bank would open next morning.
Newspaper Excerpt
At the Continental Bank a heavy run commenced at about 11 o'clock, which was continued until 3 o'clock... About $75,000 in gold was paid out.
Source
newspapers

Newspaper Articles (6)
1. October 14, 1857 The New York Herald New York, NY
Article from The New York Herald, October 14, 1857

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WATERMAN'S MACHINE SHOP, In Cherry street; fall complement of men from thirty to forty, which has been reduced to four men and two boys, the complement as present. FARBON IRON WORKS, Situated in Front street, usually empicy from two bundrea and any to three hundred. Present complement, thirty men, all told; have not been doir s as much this year as formerly, and have but very Hitle work at present on band Should the present panic continue will probably close up shop for a short time before many weeks. JAMES BOGARDUS' IRON WORKS, Corner of Centre and Duane streets, manufacturer of arcbitectural Iron work, have branches throughout several of the States, emploi irg some two hundred men, all told, none of whom have been discharged as yet. COLUMBIA IRON WORKS, In Duane street, corner of Eim, stile relain the complement of men (about 180), most of whom are for the present kept on half time, or, in other words, the little work in some portions of the establishment is so divided up as to give each man therein from two 10 three days work each. In other portions of the entablishment the men have thus far had constant work. There are from any to seventyfive men employed in the dredging shop, most If not all of whom will probably be discharged in the course of a week or so longer. WORRELL'S IRON WORKS, In Elm street, near Donne, on Saturday evening lest paid off 116 men-usual number from 140th 150. Discharged within the past 8⑉0 weeks about 25 OF 30 men. The men employed in the saw department have been placed ou balf me during the past week. All the others work full time for the present. J. B. & W. w. CORNELL'S IBON WORKS, In Centre street Total nun per of men usually em ployed about 226, which has been reduced within the past two or three weeks to about 148 men, all told, which, from presect appearances, will be further reduced before the clore of two weeks. This firm have under way tue Iron works for the Bull's Head Bank, New York Bank and Con tinental Bank, all of which suspended payment yesterday. G. R. JACKSON'S IRON WORKS, Corner of Howard and Centre streets, still relain the usual complement of men, (from 175 to 200,) which am ber there is as yet no talk of reducing.

2. October 14, 1857 Semi-Weekly Standard Raleigh, NC
Article from Semi-Weekly Standard, October 14, 1857

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The Pressure-Financial Affairs. We give below a number of extracts showing the distress which prevails in financial and business matters. The North-Carolina banks, with one exception, are standing firm, and the general belief appears to be that they will all go safely through the pressure. Some of them have been paying out considerable amounts of specie. Exchange here, when per XIS 01 every mony WORTH s! "peq be use " and gold, the basis of exchange, readily commands nearly the same figures. Fortunately, our people are not heavily in debt at the North. The pressure in New York and Philadelphia appears to be on the increase; at any rate, it is not abating. The last New York News says: This has been the bluest day yet on record.— One general gloom prevails throughout. The banks do not afford the fraction of the necessary assistance required. Merchants are failing all around, and ou op Brokers Discont error Follow mast erom business-a few trifling parcels at 2 to 3 per cent, is the utmost they report. Habitual bill discounters report that the payment of notes is now becoming the exception. Banks are accumulating loss upon loss, and Bank stocks are depreciating. The Continental Bank had to receive assistance early last week from the other banks, and to day another bank is reported. The banks for the most part have separated their interests from those of the merchants.They are, however, determined to keep up specie payments, as otherwise they would have to go into liquidation. A number of Albany bank officers are in town to-day, endeavoring to arrange with our City Banks for the latter to take and issue State money, there being a deficiency of currency, and no confidence in other than City banks. The Central Bank of Brooklyn has had its bihs rejected to-day by the street. The Exchanges, whether foreign or domestic, are wholly paralyzed. No remittances of any account can be obtained from the interior, and no rates of sterling bills of any consequence. Until this is remedied, heavy failures will be of daily occurrence. What were the largest houses are now the weakest, while the smaller ones are comparatively easy and comfortable. What is the remedy The Banks are wholly at fault they are useless for the requisite remedy; and it appears to us that the community will have to go on suffering until produce comes for ward in large quantities, shipped, and gold for it is obtained from Europe. California supplies are too small and too slow for us to recover our lost strength very quick. The circulation has contracted enormously consequence of depending too much on a paper currency liable to be discredited on a sudden. Paper forms too large a portion of our currency. But lately, enormous quantities of State, Eastern, New Jersey, and Western money, besides more Southern, were in circulation. The city currency has only slighty increased, and gold is too scarce to supply its place. Had we habitually a larger portion of the circulation in specie, no such contraction would take place. To this point we ought to come. Shinplaster and rag money is too subject to depreciation and fluctuations of confidence to be permayou pue 'yis 8 SB pood only s! 11 'uo relied Alluey good at all at a period like the present. Banks are unreliable for the supply of a circulation, and had better be confined for their more legitimate object of banking, which is discounting and loaning." MISSOURI. The St. Louis Republican, Oct. 4, says: Great numbers of operatives were discharged from our foundries, and other establishments, yesterday, in consequence of the derangement in money affairs. It is enough to bring a cloud of sadness over every one when so old a house as that of Mr. Chouteau is from any cause, compelled to suspend, even for a limited period. Very general sympathy was ex. pressed for the members of the house of Chouteau, Harrison & Valle, and the operatives thrown out of employment by their suspension. The business in which they have been engaged, both at the Iron Mountain and in this city, ought to be revived as possible. SU uoos ILLINOIS. The Chicago Press of Oct. 5th says: The bankers are making advances on produce, but the margin required to be put by the shippers is large, and in- this matter they are moving with great caution. One of our bankers said to us to-day that he had plenty of currency to buy all the produce that might offer; but, of course, on the terms above referred to. Gold dear. There are no fixed rates for ordinary currency. Ten per cent. premium are the lowest figures, and at these rates it can only be obtained in small quantities of some of the brokers. Most of them refuse to sell at any price, and all the regular banks do the same. Some of the brokers charge as high as from fifteen to twenty per cent. Exchange for collections rules to-day at ten per cent. premium. This rate is enormous it is true, but outsiders cannot obtain it even at these enormous rates. The Financial Crisis-Mass Meeting in Philadel. phia. PHILADELPHIA, Oct. 8.-A numerously attended mass meeting was held here this afternoon by our business men relative to the financial difficulties The call, which was signed by most of our prominent firms, was only issued during the morning but, being posted in every prominent position throughout the city, attracted general attention, and, notwithstanding the short notice, a large number of persons had assembled at the appointed hour. A number of speeches were made, and various views expressed. It was believed that New York was the cause of all the present difficulties. The New York banks had expanded $7,000,000in thirty one days, while an expansion of $17,000,000 in five months broke the United States Bank. Becoming frightened they curtailed in two months S $12,000,000; sufficient to produce a panic in the strongest community. The condition of laboring men was deplorably presented. Thousands would starve if there was not immediate relief. Extracts from letters from the largest manufa turers in the country were read Men implored aid for the pay ment of wages or else they would have to discharge thousands of hands. Notwithstanding it was their own interest to stop altogether, they were determined to keep on if possible. The remedy was in the renewal of confidence in the banks.Thus renew confidence, and all would be brought about by a discontinuance of the run on these institutions and not depriving them of the ability to move. Finance and Business at New Orleans-Heavy Decline in Cotton and Exchange. NEW ORLEANS, Oct. 8.-The excessive stringency in the money market has caused a further heavy dea cline in cotton, the reduction from the highest point being now 31 cents. The sales the past three days amount to 6,000, including middling at 13. Re ceipts continue to pour in rapidly, and the indica tions are that lower figures will be submitted to.All branches of business are more or less affected by the pressure, but the merchants are using their utmost endeavers to brave the storm. Sterling has still further declined. Financial Matters at New York. S! 9.-There Oct. NEW YORK.

3. October 14, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, October 14, 1857

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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

4. October 15, 1857 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, October 15, 1857

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THE FINANCIAL CRISIS. We subjoin additional particulars in relation to the financial pressure, which seems to be extend ing over almost every section of the Union. At an early hour yesterday morning, the Farmers' Bank of Virginia, and the Exchange Bank of Vir ginia, in this city, suspended specie payment. The announcement created no excitement as such an event was ex pected: and so far as we have been able to judge from conversation on the streets, it is generally regarded as judicious measure. un der the circumstances We have observed no ma nifestations of alarm among bill holders, in conse queuce of the suspension. The Bank of Virginia still holds out against the pressure It will be observed by our special dispatch, that the Branch of the Farmers' Bank of Virginia at Petersburg. spended yesterday but the branches of the Bank of Virginia and Exchange Bank, con tinned pay specie. BANK OF THE STATE OF SOUTH CAROLINA The Charleston Courier of Monday thus alludes th the suspension of the Bank of the State of South Carolina: we have before stated the notes of the Bank of the State are secure beyond all question Hay ing the whole credit, and the power of taxation of the State sustain them. they are better secured than the notes of those banks in New York 4 elsewhere which have deposited dollar for dollar in stocks, to secure their redemp having to be sold at the market depreciation. in order to redeem the notes. far as the proceeds will Haring then, the fullest idence in the of would mend them to the unity as lation answer would the local of trade. The purposes banks of the city. we think. ought to take them their counters. under certain and pay them out for certain purposes. It true there penalty recovered. at the suit of the State where one bank pays out the notes of another: but case like the present. the State certainly could not take advantage of her own wrong. and course for penalty hich is the only one that will preserve the credit and currency of her notes, and which furnishes the only means lief o a community perfectly sound and solvent pressed to the utmost point of pecuniary durance, for the want of those facilities which the banks are accustomed to afford: but which. under the present pressure. impossible The funds of the State and all the means of the city are now only to be in Bank of the State as also alarge amount of desposits, the pro perty and only available means others Should the Banks decide to reject these notes. the result will be disastrous: many substantial houses in this community must be dishonored and when that begins, who can say stop. There are many who would be glad pretext to remit exertions. and await until the over. storm is of the many poorer class, with money in their hands. must suffer rious inconvenience The small notes of this Bank large of so this part circulation. city that there is thing to supply its place: if that is tl jected, needed coin small could not be found. and endless would distress be the result AFFAIRS YORK NEW IN The bank officers of New York held meeting the Clearing House Tuesday morning and to maintain specie payments at all hazards. passed plausible resolutions about influx of specie from California; the probable ceipts from Europe, in obedience to the trade; the circulation of coin from the States Treasury and B natural tendency cumulate the banks invoke They community to sustain them in their tain specie payments, and conclude with the lowing That in the judgment of this meeting even for this object, DO further traction of nor will there exist any obstacle to such an expansion of them as will afford the aid bring forward the crops and alle ate the present commercial distress unless it shall be created by the demands of causeless alarm. Yet, in the face of these resolutions, unanimous ly adopted, and despite weekly statement which all things considered, must be regarded as remark ably strong, the telegraph the same day the enspension of fifteen banks and at late hour the night: report comes that the bank officers had held another eeting and upon general suspension. It was day of great excitement, the follow will show: NEW October Wall YORK, street been has cked The to-day all business paralized. The Post of this afternoon. There has been some drawing by depositors, banks from the city for nun of past. carried on though quietly there was.the first decided of It was particularly against the North River, Ocean and Merchants first Banks The named was reduced $10,000 A three o'clock. coin then had of the officers of the lead banks proper course be pursued If the com menced this morning the advice was to close the doors once. soon as the hour for drawing checks arrived this morning, the depositors showed unmistaka withdraw determination balances their gold. They paid long enough to assure the the that officers process would that on and go AD exhaustion of their means was only a question of few hours The North River, the Merchants' Exchange and the Ocean Banks have resolved to close immediate ly. The intelligene spread over the city rapidly alarm of fire. In an hour more the Marine Bank added to the list. Knots of bank direc in other seen officers and consultation The alarm was every banking room. tablished mic. who dents yesterday would the of asuspension. be gan share rnation. Soon after Nicholas. the People Butch ers'and Drovers Bull Mead. Bank of New York Irving, Market Chathan Tradesme 's and New York Exchange Banks all announced their inabili ty to continue specie payments. Heavy runs upon the Cont inental Metropolitan, American Ex change, Nassan and Phenix Banks followed, but all of met demand the them David Leavitt Esq. of the American Exchange Bank, made speech to the crowd. declaring his determinati pay to the last dollar. He also announced that an had made with several of the strongest banks to go through with out suspending The officers of one of the princi pal Wall street banks advised its dealers yesterday that it would not take certified checks on deposit without reserv ing the right return them if not made good at the clearing-house The quence was that gold was drawn from all the banks that were not This another through day go aggralikely vated the excitement among dealers, and it is un some heaviest the that of derstood have houses drawn gold and replaced it as special deposit, with the understanding that it might be counted in the average The street isfull of rumors, with eager crowds at every corner The country bankers here are numerous, some telegraphing their own banks, and others awaiting the results of events during the day. Of course if suspension here general it is inevitable the suspension will follow throughout the State, if not throughout the conn try l'he Broadway, the Artizans' and the Leathe also Bank Manufacturers' n. and nally the suspe nsion of the Bank of the State of for alogue York ends making the New -day, the total suspensions o-day number eiget and Jea ing thirty -three selvent institutions. The grea portion of these, however, will, it is expected, to-morrow. stop The Merchants Exchange Bank refuses to pay either specie or bills. only certify ing checks The Bank of North America was protested this after noon. Several of the banks held open till after three o'clock, the nsual hour of closing, meeting every demand others shut down promptly at the regus lar hour. leaving large number of applicants to try again All of the savings banks paid up prompt ly. THE B NKR RESOLVE TO SUSPEND The following is the official report of the meet ing held in New York Tuesday evening The Banks hav all resolve to suspend specie payments fax as paying at the counter is con cerned and to make regular exchange of encl others bills at the Clearing House. It has also been resolved to send committee to confer with of the Governor in refere nce to calling meeting the Legislature The committee will leave for Al to-morrow at 12 o'clock. bany THE EFFECT IN BOSTON.

5. October 16, 1857 Wilmington Journal Wilmington, NC
Article from Wilmington Journal, October 16, 1857

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From the Special Dispatch to Baltimore Sun. An Exciting Day In New York-Heavy Run on the Banks-Suspension of Specie Payments by Eighteen Banks-Others Holding Out, &c. NEW YORK, October 13.-Wall street has been blockaded to-day. The excitement was intense and all business paralyzed. The Post of this afternoon says : There has been some drawing by depositors from the city banks generally for a number of days past, though it was carried on quietly. Yesterday there was the first decided manifestation of a systematic run. It was directed particularly against the North River, Ocean and Merchants' Exchange Banks. The first named was reduced $10,000 in coin at three o'clock. A conference was then had with some of the officers of the leading banks as to the proper course to be pursued. If the run recommenced this morning the advice was to close the doors at once. As soon as the hour for drawing checks arrived this morning the depositors showed an unmistakeable determination to withdraw their balances in gold. They were paid long enough to assure the officers that the process would go on, and that an exhaustion of their means was only a question of a few hours. The North River, the Merchants, Exchange and the Ocean banks resolved to close immediately. The intelligence spread over the city as rapidly as an alarm of fire. In an hour more the Marine Bank was added to the list. Knots of bank directors and ot her officers were seen in consultation in every banking room. The alarm was now an established epidemic. Residents who yesterday would not admit the possibility of a suspension, began to share in the common consternation. Soon after the St. Nicholas, the People's, Butchers' and Drovers', Bull's Head, Bank of New York, Irving, Market, Chatham, Tradesmen's and New York Exchange banks all announced their inability to continue specie payments. Heavy runs also upon the Continental, Metropolitan, American Exchange, Nassau and Phoenix banks followed, but all of them met the demands. David Leavitt, Esq., of the American Exchange Bank, made a speech to the crowd, declaring his determination to-pay to the last dollar. He also announced that an agreement had been made with several of the strongest banks to go through without suspending. The officers of one of the principal Wall street banks advised its dealers yesterday that it would not take certified cheeks on deposit without reserving the right to return them if not made good at the clearing-house.The consequence was that the gold was drawn from all the banks that were not flikely to go through another day. This aggravated the excitement among dealers,

6. October 16, 1857 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, October 16, 1857

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MISCELLANEOUS. THE BANK FAILURESIN NEW YORK-MEETING OF BANK OFFICERS. NEW YORK, Oct. 13, P. M.-To-day has been a very exciting one in financial matters. Up to two o'clock fifteen of our city banks had suspended, of which the following is a revised list, namely:-Bank of New York, Artizan's, St. Nicholas, Chatham, Ocean, Market, Butchers' and Drovers', Merchants' Exchange, Irving, Citizens', Tradesmen's, Bull's Head, New York Exchange, North River, and Marine Bank. Wall street, at two o'clock, was crowded with an anxious mass of people. The steps of all the banks were also blocked up by the people foreing their way into the banks. There were rumors during the morning affecting nearly all the banks in the city, but the above list gives all that had certainly suspended up to three o'clock. The sales of rail road stocks at the first board were small at a general decline. In State stocks the business done was quite large at 8 decline, excepting Virginia and Missouri stocks. Bank stocks were all sold at 8 decline. The run on the Brooklyn Savings Bank was renewed to-day, but with less vigor and the bank pay. ing promptly. There have been several failures in the dry goods line announced to-day, but none very prominent. GREAT RUN ON THE BANKS AND FAILURE OF SOME OF THE STRONGEST IN THE CITY. The run upon the Mechanics, Bank of America, Manhattan and American Banks was very severe, and continued up to the close of business. The Broadway Bank held out till nearly 3 o'clock, and paid out $140,000 in specie, when it gave out. The Leather Manufacturers' Bank subsequently closed its doors. The Seventh Ward and Fulton Banks held out under 8 tremendous pressure. The People's Bank closed at 2 o'clock, after pay. ing out $19,000 in specie during the day. The Bank of the State of New York paid out its last dollar, and certified all checks presented, and then yielded. The American Exchange Bank paid all demands upon it, but several others shut out their customers at 3 o'clock. The Bank of North America suffered protest this afternoon. The Corn Exchange Bank refused to pay specie or bills, but certified checks. The Oriental, Mechanics and Traders', Bowery Savings, Shoe and Leather, Continental, American Exchange, and Metropolitan, paid every demand up to the usual hour of closing. STILL LATER-THE BANKS RESOLVED TO SUSPEND. NEW YORK, Oct. 13-11 P. M.-The following official announcement has been made from the bank meeting: The banks have all resolved to suspend specie payments, as far as paying at the counter is concerned, and to make a regular exchange of each other's bills at the Clearing House. It has also been resolved to send 8 committee to confer with the Governor in reference to calling a meeting of tha Legislature. The committee will leave for Albany to morrow at 12 o'clock. It appears that the Marine Bank was stopped by an injunction, at the instance of one of its customers. It is presumed that the other stoppages were effected in the same way. By this means the penalty of winding up which attaches to suspension under the banking laws af this State is evaded, and it is rendered probable that the suspension in most cases is only temporary. This understanding relieves the excitement.