15677. Continental Bank (New York, NY)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
May 1, 1873
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
39fc370c

Response Measures

Accommodated withdrawals, Books examined

Description

May 1, 1873 article describes rumors and a panic threat that was nipped in the bud after a bank examiner's public statement; no suspension or receivership is reported. In Sept 1873 during the wider financial crash the bank's certificates were thrown out of the clearing house (clearing-house exclusion), but articles state it had not suspended. Therefore sequence is a run/threat of run without suspension (run_only).

Events (2)
1. May 1, 1873 Run
Cause
Rumor Or Misinformation
Cause Details
Circulation of disparaging reports and rumors about the bank's condition; examiner's report of solvency reassured the public.
Measures
Bank examiner/clearing-board report made public; officers provided statement of condition to reassure depositors.
Newspaper Excerpt
The general feeling in Wall street was one of satisfaction at the reported stable condition of the Continental Bank. Financial men agree in saying that had it not been for the promptness of the examining committee of the Clearing Board in making their report public yesterday morning there would have been a disastrous panic in the street.
Source
newspapers
2. September 20, 1873 Other
Newspaper Excerpt
Certificates of the Mechanics banking association and the Continental bank are thrown out from the clearing office. (Articles note the National Trust Co. has closed its doors; but the Continental Bank is reported as thrown out of the clearing-house.)
Source
newspapers

Newspaper Articles (4)
1. May 1, 1873 The New York Herald New York, NY
Article from The New York Herald, May 1, 1873

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Article Text

THE DISTRUSTED BANKS. The Continental Bank Rumors and How They Were Started-A Panic Nipped in the Bud-The Atlantic Bank-No Statement from the Receiver-Taintor Remanded-Startling Rumors that the Defaulter Has a Large Sum Put Away and Is Only Feigning His Great Losses-The Reputation of Another Institution Questioned. The general feeling in Wall street was one of satisfaction at the reported stable condition of the Continental Bank. Financial men agree in saying that had it not been for the promptness of the examining committee of the Clearing Board in making their report public yesterday morning there would have been s disastrous panic in the street. As it was the report of the complete solvency of the bank reassured every one and everything went on during the day in a quiet, mundane sort of a way. A HERALD reporter called at the Continental Bank and saw one of the officers. He said that the rumors regarding the bad condition or the bank no doubt arose from the heavy losses the institution had suffered from time to time from one cause and anotherforgeries, &c.-and that some persons had undoubtedly taken advantage of the matter to circulate disparaging reports in the hope of a "bear" movement as a natural sequence. This would have been successful had not the report of the Bank Examiner been so clearly defiant of all misinterpretation, though it did put things down at the very lowest price. In spite of this report, however, it is understood the Bank Examiner has sent an account to the Comptroller of the Currency not altogether complimentary to the manner in which the bank has been managed. It is understood that its present condition is substantially as exhibited in the following statement: $1,100,000 discount of good mercantile paper. $700,000 on call loans. $650,000 legal tenders and gold. $1,700,000 net deposits. The building, owned and occupied by the bank, stands on the books as worth $350,000, and its actual value is said to be double that amount. THE ATLANTIC BANK. There was nothing new regarding the Atlantic Bank yesterday. The receiver, Mr. Strong, was busy all day examining securities, and succeeded in getting through another box. For the purpose of doing this without error he excluded everybody from the bank offices yesterday, and neither depositors, friends, nor curiosity-mongers were admitted. The committee from the depositors, probably understanding they would not be admitted yesterday, did not call. Mr. Strong says that ne cannot tell with any degree of certainty how long it will be before his statement is ready. In his report to the Comptroller of the Currency yesterday he said that he found matters worse and worse at every step he made. TAINTOR IN COURT. Mr. Taintor was brought before Commissioner Osborn yesterday at half-past twelve o'clock. At that hour Mr. A. H. Purdy, United States Assistant District Attorney, was in attendance, as was also the prisoner's counsel, Mr. John Sherwood. The prisoner, who looked pale and somewhat more nervous than he aid on his first appearance before the magis-

2. September 20, 1873 The Daily State Journal Richmond, Alexandria, VA
Article from The Daily State Journal, September 20, 1873

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Article Text

THE FINANCIAL CRASH. More Failares-The Government Buys $10,000,000 Bonds. NEW YORK, September 20.-The presidents of the national banks held an informal meeting this morning, and resolved to support each other and disregard any restrictions in to-day's dealings. Wall street was crowded at an early hour, but, however, with less solicitude. The resolution of the banks to sustain each other and the purchase of ten millions of bonds by the treasury nerves matters. Two members from Jay Cooke & Co. are coming on the Russia, which is expected Monday, when a reliable statement of the affairs of the house will probably be presented to the public. WASHINGTON, September 20.-The following failures are reported this morning: Union banking company, of Philadelphia ; Union trust company, of New York ; A. B. White & Co., of New York; E. C. Broadhead, of New York, and Ketchum & Belknap, of New York. NEW YORK, September 20.-The stock exchange is closed, subject to the call of the president, to enable members to settle. The defalcation of the Union trust company is reported. Vanderbilt is closeted with the directors. Quotations of stocks are impossible. President Chapman, of the stock exchange, forbids outside operations by members, upon penalty of expulsion. WASHINGTON, Septemper 20.-A. G. Cottrell, agent of the syndicate at London, telegraphs to Secretary Richardson that their accounts are all in perfect order. ADDITIONALSUSPENSIONS. Saxe & Rogers, New York; National Bank of the Commonwealth, New York Quassig & Fisher, P. M. Meyers, Miller & Walsh, Laurens Josephs, Fearing & Dillinger, Brown, Wadsworth & Co. The Freedmans' bank has paid out $65,000. The officers declare themselves well fortified. There is only the usual Saturday afternoon crowd about the bank. NEW YORK, September 20.-The National trust company has closed its doors. Certificates of the Mechanics banking association and the Continental bank, are thrown out from the clearing office. The bank of North America has suspended. PHILADELPHIA, September 20.-It rumored that the Union banking house has suspended. ALBANY, September 20.-Itis rumored that Squires & Sons have suspended. The Crisis in London-Jay Cooke's Firm Honor All Demands. LONDON, September 20.-The firm of Jay Cooke, McCulloch & Co., in this city, has paid cash over their counter yesterday notwithstanding the rush on the house. EFFECT OF THE NEWS FROM NEW YORK. LONDON, September 20.-Financial re ports in the afternoon papers indicate an uneasy feeling, occasioned by the news from New York. The close of the marS ket, however, finds confidence partially restored, and at this hour London's financal condition is sound. There are no failures. WHAT THE LONDON PAPERS SAY. LONDON, September 20, 6 a. m.-The London Times, commenting on the financial panic in New York, says : "In view of : the extraordinary prosperity of the United States, and high price of Government bonds the present must be regarded as a simple effort of the financial system to get rid of its dishonest element." The Daily Telegraph says such local P troubles as suspensions in New York seem to be merely the rank outgrowth of exu3. berant prosperity and accessories to progress, which does not for a moment halt.

3. September 21, 1873 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, September 21, 1873

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generally renew their impressions of yesterday, that the culminating point of the troubles has been reached. [Associated Press telegrams.] YORK, September 20. The presidents NEW national banks held an informal meetthis and resolved to in and disregard any of ing each the other morning restrictious support to-day's dealings. Wall street was crowded at an early hour, The but, however, with less solicitude. other resolution of the bank to sustain each bonds and the purchase of ten millions of the Treasury nerves matters. by Two members from Jay Cooke & Co. are on the Russia, which is expected afMonday, coming when a reliable statement of the fairs of the house will probably be presented to the public. The following failures are reported this morning Banking Company, of Philadelphia ' Union Union Trust Company of New York A.B. White & Co., of New York; E. C. Broadhead, of New York; Ketchum & Belknap, of New York. The National Trust Company has closed its doors. Certificates of the Mechanics Banking As- are sociation and the Continental Bank thrown out from the Clearing-House. SECOND DISPATCH NEW YORK, September.20.- The Stock of Ex- the change is closed, subject to the settle. call president, to enable members to A defalcation in the Union Trust Company the is reported. Vanderbiit is closeted with directors. Quotations of stocks are impossible. Presi- for dent Chapman, of the Stock Exchange, upon bids outside operations by members penalty WASHINGTON, of expulsion. September 20.-A. G. Cot- teleagent of the syndicate at London, their trell, to Secretary are all in perfect graphs accounts Richardson order. & that Additional suspensions: Saxe Common- Rogers, York: National Bank of the P. M. New New York; Quassig & Fisher, wealth, Miller & Walsh, Laurens Wadsworth Josephs, Fearing Myers, & Dillinger, Brown, & Co. The Freedmen's Bank has paid out $65, well The officers declare themselves fortified. 000. There is only the usual Saturday afternoon's crowd about the bank. NIGHT DISPATCHES. MISCELLANEOUS ITEMS ABOUT THE PANIC. NEW YORK, September Alluding to suspension of operations by the Evening memthe of the Stock Exchange, the cannot be bers says Too much praise and carawarded Erpress to the men who conceived Bedthis master stroke of policy. was raried out running loose and the craze multilam was communicating to the outside shut the pidly Nothing remained but to bulls tude. and try and bring back the door bears alike to their senses.' and The defalcation in the Union Trust Company The is Bank $500,000. of North America has not suspended. Western Union Telegraph stock, 57. Clearing-Houseannounce its account inability of The general clearance on dealers' to make inability a to obtain properly certified checks. The New York bank presidents, resolution at their this arternoon, passed a loan certo meeting issue immediately ten millions in THE PRESSURE. tificates. BANK OFFICERS TAKE MEASURES TO RELIEVE NEW YORK, September -The Association officers banks and Clearing-House unanimously the meeting this afternoon, November at their that until the 1st of issue next resolved bank in the clearing-house shall per certificates any to the amount of seventy-ilve and that cash value of their assets, settlecent. certificates of shall be accepted in place such ment of clearing-house differences in of legal-tender further notes. resolved to pool all cause their They notes, and make common of them. legal-tender any attempt to break any will be caragainst issue of these certificates of the The the extent of the full assets effect of ried to if necessary. The practical legal-tender bank. will be to economize place. It the issue these certificates taking their and facilinotes, expansion of bank credits is an but not of irredeemable paper. ties, to which the addition The will be charged, in 1 per banks issued loan-certificate of may be interest, one quarter on cent. to per to defray cent. the expenses consequent carrying out this plan. THE EXCHANGE WAS CLOSED. member [WHY of the Governing Committee this A Exchange, when questioned said that the Stock in regard to the closing. checks, afternoon banks began to refuse each others continuance the was useless to attempt a Unand it under such circumstances. of rules every member cerder was obliged to clearingExchange business the bank recognize in of the the any Stock tified check upon affairs any were in such a state that house; who but deposited a certified check he was and a man against it did not know how Governing drew The members of the unanistanding. met at 11 o'clock and the ExCommittee mously resolved upon closing up by 1:15. change The day closed with a better feeling among the banks and with the BELIEF THAT AFFAIRS WILL MEND next week. The closing of the and Stock the early Exchange is generally applauded Governing expressed that the arshould, after making brokers opinion Committee is for a settlement among and some Monday, rangement contracts falling due to-day days. of keep the Exchange closed for out. a few The bank statement is not LATEST ABOUT THE DEFALCATION. YORK, September e.-There amount is of much the NEW opinion as to the the defalcation difference of of Carleton, the figures secretary ranging of Union Trust Company, to $500,000. the The institution toin from sold $1,000,000 $250,000 bonds to funds the Government for next week, day, which also places over $20,000,000 it call loan will which also and have has been called, and this money be available that next the week. checks of clearing-house some banks The fact thrown out of the the prehave not been necessitate their affairs. failure in sent does disarranged state of WASHINGTON.

4. September 21, 1873 The Cairo Bulletin Cairo, IL
Article from The Cairo Bulletin, September 21, 1873

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- FROM NEW YORK. FAILED NEW YORK, September 20, 1:15 p.m Brown, Wadsworth, & Co. have failed THE BANK STATEMENT will, it is said, not be ready before night, if then. To give the usual quotations of stocks is not possible to-day. THE FAILURES OF BROKEES came in such quick succession that blocks of stocks were thrown upon the market to realize THE GOVERNMENT TO THE RESCUE A special from Washington says it may be stated on the highest authority that should the order to purchase $10,000,000 of bonds fail to check the financial excite ment, it has been decided by Secretary Richardson to issue any part of the FORTY-FOUR MILLIONS RESERVE necessary to restore confidence There were THIRTEEN PROPOSALS to sell bonds to the government at the sub-treasury, aggregating $2,672,659 at from 109 to 112. CLOSED ITS DOORS The National Trust Co. has closed its doors. OUT OF THE CLEARING HOUSE Certificates of the Mechanic's Banking Association and the Continental bank have been thrown out of the clearing house. THE CROWDS AND EXCITEMENT in Wall and Broad streets are unprecedented, and even in the neighbor lood of those financial centres, groups are gathered discussing the situation At this hour, nearly 1 o'clock, the millions promised from Washington cannot be made available owing to the RED TAPE REQUIREMENTS of opening and reading the offering to sell bonds, and telegraphing to know if the rates are acceptable. The tills of the best and strongest houses MUST BE GETTING LOW, having stood the run now of nealy three days Under the order issued by the president of the Stock Exchange forbidding members under penalty of expulsion to engage in operations outside, it 18 not possible to 1 realize on securities, and EACH MAN'S OWN VAULT is now his only stand by. GOLD at one o'clock, 111] The bank of North America HAS CLOSED ITS DOORS An effort is said to be making to get the public and private bankers to act SIMULTANEOUSLY and close at once, not waiting for the ust ual hour. NOT SUSPENDED The Bank of North America has not ( suspended. THE EXCITEMENT AND PANIC II which followed the announcement in the c stock exchange of the suspension of the 8 b Union Trust company, and the bank of e Commonwealth, were beyond description W The Stock Exchange 11 RESEMBLED A MAD HOUSE, b and the streets were blocked with people, II 11 laboring under the greatest excitement a and laney prices tumbled from 2 to 16 per C cent, and stocks were slaughtered without C8 my apparent regard to value. Amid the P SURGING OF THE EXCITED CROWD. o n the stock exchange and the continued t destruction of values, there were it SOME FEW COOL A ND LEVEL HEADS. a These men conceived the idea of initiat 11. ng it plan of closing the exchange and m immediately the governing committee el as convened to take action therein In in few minutes the board was di CALLED TO ORDER th nd the announcement made that W be exchange would be closed until urther orders from the president This S as received with great joy, and the ex. m hange N & RESOUNDED WITH CHEERS for 'he gong was sounded, and in less time er ian it takes to record the fact, the wild xoitement was over and the surging st rowd of frantic brokers disappeared and un he Stock Ex range was th A DESERTED HALL C The retunds of the treasury was m rowded with people listening to the prolie osals to sell bonds as they were read off, m while the Wall street steps of the build. the ng resembled a mass meeting the SENATOR MORTON 12 f Indiana was in the treasury when the lig proposals were read tr Certifications of the Bank of North ce America have been ele HROWN OUT OF THE CLEARING HOUSE lo hi gave rise to the rumor of its suspenC on pe THE BANK PRESIDENTS of ave passed a resolution to issue immedi ely ten million in loan certificates is MEETING ALL DEMANDS sa do NEW YORK September 20, 1:80 p.m CO he Fourth National bank is meeting all