15709. De Launay, Iselin & Clark (New York, NY)

Bank Information

Episode Type: Suspension → Closure
Bank Type: private
Start Date: August 26, 1857
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 8b65da06

Response Measures

None

Description

Multiple contemporaneous newspapers (Aug 26–29, 1857) report De Launay, Iselin & Clarke/Clark as having suspended/failed amid the 1857 financial panic. OCR variants of the name appear (De Launay/DeLauncy/De Launsy/DeLauney and Clarke/Clark); I standardized to 'De Launay, Iselin & Clark'. Articles describe a failure/suspension tied to heavy losses from stock operations and railroad securities rather than a depositor run; no article describes a depositor run on this specific firm. Classified as suspension_closure (suspension followed by failure/closure).

Events (1)

1. August 26, 1857 Suspension

Cause: Bank Specific Adverse Info
Cause Details: House heavily engaged in stock operations and foreign exchange; large losses from collapse in railroad and stock values and prior entanglements — described as a failure/suspension of the firm itself (their second failure) and purchases of short-time exchange undermining liquidity; linked to the broader panic but driven by their stock losses/exposures.
Newspaper Excerpt: the announcement of the failure of De Launay, Iselin & Clarke... DeLaunay, Iselin & Clark, 63 Wall St. have also suspended.
Source: newspapers

Newspaper Articles (6)

1. August 26, 1857 The New York Herald New York, NY

Article from The New York Herald, August 26, 1857

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The steamship America. now due at Halifax with European news to the 15th inst., three days later than previous advices, had not made her appear. ance up to nine o'clock last evening. The financial panic in Wall street was increased yesterday by the announcement of the failure of De Launay, Iselin & Clarke John Thompson and E. S. Monroe, bankers and stock brokers, and the reported failure of a Hartford bank; the Rhode Island Central Bank of East Greenwich: the Tiverton Bank, of Rhode Island: the Farmers' Bank, of Wickford: the Warren Bank, of Pennsylvania; the Bank of Kanawha, Virginia, and the Hancock Bank, of Maine. The semi annual meeting of the American State Council was held at Gothic Hall, Brooklyn, yesterday, about one hundred and twenty delegates being present. The President, J. C. Dann. of Buffalo, delivered an address on the state of the Order, from which it would appear tnst the party in the State are in a living condition, notwith standing their overwhelming defeat last fall. He also advises the adjournment of the State Council sine die, after the manner of the National Council at Louisville ; and thinks it would be well for the Order in this State to throw open their doors and abolish all secrecy. The President prophesies the atter downfall of the republican party in the country at no distant day, and in proof of it cites the recent disastrous defeats experienced throughout the portions of country in which elections have recently been held; also their eagerness to hold fast to the ekirts of the candidates of other parties. The Council fixed the time for holding the State Nominating Convention at Syracuse on the 15th of September, and resolved that any change in the organization of the American party of this State it the present time was inexpedient. Several important amendments were made to the constitution also; one of which was to hold but one yearly ses sion of State Council hereafter, instead of two; and others regulating the order for the working of councils During the day several rather spicy debates occurred on the several questions before the Council, a sketch of which may be found in another column. The Council finally, at twenty minutes at ter SIXO clock, acjourned, to meet at Albany on the fourth Tuesday of August, 1858. The Board of Excise Commissioners met yesterday, and after receiving several applications for 11. cense. adjourned till Tuesday next. when they will continue their sessions for thirty-six consecutive days. It is understood that the Temperance Alliance will at the same time commence prosecutions against Liquor dealers, selecting those who are able to pay whatever penalty may be imposed. The Excise Board have nothing to do with these prosecutions, although the suits are brought in their name. The question as to the disposition of the books of the Street Commissioner's Department was to have been argued yesterday before Judge Peabody, of the Supreme Court, but after some conversation be tween counsel the case was postponed un September 1. The argument with regard to the Conover contempt was also postponed till the 1st of September. The Board of Ten Governors met yesterday, and indulged in a little genteel plug aglyism, all about the discharge of one of the deputy superintendents of the workhouse, named Reynolds, who, it is al leged, offered resolutions at a republican meeting condempatory of Simeon Draper's course when Po lice Commissioner. The matter was finally referred to a select committee, who will investigate the facts. There are now 6,526 persons in the public institutions-an increase of 116 since last week. The first Regiment New York Volunteers met last evening and had a stormy session. Provision was made for the reception of the Pennsylvania Volun teers on their coming visit by the appointment of a Committee of A rrangements. A series of resolutions were adopted, after a stormy debate, disapproving of the action of the committee of the Common Council in awarding the Jackson gold box to Garrett W. Dyckman, and recommending General Ward B. Burnett as most entitled to it. Major Dyckman made B epeech in his own behalf occasioning considerable excitement. At the meeting of the Health Commissioners yes. terday, Mr. O. A. Ferris made some interesting remarks, showing the unfitness and inconvenience of the quarantine regulations this year. The Central Park Commissioners yesterday pass ed a resolution offering four thousand five hundred dollars for four plans for laying out the Central Park. as follows:- For the best plan, $2,000: for the second best, $1,000; for the third best, $750: for the fourth beet, $500. The General Superintendent of Police yesterday issued orders for the stoppage of organ music after ten Velock and for the policemen to report the names of all junk dealers and pawnbrokers. It appears that the investigations as to the means of saving life on the various steamboats originated with Mayor Wood about two years since, and the blame for the neglect to remedy the evils rests with the District Attorney. A special committee of five was appointed in the Board of Councilmen on Monday, to report upon the expediency of establishing a ferry to run from Jackson street to Hudson avenue, Brooklyn. There was a large amount of business transacted n the Court of Special Bessions yesterday, but the cases were of the usual unimportant character. The despatch from Washington in Monday pa per should have read: "Mr. Meek, of Pennsylvania. declines the appointment of Superintendent of in dian Affairs in Utah. The sales of coston yesterday were confined to about 300 a 400 bales, the marketciosing Arm. Flour was in good supply, with A light demand and more pressure to sell and the market closed at a decline of about 15c. a 20c. per bbl, chiefly on the common and lower grades Wheat also namier with more doing in new Red Tennessee sold at $1 10 $1 42 a $1 45, and common white Southern at $1 65, and prime do at $1 70. Corn was in light sup ply, and, with a good Eastern demand, was Armer with sales of Western mized at 86c. a 85%c., and Southern yellow at 86,400 a 90c. Pork was in moderate req :est at $26 18 & $26 for meas, and 821 75 & $22 for prime. Su gara closed at about ye decline on the lower grades. The saies embraced about 700 a 800 abds. Cuba muscovados, nearly all reasing grades, with 50 bhis. Porto Rico at prices given is another column. Freights were inactive and eacharged Among the engagements were 1,000

2. August 26, 1857 The New York Herald New York, NY

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matters and public confidence. The great fall to day was the first effect- of large failures: but as those failures let loose vast quantities of railroad BLOOKS, which must be sold, no one 000 form any idea of the docline to market value that D nat follow. After the first beard lower prices ruled, and all sorts of rumors affest. A: the second board there was what might naturally have been expected, a elight resction. In some stocks a little improvement was realized. Erie advanced % per cent, Cleveland and Totedo, X: Reading 1; Crosse and Milwaukie, 1. Pennsylvania Coal Company fell ou 1 per cent and closed very dull. Loans made on refleced so. curities must have been rapidly closed up to day. The margins were wiped out at a dash, and no alternative left for holders hypothecation but to put them at once upon the market We do not see what can sustain them long where they now rest. The panic in the stock market to day was not the result of any partioniar and sudden cause, but the result of a long series of causes which have been operating directly to this end. Prices for callroad stocks have been artificially custaine by the very parties whose failure is announced to day These concerns have been buying and carrying tens of thou sands of shares of come of our worse railroad stocks, Then they found themselves urable to stand up under the burden any longer they threw It upon the masket, and let it go for any price the stocks would bring. The failures reported to day are as follows:-De Launay, Iselin & Clarke. Bantrors and BLOCK brokers Banker and money brokers. John Thompson E S. Munroe Stock speculator There were numbers in the street this ernoon of the failure of a very large private banking house, weil known for HS connection with Western railroad companies A bank in Hartford WAB also reported & having failed. Messrs. Do Launsy, Iselin & Clarke have been for some years engaged in stock operations and in the foreign OK change business. This is their second failure They ope rated as the Stock Exchange very extensively for outside peoplators, and were known to DATE loss is gett by the decline in Erie, Michigan Southern and New York Central Their are said to be very heavy. Mr. John Thompson has been in Wall street twenty or thirty years, and has contined himself generally to the banking and money business. He has figured prominently in some of our largest loans, and was one of the original proprietors of the Breckenridge Coal Company His entangiements are principally with banking institutions. His n will only, we learn, be temporary. We have no doubt R few months will net the finnacial machinery of Mr Thompson's extensive establishment in full and successful operation again. He does not appear to us to be a man who can de kept down by the most adverse circumstances. Mr. E. S. Munroe has been an operator in stocks in the street for some years, and was a member of the Board of Brokers. For some time past he of erated as a bull, and his losses must have been heavy. This is about the extent of to day a disasters among individual CORDERDS Webave no every day for some time to come will bring its full share. The finan cial revulsion we have predicted is fairly upon us, and no one can tell where :: will stop. Hundreda of failures must take place. and Immense lesses must be realized. The community at large are 100 deoply involved in all sorts of speculations to escape without the natural GOD. sequences. Ballroad enianglements must drag down thou sands, and most of the stock securities representing these works must become completely annibilated. The losses already can be rated by tens of millions, and what little nominal value there may be still left in reilroad shares must disappear, leaving holders with not much more than 80 much blank paper. We are just entertog upon the most difficult season in financial of fairs. Contraction and depletion must be the order of the day among our banking institutions, and the credit system throughout the country will be before the close completely prostrated. Among the bank failures reported the following, we believe, are given upon good authort. ty East Greenwich. Rhode Island Central Bank Tiverton, R.I. Tiverton Bank Winkford Farmers' Bank Pennay ivania. Warren Bank Bank of Kanshwa Virginia Maine. Hancock Bank A bank in Hartford. We look for trouble among the banks of Ohio and among those of New England. A great many of these are deeply involved with valiread companies and must have made se rious The affect of the railroad collapse in this country must be full as disastrous as a similar influence produced in Great Britata. A writer ou British railroads in 1882 said :- The investment of capital in these Euglish railroads caused the most disastrous revulsion ever expecienced in Great Britain. It ruined many hundreds of her richest merchants, and produced a long continued pros tration of every industrial interest. from which it required years of patient labor and economy to recover." If this was the effect of the reaction of the rail. road mania in England, what will be its effect in the United States? If is now too late to repine, and we must resign ourselves to the consequences. The position of the Ohio Life and Trust Company remains unaltered. The Sheriff is in possession of all the books, papers and other traps of the concern, waiting the course of law. A list of certain creditors who have commenced proceedings in our courts will be found under an appro printe heading, in another part of this day spaper. Some of our shrewdest stock brokers bad the sugacity to sell the stock of the Obio Life and Trust Company largely short commencing full two months since. It may be recollected that one of our coteraporaries made a mailguant attack on a leading house in William street for selling the stock of this company on long options. The motives and integrity of the sellers were venemently assalled, the soundness of the company and the value of the stock as a security lauded. and the prospective lesses on the operation were gloated over by this paid attpendiary of the bell interest It was alleged that this house was a persistent seller of several insecurities, which, willin they have met the most Mirenuous and reckless enpport from this unscrepalous OTEED of the bell interest, have proved to be the most worthless on the list. With a view of paim. leg them off on the public, theee parties were charged with 16 venting all sorts of calamnies, and "platting by night" agains: the good repute of the said securities, for the unmanly purpose of frightening outside hot form into selling them below their value. The Ues sell.ng did 89 imply because they believed the market price was far beyond the actual value, and while they are now reaping the rich harvest of their foresigns and sugncity they can well afford to be charitable to their revilers. We have lost no opportunity of warring the public of the danger of buy mg mere worthless things and or the means that were taken to to: ate and sustain them. and we wonder at the credulity of those who still believe in the value of millered securities All condence In the honesty and judgment of the organs of these bubble companies must have departed, and outsiders can henceforth place no considence in uncir statements Their laudations must, after what has 00 curred, appear disgusting, and those who have been induced to follow their advice will not be slow to Impute # to the real motive. The Assistant Treasurer reports to day as follows $200,900 IS Total receipts 898 678 02 Payments Balance 12,287 885 61 The Cunard steamer from Boston for Liverpool to mor

3. August 27, 1857 New Orleans Daily Crescent New Orleans, LA

Article from New Orleans Daily Crescent, August 27, 1857

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New Orleans Daily Crescent. THE COMMERCIAL DEPARTMENT. New Orleans Money Market. CRESCENT OFFICE. No. 70 Camp street, Wednesday Evening, August 26, 1857. $ Everything pertaining to finance to-day was quiet, very quiet. There was a falling off in the amount of offerings in Bank for discount; as for exchange, there was very little offering. Dealers did not seem inclined to touch time bills largely to-day, intimating that they preferred to wait 8 day or two. Much complaint exists, and we believe there are reasons for it, at the very great irregularity of the mails. The water courses cannot offer any interruption at this season of the year to the regular daily transmission of the mail. Sight funds on New York are very firm at % premium, and some drawers seem inclined to advance to ½. However, any advance cannot long be sustained if based on the panic in New York, because that will only be of a brief duration. There were sales of Al sixty days sight at 13/2, and some other good bills were sold through the medium of brokers at 1½ discount net. The range of the market being from 15/8, 1½@2 per cent. discount for good to fair bills. We did not learn of H sale of Sterling to-day, nor any transactions in francs. We have only to remark that the market is essentially dull and inactive. We learn that sterling in New York has declined a quarter and over since Saturday last. There was not a sale of stocks; in fact, the market is stagnant, and as dull as at any period of the season, though holders ask full rates. A New York paper, of the 18th inst., says The market is increasingly active at higher rates of interest, and there is very little business paper, even of the best quality. selling below 9 per cent., while most of the offerings go at 10@ 12 per cent. Foreign exchange is firm, with but little activity. Sixty day bills on London sold at 106%, with 109% asked by some drawers. Paris. 5.18%5.16%. The estimate of specie for the Persia on Wednesday is one million five hundred thousand dollars, but this shipment will depend somewhat on the activity of Exchange. Unless the shippers can sell their bills more freely they cannot obtain the gold. The bank statement is quite as favorable as expected, but it is F evident that the banks must lose more specie during the coming week, and that they will be obliged to contract their accommodation still more. A large amount of exchange bought this year to offset purchases of sugar at a very high rate, will be saved to the country next year if Louisiana fulfils its promise. We are not aware what amount of sugar it is believed Louisiana will produce this season, but the maximum can be taken at 300,000 hhds. But high enough ideas are already promulgated through the West regarding the crop of our State. The Missouri Democrat, of the 17th inst., in remarking on sugar, says A private letter, dated New Orleans, August 8, directed to a large grocery house in that city, says that the sugar crop is unprecedentedly large. m We should like for the writer of the above letter, from which the above extract is taken, to say what will be an unprecedentedly large crop. The largest crop ever raised was 449,324 hhds.: the next 346,635 hhds.; the next 321,931 hhds., and it is only three Utimes since sugar has been cultivated that the crop exceeded 250,000 hhds. Those writers who pretend to know the whereabouts of the plant, which is to yield this season an .. inprecedentedly" large crop, will favor ns with figures and estimates, if to be had, of the proable product of each parish in the State. The telegraphic advises of the failure in New York of John Thompson and two others, the names of which must be incorrect. The telegraph intended, undoubtedly, to say De Lannay, Iselin & Clark, bankers, and E. S. Munroe, a broker. We shall of know more fully when the mail comes, which will be some time next week. In the meantime, we have the best of reasons for asserting that no houses having close connections with New Orleans are implicated, as the trouble only embrace railroad 2 stock jobbers. 5 Books for subscribing to the additional stock to the capital of the Bank of America are now opened at No. 77 Royal street, under the superintendence of the Board of Directors. The charter having been adopted by the original subscribers, the Bank will commence bu iness about the 10th of October, in the building at the corner of St. Peter and Old Levee street, with the original amount, say $500,000. There have been received yesterday and to-day $65,000 Mexican dollars, say 30,000 from Chihuahua via St. Antonio, which went into the hands of Merrell & Co., and $35,500 by the schr. nd Minna Schiffer, from Brazos St. Iago, $17,000 of which were sold at 106. The steamship Cahawba, for New York, has on freight$100.000 Mexican dollars. shipped by one of the Banks. 50,000 Mexican dollars, shipped by H. B. Merrell & Co. $150,000 00

4. August 28, 1857 Vermont Watchman and State Journal Montpelier, VT

Article from Vermont Watchman and State Journal, August 28, 1857

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NEW YORK, Aug. 25.-The suspension of the Ohio Life and Trust Company has been followed to-day by that of John Thompson, who has for so many years done the leading business in uncurrent money. and acted as the agent of various banks. This suspension has been wholly unexpected, and will cause an inconvenience, the extent of which cannot now be estimated. The assets of Mr. Thompson are largely in bank notes, not available at present, and in other securities of small value in the present excited state of the market. Other stock houses have also suspended among them De Launey, Iselin & Clark, and E. S. Munroe. The embarrassment of the former, thus far, extends only to their stock business: the house, however, are understood to have purchased some exchange on short time. The affairs of the Ohio Life and Trust Co. are freely discussed in the street. It is stated that the Pittsburg and Cleveland road owes it $500,000. for which its bonds are pledged. The Bank of Norwalk has its account with the Company, and report that its funds, as well as its collection paper, have been used by the Trust Company in common with the collection paper of other houses.The funds of many Western travelers are al so made unavailable, causing much personal inconvenience. No statement has been made of the affairs of the Company, but it is understood that within a few days a full exposition will be made. NEW YORK, Aug. 25.-By the arrival of the mail. as late as due, we have New Orleans dates of 18th and Galveston 16th inst. The Galveston News says that the majority for Runnels, the Democratic candidate for Governor. will not be less than 11,000. The Civilian says that great excitement is existing in Houston, owning to the discovery of a plot, got up by a gang of thieves, to kill the City Marshal. The ringleader in the affair, and another, were captured. The Pacific Railway was being graded at the rate of two miles per week, and 500 hands were engaged on the work. SHAM DEMOCRACY IN EARNEST. Since the sham democrats have discovered that there is no impediment to slavery in any State," an Illinois newspaper has come out in favor of Slavery in Illinois. Green Mountain Boys rebuke the Shams at the polls. That is the way to do it. MISSOURI ELECTION. The election of Rollins as Governor, over the pro-slavery Democratic candidate is reported certain, according to returns from every county save one. He may be cheated out of it: but the verdict of Missouri has been rendered against the Slavocrats. 17 The Steamer America, which reached Halifax on the 26th, reports that when the fleet engaged in laying the trans-Atlantic Telegraph Cable, was about 337 miles out, the Cable broke, and the vessels put back.— The break took place on the morning of the 11th inst.

5. August 29, 1857 Delaware Democrat Wilmington, DE

Article from Delaware Democrat, August 29, 1857

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and hail, accompanied by thunder and lightning, came on, causing a great deal of consternation to the nervous, and quite an excitement ameng all classes of our citizens. Some of the hail stones were as large as hen eggs, and many windows have suffered in consequence. Several accidents happened in the bay, during the progress of the squall, and it is feared lives have been lost. THE FAILURE OF THE OHIO LIFE INSURANCE AND TRUST COMPANY The failure of the Ohio Life Insurance and Trust Company on Monday, began to produce its effects yesterday in Wall street. There was quite a financial panic there, and was further increased by the announcement of the failure of De Launcy, Iselin & Clark, John Thompson and E. S. Monroe, bankers and stock brokers, and the reported failure of the Hartford bank; the Rhode Island Central Bank, of East Greenwich; the Tiverton Bank, of Rhode Island; the Farmers' Bank, of Wickford; the Warren Bank, of Pennsylvania; the Bank of Kanawha, Virginia, and the Hancock Bank, of Maine; and this afternoon there is a bulletin out, of four other banks having gone down. In fact Eastern bank bills will not be taken in New York to-day at all. That blessed baby! is still en exhibition at Barnum's Museum; its real mother has often to retire behind the scene, from an old Kentuckian, who is noted for his droll and very inquisitive questions to her. If Mrs. Cunningham could manufacture another now, while she is in the Tombs, and set it on exhibition too, the proceeds would assist not a little; now that her finances are exhausted and her exchequer in a tottering condition. No news of the telegraph fleet here yet. T. M. G.

6. September 5, 1857 Grant County Herald Lancaster, WI

Article from Grant County Herald, September 5, 1857

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From Dye's Wall Street Broker. Failures. New York, August 26, 1857. We hasten to announce that the Ohio Life & Trust Company, of Cincinnati has failed; the amount of its liabilities not exactly known, but supposed to amount to at least $7,000,000. Extended loans 01 Railroad Bonds is the immediate cause of its failure. This institution has long been looked upon as a bulwark of financial strength, and has always been managed by men of great respectability. But they have been dealing largely in stocks of late, and the great decline in their value has caused the shipwreck. ST'LL ANOTHER.-Hardly had the news of the above failure ceased vibrating ON the telegraph wires, than they were immediately employed in announcing the failure of Mr. John Thompson, Banker and Publisher of Thompson's Reporter, 2 Wall Street. Mr. Thompson's liability will not exceed $250,000, he having paid up as long as he could command funds. But the Trust Company's failure completely shook all confidence, and Mr. Thompson was unable to negotiate. BANK FAILURES.-Rhode Island Central Bank, East Greenwich; Tiverton Bank, Tiverton, R. I.; Farmers Bank, Wickford. The connection of the Ohio Life & Trust Co. was very close with the Bank of Kanhawa, Va. and we would advise the refusal of its paper until the next issue of the Broker. DeLaunay, Iselin & Clark, 63 Wall St. have also suspended. MATTERS IN NEW York.-The telegraph, Saturday, reporte I more failures in New York, and private despatches added to the list names not found in the public accounts. Stocks continue to tumble, and it would seem that some of them cannot well get much lower. Confidence in nearly all Railroad securities is gone for the time being, and it will require the best of management, on the part of Railway Di rectors, to regain even a portion of what they have lost. Since the crash had to come, it has come in good time: just as the immense crops of the country are about to be marketed. They will help materially to adjust balances and settle things. Had the break up occurred at the close of navigation, the evil effects would have been much greater and more wide spread.[Milwaukee Sentinel, 31st ult. MONEY MATTERS EAST.-The Hollister Bank, Buffalo, suspended yesterday, causing much excitement and a heavy run on the other Butfalo banks. In New York, the money market is still very stringent, and the panic in stock continues. Michigan Southern fell yesterday to 10 &; La Crosse and Milwaukee to 15½, and Milwankee to 36. State Stocks begin to share the depression and show a marked decline. It is confidently believed, how. ever, that matters will mend in a few days and business resume its customary course. -[Milwankee Sentinel, Sept. 1st.