15766. Eighth Avenue Bank (New York, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
April 8, 1856
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
9c52d8c3

Response Measures

None

Description

Contemporary articles (1856–1858) describe Eighth Avenue Bank as late and in course of liquidation, a receiver (E. P. Cowles / Judge Cowles) was appointed and reports for apportioning liabilities were confirmed. No article describes a depositor run; the bank entered receivership and liquidation and did not resume operations.

Events (5)
1. April 8, 1856 Other
Newspaper Excerpt
Judge E. P. Cowles, we understand, has been appointed Receiver of the Eighth Avenue Bank.
Source
newspapers
2. April 8, 1856 Receivership
Newspaper Excerpt
Judge E. P. Cowles, we understand, has been appointed Receiver of the Eighth Avenue Bank.
Source
newspapers
3. January 20, 1857 Other
Newspaper Excerpt
OPERATIONS OF THE LATE EIGHTH AVENUE BANK. ... E. P. Cowles, Receiver of Eighth Avenue Bank. us. Joseph Potter.
Source
newspapers
4. February 17, 1857 Other
Newspaper Excerpt
Edward P. Cowles, Receiver of The Eighth Avenue Bank VS. Jacob Cromwell. ... Judgment accordingly.
Source
newspapers
5. March 28, 1857 Other
Newspaper Excerpt
IN THE MATTER OF THE Eighth Avenue Bank- Notice is hereby given that, the report of John L. Mason. Esq, the referee appointed to apportion the debts and liabilities of said bank among the stock holders thereof, has been confirmed.
Source
newspapers

Newspaper Articles (5)
1. April 8, 1856 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, April 8, 1856

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Article Text

Judge E. P. Cowles, we understand, has been appointed Receiver of the Eighth Avenue Bank. An attempt is being made to inforce the individual liability clause of the bank law against the stockholders. The bids for $1,600,000 six per cent and $2,800,000 five per cent City Stock for the Central Park wero opened at the Controller's office to-day by Mr. Flagg, in the presence of Robert Kelley, Chamberlain of the city, and other persons interested. The five per cents are redeemable in 1898, and the six per cents in 1859. The bids for the six per cents were within less than $200,000 of the amount needed, not including those which did not specify the amount that would be taken. The bids for the five per cents were very small, some $175,000, but there were several bidders for any amount to be awarded, but who probably scarcely expected to have $2,600,000 divided amongthem. The bids for both descriptions ranged, with small exceptions, from par to 1 per cent premium. The result was as follows:

2. January 21, 1857 The New York Herald New York, NY
Article from The New York Herald, January 21, 1857

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Article Text

Supreme Court-Circult. Before Hon. Judge Roosevelt. OPERATIONS OF THE LATE BIGHTH AVENUE BANK. JAN. 20.-E. P. Cowles, Receiver of Eighth Avenue Bank. us. Joseph Potter.-This controversy arises out of the operations of the late Eighth Avenue Bank, now in course of liquidation. The nominal capital of the institution, it ap. pears, was $100,000. Its certificate of formation, under the general banking law, was signed by a very limited number of associates, who, together, took the whole stock with an understanding, as alleged, that others were alterwards to be brought in by subdivision and transfer. Among these others was the defendant Potter. Seventy shares of $50 each, it appears, were transferred to him on the becks, and a certificate made out in his name. He paid for them by a note at six months, discounted by the bank, and a check drawn en the proceeds When the note feil due he paid the interest and game - new note for the prin. cipal at six months more, include the six months interest to accrue. The bank failed and the note fell due. The defendant then rejused to pay, alleging that the directors (of whom he himself was one) vielated the law in taking such a note. They were bound. he says, to require cash down; and as he and his associate directors had no right to give him credit. therefore, as a legal comsequence, having obtained credit, he is not bound to pay after the period of credit has expired. Had the stock, according to this doctrime, turned out valuable, the profit, it will be seen, would have ben Potter's; as the stock, however, in a very brief pe. riod, turned out to be worthless, the loss must be berme by the small savings depositors. Sech, I think, is not, as 18 certainly ought not to be, the law. Potter, it was proved, was a perfectly responsible man. His mete, therefore, was a proper subject of discount; and it nes not lie in his mouth to say that the discount was not made in good Faith. Depositors relied, and had a right so rely, upon his name as an actual and not a nominal contributor to the stock. In the annual sworn statement, under his sanction, made to the Comptroller, he was bound to specify this stock "as paid in or invested according to law."-Act of May 26, 1841. Ee was also bound to see that the President and Cashier (ke was President himself for seventeem months, and claims an offset of $5,000 for his services) kept at all times a true and correct list of the names of all the shareholders" for public inspection, and filed a copy every six months in the office of the Clerk of the county and of the Comptroller of the State-General Benking Act, sec. 30. we are to presume, in the absence of either proof or suggestion to the contrary, that these requirements of law were duly complied wkb. And shall a director and president be now permitted to say that, although seemingly complied with, the compliance was merely formal and deceptive. The defendant, in bis answer, says he was induced to sign the note under false representations. He does not specify them nor does he preve them He says again that he received no consideration for his signature, yet the note on Its face contains an acknowledgment by him ot "value received;" and besides, It appears, as already stated, that the stock was actually transferred to his name on the books, under bis own supervision, he being a director at the time. and that the certificate, although actually filled up. was only not out out and delivered to to him because It was understood, as we have a perfect right to infer, that It was to remain as a hypothecation till the payment of the note. In judgment of law, therefore, he did receive the stock. At the end of six months, with full opportunity for reflection, he again affirmed the subscription or transfer by paying interest on the pur chase or subscription money and giving a remewed note at six months for the principal. Somuch for the defence. As to the alleged offset, 11 appears by the defendant's own testimony, introduced to show his liability to be imposed upon in such matters, that be bad little or no financial knowledge, and that during the seventeen months of his presidency, which may properly be termed the expiring moments of the institution, the bank received not a single deposit and made not a single discount. The savings depositors were no doubt importunate, and their visits, frequent as they must have been. were no deubt painful to the feelings of AD honest and kind hearted man. Under the circumstances, and considering also the responsi. bility incurred, and that the defendant's estate was sufficient to meet it, I am disposed to allow as a compensation for his services as president at the rate of $1,000 a year, according to the valuation of two of the witnesses in his favor. Judgment accordingly for plaintiff for $2,799 40, with costs and fifty dellars allowance

3. February 18, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, February 18, 1857

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Article Text

SUPREME COURT-GENERAL TERM-FEB. 17. EXAMINATION FOR THE BAR. Fifteen candidates for admission to the bar presented themselves this afternoon. Richard Goodwin, Clarence A. Seward and E. J. Phelps are the examiners. SPECIAL TERM-Before Judge PEABODY. DECISIONS. Catherine M. Mower agt. Elisha B. Tanner et al. The order confirming the report of sale does not appear to have been exhibited to the person in possession. It should have been, and a proper demand, after adding that to the papers, will entitle the applicant to the writ of assistance. It would, perbaps, save time, and a subsequent motion to make an order to show cause, but this does not seem necessary. Joseph A. Vesrie agt. Pierre L. Pearce et al. Motion denied. Amon L. Scoville et al agt. James Stringer et al. Referred to Wm Tracy. Before Judge CLERKE. Edward M. Dwynee et al agt. Wm. Wulf. Motion denied, with $10 costs. Cyprian L. Taillant agt. Mortimer De Motte et al. Order of arrest vacated, with $10 costs. Before Judge MITCHELL. David Johnson agt. Henry Sayder. Referred back to referee to modify and readjust amount. CIRCUIT-Before Judge CLERKE. Edward P. Cowles, Receiver of The Eighth Avenue Bank VS. Jacob Cromwell. This was an action upon the defendant's original subscription to the shares of the capital stock of the Eighth Avenue Bank. The whole capital stock was subscribed for in the first instance by twelve persons, who were the Directors, and the bulk of it was afterward transferred to various persons, and the tran=ferees in many instances paid for the shares transferred to them in cash, at par. But in other cases, the Directors received their own notes in payment for shares, or to represent such payments, and these notes remained in the Bank till its failure, and passed into the hands of the Receiver. The defendant was one of the Directors. and subscribed for 340 shares, at $50 per share, of which he paid up in cash for fifty shares. The remaining 290 shares be transferred to various persons. including other Directors. Of the latter, 207 shares were paid for in cash by the transferees, but the remainder, or 83 shares were never paid for, except by promissory notes made by some 0 the Directors as before stated. the makers of which notes are now insolvent. The Court held that these transfers, made while the subscription remained unpaid, were in violation of the statute relating to "Moneved Corporations," and of the articles of association of this Bank; and that the defendant is llable upon his first subscription for those shares which being part of that subscription have not been actually paid for, namely, 83 shares at $50 per share, or $4,150, with interest. Judgment accordingly. For plaintiff, Charles H. Hunt; for defendant, E. More.

4. March 28, 1857 The New York Herald New York, NY
Article from The New York Herald, March 28, 1857

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Article Text

LEGAL NOTICES. CUPREME COURT -IN THE MATTER OF THE Eighth Avenue Bank- Notice is hereby given that, the report of John L. Mason. Esq, the referee appointed to apportion the debta and liabilities 0: said bank among the stock holders thereef, has been confirmed. except as to those who appeared to oppose said confirmation. All others who are charged or assessedi by said report are requested to DAT the amounts for which they are severally so assessed to the sub scribers, at No. 76 Nassau street, immediately. HUNT s BRIVHT Attorneys for the Receiver of the Eights Avenue Bank

5. November 17, 1858 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, November 17, 1858

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Article Text

New Orleans Ittoney Market. CRESCENT OFFICE, No. 70 Camp street, Tuesday Evening, November 16, 1858. The general money market was exceedingly quiet. The sales of paper on the street were at 7 @ 8 per cent. for March and April maturities. The offerings in bank were light, with some of the banks up to their income, with others not one-half. Specie continues to flow in, and unless there is an advance in sight funds on New York, attended with an enlarged demand, two or three of our inks will have to order their large balances back in The New York market, in regard to foreign exchange, sympathises with ours, or perhaps ours sympathises with that. It is immaterial how the case stands, as gold has got to come hither to move our large receipts of produce, or rather to invest in exchange-the proceeds of said exchange moving the produce. It would not be a very profitable or a paying business for an English spinner or a New England manufacturer wanting, say one thousand bales of cotton at a specified price, to send fifty or sixty thousand dollars in gold, with the orders and the price limited. So it is the heighth of folly for planters and growers of cotton to say if Mr. Bull or Mr. Yankee wants my cotton, let them bring the gold and they can have it at such and such prices and so on. This will all do very well for a confab and talk. The gigantic business of this country must be conducted by exchange, and the balance of trade, or purchases of our staple, must be settled in coin, for which purposes only a few millions of gold are necessary. We learn that the Governor of Arkansas, in his late message, recommends the suppression of all bank notes under fifty dollars. The intercourse between Arkansas and New Orleans is of consid rable importance, and the cotton raised in Arkansas forms one of the links of the intercourse, but Governor Conway need not expect that any law passed by the Legislature of his State will prevent a citizen of Arkansas from refusing 8 bank note of five, ten or twenty dollars. Does any one suppose that the proprietor of & wood-yard, on the banks of the Mississippi, now within the jurisdiction of Arkansas, will refuse from & steamboat the notes of either of the banks of Louisiana, be they for five or five hundred dollars. Does the member of the Legislature of Mississippi, who introduced a bill last week to suppress bank notes under twenty dollars from being circulated, suppose that any citizen of Mississippi will refuse the bank notes of this city for anything he may have for sale. Such laws as these are all fudge and fiddlesticks. Public opinion everywhere, it is ad: mitted, is against the issue of notes under five dollars, and those who assert that the panic and crisis of 1857 was brought about by the banks issuing notes under twenty dollars, know no more about finance and trade than the highly estimable gentleman who is represented to have his locality in Queen Luna's dominions. It is suggested that the members of the Legislatures of Mississippi and Arkansas will not commit themselves to such legislative foll, Does any one believe that the citizens of Bay St. Louis, Pass Christian, Mississippi City and Biloxi will refuse to receive a bank note under twenty dollars of the banks of New Orleans when tendered, or can any legislative enactment prevent the Jackson Railroad from receiving from the citizens of Louisisiana & bank note of live or ten dollars for passage or freight. We trust our neighbors of Mississippi will not make themselves ridiculous. The weather cleared off bright to-day, though tinged with something of a Lapland feeling. Business moved on quietly, though not brisk it was not dull. The Exchange market had the same downward tendency we noticed yesterday. Telegraph advices from New York of last evening, the 15th inst., quote a further decline in Sterling ex. change. The best of bankers' bills were offering at 109. This information was expected from the tenor of the private letters. of the 10th inst., which quoted 1091/2 @ 1091/4, with & heavy market. The best of francs were sold at 5.171/2 @ 5.18% These accounts had, however, no great influence on our market, only to strengthen the position of buyers, who offered 106 @ 106½ for bills with documents, and clear bills at 1073/4 @ 107%. There were, however, some sales of bills of lading drafts under a great margin, at 107. The demand for remittance was slack. We quote 107% @ 10814, according to sums wanted. In francs there were some sales at 5.27½ the range of the market being from 5.32½ @ 5.26% In Northern funds there was not much doing. The counter rate for checks was %. Some sales were made at % discount, and large sums ouiside were sold at ½ and 1 discount. Short sight 1½ @ 1½ discount ; sixty days sight from 17/8 to 2, 2½, 2½ @ 23/2 discount. The supply free, and the market closing altogether in favor of buyers. There was very little done in Stocks. We only heard of the sale of 100 shares Gas Company at 130, and 170 shares of Jackson Railroad, the price of which will be known to-morrow. Suppose & bank in Louisiana had failed, became bankrupted during the crisis of 1857, like the great Ohio Life Insurance and Trust Company, the Empire City Bank, Eighth Avenue Bank, Island City Bank and Bowery Bank, located in the great metropolis, New York the Bank of Pennsylvania, in Philadelphia, with the hundreds of other banks which failed, suspended, and never have resumed, or will never resume, would we in New Orleans have heard the last of it for ten or twenty years at least? We trow not. We find, however, that bad bank failures are not confined to this side of the Atlantic, as is well known by the bankruptcy of the Borough Bank of Liverpool, and other banks in England. But we are somewhat taken aback at the looseness and wantonness of the management of the Western Bank of Glasgow. which failed in 1857. Scotch banking has