Hanover Bank - New York, NY

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: August 26, 1857
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 1e2596cd

Response Measures

Accommodated withdrawals

Description

Multiple contemporaneous newspaper reports (Aug 26–27 and Sept references in 1857) describe depositors running on the Hanover Bank during the 1857 financial panic; articles note the bank paid promptly during the runs and no suspension or closure of Hanover Bank is reported in these items. Cause is the broad 1857 financial panic and related local failures (not a discrete misinformation event).

Events (2)

1. August 26, 1857 Run

Cause: Macro News
Cause Details: Part of the widespread financial panic of 1857 (broker failures, Ohio Life & Trust troubles) that undermined public confidence and produced runs on New York banks.
Measures: Paid out to depositors; reports indicate the bank paid promptly (up to 3 o'clock) during the run.
Newspaper Excerpt: The Hanover Bank was run upon to day by its depositors
Source: newspapers

2. August 27, 1857 Run

Cause: Macro News
Cause Details: Ongoing panic conditions and rumors about multiple institutions (broker arrests and failures) led depositors to withdraw funds.
Measures: Reported to have paid promptly during the day; not described as suspending specie payments.
Newspaper Excerpt: it was rumored in the morning that a run had taken place on the Hanover Bank, in Nassau street
Source: newspapers

Newspaper Articles (4)

1. August 27, 1857 The New York Herald New York, NY

Article from The New York Herald, August 27, 1857

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Article Text

THE PRESENT FINANCIAL CRISIS. More Attachments against the Ohio Life and Trust Company. Arrest of Mr. Thompson, the Wall Street Broker. EFFECTS OF THE CRICIS our OF NEW YORK, What is Thought of it Throughout the Country. Stock Gambling-Bank Swindling in Chieago Surplus in the National Treasury, do. &c., &c., WALL STREET YESTERDAY. THE EXCITEMENT IN THE STREET-APPEARANCE OF THINGS AT BUSINESS HOURS. The excitement in Wall street seemed to intensify yesterday. There was far more appearance of uneasiness on the street than the day previous, as If its frequenters were beginning to feel that danger was closing round them. One topic alone appeared to occupy every little knot of resuless conversationists, and that was the position of the city banks. It was rumored in the morning that a run had taken place on the Hanover Bank, in Nassau street. This, together with the temporary arrest of John Thompson on a charge of alleged fraud, and the failure of Jacob Little, contributed to the sense of insecurity which was manifested in almost every face. Now and then opinions were freely expressed as to the solvency of certain institutions; and such expressions MI 'Twas a bad bargain," and "I wish the concern was elsewhere before I touched it;" "I never thought much of the Island City," and "The devil take his Coal Company," might be heard at all sides. A passer-by, struck by the evident confusion and ner" vousness all round, and the frequent use of the words stocks, railroads, money, intermixed with a few strong expletives-though such are familiar as household words in that locality-shrewdly remarked, that there was hardly a man in Wall street could tell who was President or the United States if asked the question suddenly. The doors of the Ohio Life and Trust Company's office were open yesterday, and people occasionally popped in their heads to take a peep at the deputy Sheriffs in charge of the property. Mr. Thompson, though he had been arrested on a warrant issued by Judge Hoffman, was sitting calmly in his office in the afternoon, receiving his friends, and attempting to allay the anxiety of those who were Importuning him. The circulation of a "sensation" handbill which the newsboys were vending at a penny aplece in Wall street and the neighborhood, and which purported to put the public on their guard against certain banks, made a little sensation among the uninitiated; but the knowing ones flung It Ignominiously away, so that the gutters and areas were soon filled with the philanthropic document. The merchants who assembled on 'Change at three o'clock, did not seem to share much in the excitement apparent on the sidewelks. Their [demeanor was about as calm and dignified as usual. The security of our city banks was a subject of conversation with them, and the general opinion seemed to be that there was not much to be apprehended in that quarter. Allihe excitement seemed to be among the stock brokers and stock gamblers. THE LIABILITIES OF TEE OHIO LIFE INSURANCE COMPANY-ATTACHMENTS IS&UED. SUPREME COURT-SPECIAL TERM. Before Hon. Judge Peabody. AUGUST 26.-In the matter of the Ohio Life Insurance and Trust Company. The attachments issued en Tuesday and already published in the HERALD, amounted to $987,866.57 ATTACHMENTS ISSUED THIS DAY. The Norwalk Bank Branch of the State of Ohio 90,000 00 Total thus far $1,057,866 67 APPLICATION FOR THE ARREST OF JOHN THOMPSON, THE WALL STREET BROKER. In the Matter of John Thompson.-M. Anthon, on behalf of one of the creditors of John Thompson, the Wall street broker, who bas suspended payment, applied for an order for the arrest of Mr. Thompson, on the ground of alleged fraud in his suspension. Judge Peabody denied the application, on the ground that it did not appear that the money was deposite with Thompson in consequence of any fraudulent representstions, but that it was entrusted to him on his public credit. SUPERIOR COURT. The Metropolitan Bank us. John Thompson.-An application was made before Judge H ffman for an order for the arrest of Mr. Thompson, on the ground of frand in his recent suspension. Order granted-ball fixed at $15,000. Before Hon Judge Duer. The Metropolitan Bank US. John Thompson.-Mr. Van Black appeared on the part of the defendant to suspend the order of arrest, and to show cause on Thursday morning why the said order should be vacated. Judge Duer granted the application of Mr. Thempson's counsel.

2. August 27, 1857 The New York Herald New York, NY

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FINANCIAL AND COMMERCIAL MONEY MARKET. WEDNESDAY, August 26-6 P. M. The panic still continues. It is rather on the increase The brokers topple down like so many loose bricks. At the board to day the most intense excitement prevailed, and lower prices ruled throughout. Stock: are coming out of every hole and corner in Wall street. Large 10's held on hypothecation have been put on the arket, and in many instances the amount advanced has not been realized. Most of the sales to day were on time. Virginia 6's declined ½ per cent; Delaware and Hudson, 1; Cum. berland, 1; Pacific Mail Steamship Company, 1; New York Central, 1%; Erte, 23/4; Reading, 23/1; Michigan Central, 2%; Reading, 2; Michigan Southern, 1½; do preferred, 4; Panama, 4; Illinois Central Railroad, 4; Galena and Chica go, 1½; Cleveland and Toledo, 1½; Chicago and Rock Island, 1. The desire to sell was strong and the market was given all It would bear without further depression. We are now in the midst of the excitement, and there are some buyers for an advance. The great decline in prices has attracted a set of sanguine speculators, who think that a reaction may be realized that will give n profit on current rates. This is usually the effect of such a sudden decline, but it will not in our opinion work to any extent this time. The cause of the present de pression in prices for railroad stocks and stock securities generally. is not merely a Wall street matter. It is deeper, and beyond the influences of the Stock Exchange, and it is not in the power of all the banks and brokers of the city to put a stop to the panic which has seized upon the public mind. The railroads are just at this moment the object of opposition and distrust, but the banks are not free from grave suspicion. They may not escape in the general with drawal of public confidence, and their existence is not worth twenty-four hours in the event of general alarm among depositors. Public confidence is the very breath of financial life, and it is folly to talk about the strength and solvency of our banking institutions with distrust fill ing the public mind. The Hanover Bank was run upon to day by its depositors, and there were reports relative to two or three other banks in and in the neighborhood of Wall street. The failures among the brokers were numerous. Those named were as follows:Jacob Little & Co., stock brokers and speculators. EA Benedict. do. do.

3. September 2, 1857 The New York Herald New York, NY

Article from The New York Herald, September 2, 1857

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Article Text

FERMENT. A IN WALL STREET The Defalcation in the Mechanics' Banking Association. SUSPENSION OF THAT INSTITUTION. MORE FAILURES. The Case of Thompson, the Wall Street Banker. AFFAIRS ELSEWHERE, do &c., to., THE EMBEZZLEMENT IN THE MECHANICS BANKING ASSOCIATION. APPEARANCE OF THE PRISONEH-THE SENSATION IN WALL STREET. Wall street presented y esterday a soene of more exotte most, fever and panic, than on any day since the present financial crists has afficied that locality. The suspension or the Mechanics' Banking Association, and the house of Beebee & Do., specie brokers, the run upon the Han ver Bank, the Metropolitan and the Bank of Commerce, and failure of several business houses, all reported yesterday-the particulars of which will be found in our money article-contributed to swell the tide of the anxious and alarmed crowd which throughout the whole day made Wall street the theatre of an unusual drama. But the centre of the excitement was the office of the Mechanica' Banking Association. The announcement in the HERALD yesterday morning that one of the clerks had been detected in embezzling to the amount of some seventy thousand dollars, created a deep sen. antion throughout the city ; and when it was announced that the bank had suspended business in con sequence of the defaication, crowds began to assemble in frout of the building in Wall street, and continued to swell during the day. The inside of the building was crowded, and a stream of people continued to flow in and out without cessation. With regard to the alleged embezzlemen it appears that some suspicion had been entertained for a long time that something was going wrong in the bank, from the fact that a large deficit in the specie had been from time to time observed. Buspielen rested upon Mr. Edwin Van Biarcom, the paying teller, a gentleman who had for a long time ocoupled that position of trust. On Monday evening a request was sent from the bank to Deputy Superintendent Carpenter, to detail a couple of officers for special duty; and, accordlogly, the Deputy, accompanied by officers Elder and Mo. Cord, hastened 10 street, where they found the cashier of the Mechanica' Banking Association and the teller Mr. Van Blaroom, engaged in overhanling the books. They remained outside until about 11 P. M., when they were summoned, and Mr. Van Blarcom was given into their charge, They at once removed him and kept him in close oustody for the night. Yesterday the prisoner was taken down to the bank in charge of the officers to await the desision of the Board of Directors, which held a long session for the purpose of in vestigating the affair, and discovering, if presible, the amount of the defalcation and the best means of dealing with the prieener. During their session Mr. Van Bisroom sat in the passage leading from the bank to the directors' room, and walthe object of a(minute scrutiny by the crowd which filled the the bank. Helan elderly man-probably about forly. eight or fifty years of age. He is small in stature, slight, dark complexioned and slightly gray; wears spectacles, and is very hard of hearing. He seemed restless and embarrassed during the two or three hours be occupied his unpleasant position, exposed to the public gaze. He rarely lifted his eyes from the ground except when one of the directors came out and entered Into conversation with him, with a view to obtain some information as to the amount of the defaice Mon or the mode in which is was accomplished. It is well known that in all such cases the directors of the bank are found to be prefourdly Ignorant of the doings of their em ployés, and when a defalcation occurs they are dependent on the communications of the defaulter not only for the sine to the mystory of the wrong doing, but for the amount of which they have been defrauded. We learn that the Board of Directors separated yester day without taking any steps to prosecute the delinquent. No charge has been made against him, though we under. stand there is no doubt that some seventy or eighty thou and dollars are unaccounted for. Mr. Van Blaroom is a man of family residing in Bloccker sirret. His habits have been remarkably ex. travagant; and the opinion seems to prevail that he has been the victim of stock jobbers and speculators, who have obtained conveniences from him, out of which he has probably received little or no benefit. The Mechanics' Banking Association refused to redeem to own notes for the present; its bills, however, were re DRIVER on deposit in the Mechanica' and other banks. Blocks yesterday fell considerably, and the money marnot, as a matter of course, was very stringent. The panic extended to other banking institutions besides the Mechanica' Association, though the manifastations in their neighborhood were not as apparent No extraordi. cary excitement was observable about the Metropolitan or Hanover banks; but a considerable crowd was assem bled during a portion of the day round the Bank of Com merce. The Shoe and Leather Bank refused to pay a check of Comptroller Flagg, countersigned by the Mayor and Clark of the Common Council, for $68.83 The Teller stated that they had no money. On the whole, an ill suppressed anxiety and restless ners were displayed in the neighborhood of Wall street, which indicated a very unsettled condition of financial affairs in the city. IOUN

4. 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