Leather Manufacturers Bank

Bank Information

Episode Type: Suspension → Run → Reopening
Bank Type: state
Start Date: January 18, 1862
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 2c103a6c

Response Measures

Partial suspension

Other: Bank initially joined dissentients paying specie (Dec 31, 1861) but later 'returned to suspend' (Jan 1862).

Description

New York banks suspended specie payments around Dec 31, 1861/Jan 1862; Leather Manufacturers' initially continued paying but is later listed among banks returning to suspend (reported Jan 18, 1862). By Feb 19, 1862 the bank is open (General Scott enters) but there is a crowd and a run on the Leather Manufacturers' Bank during excitement over Fort Donelson. Sequence: suspension (Jan) → bank open again by Feb → crowd/run. Classification chosen: suspension_run_reopening (suspension occurred; subsequent depositor agitation/run while bank operating; bank not shown to have permanently closed). Bank type not explicitly stated in articles, so set to unknown.

Events (3)

1. January 18, 1862 Suspension

Cause: Government Action
Cause Details: Banks suspended specie payments following Treasury/Assistant Treasurer instructions and the wider decision by New York banks to suspend specie payments amid the Mason and Slidell controversy and related financial strain.
Newspaper Excerpt: Among the banks in New York returning to suspend specie payment, are the Bank of Commerce, Merchantile. Leather Ms. a. facturers', City Chemical, and America.
Source: newspapers

2. February 19, 1862 Reopening

Newspaper Excerpt: General Scott went into the bank... so ended a pleasant episode-the blockade of William street and a run on the Leather Manufacturers' Bank.
Source: newspapers

3. February 19, 1862 Run

Cause: Macro News
Cause Details: Excitement produced by war news (report of the surrender of Fort Donelson) that drew crowds and precipitated a run/blockade at the bank.
Measures: None mentioned in the articles.
Newspaper Excerpt: so ended a pleasant episode-the blockade of William street and a run on the Leather Manufacturers' Bank.
Source: newspapers

Newspaper Articles (5)

1. December 31, 1861 Evening Star Washington, DC

Article from Evening Star, December 31, 1861

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Article Text

THE SUSPENSION.- The New York Post of last evening says: Wall street wears a new face this morning The adjustment of the Mason and Sildell controversy, followed by a suspension of specie payments by the banks, has produced a marked effect in Wall street. The Stock Exchange is rampant, and prices of the speculative shares are two per cent and in some cases five per cent higher. There was great excitement on all the active stocks when called, the transactions being largest in New York Central and Erie. After the extravagant effervescence early In the day, the stock market since is flat, and prices are Kaly per cent., and in some cases 21/2 per cent below the highest points touched at the board The foreign exchange market is at a standstill this morning, pending the rise in the value of gold. The premium on gold will in a great measure regulate the rate of exchange, and in the present transitied state of things among the butlion dealers it is difficult to quote the rate on Lon. don. Some of the leading drawers name 118, but as yet no business of moment has been accomplished. The Secretary of the Treasury has directed the Assistant Treasurer of this port, and instructions of a like nature have probably been forwarded to the government officers at other prominent points, to suspend specie payments on all claims save the principal and Interest of the public debt, failing Jue on the 1st of January. Public creditors, with the exceptions named, are now paid in United States demand notes. The Assistant Treasurer at the same time ceases to redeem these notes, but receives all denominations, whether payable at New York or elsewhere, in payment of debts due the Government. We hear of some Jarring among the banks this morning, several of the leading Institutions re. fusing to step into the line of suspension. The Chemical, City and America, and one or two others, are paying specie to-day whenever do manded, but whether this course is making seri. ous inroads upon their reserves we are unable to ascertain. The Chemical, it will be remembered, maintained specie payments in 1857 and in 1860, and somecuriosity is manifested whether the present effort will be equally successful. We hear as we go to press that the dissentients to the bank suspension of Saturday evening are getting new allies, several other large banks beIng about ready to try their strength for some time yes. The Bank of Commerce, Mercantile, Leather Manufacturers', City, Chemical and America are (we believe) now paying specie. The Government will pay on the 2d of January the interest on the public debt in gold, the banks having responded to a further call of $3,500,000 on the new funded stock, on condition that it be se applied by the Secretary of the Treasury.

2. December 31, 1861 The Sun New York, NY

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Article Text

SECOND BOARD. 20 Harlem R..... 18% 5000 U.S. 6s, '81. rg 88 do ....... 1936 18000 Tenn. 6a, '90. 481/4 100 4000 Mo. 6s. do 50 42% 12% da 2000 100 Harlem Pf.,beo : 81 42% 5000 M. 6a. I toSt.J. 45 50 do 30% 4000 Cal. 78. 49% 50 Mich. Cen 81 1/2 88 do 1000 Ohio 6a, se 100 49% 2000 Minnesota 8s.. 75 20 M.& P.D.C. P. 57 76 1000 E.R. 4th M 10% M.S. . N. Ia.g 41K 8000 do 960 do 4136 75% do 94 100 145 Pacific M. S. #30 41% 95 do #10 94 50 Pattama R .ex 113 50 do do #30 94 95 11236 100 15) ml Cen. R. 8p 62 do . b30 94% 80 775 N Y. Cen R 150 Gal. & Chi. R.. 661/6 do 550 Erie R. 32 b30 06% 100 200 do do 25 66% 1330 3916 L 200 8546 do 360 Cle. & Tol 160 323 50 Erie Pf. 200 do 51% 50 do 200 do 3616 514 50 200 do do 51% 35% 50 do 100 Chi. & R I b30 51% 50% 110 51 do 200 Chl. B. & Q. R. 56 do 50 150 Hud. Rv. R 8836 b30 5616 5 39 do The suspension of specie payments, which has been agitated ao long, and so strongly recommended by brokers and business men. has had a very exhilirating effect on the stock market. and all kinds of securities have gone up with a run. The suspension had been so long looked for that it excited ut little comment. and has Indeed proved but partial, some of the leading institutions having refused to suspend, after the vote to do so had been passed by the majority. These were at first the Chemical Bank, City and Bank of America, Later in the day they were joined by the Bank of Commerce, Leather Manufacturers', and Mercantile Banks. Gold. AS yet, has not commanded more than half per cent. premium, there being little demand for it, the debts due upon the other side have been greatly reduced. and there is little disposition to contract more The desire to remit specie to Europe has also ceased in consequence of the surrender of Slidell and Meson, which is regarded as ensuring peace. The question of necessity of suspension is not by any means acquiesced in, either by the banks or the community. The banks commenced business, this morning, with $23,100,779 in their vaults. Had direct taxes been commenced to be collected from the people, by the government, as ) abort time as two weeks since, by which the funde taken from the banks and disbursed throughout the country at large, could have been collected in, and returned gradually towards the large business centres, and to the cities, it is thought that the necessity of suspension would have been entirely ob visted. The government will pay the interest on the public debt, in gold, on the 2d Jan. The Grocers' Bank has declared a dividend of 816 per cent. The half-yearly interest on capital will be paid by the United States Life Insurance Co. on Thurs) day, at the rate of 7 per cent. per annum. The Mariners' Savings Institution. 2d Avenue, opposite Cooper Institute, pays dividends on 20th Jan. of 6 per cent. yearly on sums under $500, and 5 per cent. on sums over $500. The Michigan Central Directors have passed a resolution to postpone dividend at the present . period. There is little or no excitement at the banks, or broughout the city, at the course which things are taking in a financial point of view. I

3. January 4, 1862 The Weekly Sun New York, NY

Article from The Weekly Sun, January 4, 1862

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Article Text

SECOND BOARD. 1936 20 Harlem R..... 5000 U.S. 6s, 81. rg 88 do 19% 100 13000 Tenn. 68, '90. 4314 4000 Mo. 6a. 50 do ******* 18% 42% 2000 do 100 Harlem Pf..b60 31 42% do 30% 5) 5000 M. 6a. I.toSt.J. 45 4000 Cal. Ts. 49% 50 Mich, Cen 81 1/2 88 1000 Ohio 6s, '86 do 100 49 75 2000 Minnesota 8H.. 20 M.&P.D.C. P. 57 1000 E.R. 4th M 76 100 M. 8. & N. Ia.g. 4136 3000 do 250 do 75% 41% do 94 100 145 Pacific M S.... 30 41 25 #10 94 do 50 Panama R .ex 113 50 25 do do 830 94 .11936 100 do b30 94% 150 III. Cen. R. 8p 69 80 775 N Y. Cen R 150 Gal. & Chi. R.. 6636 do 32 100 550 E:1e R. b80 66% do 200 do 25 66% 1.30 3216 200 do 15% 300 Cie. & Tol 160 31% b10 D 6-4 Pf 200 do 35% 51% 5 do do 35 1/6 51% 200 50 do 200 do 35% 51% to 100 Chi. & R. 1 do 50% 1330 511/1 tie do 51 200 Chi. B. & Q. R. 56 do R 50 Hold. 15 Rv. 8814 b30 5616 5 39 do The exeppnsion of specie payments, which has been agitated so long, and 40 strongly recommendof brokers and business men. has had a very exeffect on the stock market, and all kinds securities have gone up with a run. The sussension had been 80 long looked for that it excited at little comme t. and has Indeed proved but parlid. some of the leading institutions having refused to suspend. after the vote to do so had been passed by the majority These were at first the Chemical But k, City and Bank of America, Later in the day they were joined by the Bank of Commerce, Lesther Manufacturers', and Mercantile Banks. Gold, as yet, has not commanded more than half per cent. premium there being little demand for it, M the debts due upon the other side have been greatly reduced and there is little disposition to contract more. The desire to remit specie to Europe has also ceased in consequence of the surrender of Sidell and Mason, which is regarded as ensuring peace. The question of necessity of suspension in not by any means acquienced in, either by the banks or tue community. The banks commenced business, this morning, with $23,100,772 in their vaulta. Had direct taxes been commenced to be collected from the people. by the government, as slort time as two weeks since, by which the funda taken from the banks and disbursed throughout the country at large, could have been collected in. and returned gradually towards the large business centres, and to the cities, it is thought that the necensity of suspension would have been entirely obvisted. The government will pay the interest on the pubHe debt, in gold, on the 2d Jan The Grocera' Bank has declared a dividend of 316 per cent. The half-yearly interest on capital will be paid by the United States Life Insurance Co. on Thursday, at the rate of T per cent. per annum. The Mariners' Sivings Institution. 2d Avenue, opposite Coo, er Institute, pays dividends on 90th Jan. of 6 per cent. yearly on same under $500, and 5 per cent. on sums over $500. The Mich lgan Central Directors have passed a resolution to postpone dividend at the present period. There is little or no excitement at the banks, or throughout the city, atthecourae which things are taking in a financial point of view.

4. January 18, 1862 The Richmond Palladium Richmond, IN

Article from The Richmond Palladium, January 18, 1862

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Article Text

Among the banks in New York reuring to suspend specie payment, are the Bank of Commerce, Merchantile. Leather Ms. a. facturers', City Chemical, and America.

5. February 19, 1862 The New York Herald New York, NY

Article from The New York Herald, February 19, 1862

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Article Text

General Scott in Wall Street. During the excitement produced by the news from the seat of war on Monday, General Scott was observed in his carriage in the vicinity of Wall street, and was followed at once by an excited crowd to the Leather Manufacturers' Bank, which he had occasion to visit. His appearance was the signal for the enthusiastic congratulations of the people, who surrounded his carriage; and to such an extent was this feeling displayed, that the police found it necessary to open a way for the safe departure of the old hero from the stormy welcome of the people. As the carriage stopped, and the venerable form of the General appeared at the door, the crowd, which by this time was very large, removed their hats and broke into a loud cheer. General Scott raised his hat and bowed his acknowledgements, his white hair waving in the wind and his face expressive of emotion at the unexpected and informal greeting. General Scott went into the bank, the crowd awaiting his return. While in the bank, the despatch was sent to him announcing the surrender of Fort Donelson. The General read it and remarked, " It was a pity that great rascal Floyd has escaped." On leaving the bank, General Scott was again the recipient of an ovation, and so ended a pleasant episode-the blockade of William street and a run on the Leather Manufacturers' Bank. Just then, Sergeant McDonald, who served with the General throughout the Mexican campaign, was observed coming through the crowd with a rebel flag, which it was his intention to place on the steps of the bank 80 that the General might trample on it on returning to his carriage: but he was disappointed, in common with the assemblage, to find the veteran had already left. The gallant Sergeant then had to surrender the flag to the people. under whose feet the rebel emblem was very soon obliterated in the mire. We learn that the health of General Scott has much improved during the last two or three weeks. He now walks easily without assistance. Departure of the British War Sloop Racer. The British war sloop Racer, which had been anchored at Quarantine for the last week, took her departure for Bermuda, West Indies, yesterday morning. The Racer mounts eleven guns, and is commanded by Captain Algernon Lyons, cousin to the British Minister at Washington. A corrected list of her other officers has already been published in the HERALD. The late visit of the Racer had for its object the transmission of despatches from Lord Lyone, as well as from Mr. Archibald, the British Consul at New York, for Admiral Sir Alexander Milne, besides the conveyance of the West Indian mails brought from Europe by the Cunard mail steamer Asia. The Racer reports a very powerful English fleet in the West India waters, which, for its armament and number of men, has not been equalled for a very long period. It is stated that the next English man-of-war will be the Immortalite. The officers of the Racer are courteous and obliging, and very anxious to give full information upon any subject of public importance coming within their sphere. They have made many friends both in Brooklyn and New York. During her late visit the most cordial and friendly intercourse took place between the officers and the United States army officers on Staten Island, which resulted in an entertainment being given on board to the army officers.