16088. Lockwood & Co. (New York, NY)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
private
Start Date
September 30, 1869
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
7bcdeae5

Response Measures

Full suspension, Books examined

Description

Newspaper accounts from Sept. 30, 1869 describe crowds, anxious depositors and suspended payments at Lockwood & Co. (run behavior), followed by assignment/assignee and discussions of suspension and possible creditor subscription. A later article (Oct 14, 1870) reports the firm had settled with creditors (compromised at 50 cents on the dollar) and paid final installments, indicating recovery/resumption. Cause of trouble is excessive speculative/gold-stock ventures (bank-specific adverse information).

Events (4)

1. September 30, 1869 Run
Cause
Bank Specific Adverse Info
Cause Details
Speculative losses/excessive ventures in the gold/stock market led to loss of confidence and heavy withdrawals
Measures
Customers demanded payment; bank suspended payments (see suspension event)
Newspaper Excerpt
Moments of Lockwood & Co. ... people kept pouring in ... anxious ... asked if their deposits were safe ... one man wanted his $800 handed across the counter
Source
newspapers
2. September 30, 1869 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Failure tied to disastrous speculative operations in gold/stock markets; firm forced to suspend payments and an assignee/receiver took charge of the office/affairs
Newspaper Excerpt
It was said ... We have suspended payments ... forced to suspend payment in September ... office is still in charge of the assignee
Source
newspapers
3. October 1, 1869 Other
Newspaper Excerpt
the office is still in charge of the assignee, who transacted whatever business required attention. It is said creditors will hold a meeting to discuss a proposition to subscribe a prorata sum ... to enable the firm to resume business (creditor negotiation/rehabilitation plan).
Source
newspapers
4. October 14, 1870 Reopening
Newspaper Excerpt
Messrs. Lockwood & Co., who were forced to suspend payment in September of last year ... have already paid the last installment on the settlement made with their creditors at that time. The house compromised at 50 cents on a dollar ... have already paid a large number of the amounts ... released in full, with interest.
Source
newspapers

Newspaper Articles (5)

Article from The New York Herald, September 30, 1869

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114.25 W. H. Whittingham. $0,000 1867, coup. Total. $3,000,000 THE NATIONAL STOCK EXCHANGE was very quee all day. But few amounting parties engaged in to about gold transactions, opening the sales at 130 1/4 and selling up to of $1,000,000, gold was 132. A small number one 133. outside The operations average were made at lower prices, sale having been effected at 125. THE GOLD EXCHANGE BANK, the morning, which had been very eleven quiet o throughout clock. by Mr. Augustus was visited, accompanied about by Deputy Sheruf P. that J. Han- he bary, L. Brown, been who appointed announced receiver. to the bank The officials following is the of the Court order had making the appointment:At a special session held of the in and Supreme for said the county city, this 29th State New York, day of New of in September, the York, Court House 1869, in present, the Hon. Gold Albert ExCardozo, Charles Justice. J. Osborn vs. The New York duly change Bank filing the complaint herein J. osborn, and the amdavit Field of & Shearman, plain- the verified, plaintif, on reading and on and motion ordered of that Charles the defendant, turns attorneys, York Gold it Exchange is servants, Bank, its each officers, and every airec- of tors, New agents, attorneys from and exercising franchises any of them rights, pr receiving any debt demands, transferring and or delivering to or effects the its and or corporate from refrain collecting from or vivileges paying or any out, person or from or in any any of the moneys, from receiving persons way of the defendant, due property and from them, and from from dealers any account of its dealer. any possession any of the balauces persons whomsoever and to any person or by its books or may to them order of this ordered that the clearing accounts its further balances paying which of its dealers court. appear be due defendant until special said the is hereby further of this court at a New show to be held at chambers, of October, 1869, moneys, at ten term York, And cause oil the before first a Monday justice in of the ail city the of o'clock A. M., why a Franchises receiver of the said the defend- pronot be in such cases visions property, ant should of effects the Revis and appointed, Statutes powers pursuant and athority to made con- the other and provided, receivers with the in such cases, and and why further ferred plaintiff upon should be just; not have and in such the motion meantime Augustus and until relief hearing as may and decision of appointed the such receiver, justice his presentir ing bond to the justice, of upon Brown, the thereof, Esq., good 18 and hereby proved sumclent to this by said court, court or Entered. or people State, to be thousand dollars. in this the penalty of CARDOZO, ten Justice Supreme Court. officials A. of the bank at once turned the clerks, over pro- the The Mr. Brown, who, assisted by money in the ceeded to doors were all kept locked, called were vaults. keys to The take an account number of the who and bank very persons of the great of the affairs of the few The examination six o'clock admitted. until a late hour, and it it at had been place was as silent Sheriff stripped by a by Deputies T. A. Sullivan, and A. accompanied was the protracted mob. Deputy as Glfford Hanbury, J. Thorp, Miller, night. Gillain, W. J. Mansfield, G. during the remained B. in charge of the examination building by the receiver discovers the bank. It is reported cash that assets the to the amount of $500,000 ANOTHER INJUNCTION the issued yesterday by Judge of Clerke the Erie against Railway was at the instance selling or disUnion Bank, restrain the bank from and PittsCompany, to stock of the Cleveland posing of Toledo, certain Wabash and Western Railroads. burg and MOMENTS OF LOCKWOOD & co. on LAST pattered up and down the of side entrance the Busy Wall reet street to the banking morning concern and afternoon. & Co. throughout failed, as it said of many a other Rumor Through the entrance on for of people kept pouring in stream anxious unuous house said they Broadway and several inter- learn conmany looking curious to hours, and others merely of the ested, was going on. The reporter course of his ramHERALD what dropped in busy during scenes the around Wall gentleman street bles inquired through for the Mr. Lockwood, time but afterwards the enand just then and for some a few blocks from the was serious consultation, the emergaged with in Mr. Benedict and others, such on excitement bank, of the hour. There was no Lockwood & Co. as the banking house Gould & Mararound observed in front of had gencies be of the Smith, former absomight tin's, despite the report that men walked in, seruthe tinized lutely failed. appelly-nce Some of things, asked seif-possessed Diapparently a question or two walked of out. Others, entering ner- all abruptly and could clerks and then inquired If their deposits were be safe, vously, or if their furnished money was without convenient delay. One man nim then and there if his $800 could be handed confidence to in wanted to know as he had lost have across the counter, and would never more dealings bankers and with brokers financial manipulators Lockwood, but of he any was kind. reHe desired to see Mr. the gentieman was out peatedly all assurances Incredulous, informed in spite ne that started of for the room confirmatory wherein and, of the statement, the bank keeps his office. only to the head man the of door, waiked boidly and In, vacant finging find open a number of empty turned chairs on his heel desks. disappeared Thereupon into he Wail street, deep, uttering against and imprecations, and bankers not generally. loud, but with The an reporter attaché of of the the whose bank, banks HERALD fell into candor conversation was hardly equalled by his in this Have concern. intelligence REPORTER-1 and just suavity. called in to you learn falled, now or what? matters we some thing people have, stand ATTACHE, but we (smiling)- don't look much like an insolvent concern,do we? If you are you take it uncomREPORTER- causes this rumor? have monly cheerful. Well, But what payments. We have suspended we might be this in to an losers done ATTACHE- in this self-defence, excitement temporary otherwis panic indefinite IS 10 substitute prevail- extent. The result of this distrust for the wide the past an almost universal that heretofore done existed. by certified For checks few days business necessity of this concern ploy that medium of additional alarm is where ing confidence 11 was never a has security been before. In people, suspending occasioned to but empayments, it is true. over-excited minds of of those in the who already know the have character no apprehension and standing that possi- it Lockwood & Co. a simple provision Against of means ble loss. more There than 18 demands an abundance we may means have to meet whatever we first intend to who arrange have sustain, but manner that those stands to accounts in such a and whose credit dealings our with the bank and earliest attention. receive first aheard ? am prehighest will What's the prospect concerned is it to say REPORTER- ATTACHE-A far only as a we temporary are embarrassment I and All pared will yet be well. the reporter started out, had With hardly this reached assurance the sidewalk when the exclama-


Article from The New York Herald, September 30, 1869

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that foreign dealers are in the habit of shipping steel to their agents la this country at much lower prices than they receive for it at home. In this way they claim the revenue is defrauded and they asked that the matter will be looked into, which was promised by both the President and Secretary. Secretary Boatwell has been requested to contribute to the Society for the Suppression of Gambling, in order that the government may have the benefit of the society's espionage over its employes. Measrs. A. T. Stewart and Claritin & Co. each pay the society $2,500 per year. The Secretary, however, found no authority for the appropriation. Commissioner Delano has decided that druggists who seil liquors in small quantities must pay a retail license. A store in Meadville, Pa., was robbed by burglars on Sunday of $510,000 in bonds and stock, all of it unnegotiable except by the owner. Governor Pile, of New Mexico, is organizing companies of mounted millia to suppress Indian depredations, and says that he will have the Territory in a state of complete defence soon, if the Quaker system of dealing with the Indians does not interfere with him. The British man-of-war Albatross has arrived at Halifax from Bermuda, with yellow fever on board. A place is to be selected at Gaspe bay, Canada, for the landing of a new Atlantic cable. The City. The situation in Wall street is still critical, although a better feeling prevailed at the close of business last night. Curiously enough, this improvement followed the failure of four houses, one of them the large banking firm of Lockwood & Co., but the paradox is explained by the relief which is given to the street by the removal of this firm who were constant and heavy borrowers at any rate of interest. Their liabilities are not thought to be largely in excess of their assets. Tne Gold Exchange Bank has gone into the hands of a receiver. The Cold Exchange is still laboring over the work of Friday's clearances, The stock market underwent another large decline, but recovered and became buoyant late in the day. The prices early in the day were the lowest yet reached. The prices at the close were an improvement upon them of from two to sixteen per cent. The race between the yachts Alice and Eva for a purse of $2,000, from Sands' Point to Stratford lightship and return, took place on Tuesday, and resulted in a victory for the Eva. That vessel carried about twenty-five per cent more canvas than the Alice. but the latter obtained a start on the "go" of about three minutes. The owner of the Alice has challenged the Eva to repeat the race. Mr. Henry W. Johnson, counsel for the Health Officer of this port, writes to the Shipowners' Association to say that the collection of the Health Officer's fees is sanctioned both by the Supreme Court and Congress. A policeman. who arrested a citizen on a mahclous charge in Brockiya, was sentenced yesterday to one year's hard labor in the Kings county Penitentiary. The North German Lloyd's steamship Weser, Captain Weeke, will leave Hoboken at two P. M. to day for Bremen via Southampton. The European malls will close at the Post Office at twelve M. The steamship Columbia, Captain Van Sice, will sall from pier No. 4 North river, at three P. M. to-day for Havana. The steamship Cleonatra, Captain Phillips will leave pier 17 East river, at twelve M. to-day for Havana, Sisal and Vera Cruz. The steamship Minnetonka, Captain Carpenter, will sail at three P. M. to-day from pier No. 8 North river, for Charleston.


Article from The New York Herald, October 1, 1869

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FINANCIAL AND COMMERCIAL. THURSDAY, Sept. 30-6 P. M The marked change in the aspect of affairs ' day was of the worst is lation. the That general subject passed discussion is fery atly and agratu- hoped by the great majority; but there are any who yet shake their heads and prophesy further danger. The reopening of the Gold Exclange seemed to be the turning point, and matters have rapidly mended ever since, The panic so far has been in stocks. Its demoralization has not extended beyond Wall street. Business was at a standstill among the exporting merchants for a few days, until something near 8 definite quotation for gold could be had. But, as will be seen by our reports disewhere, the dry goods market is fairly active and buoyant. In the gloom which prevalley yesterday a repetition of 1857 was looked for this winter. The panic which has just visited us was, more properly. like that of 1864, which was confined to stocks. So far the present crisis has not gone beyond the speculative elements of Wall street. The failures are of stock houses only. Even Lockwood & Co., bankers as they were originally, awe their fate to an excessive venture in the stock market. The crash, great as it has been, has involved no strictly commercial house, and will impair none except where the members were tired of the slow profits of legitimate trade, and had sought to hasten their affuence by operations in Wall street. No more failures of any kind are reported to-day, the deadJock in the Gold Bank and inability to make clearances throwing a veil over the real standing of many firms connected with last Friday's doings, innocently or otherwise, and keeping them still afloat. The III-fortune which has lately presided over the destinies of Wall street seems to be appeased with the immolation of Lockwood & Co. As to the relation of the liabilities and assets of this firm nothing was made public to-day. The office is still in charge of the assignee, who transacted whatever business required attention. It is said that the creditors, who embrace many wealthy Western capitalists, will hold a meeting at an early day to discuss a proposition to subscribe a prorata sum, in all about a million of dollars, to enable the firm to resume business. This step is suggested as the most economical one. The winding up of the affairs of the firm would entail a great waste of the assets which remain to be divided, and a consequent larger loss to the creditors, while resumption would afford a reasonable chance for payment in full and place the house again in active operation. Much sympathy is expressed for the failure of Messrs. Lockwood & Co., and no voice is heard in exultation over their fall. They were forced to succumb to a disastrous chain of circumstances, but met their fate honorably. The members of the Gold Exchange met this morning and decided to make their clearances with each other by pairing off, or as best they could, and then formally opened the room for dealings in gold at nineteen minutes past ten, or after a suspension of nearly a week. The opening price was 131 from which there was an advance to 132, when the market beme heavy and the price declined at five o'clock to All loan transactions were at "nat" by 1 consent. The range of the price was as


Article from Walla Walla Statesman, October 9, 1869

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Weekly Statesman. LATEST EASTERN NEWS. Dates to Sept. 30. [COMPILED FROM THE HERALD.] NEW YORK NEWS. New York. Sept. -Stormy de have occurred in the gold de, bates was alternate remarkable There and buoyancy. Failures, form receiverships pression and injunctions the day of events which made annals of group an equal in tbe of the without street. The statement that the Wall the belief is solvent and able bank has cot Bank board expressing The to failed pay obli- all or debts. It paid Monday's clearing Tuesday one suspended gations and at on hour in million hundred gold of at par, about thirteen in securities. of gold thousand investigation and the The Committee result shows the so far as ascertained, the gold of twenty dealers are short with about exchange that and clearing house Smith, millions of gold, which sell ten Gould, Martin & Co. offer to them at 135. New York, Sept. 30 -The Times & of the failure of Lockwood and all says Co, that Lockwood & Co their their colleagues have placed hands entire personal property in the made an J Packer, to whom they of for the The principal assignment creditors. of benefit creditors Cleveland their the firm reside at Chicago. allwealthy and other cities They are embracing such capitalists men. Stone and W White, Cleveland. They M. have been telegraphed to to come arthis city, and are expected Frito in season for the meeting on will rive when the situation of affairs the be day, more developed. At present their exact unable to state the It was reported on that they are street firm condition. are credited Pacific with holding a large amount of NorthMichigan Southern, that Mail, and St. Paul stock; also New western have been short on the twelve they York Central for the past street months, but rumors on the caution. must be received with great last At the Fifth Avenue Hotel night there was an excited crowd un til midnight. The general feeling men that relief was at hand and was could again breathe freely. It was thought that the is due to the generally in stocks stringency depression by delay of the money market produced and in effecting the clearances of gold street, currency accounts on Broad of the but some believed that some prominent stocks in the market would most not recover from their present downfall. The Times says an application for injunction against the gold room an Smith, Gould & Martin out the rules, makes an confession that forty nary under selling and million extraordi- sold dol- on lars of gold were bought & account of the plaintiffs (Gould Smith) in a single day. The Times Judge Cordosa, in granting restraining from enforcing this says Exchange injunction that the its illus- Gold OWD rules, only furnished another to tration of the wicked purposes be which our judicial system may postituted. CUBAN AFFAIRS. West, Sept. 30.-Advices state that there on the 22d from arrived Key Nassau five from Cubans Ques. by ada's camp Gen. Quesada sent them twenty thousand dollars for the purchase of arms The attack on Los Alteus was a victory for the Cubans. All the Spaniards who could not get into the stronghold were taken prisoners and killed, and the Spauish officers taken prisoners were imine- in diately shot. The Patriots were good spirits, and important dispatches have been received her for the Cuban Junta at New York. INTERNAL REVENUE DECISION. Washington, Sept. 30.-The spec ial Commissioner of Internal Revenue decides that wholesale apothecaries and druggists, doing business under a regular license, must cease to sell liquors in quantities less than half pint a time, or pay the special The tax required of liquor dealers decision also covers the sales of alcohol of over five bundred gallons at time. FINANCIAL MATTERS. Chicago, Sept. 30.-The Tribune's New York special says the financial skies are brightening somewhat, though they are far from clear. Smith, Gould, Martin & Co., is the only firm which was refused There has been one cause for their failure to resume business which is, that the firm holds about six millions of gold and the gold board is short that amount The firm want the board to buy that gold making the settlement at 135 and paying all the difference. The board declines and is endeavoring to induce Secretary Boutwell to sell six millions. This will enable them to proceed without buying of the firm Probably pian will be proposed today to harmonize the difference between Smith, Gould, Martin & Co., and the gold board. The gold exchange bank appears a dark situation cannot survive, it being to loaned to in have heavily and understood Lockwood probably & Co. The feeling against Smith


Article from New-York Tribune, October 14, 1870

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{movement briefly alluded to in this column yesterday, to make a successful corner in cash gold, was 80 far developed to-day as to compel borrowers of coin to pay as high as I of 1 per cent for its use until to-morrow. For a long time the public sentimenthas favored a lower premium on gold, legitimate business-men very properly insisting that the natural tendency of gold, untrammeled by speculation, is to lower premium. The late high rates have been readily paid in the belief the Treasury would increase its weekly sales, and extricate the mercantile community from their unfortunate dilemma. The heavy drain of specie during the months of July and August, and the continued payment into the Treasury (largely in excess of the disbursements) have rendered the supply of gold on theirtreet unusually low, and an opportunity was afforded the speculators to "twist" the shorts, that they were not slow to take advantage of, especially as the Treasury yesterday refused to sell more than a million. For several days the bull clique have been liberal lenders, conditionally upon the return of the loan, ex clearing-house, and this morning outstanding loans to the amount of upward of $3,500,000 were thus suddenly called in, with the result of the above high rates as a natural sequence. To what extent this movement may be carried, depends upon the action of Secretary Boutwell, who has it in his power to afford immediate relief by putting more of his surplus gold upon the market. The gold market was active on large transactions. The opening price was;113], from which it declined to 113g, though shortly afterward advancing to 1141. At this point the price broke to 1138. on the report that the Treasury had authorized the Bank of California to transfer $1,000,000 coin to this market. On the contradiction of the rumor, the price reacted to 113g, the closing price at 4 p. m. The rates paid for the use of coin until to-morrow were to 3-16, 5-32, t. 7-32, and I of one per cent. The day's business at the'Gold Exchange Bank was as follows: Gold cleared, $76,116,000; gold balances, $1,541,436 currency balances, $1,847,234. The earnings of the St. Louis and Iron Mountain Railroad Company during the first week in October were $36,392. an increase over the same month for 1869 of $14,424 98, or about 66 per cent. The earnings of the Milwaukee and St. Paul Railway for the first week in October were $207,269. a decrease of $3,633 from the same week in 1869. We are pleased to announce that Messrs. Lockwood & Co., who were forced to suspend payment in September of last year in consequence of complications connected with the gold conspiracy, have already paid the last installment on the settlement made with their creditors at that time. The house compromised at 50 cents on a dollar, but fully recognize their liability to pay the balance as their means will admit. They have already paid a large number of the amounts, from which they were released in full, with interest. The balances at the United States Treasurer's Office are as followa: $1,339,230 33 $1,074,696 71 Currency receipts Gold reseipts 269,429 27 1,213,770 Gold payments Currency payments 8,499,313 54 Gold balance 62,089,515 2 Currency balance Customs $ 550,000.