16099. Manhattan Bank (New York, NY)

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: May 10, 1837
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 05ffab0d

Response Measures

None

Description

Contemporary articles describe the general suspension of specie payments in May 1837 across banks; Manhattan Bank is referenced as having been involved in the suspension environment but then redeemed its notes and resumed specie payments by August 1837. No article describes a depositor run on the Manhattan specifically.

Events (2)

1. May 10, 1837 Suspension

Cause: Macro News
Cause Details: Part of the widespread suspension of specie payments during the Panic of 1837 — general panic, exchange disturbances and policy changes forced banks to suspend specie payments.
Newspaper Excerpt: the suspension of specie payments by the banks...the Manhattan Bank is preparing to [resume] specie payments
Source: newspapers

2. August 18, 1837 Reopening

Newspaper Excerpt: The Manhattan Bank has already resumed specie payments, and redeems its notes daily at its counter. (Bank circular, New York, August 18, 1837.)
Source: newspapers

Newspaper Articles (8)

1. May 15, 1837 The Herald New York, NY

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M N E Y M A Monday, May 15. affairs. Stocks are adN We are still in an awful condition money is depreciat- the vancing-failures are taking place issued a requisition to put all ing,and the government has sut-and to receive nothing but spein cie payment bonds due the treasury for pabile in dues at the post office and custom house. circular has been issued over the whole others, Atlan- are A new specie the collectors, postmasters and or tie coast. By in payment of public debts, no to paying banks. Of course there are now and it directed notes ecite low specie cities, spe- and the of sp pecie banks in any of our large commercial department cie paying the imperative duty of the treasury into effect. the becomes the office, to carry the provisions of the law the minds of pon order bas created a fresh excitement in depreciation of This against the government, while the change, keeps merchants the money., and the difficulty of procuring people against up the paper excitement among the great body of the Thanks. rise on Saturday of stocks is a mere bubble. of which These con is enThe in paper money, the value rose to 110tracts unfixed are payable and unstable. United States stock 101. If these and tirely Rail Road 118]-Bosten and Providence they all Utica stocks were redeemable in the specie currency, rates. The of would other not sell within 6 to 10 or 15 per cent. of these suspension in the stock market, have, by the lost all their power or are mere exact tone of the money market. transactions the specie payments, Their influence of opinion. prices in indicating condifictions-and quantities mere matters is in the same wild, its quoted at 115 to 120-and no of ion-being Foreign exchange unregulated one this telling period uni- true is the only index of value at and the confusion. The difference between arises from bills has now fallen to percent. There is an veral value. city bank Specie brokers. specie This best the is extraordinary quantity in the handsofthe but as yet it flood in the hands of the community, equal boarded and kept out of circulation till the aspect of the money market becomes months settled. before the suspension, it was estimated that in A few $40,000,000 of specie in circulation and $40,000,000 ere was The runs and drafts for the last two months have the the banks of $20,000,000-a part of was We rest is in the hands of the sent grobably'stripped banks. abroad- community. which inelined, therefore, to think that specie will gradually come are north from its hiding places as the prices of all products and merchandize decline. Should banks be authorized to issue small bills, that policy would have a tendency to send the specie throad or to restore it to the banks. In the retail business throughout the city there is a speck of ctivity. The Stewarts, of Broadway, having taken the start reof their contemporaries, by the announcement of a general luction of prices, have created a great demand for merchandize a the goods line. Gold and silver will come peeping provisions and wages fall to the new rth, dry goods, adjust itself. standard The of value, to which every thing must soon lifficulty about small change will therefore diminish-not inerease. While this species of business-th cash and hard money busi-will gradually accommodate itself to the new standard of value, and even revive, the great commercial system, connectASwith the rotten banking system, will continue to give forth Eplosion after explosion, till the whole fabric is in a single Me spread ruin. The suspension of specie payments by the anks, does not suspend the derangement in the great channels of foreign and domestic trade. On Saturday one of the largest, oldest and most respectable houses in the French exchange business was compelled to suspend for the present. The sym- & pathy which has been excited for the house of De Rham Moore, Broad street, in all our higher and intelligent commercial circles, surpasses any thing that we have yet seen or felt.They were connected with the large cotton house of Nicolet, if New Orleans. In Paris a friend of the house here took up cotton bills proceeding from New Orleans. The elder parter of the firm was a director of the Mechanics' Bank, and posA the condition of that concern may have precipitated the distrophe. Through a long life they have exhibited high for, and meet with great sympathy, and we have no doubt Mimperative action of the government, in regard to the payent of bonds in specie, would have increased the calamity Saturday, had not the U. S. District Attorney, from a desire Faitigate the terrible evils, suspended all further action till the collector, who has gone to Washington, shall have conversed with the Secretary of the Treasury in person. Our news from Albany is of the most gloomy character. It currently believed and said that the state government has reived directions from Washington to leave the banks to their ete, and to pass no lawNegalizing the suspension of specie pay>eats. We doubt whether the legislature will adopt this nourse. The banks have an entire controul in the present lenature, and we believerany law they dietate will be passed aat body There will, however, be great cutting and caramong the banks in this city and state. The Mechanics. We learn positively that the Manhattan Bank is preparing to jume specie payments in a few days, and that it will not subunit its affairs to the Safety Fund system. We are evidently in a general state of confusion all round The country has been taken usawares. Our own opinion is, that the Safety Fund Banking system is gone forever, and al- it though the legislature may attempt to reorganize the ruins, will end in smoke inless than six months, precisely as did the amous system of Assignats introduced into French finance by Mirabeau-or the continental paper system of our own revolu Between the present suspension and that of 1814 in this or that of 1797 in England, there are and of distinction which we country, tion. important points several shall go through lay leading completely bare tomorrow or next day. We have yet to vast field of terrible ruin. The general government, which assesses, by special deposite, ander the personal responsibility the bank directors, the great part of the specie in the banks, U. sooner or later, have to reorganize a new financial system carry on the general commerce of the country. The south. states and New York will be the first to recover from the ck--the former from the possession of their conson-the lat. -by its energy and peculiar advantages. The wheat and evision growing central states will be next-and the manuduring system of New England will probably be the last to 4 + up the pieces, and re-construct itself on the new princiWe mustals have more ploughing, and less buying and sell3. Dont droop-dont despond. The sun of commerce will yet The news last evening from England is highly important The American houses have begun cracking before they heard , the failure of the Josephs here. The British government have refused to aid the American trade. No doubt the whole American houses are gone long ago. What smashing work! GENERAL MARKETS. NEW YORK, May 13.-Since the suspension of specie payments, business has looked rather brighter; the leading articles are stopped from their downward course. Operations were rather small today, but what few goods were sold went off with little better feeling. Flour is 14. fair demand. Western brands were sold at $8 @ $8.25; Southern had New York remain without any material change. . Grain-Prime is in fair request; sales took place at prices from $1.25 to $1.40; Odessa is at $1: in rye we have no transactions to remark since our last. Our quotations remain firm. Few sales of northern ryeat 100 Cotton- further sales to remark. We quote Mobile at 9 11): Upland Florida

2. May 18, 1837 The Herald New York, NY

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The Jaudain loan, Bills of Exchange, Post notes, $5,000,000 4,000,000 2,000,000 $11,000,000 These amounts must be provided for in the face of exchange at 115 to 120-and all the banks in the country in a state of suspension as regards specie. In addition to this, the western debts yet due the bank, at this time, probably amount to $8,000,000. In ordinary times these debts would be collected in specie or the bills of specie paying banks-but during the present time, the thing is utterly impracticable. The suspension of specie payments by the United States Bank, we have no doubt was a matter of the same necessity which caused the like suspension of the State banks. But if the course of public events in Pennsylvania should be hostile to the institution it is gone forever. Yet it may sustain itself in that state, from its being interwoven with its finances and policy. There is yet a greater calamity impending over the country than that of the present misfortune, and that would be the entire prostration of the credit and finances of all the states in the Union. The United States government is the only public organ which has the remotest power of being able to reconstruct its finances, or of putting them into use, and creating the germ of a new confidence in the financial world. The Suspension Law is another important element in the present state of confidence. By that law every bank is enjoined to take in payments of debts due to it, the bills of other safety fund banks throughout the state. This singular provision was inserted probably with the view of saving seven millions of canal and surplus funds now belonging to the state and in the possession of the several banks. Be the motive what it may, its effect on the currency of the state will be singular, and for a time very salutary. We say for a time, and only for a time. The safety fund notes of every bank in the state being receivable for debts payable to the banks of Wall street, will give them a species of par value, as compared with city paper. The banks being compelled to receive them, they will most probably discount on them-pay them out for notes offered for discount. The consequence of this policy will be a large circulation of country safety fund notes over the whole state and Union. The balances of the country, south, west and east, all tend to New York. At this moment these balances amount to $50,000,000 or more. Safety fund notes will therefore be at a premium, as compared with all other notes, because they can be used to pay debts in New York, and by law are receivable for debts due our banks. If this provision were left to its own action, it would cause a prodigious flood of safety fund paper currency over the south and west. Merchants and exchange dealers in Charleston, Mobile, New Orleans, would receive about $30,000,000 in a few months, and return it to New York in a few more months, to pay their debts to the merchants and banks here. This principle, however, is limited by law. The suspended banks, under the new law, are only authorized to issue about 15 to 20 millions of paper currency for the whole state. Under the specie-paying law, they issued probably 25 millions or more. But the difficulty is will these banks be kept in check by the law? The convertibility of their paper into specie, restricted them under the old system-under the new, they are in the hands of the Bank Commissioners. Now what reason is there to suppose that the Bank Commissioners will act faithfully and guardedly, and keep these banks to the limits of the law? Very little reason. The public can reposé no confidence, and have no confidence in the Bank Commissioners. Their pablic reputation is rotten to the core. We may therefore expect a prodigious flood of safety fund issues. This will make speculative business appear prosperous for a while, but it will lead us into a fresh crisis and fresh calamities. These issues will flood the whole union. The safety fund bankers in the interior of the state knowing their utter insolvency, will avail themselves of these privileges, and in spite of the Bank Commissioners, will secretly issue vast quantities in the south and west. The receivability of the paper here will give it currency for a while-but the bubble will not last long. In the meantime, the several banks of this city will most probably wind up, sooner than come into such a paper system, Whether any or all will or not, we shali learn this week. They must all decide before Monday next, the Manhattan too, otherwise lose their charters. Our own advice to the solvent banks would be, to resume specie payments next Monday-that being the latest day by law. If the Manhattan, City, National, and a few other banks, could make arrangements to resume specie payments tomorrow or Monday, they can set the ridiculous suspension law at defiance, and organize some kind of a system of finance and exchanges sufficient till September. Such is our situation. We are persuaded that all these attempts to prop up the banks are utterly futile. The Albany scheme is a broken reed. No remedy for the present evils will do, but a large national specie-paying bank, with its head quarters in New York and New Orleans, to organize the exchanges, and restore specie payments, under the authority of Congress. There must be some such an institution to set in order the larger branches of commerce the lower branches to take care of themselves, with the specie now on hand, and the banking business thrown wide open. As things are now going on, the paper currency will ever and anon depreciate. Specie is 6 to 10 per cent above city bills-western safety fund bills 10 to 20 per cent under par-New England about 1 to 25. We are entering on a new bubble.

3. May 25, 1837 Morning Herald New York, NY

Article from Morning Herald, May 25, 1837

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# FRAUDS OF 1826 AND 1837. The famous conspiracy cases of 1826 did not grow out of transactions equal in moral and financial depravity to the scenes which have recently been exhibited in this city and country. At that period, the Life and Fire, and several other companies, suspended specie payments, and a grand jury, after a due deliberation, brought up and indicted every person more or less connected with them. Even persons were indicted who had no other agency than acting in the capacity of a broker for his principal. We have not forgotten these days. Jacob Barker who only sold in Wall street certain stocks-Fulton Bank we believe-for other persons, was dragged before the criminal courts, and tried several times for a conspiracy on that occasion. Yet look at the recent suspension of specie projects. Every bank in Wall street vio'ates its charter, and becomes fraudulent. And not only so, but the Legislature becomes a participator in the same fraud, and grossly violates the Constitution to sustain the same grand piece of infamy. The criminal laws of the State are plain, and the recent suspension is a gross and open violation of these provisions. If a poor devil had perpetrated such a fraud, he would have been caged and indicted, and convicted and lodged in the States Prison long since. But the morals of the age have been corrupted by the more corrupt banking system. The principle that sanctions a loan of $52,000 to a corrupt editor under the name of "a fair business transaction," has become the principle of the age. Yet it is certain that we are only in the beginning of the great and unheard of fraud-this general conspiracy to cheat formed by the bankers throughout the country. We must support it because it is fashionable. The States Prison is not large enough to hold all that deserve to go there. # SPECIE PAYMENTS. Only a single, solitary, pretty, sweet-faced girl called upon us to redeem a Manhattan bank bill-$5.00. This is a singular fact. When we advertised to redeem the Chemical bills, I redeemed $300 in two hours-of the Manhattan only $5 were presented in two days. What is the reason of this? Has the Manhattan Bank secretly purchased up all its own bills in circulation, in order to be prepared to restore specie payments? We are nearly certain that the bank intends to resume specie payments in obedience to the wish of the government. If Mr. White does so, we shall support him in the movement.

4. May 25, 1837 Morning Herald New York, NY

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# MONEY MARKET. Thursday, May 25. We are beginning to see things a little more clearly. Stocks, in spite of the paper currency, are daily retreating-but the incident arises from the belief, now very generally entertained, that the Executive at Washington, is resolved to restore specie payments, so far as the transactions of the govermaent are concerned. The expected expansions by the banks, which the suspension opened a door for, is not forthcoming. Many of the large banks in this city are curtailing their circulation-buying it op secretly perhaps-and putting themselves gradually into an impregnable position. The Manhattan Bank has little or no bank paper in circulation, and it is daily curtailing its business and its discounts. We learn that the directors of this bank have refused entirely to come under the new suspension law. Many expect that it will make an effort to restore specie payments in a week-more or less. Several other of the Wall street banks begin to entertain a similar purpose. With the aid and assistance of the government, many financiers believe they will be able to resunre. The moral sense of the country is extremely kostile to the suspension, and any effort of any number of banks, under the patronage of the govern-ment, to resume, would be encouraged and supported. The stockholders of the various banks, form another class that are very hostile to the continuation of the present state of things.-Their dividends being suspended, during the year, makes them desirous, that these institutions should renew. It is very evident that if any concerted attempt be made to resume, it can only be tried by solvent and solid institutions.-The very partial success of such an attempt, would be the death warrant to all those that could not follow the same course. In certain quarters there is an extraordinary degree of hostility towards any bank that would try to resume. The speculators, and those who are deep in various engagements at the old prices, are extremely hostile to a resumption. It is also probable that the United States Bank, and all its friends are equally desirous to prevent such a movement. In consequence of this state of things, specie has depreciated slightly during the last few days, or rather depreciated city bank paper has appreciated. The resumption of specie payments by any class of banks, would at once destroy the discount betweensuch paper and specie, but would increase it as respects non-specie paying banks. In the opinion of many able men, a dozen specie paying banks throughout the country, would in less than six months crush all the other banks, and be able to reconstruct a new commercial edifice, on materials that would gradually form a new system and be equal to an entire monopoly. The three last packets have carried out nearly $800,000 in specie. In the London packet about $400,000-in the Liverpool $150,000-and in the Havre $250,000. About one third of this amount is believed to have been-shipped by the United States Bank, leaving probably in her vaults less than one milfion of dollars to eight millions of paper currency out. The trade in specie has increased in Wall street very much during the last week. Vast quantities are coming out-some from old stockings-some from the west-some from the banks. Since the suspension took place it is calculated that $2,500,000 of speciethave left this port for Europe, and that in the next month probably $5,000,000 more will follow. There is plenty of it too. The premium varying from 6 to 10 per cent is an inducement for all the holders to part with it-particularly as, apparently at present prices paper money will command what it really would do before the suspension. It is now generally believed to be the positive intention of the government to restore the metallic basis long before congress shall meet in September. On this point we expect a terrible and furious war between the specie paying and non-specie paying banks. A large body of speculators, politicians, and bankers will endeavor to prove that the paper system is better and sounder than the specie system-that it encourages industry and is connected with prosperity. No doubt a moderate use of the convertible credit system is very beneficial to a nation-but its love and expansions, such as we have seen it for two years par the bane of any country. In this contest, already beginning to appear, many banks, utterly rotten and ansound, will embrace the opportunity to flood the country with paper money, for they will be supported by the paper money party. Already we know of several New England banks that are issuing their paper in great abundance, and replenishing their vaults with specie. Those banks who wish to act the rogue, can easily do so. One New England bank that has suspended, sent an agent to Wall street recently, and procured $5000 in specie at a premium. If it means to return to specie payments, well and good-if not, the gold may be divided among the confederates before the final blow up. Thus we go. # GENERAL MARKETS. NEW YORK, MAY 24th P. M.-Today passed off as one of the many dull, rainy days that we have enumerated lately; business has been perfectly at a stand-trade has not yet adapted itself to any kind of order-prices are continually fluctuating. The past few days have been the most languid that has fallen our lot to record. Flour-Prices are rather receding. The market today passed off very heavy; few sales of New York at 8.50 a $9.00, and sales of Western took place at 9.62½, and for very superior at $10. Small sales at latter price. Auction Sales-230 hhds molasses at 18 a 20c.-50 do Trinidad at 26 a 30c.-90 bags cofee at 8¼ a 8½c.-80 chest Lucca oil at 2.15 a 2.45-20 kegs gargoon anchovies, at 95c.-10 hhds prime Cuba molasses at 24½-20 hlf ch black tea at 21 a 23c.-1400 bushels damaged wheat in bags at 66 a 70c.-2400 bushels damaged rye in bags at 41 a 42e.-1100 do do wheat in bulk at 50 a 56c.-1200 do do rye do do at 34 a 57c., terms cash. Receipts of Produce-809 barrels flour-194 half do do-206 barrels ashes. NEW ORLEANS, MAY 16th.-Sales of cotton this day 722 bales at 6½ to 12½c. In the ways of general business, prices remain the same, with the exception of flour and corn, the former had advanced since Friday last to 7.75 a 8, bales at 8 were made yesterday, and some are holding it at 8½. Córn had advanced to 75c. [per bushel at which price sales have been made the last two days, and some parcels at 78c. It is thought that both articles will further advance, in consequence of the stock being very much reduced. Sules at the New York Stock Exchange, May 24. 5 N. O. City Bank, 75 25 Camden and Amboy R. R., 128 100 U.S. Bank, 107 a 106 275 Del. and Hudson, 75 a 71 60 Mohawk, 70 a 71 10 Morris Canal, 55 60 Bosten and Providence, 100 10 Amer. Life and Trust, 80 a 99 75 Ohio Life and Trust, 91 a 80 N. J. and J. R. R. 86 a 86½ 90 295 Utica, 118 a 114 130 Manhattan, 68 300 Long Island 64 a 63½ Sales of Stocks at Philadelphia, May 23. 53 U. S. Bank, 110 30 Commercial Bank, 57 85 Girard Bank, 44 to 42½ 150 Del. & Hudson, 78¼ to 77½ Mr. S. FIELD, who palmed a Broken Bank Bill upon my young man in payment for medicine about half past one o'clock this day (Wednesday, 24th) in my absence, will do well to call

5. July 7, 1837 Morning Herald New York, NY

Article from Morning Herald, July 7, 1837

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MORNING HERALD. FRIDAY, JULY 7, 1837. # Important Trial-Honesty versus the Banks. One of the most important trials, that ever took place in any civilized country, is now on the calendar of the Superior Court of this city, and will be submitted to a jury of freemen within the present month. The following paragraph from the "Courier" of yesterday is a brief statement of the ease:- A Subscriber enquires whether it is true that the Manhattan Bank has recently been sued. It is, and the facts are simply these. Mr. Bronson received in payment of a mortgage, $8000 in Manhattan Bank paper. He called upon the Cashier, stated that he had received them in payment of a Mortgage, and requested the bank either to redeem their bills in specie, or allow him interest on the amount for them, five or ten years. They refused, and he very properly instituted a suit against the institution. On making enquiry in Wall street, we find that a correspondence of a highly interesting character passed between Robert White, the Cashier of the bank, and Mr. Bronson, the owner of the $8000. It appears also that the writ was served on Saturday last, and that the trial has, by law, the precedence of all other private suits on the calendar. The moral dignity, firmness, and integrity which have caused Mr. B. to bring on this case will be better appreciated when we look to the whole circumstances and history of the civil and political institutions of this country. The Government of the United States, does not alone consist of the President and Congress-or the Governor and State Legislature. When the patriots of 1776 took the field to establish their independence, they equally secured the permanency of the first principles of justice as of the power of legislation. It was, we remember, once rightly observed by Recorder Riker that the institution of the jury and the courts of law, were a part of the government of the country, as mach as the legislature of a State, or the Congress of the Union. When, therefore, the first principles of morals and of integrity are daringly invaded by one department of our popular government, another department comes into action and corrects the inequality. The great balance power of our free constitution consists not of a division of the legislative power into two houses or one executive. Events have shewn that a whole legislature may be corrupted and sold for filthy lucre. In the guardianship of our social, political and moral principles, there is a power or check, equal and greater-more independent and honest-more free from corruption and guilt, than the corrupt state assemblies, which have been for years the mere instruments of bank coteries and speculative cliques of men. This power-this check is the institution of the jury, through which alone the original principles of truth and justice can now operate as an effectual barrier to the gross venality and profligacy of the legislative body. Look over the history, social, moral and political, of the last six or eight years. Since the establishment of the Safety Fund Bank system, the original principles of honor, of integrity, and of all morals have been entirely obliterated in all the upper and many of the middle classes of society. The pure elements of social order have been disturbed, assailed, destroyed, mocked at, trampled upon as the dirt in the streets. The legislature, under the madness of the hour, gave away to small bodies of men, rights which they did not possess. They have authorised the coining of money in the shape of paper, and gave to particular cliques what they had themselves robbed of the community at large. In the case of the Manhattan Bank, they set themselves on a level with dread OMNIPOTENGE himself, and actually gave a lease of Eternity to a few worms crawling over the earth, and replenishing a feeble existence at every bottle that could be found with the stopper out, without kindly mixing it with a little of their own dirty water. The whole history of the great and systematic fraud, from the first movement, made by the banks of Wall street for the deposites, till the wicked suspension of specie payments, has been a series of outrages against the moral sense that is without a parallel in history. To the government bank financiers of Wall street, are we originally indebted for the first disturbances in the currency and money market-the first germ of the vast frauds which have now disgraced the country before the world. Who first cried out for the public revenue? Who promised a better currency and exchange system? Who tempted and seduced the late President to disturb the former system? Who stimulated the creation of hundreds of new banks? Who corrupted legislatures and purchased governors like cattle in the market? Who fattened upon the mercantile interest for eighteen months, and bled them at the rate of two to five per cent per month? Who after destroying and breaking up half the merchants of the country, then insolently turned round and suspended specie payment themselves, thus cheating the nation out of twelve or twenty millions of their own property at one fell swoop? The financiers in Wall street and their associates throughout the country. The day of retribution is now coming. One individual in New York has exhibited the moral courage to bring these fraudulent institutions to an account.- In every other country, and in every other clime, when banks break, they sneak out of the way of busy man, and wind up their concerns in some private place, like the female who sells her virtue for a gewgaw. Not so with the daring, impudent atrocious banking institutions of this land. Rosina Townsend like, they come before high heaven, and parade their corruptions before a world with brazen face. Having presidents, governors, and legislatures enlisted in their schemes, they boldly go to Albany and compel their agents to violate the first principles of constitutional law. in order to save them from the consequences of their rapacity and their avarice. But even in this unholy coalition between the bank coteries and the legislature we are not without a check. The glorious institation of the Jury, in a free and popular land, is the barrier beyond which the spirit of avarice dare not march. We, therefore, look upon the suit commene

6. August 26, 1837 Morning Herald New York, NY

Article from Morning Herald, August 26, 1837

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MONEY MARKET. Friday, August 25, M. The most important movement of the day is the CIRCULAR just issued by the banks of this city, requesting a general convention, for the purpose of maturing an early resumption specie payments. The following is the official document BANK CIRCULAR. NEW YORK, August 18, 1837. SIR, At general meeting of the officers of the Banks of the city of New York, held on the 15th of this month, the following resolution was unanimou adopted, viz Resolved, That committee be appointed to correspond with such Banks the several States may think proper, in order to ascertain at what time and place a conven tion et the principal oanks should be held, for the purpose of agreeir on the time specie payments should resumed; and ou the measures necessary to effect that purpose. Having been appointed a Committee in conformity with that resolution, we beg leave to call your attention to the important it to which refers. subject The suspension of specie payments were forced upon the banks, immediately by a panic and by causes not under their control, remotely by the unfortunate coincidence of extraordinary events and incidents, the ultimate result of which was antici gated neither by government, nor by any part the commun ity. But it is nevertheless undeniab that, by ccepting their charters, the banks had contracted the obligation of redeeming their issues at all times, and under any circumstand W hatever: and that depreciated paper, different in value in different places, and subject to daily ductuations in the same place, has thus been substituted for the currency, equivalent to gold and silver, which, and no other, they were authorized, and had the exclusiverighttoissue Such state of things cannot and ought not to be tolerated any longer than absolute necessity requires e are very certain that you unite with us in the opinion that it is the paramoant and most sacred duty of the banks to exert every effort, to adopt every measure within their power, which may promote and accelerate the desired result: and that they must be prepared to resume specie payments within the shortest possible notice. whenever a favorable alteration shall occur in the rate ot foreign exchanges. We are quite aware of the difficulties which must be surmounted, and of the impropriety of any premature attempt. No banking system could indeed be tolerated, which was not ableto withstand the ordinary and unavoidable fluctuations of ofexchange. But the difference is great between continuing and resuming space payments: and we do not believe, that the banks in the United States can. without running the imminent danger of another speedy and fatal catastrophe resume such payments, before the foreign debt shall have been so far lessened or adjusted. as to duce the rate exchanges to true specie par, and the risk of an imme iate exportation of the pre cious metals shall have thus been removed. The appearances in that reonect have become more flattering and it is not improbable that the expected change may take place shortly after the next crop of our principal article of exports shall begin to operate. Yet sensible that we must not lv on conjectures and that the Banks cannot designate the time when they may resume, before the ability to sustain specie payments shali have been ascertained by the actual reduction in the rate of the exchange. Butevenwhen the apprehension of a foreign drain of specie shall have censed, the great object in view cannot be effected without a concert of the Banks in the several sections of the Union. Those of this city had the misfertune to be, with few exceptions, the first that were compelled to declare their in ability to sustain, for the time, specie payments. Itappearsthat it became absolute ly necessary for the other banks to pursue the same course and it would be like ise impracticable for those of any particular section to resume without general explanation or at least the principal Banks of the greater part of the country A mutual and tree communication of their respective situations, prospects and op nions seems to be a necessary preliminary step, to be followed by a convention at such time and place as may be agreed upon. As relates to the banks of this city, we are of opinion, that provided the co-operation of the other banks is obtained. they may, and ought to, we should perhaps say, that they must resume specie payments before next spring. to be more precise, between the first of January and the middle of March, 1838 Both the time and place of meeting in convention, must of course be determined in conformity with the general wishes of the banks. In order to bring the subject in a definite shape be fore you, we merely gest the latter end of October as the proper time, and this city as the most eligible place for the proposed Convention. A sufficient time will have then elapsed to enable us to judge of the measures which congress may adopt in to subject. Whatever may be its action on the currency, the duty of resuming remains the same, and must be performed by the banks. It any thing. indeed, can produce effect favorable their views, it will be the knowledge of their being sincerely and earnestly engaged in effecting that purpose. AR early indication of the of the banks willhave a benefit influence by making them all aware of the necessity of adopting the requisite preliminary and the information is also due to all the varied interests of the country. address this letter to no other bank in your city or State, than those herein designated and We pray you to collect and ascertain the opinions of the others, and to communicate the general result as early as practicable. The intensity of moral sentiment has driven the banks into this course. Yet it must not be believed that all the banks are stimulated by the same motives. Among the New York banks there great want of harmony or unity of action. The present movement only proceeds from a few, the State, Phen x, National, Bank of America, and few others. The Manhattan Bank has already resumed specie payments, and redeems its notes daily at itscounter. The resumption of specie payments, and the graduale qualiza. tion of the foreign and domestic exchanges, are absolutely necessary for the healthy action of trade and commerce. An irredeemable paper currency in time of peace never will stand-yet we do not believe that over one-third of the banks throughout the country can ever resume. Be tween 1814 and 1817, a like suspension of specie payments existed, and the banks, in these days, never could have resumed. unless they had made profits equal to twenty millions out of the government by trading in treasury drafts. The es. ablishment of the United State Bank in 1817, had NO more effect in restoring specie payments than broken reed. It was the profits that the State banks made out of the government that enabled the banks to return to sound principles. By the of fluctuations of value produced by the war, and the drain specie, they were reduced to irredeemable paper institutions. The great overtrading and overaction of 1835, '36, has produced a catastrophe similar to that of the war of 1812- like depreciation in values a like fluctuation in prices. The same results have followed, and will. Nothing can save the state banking system, but general curtailment, and a restoration of sound banking principles. That such a policy will crush many in its progress, there can be no doubt- but how is it to be avoided? how can the banks continue the irredeemable paper system? Let them issue as much paper as they please, sooner or later, they must curtail, or come to pieces. A great opposition will, however, be made to this policy by the Philadelphia banks, and those in favor of that monied centre New Orieans and New York will, however, proceed in the teeth of all opposition, ano resume specie payments at an early day. Already there are symptoms of an early organization of the internal exchanges. We learn, from the best authority, that exchange, ou several parts of the south, have fallen, and remit tances are beginning to be received On Charleston, exchange has fallen to 5 per cent, and on several other points in a like proportien. The foreign exchange is up, and specie has risen, but this flarry is believed to have been caused by the speculators, under the new policy announced by the banks of resuming specie payments. The Boston Banks are decidedly the strongest in the country. The following was their condition on the 19th inst. $20,400,800 Capital 1,862,746 Circulation 6,298,241 Individual deposites 995,731 Specie 652,591 Real estate 33,852,425 87 Amount of loan What contrast their circulation and specie present to those of the Philadelphia banks, which are advocated in this city for the exclusive deposit banks! The suspended bonds, throughout the country, amount to over $7,000,000. In the Baltimore Patriot it is stated that the number of bonds, which have laid over at the Custom House in that city, between the 10th of May and the 20th of August, is two hundred and six- and the amount due on thme is one hun. dred and ninsty-nine thousand five hundred and forty-one dollars and seven cents. Suits on these bonds have been postponed UNtil the first of October next." Sales at the Stock Exchange. AUGUST 25th,12 do 117 25 3 3ds 724 U. S. Bank, 14 Sep. 1174 72 117 110 15

7. October 12, 1837 Morning Herald New York, NY

Article from Morning Herald, October 12, 1837

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$10,000,000 The next question is the rate of premium these notes will bring in the market. The recent refusal of the banks, here and elsewhere, to refuse entering into a negociation, except at a discount, was a ridiculous piece of fanfaronade. Treasury notes, bearing 6 per cent interest, issued by the government, is now the most valuable paper money in the country, or the world. The credit of the I ited States government is equal, if not better, than that of England. Its paper bearing 6 per cent interest will bring a higher premium on London Change than any other, even the bonds of the U.S. Bank, or any government or banking security. There will be no difficulty in negociating these notes, notwithstanding the opposition. A few days ago, a proposition was made to Secretary Woodbury from Philadelphia for $500,000, without interest, at 95 per cent, payable in specie. The Secretary, by the law, has the right to issue at 6 per cent interest or less, and it is yet unsettled at the Department, in what form and at what interest to issue them. This being the case, there will be, th refore, a great competition among capitalists to catch these notes. Now it happens that the aggregate deposites, belonging to capitalists, lying idle in the banks of the commercial cities is fully equal to $30, 000,000. In this city alone, these private deposites equal $15,000,000. The refusal of the banks to negociate for the issue of these notes, will leave the field open to all the private capitalists. These capitalists will immediately withdraw their funds from the banks and invest them in the Treasury notes. The effect of this operation will be to cripple the banks, and curtail their ability to the extent of the whole issue. But the capitalists and the solvent merchants will not feel the effect of this bank curtailment at all. It will principally falt on the speculators, on the banks, and on those who build up their business on accommedation paper. The capitalists will first draw out their deposites-make an investment in the notes-and then when the merchants come into the market, resell them at an advance. According to the relative values of bank paper, specie and Treasury drafts, it is probable that the government will receive for these notes 102, varying to 105-perhaps more, as they will be received in payments to the government, and bear interest at 6 per cent. As soon as the whole amount is absorbed by the deposites held by the capitalists, it is probable these notes will come in'o the market again at an advance, and thus become a highly valuable remittance from the South to the North, and from the North to England. In this shape they will come into competition with the large amounts of southern bank certificates of deposit, now circulating as an exchange currency from the South to the North. The efficiency of these notes as a commercial currency will soon give them a value beyond the paper of any bank, or even of the U.S. Bank. It is probable, therefore, that the capitalists will made a very handsome profit OR the first process of circulation-and that the merchants will make them very useful in the second process. The general results of the issues will be to drive all irredeemable bank paper from the higher ranks efcirculation. It is the greatest blow to the rotten banking system which has yet been made. The capitalists and the solent merchants, throughout the country, will alone receive the benefits of these issues. By the withdrawal of the private deposites, to be invested in these notes, we should not be surprised to see several banks compelled to shut their doors altogether. At any rate the apprehension has already compelled the banks to begin to pay speeie. We learn that the following banks now pay their five dollar notes in specie:Pheuix Bank, Manhattan Bank, Tradesmen Bank, Bank of America, National Bank, Lafayette Bank, The extension of the bond system is also very beneficial to the merchants, to the extent of $5,000,000. The stock market is looking up. Sales at the Stock Exchange.

8. February 24, 1838 Richmond Enquirer Richmond, VA

Article from Richmond Enquirer, February 24, 1838

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Feb Saturday, OF SPECIE AYMENTS. of our series very We interesting In are fact, they appear plain. of We comruisins. We Maxims, be they the of all opinion, parties conosition, concerned. from re the 10 all almost them to the attention is, in our ep this propos First, ante bring First, to the statu qua store mend The 10th Maxim have preached of the discussion beltum. things the it to was. Restore bank where back country in of the the way Throw difficulty to on lend the but, facility contrary the of the dence way of the instead solvent increase, sit then, of down creditthe best and and devise perconsult, discuss calmly of the for the nation finances ex wise and in by by degrees, guarded we and, our was origin herefore, dients. policy; a such and nally Aspecially or, the the Sub this upon such system. speaks and the of wisdom saracity im to his very some office from Herald portant are very facts last. importa We York. most Things juall will very well. work hope the York course from Jicious praise. upon SENEX the cur Gold of 1. Exchance is of and comGreat rency Britain, per outed 6 at are at ou now 2. days sixty sight, Bills London, in N. and York cent. currency paper American of Bills then, there Gold premium a in This leaves Gold. American 2 for four cent. per Allow per insurcent (1) nths 3 is in Gold and the importing per in is favor the trade of 3. When the of specie, one but strong of in the of favor 4. being The Foreign Exchange in reno can solvent there Banks danger country, the early day, provided suming action to 5. assem which Bank adjourned Convention an to in ble appoint ought hesitate April, of when for the day specie early lyments, the to would that give repose ciation in the promote country permanent Banks. a and 6. with credit The sanguine system, re to sional lead ing frequent naturally people, for short that course their obstruct world, like The moral, space in dutheir are which liable storms, the to serve they purify ration. tion, and tendency the and effect, first was the cause, which been of has, loans, rehas the the by country rected distressing the of the S. laws Govern Under of paying specie ment in the State the deposite banks, of sion the the Banks, ements. Banks of our dily and they debates of colboth and great the and ursing disbursi lecting. keeping for of specie 9. the State will SUSTECT small, the public the money. should 10. peace nation a of tran of state should season to best on adapted decide system guillity financial our the evernment all with or 11 State Federal, whether not the its the has keep and in Were gold times motion regular anchine only silver medium, circulating of in of laws any spite would occur seasons prosperity rvene and would that vulsions made, superve of the than on the More people depends on the Scotland! Witness is that there 12. in to the of sustain specie country sufficient 10 the in Banks Were the out coin, vaults confidence open of tion that would restored, into would hoarded circulation. specie the of 21st.) Nelc York been "For past the long leading the of to the state foreign and licy the the currency There rein certain feeling quarters strong daydeep Wall street, ndition relative of the of specie in favor of a day early We the the of the trade with believe Spring opening the the 'and the Bank, Manhatta National, Phonix in of or are, favor more less, Bank adopting America on tion mediately questio steps from posi been has reply CO or in such any union lively declining the which Bank Lovement, previous The and be held Baltimore to their merand carry have banks extheir trade, present under Spring chants this Now and syste system. nanded deemable of the all bank these credits facilities converges our and New them from York, two withdraws the deto come Wall have very street nearly financier to and their begin quit present of of vement pay specie and of one the same discounts de under time. subject at likely liberati will be, the that effects present, of be will all the on and industry, elements ment the great highly should nortant be adopted, on the Spring most trade, im most desirable. portant has been our proThis among financiers the duced, foreign exchange is the that last the By prin packets, calculated to have equal cipal foreign banks urchased exchange or not if 000, days, $500, ninety 1,000,000. in New York, this can they They by and make handsome riod will possess, the they 'every therefore, fortify time, position necessary to assume. intend to of this The But still. specie natural as al. the from great, every country part of of to the of most returns necessity requiring preclude in the the from bills specie cotton During England of enlast been have month, specie of out. the oing And none the U. into tered ports A had New we ago about few Orleans be000, this from _here nearly Jamaica is It and sides sums proba. come. other coming be ble, that the not from wanted spccic therefore, England. in a are our Be may, remay and ry wrong position, single interesting to to It is make the time sult trade. spring to and it is be time detertime step! decided and other have many Bank, banks, mined Phonix for not been give specie sys. Why paying It to tem would and their conduc isolated in to-day create Specie confidence and almost unsaleper only at able American waiting that. (From the New York for some days abstract of their the BANKS present We have the showing annexconclusively payment ment to an "OUR opportunity of our essionable to city banks, ability details to resume and technicali meet seccn the assets table York City New condition strength and abstract, freed and single there are all fact, thirty that fire millions of 000 ties, "This millions present of this simple liabilities, ble subjoined will Banks establish $20,000,000 Capital, profits, $ 3,000,000 in till and Surplus State 1839, available Due the