16100. Manhattan Bank (New York, NY)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
state
Start Date
February 21, 1840
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
df96233d

Response Measures

Full suspension, Books examined

Other: Bank failed after misconduct by cashier; examining committee reported; specie withdrawals by depositors.

Description

Contemporary reports describe the Manhattan Bank as having sunk (Feb 21, 1840) after large losses caused by misconduct of its cashier Robert White (insider loans). A later March 8 report records heavy specie withdrawals (over $100,000). The evidence indicates bank-specific adverse information (insider loans/defalcation) produced loss of confidence, heavy withdrawals, and the bank's failure/closure. OCR errors corrected (e.g., 'salis s nobody' interpreted as 'says nobody' in Article 1). Exact legal suspension/receivership dates are not stated explicitly; Feb 21 article speaks of the bank having 'at last sunk.'

Events (2)
1. February 21, 1840 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Committee report finds large losses and misconduct by Cashier Robert White, heavy insider loans (e.g., $230,000 to brother, large broker debts), undermining solvency.
Newspaper Excerpt
The Manhattan Bank, New York, which ... has at last sunk. A report made by a Committee appointed to examine its affairs ... The amount of loss the Bank will sustain by the misconduct of its Cashier is not yet fully ascertained.
Source
newspapers
2. March 8, 1840 Run
Cause
Bank Specific Adverse Info
Cause Details
Depositors withdrew large sums after recent developments and committee shuffling undermined confidence; concerns about bank losses and priority of U.S. government claims.
Measures
No specific remedial measures reported in the excerpts.
Newspaper Excerpt
The Manhattan Bank sustained quite a demand for specie yesterday. Upwards of $100,000 were drawn from her vaults by depositers.
Source
newspapers

Newspaper Articles (5)
1. February 21, 1840 Vermont Phœnix Brattleboro, Bellows Falls, Ludlow, VT
Article from Vermont Phœnix, February 21, 1840

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Article Text

x Another Loco-Foco Bank Blow Up. The Manhattan Bank, New York, which us been struggling for a long time has at last sunk. A report made by a Committee appointed to examine its affairs, salis s nobody. The mmount of loss the Bank will sustain by the misconduct of its Cashier is not yet fully ascertained. The tory papers are very silent on the subject, but the truth must come out. D-We call the attention of the Loco,Focos, and especially of their organ the veracious Democrat, to the following facts from a late paper. 1st. This has been the principal pet bank, of the Secretary of the Treasury, since the removal of the public deposits from the Bank of the U. S.Was one of the foremost in urging Gen. Jackson to remove the depositsOne which has constituted the head and front of the opposition to the U.S Bank. 2d. It has been the pampered favorite of Executive partiality-HAS BEEN CONDUCT ED ON TRUR SUB TREASURY PRINCIPLESsuch principles as have been carried out by Swartwout, Price, Harris, Boyd, &c. 3d. The Cashier, Mr. Robert White, a Loco Foco, has loaned to his brother Mr. Campbell P. White, Jackson member of Congress from New York City, THE ENOR MOUS SUM OF $230,000, ON LITTLE OR NO SECURITY. 4th. Taylor & White, Brokers, the former late of the Post Office, the latter nephew to Amos Kendall, BOTH Locos, are largely indebted to the Bank-upon very insufficient security. One paper states to the enormous amount of ($500,000 ! 5th. Rev. Barnabas Bates, the agent and receiver of the General Post Office, a particular friend of Amos Kendall, ANOTHER Loco, borrowed $10,000 of the Cashier on his own note. 6th. This Bank with its very large cap ital, has not for a long time rendered any material aid to commercial community-in has been used as a Loco Foco SHAVING MILL. The Cashier has himself, by means foreign proxies, chosen the Directors, dis. counted no paper but what he pleased-lent to his Brothers and government partisans, more than one half the circulation of the Bank-on the bare deposit of their own notes and depreciated Bank Stocks. Now will an intelligent public bear thislook at the astounding fact-the Loco Foco party cry, down with the Banks'--Smilie and Bank Reform'--'No Banks'-and YET THE ONLY BANKS THAT FAIL AND CHEAT THE PUBLIC ARE MANAGED BY Loco Focos -ENTIRELY. Can it be wondered at, when such things take place, that public indignation should be brought to bear against any bank, and in the end against the whole Banking system. When people see nothing but abuses they shut their eyes against advantages. We wish the public to particularly notice, that the party who cry so loudly against Banks, are the very and only ones who manage them badly-Those BANKS MANAGED EXCLUSIVELY BY Locos, ARE THE ONLY ONES THAT FAIL Look at the case of this bank-the failed Banks in this State, and Massachusetts for proof. It is most idle for them cry 'down with the Banks,' when the greater part of their party are composed of BANK DIRECTORS and BANK STOCKHOLD ERS,-Look at the party in this village for proof if any is wanted. Shame upon such a humbug-the peoples eyes are now open-and soon the Hum buggers, horse and foot, shall be routed.

2. March 9, 1840 Morning Herald New York, NY
Article from Morning Herald, March 9, 1840

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Article Text

MONEY MARKET. Sunday, March 8--6 P. M. The Manhattan Bank sustained quite a demand for specie yesterday. Upwards of $100,000 were drawn from her vaults by depositers. The recent developments, and the shuffling of the committee are such that confidence in the concern is nearly gone. At the last report of the Commissioners, the bank had bills out to the amount of $207,995 1,619,697 Due Depositors, Bank balances 4,651 Total Cash Liabilities 1,832,343 To meet this she held specie, 596,903 Balance 1,225,140 The U.S. government has priority of claim for its debts, and the depositers are already alarmed. The bill holders must recollect that this concern has not the security of the Safety Fund. All the security the public has i the management of such men as Robert White & Co. Recent events have proved this security to be not of the first order. The report of the Committee will probably appear tomorrow Their examination closed on Friday, and the specie drafts on Saturday indicate that there is no great confidence n it. There were no sales of the stock yesterday-74 was the highest offered, which is 2 per cent under the sales of Friday. In other stocks there was generally an improvement. N. American Trust and Banking Com. rose 1) per cent, Harlem per cent, Mohawki per cent, Delaware and Hudson percent, U S. Bank 1 per cent-Bills on Philadelphia were sold at 7 per cent-on Baltimore at 6} per cent. There is yet NO further action on the Pennsylvania resomption bill in the Legislature of that state. The National Gazette of Philadelphia, however, contains a kind of manifesto from the Banks, five mortal columns long, which is a very blundering attempt to back out of the position which the banks have held since their suspension. It admits that the only way to revive trade is to resume immediately, but pleads the debts due New-York and Boston, as the great difficulty in the way of that measure. On the 10th of December last, a number of merchants in Boston sent a circular to the Banks of Philadelphia urging an immediate resumption. This circular we published on the 28th February. The Banks never took any notice of the circular, which contained the following passage: Boston and Philadelphia are connected by ties of a strong mutual interest. We furnish the manufactures which Philadelphia has been in the habit of distributing through a large portion of the United States. We wish'to continue this trade so mutually beneficial, but it 18 apparent that it will be impossible for us to do so, whilst it is 80 uncertain what will be the value of the currency in which we shall be paid. and which uncertainty will make it impossible for 113 to negotiate the paper growing out of the transactions. We therefore fully believe that it is essential to the best interests of Philad Iphia that whe should resume specie payments without delay We believe she can do it with little or no inconvenience. Should any apprehension be felt on account of the balance now due or falling due in this city, we have NO hesitation in saying that an extension can be arranged on the most liberal terms. The present manifesto is apparently an answer to that circular, and attempts to take the whole credit of adesire to resume' and then to throw the blame of suspension on the north and east* After an elabo rate attempt to prove that resumption is the best policy, which comes with a bad grace from the former advocates of suspension, the following proposition is made:Were the northern and eastern banks having claims upon those of Philadelphia, one and ail, to authorise the latter on resuming payment of current demands, to transmit to them their own bonds or those of the Bank of the United States. payable, with interest, in twelve months, for the amount of debts that has accumulated, all the difficulty would be at an end." The manifesto then goes on to describe the benefits of resumption. as if they had just been discovered by the banks, after paralyzing the trade of the country foraix months. and destroying it credit abroad by their fraudulent suspension. They have suddenly discovered that capital must be dead during a suspension, and the banks consequently sink deeper in debt. They BOW imagine that as the currency of the Union has been reduced 80 low that the restoration of confidence consequent upon resumption will cause the currency to increase and prices to rise, by means of which their dead assets may be made available.A general resumption would no doubt cause a great activity in trade and an increased currency would be the result, commenau rate with the great quantity of produce in the co ntry; but the currency cannot increase so as to cause the prices of that produce to rise until a foreign demand shall have taken off a large proportion. The effort to return to honesty and sound sense should be encouraged, notwithstanding the bungling manner in which it is proposed. The banks of the south would immediately follow a resump tion. The following is a statement of the banks of Maryland STATEMENT OF THE BANKA OE MARYLAND JAN. 1840. Farmers' and Planters

3. December 29, 1840 Morning Herald New York, NY
Article from Morning Herald, December 29, 1840

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Article Text

on the 1st of February. From the Virginia banks we hav the following returns:- # BANK OF VIRGINIA DEC. 15th, 1840, AB COMPARED WITH DEC. 2, 1839. Resources 1839 1540 Inc. De Loans, 5,664.374 5,3 8,749 355,60 Rea' estate, 26,642 359.492 32,950 Stocks, 675 331 695,035 18.754 Specie 701,796 891,494 189 658 Bank notes, 178,765 508,229 29.444 Tellers deficieney, 539,584 539,554 Due from banks, 167,035 530,285 3:3,249 Expenses 13,754 13.754 Old balances at Pichmond, 60.178 60,175 Deficiency at Richmond, 28 825 24,825 Due from branches, 38,589 28,588 Sterling bilis, 18,999 18,239 $7,783,255 8 674 258 Liabilities. Capital. 3,637,490 3,642 100 4,701 Profit and loss. 143,25 122,952 20,30 Discount, "belonging to slockh. 492.236 492 236 111 832 111.832 Circulation, 2,513,412 3 065.478 553,066 Due banks, 292,031 273.994 18 437 Dividends, 10 514 10. 514 Deposites, 923,501 954 150 30,316 Sarplus, 222,343 222,319 $7,733 255 8,774,255 # FARMER BANK OF VIRGINIA DEC. 1840, AS COMPARED JAN IsT. 1839 Jan. 1839. Dec.1940. Inc'se. Decse. Loads, 5.566 941 4,929,042 657,790 Sterling bills, 18,056 8,605 9,451 Stocks, 4900 203,282 198.382 Specie, 759,937 63 444 29,493 Notes of banks, 148,225 224 805 76.699 Balance due from banks, 207,456 257 80 406 Real estate, 214,242 266/ 5.408 N $6.939,670 6,516 Capital, 2,500 000 2,653 653,150 Immediate Liabilities. Circulation, 123,204 Circulation, 2724,425 2326 402,074 Deposits, 1,014 506 1,0-9,563 4.857 Contingent, 411,907 310.741 71,166 Surplus, 82 932 8.932 Profits, 133,306 63,535 70.271 Due U. S. Bank, 109,026 109,026 State loan, 505,000 505,000 $6,932 670 6,516,073 # BANK OF THE VALLEY OF VIRGINIA. Available Means. Specie, 266 819 Due banks, 25.719 Bark notes, 151,897 Depositors, 179,876 Due from banks, 197,540 Total, $1,028,799 Total, $516,657 Excess of liabilities. $412,141 The Bank of Virginia appears to be a good deal shat- tered by the defalcations of its officers, and has increased its liabilities with diminished resources, and, so far, pro- mises but little for resumption. In the returns appears a curious item, that of profit and loss, belonging to the stockholders, as distinguished from the regular profit and loss account. This requires a little explanation. If the bank caa pay its debts, we apprehend all the surplus be- longs to the stockholders. If it cannot, they merely can- not claim any. The Farmers' Bank appears to be in a better condition than at the period of the former resump- tion. The Illinois Bank has resumed. The Indiana Bank states its ability to do so soon. In Tennessee and Kem- tucky the same profession is not backed by the bank re- turns, as compared with their condition at the time of sus- pension. In every state the ability to pay specie assumes a different phase, while all centres in the movements of the U.S. Bank at Philadelphia. It is avowed that that institution will resume on the 15th January next, according to law. On the 6th of January, however, the annual election of offi cers takes place, and will this year be attended with great excitement, and many developments will undoubt- edly take place, particularly in regard to the old specu- lations of Mr. Biddle and the family. It is well under- stood that all the profits on old speculations were pock- eted by a few individuals, and all losses were saddled upon the bank in the manner of the Whites with the Manhat- tan Bank of this city. It is expected that similar deve- lopments will take place. The New York American and other papers harp now the examination had by the other banks into its affairs, with a view to create confidence. Such examinations are not worth a rush. They are made with the intention to de- ceive. The public mind has still before it the report of the examining committee of the Schuylkill Bank, and the examining committee of the Manhattan Bank, a few weeks before developments, in each case, of the most dishonor- able character. Events may transpire at the election which will give a new face to the question of specie pay- monts. The United States Bank, it appears, is drawing sterling bills on Morrison, Cryder, & Co., of London. This is one means of getting its paper circulation out of the market here, at the moment of resumption, and the bille will be provided for in London by an arrangement be- tween Mr. Jaudon and Morrison & Co., on pledge of the securities carried out by him. By this means an indebt- edness, in the shape of $2,000,000 of bills payable on de- mand here will be transformed into a loan in London, on pledge of stocks. This continued staving off debts must come to an end at last. Those who have had renewals from the bank, must somehow or other pay up, and the longer it is postponed, the more likely those debts are to come within the sweep of a bankrupt law, if such a law should be passed, like that now before Congress, for the sole purpose of releasing the desperate speculators of past years from the results of their folly. A large class of persons, by means of a bloated credit system, got possession of a great amount of property the proceeds of the labor of industry. This they wasted in mad speculations, and now sue to be released from la- boring in return to restore that property. This they call "laboring for others," which they do not want to do. The moral effect of a bankrupt law will be to speculators, what suspension laws are to the banks. It removes re- straint, diminishes the exercise even of common prudence. in the ordinary dealings between man and man, and en- courages hazardous undertakings. The projector argues that if a proposed hazardous undertaking fails, the loss, al- though heavy, will not fall upon him, as the law will re- lease him from future responsibility, and he may then, un- incumbered, again go on in his business, bestowing not a thought upon the ruin he has brought upon some third person whose funds he hazarded. This will be the opera- tion of the insolvent portion of the bankrupt law, while that portion which arms the creditor with new powers to proceed against debtors, cannot but be productive of great mischief among that class, whose debts grow out of the or- dinary losses in trade, and who might, unmolested, work through, and pay all. # Sales at the Stock Exchange $100 Indiana Ronds 660 74 50 do 20 20 shas Manhattan Bk 96 75 do Vick borg Bk 10 25 do D Dook Bk 60 60 50 do do 204 10 50 do do 60 63 100 do do 910 19 35) do do 60 61 50 do do 830 10 10 d 7th Ward Bk 96 50 do do b12m 112 25 do NO Canal 70 50 do do 10 2.0 do Del & Hudson 84 50 do do 3310

4. November 13, 1857 The Nevada Journal Nevada City, CA
Article from The Nevada Journal, November 13, 1857

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REVULSION OF 1837-40. The last great financial revulsions began in 1837 with the suspension of the United States Bank and all the State banks, and ended in 1840 with the explosion of the Manhattan Bank, the very one that began the war Within those years 30,000 houses broke, and took the benefits of the bankrupt law of 1841. Their debts amounted to $400,000,000-their assets to almost nothing.

5. November 27, 1857 Pioneer and Democrat Olympia, WA
Article from Pioneer and Democrat, November 27, 1857

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arrival OF THE CONSTITUTION!" NEWS BY THE U. S. MAIL! The steamer Constitution-Hunr, commanding arrived at GIDDINGS' wharf, Olympia, on Friday of last week, with the U. S. Mails, freight and-passeugers--to LouISSON & Co. The P. M.S.S. Co.'s steamer Columbia, from San Francisco, failed to run up to this place on her last trip, or to connect with the Constitution, but leaving the mails at Port Townsend, and returning, they were brought up by the latter named steamer, but as a necessary consequence, one meek behind the contract time. If the P. M. S. S. Co.'s "arrangements" do not soon regulate themselves in some definite shape, the public and the Postoffice Department will undoubtedly be made acquainted with the cause. Our dates from the Atlantic cities are up to Oct. 7th, and from San Francisco, as late as Nov. 8th-full files having been furnished by the gentlemanly purser, Mr. T. H. FULLER, as also by the attentive Express agent of WELLS, FARGO & Co., Mr. C. E. WILLIAMS. THE CRISIS IN THE EAST.-Thelate revulsion in business and financial matters_at the east, is without a parallel since 1837'40. Hundreds upon hundreds of heavy business firms have passed into hopeless insolvency, and the end, it would seem, is not yet. Over-trading and extravagance is sure to be brought up with a "round turn some day, and thus are the imprudent and improvident in the eastern cities reaping the fruits of their recklessness. The last great financial revulsion began in 1837 with the suspension of the United States Bank and all the State banks, and ended in 1840 with the explosion of the Manhat tan Bank, the very one that began the war. Within those years 30,000 houses broke, and took the benefits of the bankrupt law of 1841. Their debts amounted to $400,r 000,000-their assests to almost nothing. 2 The Inte Massacre on the Plains. = The report of the late massacre has been fully confirmed. The number of persons slaughtered by the Indians was 118.Great excitement prevailed in Los Angelos on the announcement, shortly after the re7 ceipt of the news, that parties were in town G who corroborated all the statements that had been previously made. A public meeto ing was called, and the persons referred to 09 attended it and-made statements-a condensation of which we will give next week, taken from the San Francisco Herald, of the 30th, ult. Their names are Power and 0 Warn. They had lately returned from W Salt Lake City. P ANOTHER MASACRE, PROBABLY.-Mr. W. W. Smith, who arrived recently in Sacra- e o mento, furnishes the Journal with some adfor ditional news from Carson Valley, from which copy the following: $ "Mr. Blackford, who arrived a short e time before Mr. Smith left, reports that t several trains whose arrival should have r been made some days ago at a point of safety, are supposed to have been cut off by the Indians. No other satisfactory reason can be given for the delay. They were heard of, all well, at the head of Humbolt, and no news of them has since been received, although they should have been in many days ago. The Washoes have all left the Valley, and not one of the tribe has been seen since the recent difficulties. SOMETHING AS TO THE OVERLAND MAIL.By private advices from San Diego to a < gentleman in Sacramento, we glean the foln lowing in relation to the San Antonio and San Diego mail route. The sixth mail that left San Antonio, Texas, on the 23d of September, arrived at San Diego on the evening of the 19th October; time 261 days. The company brought through four passengers. The way mails are much increased. The entire road is now stocked with four hundred animals, twenty-five coaches and seventy-five men, (messengers and guards.) With this outfit they can accommodate six passengers. Further arrangèments are being completed to accommodate passengers through to New Orleans by this route. The fare from San Diego to New Orleans is $200, which sum includes meals on the route. The eighth mail from San Diego was to be dispatched on the 23d of October, with a full complement of passengers. The schedule time for the trip of this line is thirty days.-Sac. Union. 10 A strong shock of an earthquake was experienced in San Francisco, a few weeks since, causing a good deal of. alarm to a large number of citizens, especially those who were at the time in the third or fourth stories of brick buildings. Another still more severe shock was experienced on the following morning. THANKSGIVING Day.-The Governor of California has issued a proclamation appointing Thursday, 26th inst., as a day for a general thanksgiving, and recommends from that all secular employments be refrained