16109. Manhattan Company (New York, NY)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
October 23, 1839
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
52188df2

Response Measures

None

Other: Articles describe financial distress and heavy losses by the Manhattan Company in 1839 and a special directors' meeting (Oct. 23, 1839) to reassure the public and continue specie payments; no clear, discrete depositor run or suspension of the Manhattan Company is explicitly described. References to runs/panic in the articles refer to broader city-wide events or other banks.

Description

Articles describe Manhattan Company getting into trouble in 1839 during a broader panic over specie payments and banking disturbances. The 1839 piece (Oct. 23 directors' meeting) records directors adopting resolutions to alleviate distress and maintain payments; later retrospectives (1854) say the bank suffered heavy losses from loans to speculators and changed officers but recovered. There is no clear statement that the Manhattan Company suspended and closed; it appears to have weathered the disturbance and later resumed normal operations. Classified as run_only (panic/run pressures but bank remained operating).

Events (1)

1. October 23, 1839 Run
Cause
Macro News
Cause Details
Part of a broader crisis and specie drain following suspensions and banking panics (general runs and suspension of specie payments among New York banks in 1837–1839).
Measures
Board of directors held special meeting (Oct 23) and adopted resolutions to alleviate distress; affirmed payment of specie, accepted Safety Fund notes as requested; changed officers later and restructured capital in following years.
Newspaper Excerpt
We confine ourselves aid Bank of the Manhattan Company ... Directors meeting ... resolutions ... give most to alleviate intense and unhappi exists this their city, dispo distress now the means to the that make use consistent with their duty ... Resulted, specie That payments the opinion receive of this and Board pay out ...
Source
newspapers

Newspaper Articles (3)

Article from Richmond Enquirer, October 29, 1839

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Article Text

DE 14 NE / Richmond, Tuesday, Oct. 29. & BANKS. STOCKS. MONEY jejune MARKET, and unsatisfactory Banks of the Manifesto the with along We lay before of Philadelphia, for ments suspending of the veil over specie payments. This Document draws over the lebrated declaration the of ification Glute tory of the late of Mr. Biddle Specie Mr Circular John Q with Adams, that the the way for general the gross misina the enorof had difficult Bank draws of the United States, stocks mous in which State the Globe states cks be to to the the of three amount issuance amount Mississippy five millions, millions. and Illinois veil also of over mil lions to its heavy of Post advances notes for on the Cotton- purpose meet of its rising own the engage. wind that the exportation the of fact specie (says the the Girard Globe) Bank months ments Bank of the United States been and the principal shippers fur have, for Have not the lastsix the English papers. already had of this country or England by the Bank of the pounds glerling which cent sailed more than three week on Did not the Liverpool, carry to England account between of the after the suspension, hundred these dollars vast FUINS have been obliand Philadelphia four Banks: Yes, contempt of the prior of it prating sent the England, community in her? great about portion husband gations while away to England, of Penn hand, sylvania of the be resources for the purpose of deceiving the people Bank that general opinion, There We the the the Whig even from able address of the A Boston Bank Director in be to the York New American and and lligence, not person Banks, high largely character concerned in the in this manufac coun of the proposition all our difficulties believed. the tution, instit single arise from For has Bank that months many United States on London amounts large very their meet been drawing bills funds there stimulate d quale the to importation of left been their greatly only overtade to which has taken of shipment those importa ship Bank bills has due. ments failing has been of ex the course vated that Bank changes An drain. probably rapidly coming abundant the to turn months market-so the the In New men time, exchanges an for supply exchange York Banks have the necessary of detable ship which will the market probably with make any further onsi of the Banks Boston York ments This writer specie urgently stand calls their ground upon He one declares, course that to and "duty, New honor and morality, payments leave events. the That best pursue- specie equally quied by whole interest course, of fully our believe, city, of is the community ,ind the the uon country most interesting point New of view, York The Banks unde 10 pay specie horizon, The now the City The Merchanteare yet us cal reglutions, determine tremendous We relief give by extending their interior dis the Banks for notes the is counts. ing upon and also by receiving We give the the late inceedings said of Safety Fund Banks meetir of the merchants,which heldby the met on of that city chante of the We the journed been of the receiving largest ever the report/f their Comthe answers Banks. theee onlished o:them but ney differ ke find for York prints- with Almost the others) about re of the Safety Fund Notes As the Some Chairman of them POSI the of Banks tively reject the Banks proposition ready will adopt also the doit. measure Eig ht condition "fifteen that not the vet other prepa come consider into this arrange Others on minds made their Banks Some are of them wish for time the subject. and consider inexpedient We confine ourselves aid Bank of the Manhattan Company which (the Y Star institutions he Govern saye) of considered two the fiscal agents of ment 1839 24th NEW Oct., YORK. of the and Directors meeting of the specially President convened at this ue City day, Ho the hereupon resolutions Manhattan Compa meeting of the 23d merchants inst. were prisented and of of this Com the That Board Directors Resulted. all the give most the alleviate intense and unhappi exists this their city, dispo distress now the means to the that make use consistent with their duty their enthe faithful performance of stockholders gagement to the Public. M. GELSTON, President ROBT WHITE Cashier of the Board of Directors of of del the A a special America, meeting held this day for meeting the purpo of Merchants Bank of the proceedings of City Hotelthe betating Traders held the at the careful consideration of Board-it can that they and noeedings having Resolved received that this Board alleviate feeling the an of solicitude commercial all the within the power wants will Bank. extend consistent their with the the partmount duty of main it teining spe the "Resulted, specie That payments the opinion receive of this and Board pay out that the notes of the Safety is inexp present, Fund Banks of this State, as requested by the meeting Oct.24,1839. re Bank America. E. Post of Friday says, very Our much Banks reduced main The firm; the demand for pressure specie the money market We are is interest and the much intensity confined to the dry goods' course which as-ured very that the Banks will take their ability to continue 88 specie payments 89 12 hazard in the slightest Philadelphia degree drafts bid- offered 000 Treasur at offered notes bid, Balumore sold 99 12, $1,000 state 99. of and the more specie market Money to 9878 and Y Commercial this indicates of Wednesday on says. undoubted pa In extreme per cases, The day is worth per cent. month, cent is belie ed to hav of 'The been given. from Philadelphia of the 22d from says Mr. Jaudon ficers A letter of the S Bank that have had receiv made arran gementwi the deta h is and posititeinin Rothschild mation cover the bills on Hottinguer They feel there of S unless, persatisfied that their bills have been the accepted, rumor of their prember Rothschile being un accepted should the 21st have backed out express of his agree great the the by chance, ment Some of consummation the papers. however of the arrangement issued doubts We give i about another column declaring Circular their williagness notes, to Bank of the U S.in N of their claims, their stock post of the receive in liquidation demand, or the capital Novein bills, payable on previous to the 5th of -(Of ber next bank Bank, par, at any course, time not the ordinary notes of the Mother Bank N. in occurred York) is the extensive it owe, Nixon They "The largest failure dry goods (said to jobbing have house is said. of $400,000. Doremus was on l'his Saturday the 19th ) Suydam and shew and assets for $600,000 or There are no more. failures reported dur ing las week


Article from The New York Herald, July 31, 1854

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a panic occurred among the billholders and depositors, causing quite a run upon the bank. This was soon quieted by the election of Jacob Lorillard, a large capitalist and stockholder, as President of the bank, he offering to pledge his whole fortune to redeem the bills of the bank. This affair was followed by a run upon the Dry Dock Bank, and the other city banks refusing to sustain that institution, it was shut up by a decree of the Vice Chancellor on the 8th of May. This circumstance, with the stoppage of three banks in Buffalo, caused a general run on all the city banks; and on the 10th, the banks, by common consent, stopped payment in specie. The example was followed by every bank in the United States and in Canada. On the 10th of May the Legislature of New York, then in sea sion, passed an act authorizing the suspension of specie payments by the banks of the State for one year. On the 1st of January, 1837, the New York city banks, by their reports to the bank commissioners, had an aggregate capital paid in of $20,361,200, and a surplus of profits on hand of $3,263,226, or nearly sixteen per cent. Consequently, their stock, previous to the suspension, was generally very high in the market. The Mechanics' Bank for a long time sold from 127 to 130, but immediately after the difficulties, in May, 1837, the stock fell to 60. An examination of the affairs of the bank, by the directors and the bank commissioners, showed that heavy losses had been sustained by loans to brokers and others, on stocks of various institutions, which had either greatly declined in value, or become worthless. It is believed that the Mechanics' Bank has never sustained any heavy losses by its legitimate business of discounting the notes of mechanics and merchants. The same remark would, doubtless, apply to most of our city banks. Their great losses, amounting in the aggregate to millions of dollars, have been occasioned by loans on stocks to brokers and speculators, whose defalcations the stockholders of banks have thus been called on to make up. In consequence of the losses of the Mechanics' Bank, not only was their surplus fund swallowed up, but they were compelled to suspend their divider ds for several years, until the Legislature reduced their capital from two millions to one million four hundred and forty thousand-the reduction being $560,000-and their losses must, therefore, have exceeded one million of dollars. A similar amount of losses was sustained by the Manhattan Company, which bank having got into trouble in 1839,


Article from The New York Herald, July 31, 1854

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Thus it will be seen that on a capital of two mil lions the directors of the Manhattan Company had accommodated the business men of the city to an amount less than one halt of their capital, while they bad invested over two millions in stocks and loans to brokers, speculators, and operators in real estate, in long loans on bonds receivable. No wonder they were compelled to come to a ' dead lock," change the officers of the bank, and devote several years of labor to reinstate their capital, withholding dividends from their stockholders for the time, of course. The losses of this institution by various loans to speculators and defaulters, it is difficult to estimate; but for a long time the price of their stock in market showed an apparent loss in the difference before and after the difficulties of 1839, of over one million of dollars. It is unsecessary to say that, under the management of its officers and directors since 1840, it has regained its former high rank among our city institutions. The Phoenix Bank is another institution which suffered heavily by the operations of the speculators and defaulters from 1836 to 1840. During the speculative period, its capital had been increased half a million of dollars by act of the Legislature, but so great were its losses that in 1841 they were compelled to apply to the Legislature for a reduction of three hundred thousand dollars, after having suspended dividends for several years. The failures of the Commercial Bank and the L2, Fayette Bank, each having a capital of half a million of dollars, was owing also to the operations and defalcations of the speculators of 1836 to 1840. To these may be added the North American Trust and Banking Company, with a nominal capital of two millions, and several minor institutions which were organized under the General Banking law of 1838, and after a brief existence became insolvent. The summary of those broken banks whose capital has been used up by speculators and defaulters, is as follows:-