16158. Mechanics & Traders Bank (New York, NY)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
October 13, 1857
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
089f6929

Response Measures

Accommodated withdrawals

Description

New-York Daily Tribune (1857-10-14) reports a run on many NYC banks. The Mechanics & Traders' Bank (Grand Street) paid every dollar up to 3 o'clock, the closing hour, indicating heavy withdrawals but no suspension. Cause attributed to the general 1857 panic (systemic). Date of the run inferred from the Tribune account (events occurring the day before publication, i.e., 1857-10-13).

Events (1)

1. October 13, 1857 Run
Cause
Macro News
Cause Details
Part of the widespread October 1857 financial panic in New York causing heavy withdrawals from many banks.
Measures
Paid out all depositor demands through closing hour (paid every dollar up to 3 p.m.).
Newspaper Excerpt
The Mechanics' and Traders' Bank, in Grand street, paid every dollar up to 3 o'clock, the closing hour.
Source
newspapers

Newspaper Articles (2)

Article from New-York Daily Tribune, October 14, 1857

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Article Text

Their loans were reduced $17,000 yesterday, and the specie $45,000. Bills receivable during the balance of this month, $500,000. LEATHER MANUFACTURERS' BANK. The Leather Manufacturers' Bank has closed its doers. MERCHANTS' EXCHANGE BANK. This Bank, located at No. 185 Greenwich street, suspended specie payments at 20 mnutes before 11 o'clock yesterday. During the time it was open, a large amount of specie was demanded and paid-our reporter could not learn the exact amount. The run upon this institution was mainly by depositors, and aton ded with much the same features as those already relat ed of the other banks. MANHATTAN BANK. The h 'ank of the Manhattan Company lost $140,000 in specie. MARINE BANK. The Marine Bank alosed its doors in the forenoon, in consequence of in in junction laid upon it by some of its stockholders. The hank needed only $40,000 to carry it through. Although it had ample security none of the Banks would land a dollar. It had NewYork stocks, but could not 2. aise $10,000 on $19,000 worth of them. MARKET BAN. 8. A very large crowd gathered 4 bout this back (located at the corner of Beekmen an d Pearl streets) as early as 11½ o'clock, and their effort to effect an entrance were 80 pressing that five polie emen found plen ty of employment in keeping the door ways passable. Depositors were present in strong force, and deposits were passed out to a great extent. But still 1 they came, and the stream of gold that passed from b ehind the deeks of the paying-tellers was dried up about 1 o'clock p. m. A notice was then stuck a, on the door, that the bank had suspended specie pey ment, but would remain open for the payment of notes. This gave great dissatisfaction to many among the crow outside, and some of them behaved 30 badly that the Police deemed it necessary to interfere to prevent a disturbance. MECHANICS' BANK. The Mechanics' Bank experienced a considerable run, commencing soon after 10. To checkholders they paid out notes as long as they lasted. Then they were compelled to pay everything in specie-in which about $130,000 was paid. MECHANICS AND TRADERS' BANK. The Mechanics' and Traders' Bank, in Grand street, paid every dollar up to 3 o'clock, the closing hour. MERCANTILE BANK. The Mercartile has nearly $60,000 less of specie in its (offers. MERCHANTS' BANK. The Merchants' Bank, out of nearly & million of speeie, paid $160,000. They paid out more bills than ever in any one day before. METROPOLITAN BANK, The Metropolitan Bank paid out something lover $200,000. NORTH RIVER BANK. This bank, one of the oldest in the city, whichris located at the corner of Greenwich and Dey streets, expèrienced a heavy run, in common with the other banks in that part of the town on Monday. During that day they paid out $50,000 in gold and silver. Yesterday morning the doors were opened, but a bulletin was immediately placed outside announcing to & large and anxjous crowd that they had suspended specie payment. This was received with ill humor by the congregated expectants of gold in exchange for their checks, but the announcement soon had the effect of diminishing the crowd. It may with truth be said that this institution has been run upon for more than a week, as they have for the past ten days been paying an average of $5,000 a day in specie to depositors. NASSAU BANK. The Nassau Bank paid out $80,000 in specie, paying straight through. NATIONAL BANK. The National Bank paid out some $43,000 in coin, which leaves it $458,000. BANK OF NEW-YORK continued to pay demands until ? o'clock, when the run became 50 great that they ran out of gold and were compelled to occupy the remainder of the time in certifying checks. The doors were kept open until 31 o'clock. Over $300,000 in cash and bills of other banks was paid out.


Article from The New York Herald, October 16, 1857

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Article Text

BLOOMINGDALE SAVINGS BANK. This institution has experienced but a small drain in comparison with other banks of a like amount on deposit. It is now located at 549 Sixth avenue having removed from their old site at the corner of Broadway and Thirty-first street on the 1st of May last. this institution was established in 1854, and on account of the cautiousness and judgment of its managers could now safely live through any run that panicstricken depositors might choose to make. Its funds are kept in the United States Trust Company, and are therefore available at any time, the bank being the gainer by any sudden withdrawal, as those so doing would of course lose their interest. They have carefully avoided tying up their money under bords, mortgages, &c., as they anticipated a crisis or run of this kind, and accordingly put themselves in a condition to avoid being paralysed by a sudden charge in the public mind like the present. The drafts yesterday were very slight; indeed, the transactions of the day were scarcely distinguishable from their ordinary deposits and drafts. Their business hours are from 1 to 4 P. M. At the Irving, Broadway, Emigrant, Industrial, East River, Manhattan, Mariners', Clerks', Greenwich, and Mechanics' and Traders' there was neither "run" nor excitement. Things wore their every day business appearance. Some were taking out and others paying in at all these institutions. Claimants were paid in bills and small amounts in specie. The ten per cent rule was acted on in most instances, but relaxed when a case of necessity appeared. The large majority of those who withdrew their savings were new depositors; the old standard customers are too certain of the solvency of these institutions to give way to foolish excitement. Quite a large number of those who had previously withdrawn their deposits were re-deposit-ing them yesterday. They did well to act promptly on returning sense, and it would be highly beneficial for all those who were influenced by the panic mania to "go and do likewise." BROOKLYN SAVINGS BANK. We learn from the officers of this long tried institution that everything is going on as usual, and that yesterday the receipts were more than double the payments. # PIANOFORTE AND ORGAN MANUFACTO-RIES. EFFECT OF THE PANIC ON DEALERS IN, AND MANU-FACTURERS OF MUSICAL INSTRUMENTS-GENERAL PARALYZING OF THE TRADE-TEMPORARY CLOSING OF ESTABLISHMENTS, ETC. The dealers and manufacturers of luxuries, ornamental wares and instruments, have, as a class, undoubtedly felt the effects of the present money panic vastly, if possible, more than those who are concerned in the manufacture and vending of articles absolutely necessary for daily use and to promote the business and commerce of the country. Thus, while the panic has seriously affected the ironmon-gers, carpenters and other useful branches of the city, it has had a much more severe effect on the manufacturers of musical instruments, &c, many of the oldest and largest establishments having within the past day or two entirely suspended operations for the present, barely keep-ing sufficient men at work to complete and finish up work that it is absolutely necessary to have, in order to fill con-tracts, &c., already made. Several other establishments have reduced their number of men, in some instances over one half, while very many of them are keeping the usual complement at work, either on half pay, or half or three quarters time. With two or three exceptions the manufacturers have as much work as they could well do by keeping the full complement of men on full time, but are unable to do so for want of funds to pay off the men after the work is completed. Several others have more pianos completed and on hand than a cash market can be found for. Most of the shops, however, that have suspended or lessened their number of hands are hopeful that in the course of two or three weeks they will be able to resume work with their usual complement again, while others have resolved to remain with a reduced number of workmen through the winter. As a general thing where the shops have suspended, the men have not been discharged and are merely holding off, or, in other words, lying idle until the proprietors of the shops shall have made up their minds what course they will pursue for the future, as it is generally supposed that most, if not all, of the shops had merely stopped for the purpose of being on the safe side in case the panic should last any length of time, particularly so after the banks had shut down on the deposits of the proprietors of many of the places as they did on Tuesday, rendering it abso-lutely necessary for some of them who had large deposits to borrow sums as low as $50 and $100 to meet their im-mediate engagements with, after having tried in vain to get money from their banks. Our reporter yesterday continued his visits among the manufactories, for the purpose of ascertaining the effects of the panic on the working classes of the city, taking the pianoforte, organ and melodeon manufactories of this city and Brooklyn, all of which, with one or two exceptions, he visited during the day, and procured the following state-ment of their affairs, present and future prospects, from the proprietors themselves or persons in charge of the re-spective establishments:- PLANOFORTE MANUFAUTORIES. FIRTH, POND AND CO., Corner of South Third and First streets, Brooklyn, E D.