16179. Mechanics Banking Association (New York, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
September 20, 1873
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
60517f5b

Response Measures

None

Description

Multiple contemporary articles (dated 1873-09-20/21) list the Mechanics Banking Association among institutions that 'closed its doors' or whose certificates were 'thrown out from the clearing house' during the panic of September 1873. The texts describe a broad financial panic (Jay Cooke/Union Trust events) rather than a specific depositor run on this institution; no reopening or receiver assignment is reported in the provided articles, so I classify this as a suspension likely leading to closure. Bank type is not explicit from the name; 'Association' does not clearly map to 'national/state/trust/private'.

Events (1)
1. September 20, 1873 Suspension
Cause
Macro News
Cause Details
Part of the widespread financial panic of September 1873 (failures/defalcation at Union Trust, Jay Cooke crisis) that led many New York institutions to suspend operations or be excluded from the clearing house.
Newspaper Excerpt
Certificates of the Mechanics banking association ... are thrown out from the clearing office.
Source
newspapers

Newspaper Articles (4)
1. September 20, 1873 The Daily State Journal Richmond, Alexandria, VA
Article from The Daily State Journal, September 20, 1873

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Article Text

THE FINANCIAL CRASH. More Failares-The Government Buys $10,000,000 Bonds. NEW YORK, September 20.-The presidents of the national banks held an informal meeting this morning, and resolved to support each other and disregard any restrictions in to-day's dealings. Wall street was crowded at an early hour, but, however, with less solicitude. The resolution of the banks to sustain each other and the purchase of ten millions of bonds by the treasury nerves matters. Two members from Jay Cooke & Co. are coming on the Russia, which is expected Monday, when a reliable statement of the affairs of the house will probably be presented to the public. WASHINGTON, September 20.-The following failures are reported this morning: Union banking company, of Philadelphia ; Union trust company, of New York ; A. B. White & Co., of New York; E. C. Broadhead, of New York, and Ketchum & Belknap, of New York. NEW YORK, September 20.-The stock exchange is closed, subject to the call of the president, to enable members to settle. The defalcation of the Union trust company is reported. Vanderbilt is closeted with the directors. Quotations of stocks are impossible. President Chapman, of the stock exchange, forbids outside operations by members, upon penalty of expulsion. WASHINGTON, Septemper 20.-A. G. Cottrell, agent of the syndicate at London, telegraphs to Secretary Richardson that their accounts are all in perfect order. ADDITIONALSUSPENSIONS. Saxe & Rogers, New York; National Bank of the Commonwealth, New York Quassig & Fisher, P. M. Meyers, Miller & Walsh, Laurens Josephs, Fearing & Dillinger, Brown, Wadsworth & Co. The Freedmans' bank has paid out $65,000. The officers declare themselves well fortified. There is only the usual Saturday afternoon crowd about the bank. NEW YORK, September 20.-The National trust company has closed its doors. Certificates of the Mechanics banking association and the Continental bank, are thrown out from the clearing office. The bank of North America has suspended. PHILADELPHIA, September 20.-It rumored that the Union banking house has suspended. ALBANY, September 20.-Itis rumored that Squires & Sons have suspended. The Crisis in London-Jay Cooke's Firm Honor All Demands. LONDON, September 20.-The firm of Jay Cooke, McCulloch & Co., in this city, has paid cash over their counter yesterday notwithstanding the rush on the house. EFFECT OF THE NEWS FROM NEW YORK. LONDON, September 20.-Financial re ports in the afternoon papers indicate an uneasy feeling, occasioned by the news from New York. The close of the marS ket, however, finds confidence partially restored, and at this hour London's financal condition is sound. There are no failures. WHAT THE LONDON PAPERS SAY. LONDON, September 20, 6 a. m.-The London Times, commenting on the financial panic in New York, says : "In view of : the extraordinary prosperity of the United States, and high price of Government bonds the present must be regarded as a simple effort of the financial system to get rid of its dishonest element." The Daily Telegraph says such local P troubles as suspensions in New York seem to be merely the rank outgrowth of exu3. berant prosperity and accessories to progress, which does not for a moment halt.

2. September 21, 1873 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, September 21, 1873

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generally renew their impressions of yesterday, that the culminating point of the troubles has been reached. [Associated Press telegrams.] YORK, September 20. The presidents NEW national banks held an informal meetthis and resolved to in and disregard any of ing each the other morning restrictious support to-day's dealings. Wall street was crowded at an early hour, The but, however, with less solicitude. other resolution of the bank to sustain each bonds and the purchase of ten millions of the Treasury nerves matters. by Two members from Jay Cooke & Co. are on the Russia, which is expected afMonday, coming when a reliable statement of the fairs of the house will probably be presented to the public. The following failures are reported this morning Banking Company, of Philadelphia ' Union Union Trust Company of New York A.B. White & Co., of New York; E. C. Broadhead, of New York; Ketchum & Belknap, of New York. The National Trust Company has closed its doors. Certificates of the Mechanics Banking As- are sociation and the Continental Bank thrown out from the Clearing-House. SECOND DISPATCH NEW YORK, September.20.- The Stock of Ex- the change is closed, subject to the settle. call president, to enable members to A defalcation in the Union Trust Company the is reported. Vanderbiit is closeted with directors. Quotations of stocks are impossible. Presi- for dent Chapman, of the Stock Exchange, upon bids outside operations by members penalty WASHINGTON, of expulsion. September 20.-A. G. Cot- teleagent of the syndicate at London, their trell, to Secretary are all in perfect graphs accounts Richardson order. & that Additional suspensions: Saxe Common- Rogers, York: National Bank of the P. M. New New York; Quassig & Fisher, wealth, Miller & Walsh, Laurens Wadsworth Josephs, Fearing Myers, & Dillinger, Brown, & Co. The Freedmen's Bank has paid out $65, well The officers declare themselves fortified. 000. There is only the usual Saturday afternoon's crowd about the bank. NIGHT DISPATCHES. MISCELLANEOUS ITEMS ABOUT THE PANIC. NEW YORK, September Alluding to suspension of operations by the Evening memthe of the Stock Exchange, the cannot be bers says Too much praise and carawarded Erpress to the men who conceived Bedthis master stroke of policy. was raried out running loose and the craze multilam was communicating to the outside shut the pidly Nothing remained but to bulls tude. and try and bring back the door bears alike to their senses.' and The defalcation in the Union Trust Company The is Bank $500,000. of North America has not suspended. Western Union Telegraph stock, 57. Clearing-Houseannounce its account inability of The general clearance on dealers' to make inability a to obtain properly certified checks. The New York bank presidents, resolution at their this arternoon, passed a loan certo meeting issue immediately ten millions in THE PRESSURE. tificates. BANK OFFICERS TAKE MEASURES TO RELIEVE NEW YORK, September -The Association officers banks and Clearing-House unanimously the meeting this afternoon, November at their that until the 1st of issue next resolved bank in the clearing-house shall per certificates any to the amount of seventy-ilve and that cash value of their assets, settlecent. certificates of shall be accepted in place such ment of clearing-house differences in of legal-tender further notes. resolved to pool all cause their They notes, and make common of them. legal-tender any attempt to break any will be caragainst issue of these certificates of the The the extent of the full assets effect of ried to if necessary. The practical legal-tender bank. will be to economize place. It the issue these certificates taking their and facilinotes, expansion of bank credits is an but not of irredeemable paper. ties, to which the addition The will be charged, in 1 per banks issued loan-certificate of may be interest, one quarter on cent. to per to defray cent. the expenses consequent carrying out this plan. THE EXCHANGE WAS CLOSED. member [WHY of the Governing Committee this A Exchange, when questioned said that the Stock in regard to the closing. checks, afternoon banks began to refuse each others continuance the was useless to attempt a Unand it under such circumstances. of rules every member cerder was obliged to clearingExchange business the bank recognize in of the the any Stock tified check upon affairs any were in such a state that house; who but deposited a certified check he was and a man against it did not know how Governing drew The members of the unanistanding. met at 11 o'clock and the ExCommittee mously resolved upon closing up by 1:15. change The day closed with a better feeling among the banks and with the BELIEF THAT AFFAIRS WILL MEND next week. The closing of the and Stock the early Exchange is generally applauded Governing expressed that the arshould, after making brokers opinion Committee is for a settlement among and some Monday, rangement contracts falling due to-day days. of keep the Exchange closed for out. a few The bank statement is not LATEST ABOUT THE DEFALCATION. YORK, September e.-There amount is of much the NEW opinion as to the the defalcation difference of of Carleton, the figures secretary ranging of Union Trust Company, to $500,000. the The institution toin from sold $1,000,000 $250,000 bonds to funds the Government for next week, day, which also places over $20,000,000 it call loan will which also and have has been called, and this money be available that next the week. checks of clearing-house some banks The fact thrown out of the the prehave not been necessitate their affairs. failure in sent does disarranged state of WASHINGTON.

3. September 21, 1873 The Cairo Bulletin Cairo, IL
Article from The Cairo Bulletin, September 21, 1873

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- FROM NEW YORK. FAILED NEW YORK, September 20, 1:15 p.m Brown, Wadsworth, & Co. have failed THE BANK STATEMENT will, it is said, not be ready before night, if then. To give the usual quotations of stocks is not possible to-day. THE FAILURES OF BROKEES came in such quick succession that blocks of stocks were thrown upon the market to realize THE GOVERNMENT TO THE RESCUE A special from Washington says it may be stated on the highest authority that should the order to purchase $10,000,000 of bonds fail to check the financial excite ment, it has been decided by Secretary Richardson to issue any part of the FORTY-FOUR MILLIONS RESERVE necessary to restore confidence There were THIRTEEN PROPOSALS to sell bonds to the government at the sub-treasury, aggregating $2,672,659 at from 109 to 112. CLOSED ITS DOORS The National Trust Co. has closed its doors. OUT OF THE CLEARING HOUSE Certificates of the Mechanic's Banking Association and the Continental bank have been thrown out of the clearing house. THE CROWDS AND EXCITEMENT in Wall and Broad streets are unprecedented, and even in the neighbor lood of those financial centres, groups are gathered discussing the situation At this hour, nearly 1 o'clock, the millions promised from Washington cannot be made available owing to the RED TAPE REQUIREMENTS of opening and reading the offering to sell bonds, and telegraphing to know if the rates are acceptable. The tills of the best and strongest houses MUST BE GETTING LOW, having stood the run now of nealy three days Under the order issued by the president of the Stock Exchange forbidding members under penalty of expulsion to engage in operations outside, it 18 not possible to 1 realize on securities, and EACH MAN'S OWN VAULT is now his only stand by. GOLD at one o'clock, 111] The bank of North America HAS CLOSED ITS DOORS An effort is said to be making to get the public and private bankers to act SIMULTANEOUSLY and close at once, not waiting for the ust ual hour. NOT SUSPENDED The Bank of North America has not ( suspended. THE EXCITEMENT AND PANIC II which followed the announcement in the c stock exchange of the suspension of the 8 b Union Trust company, and the bank of e Commonwealth, were beyond description W The Stock Exchange 11 RESEMBLED A MAD HOUSE, b and the streets were blocked with people, II 11 laboring under the greatest excitement a and laney prices tumbled from 2 to 16 per C cent, and stocks were slaughtered without C8 my apparent regard to value. Amid the P SURGING OF THE EXCITED CROWD. o n the stock exchange and the continued t destruction of values, there were it SOME FEW COOL A ND LEVEL HEADS. a These men conceived the idea of initiat 11. ng it plan of closing the exchange and m immediately the governing committee el as convened to take action therein In in few minutes the board was di CALLED TO ORDER th nd the announcement made that W be exchange would be closed until urther orders from the president This S as received with great joy, and the ex. m hange N & RESOUNDED WITH CHEERS for 'he gong was sounded, and in less time er ian it takes to record the fact, the wild xoitement was over and the surging st rowd of frantic brokers disappeared and un he Stock Ex range was th A DESERTED HALL C The retunds of the treasury was m rowded with people listening to the prolie osals to sell bonds as they were read off, m while the Wall street steps of the build. the ng resembled a mass meeting the SENATOR MORTON 12 f Indiana was in the treasury when the lig proposals were read tr Certifications of the Bank of North ce America have been ele HROWN OUT OF THE CLEARING HOUSE lo hi gave rise to the rumor of its suspenC on pe THE BANK PRESIDENTS of ave passed a resolution to issue immedi ely ten million in loan certificates is MEETING ALL DEMANDS sa do NEW YORK September 20, 1:80 p.m CO he Fourth National bank is meeting all

4. September 22, 1873 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, September 22, 1873

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VIRGINIA NEWS. Two girls from Fredericksburg, one aged fourteen and the other fifteen years, stopped at house of bad repute near the Baltimore and a Railroad depet, in Washington, last week, left not aware of its character. They said they Fredericksburg last Sunday, one to visit an aunt and the other a sister in Baltimore. They were taken to a proper place OD discovering their whereabouts. A letter to the Richmond Whig, dated at Gordonsville, Saturday announees that on Friday last, Mr. B. J. Barbour, while returning to that place, from a visit to Mr. O. U. P. Terrell of Orange, was thrown from his horse and severely injured. At last accounts he was 10 a fair way of recovery. The Shenandoah Valley Railroad is progressing rapidly. Nearly two thirds of the road, between Front Royal and Luray, have been completed. The building of the bridge across the Shenandoah will soon be commenced. The Board of Supervisor. of Frederick coun ty have appropriated the amount due to the county by the Corporation of Winchester, to repairing and improving the Court House and jail. Edipburg. Shenandoah county, has tour churches, four Sunday schools a graded school. one subscription school, one wouleu factory, and a phosphate manufactory. The Fairfax News, of Saturday, says: "Early Monday morning last very Fight frost in low situations in this vicinity was observed it. by several persons. No harm was done by Ex Governor Bonham, of South Carolina, He determined to ;move to Virginia. says has that Radical government in South Carolina has be come intolerable. The Shenandoah Democrat says: "The Narrow Gauge Railroad is making rapid progress with two hundred hands at work on 11. FAIRFAX COUNTY COURT - County Court of Fairfax county was held on Monday H. and Tuesday, the 15th and 16th, Judge R. Cockerille presiding. Thirty-seven deeds, &c. were admitted to record. The hernestead exemption of E. O. Powell, filed in the clerk's office was admitted to record. Samuel H. Cutts appointed a justice of the peace for Providence township,to fill a vacancy, qualified according to law On William Kidwell motion for a road it was ordered that the petitioners for said road be summoned to appear D the first day of Oc tober court, to show cause why they should not enter themselves as plaintiffs and give security for costs, in place of said Kidwell Com. VS. Wm. M. Gooding recognizance extended to first day of November court. Com. vs. James P. Dickey nol prosequi entered by the Commonwealth's Attorney by leave of the court. W.P. Dickey was granted a certificate to enable him to procure a license to self liquor at his place of business. On motion of Frank Smith. assessor of Providence township, George H. Bhnese was admit- said ted and sworn 10 as deputy assessor for township. D. Williamson VS. Alexander Denty rule executed. docketed and continued. John H. Wheeler vs. B. W. Clark appeal docketed and continued. On A. J. Downing's motion for a road, viewers were appointed. The last will and testament of John W. Pool. deceased, was proved by the oaths of E. M. Lowe and Jesse Smith. subscribing wit nesses thereto, and admitted to probate and ordered to be recorded. IL appearing to the sati-faction of the court that there is no Notary Public at Falls Church township, it is ordered that Geo. W. Mankin be recommended to the Executive of the Cowmoowealth for said office. Administration 00 the estate of Jane Boswas granted II. W. Cockerille-bo 8100. well Alfred Leigh, Henry Curtis. B. L. Jones and Wm. Walters. or any three, were appointed appraisers of said estate. Administration, with the will annexed of John W. Pool, was granted Samuel A. Poolbond $600. Jesse Smith. John Bicksler, Tho. O'Conner, Wm. Walters and Frank Bicksler or any three, were appointed appraisers of said estate. Daniel Williamson was appointed guardian to James E. Williamson-bond $1,000. Benjamin D. Utterback who was commissioned a Notary Public for Centreville township, entered into bond in the penalty of $500 -Wm. H Utterback security-and took the oaths prescribed by law. E. S. Fairfax was appointed commissioner of roads for Lee township, to fill a vacaucy bond $2,000-Samuel T. Stone security. William B. Howard's account against the Commonwealth, amounting to $10.66, was allowed. Thomas N. Will ims was appointed one of the canvassers of election for this county. Fairfux News. THE FAILURES.-T leading features of Saturday in New York were the meeting of the bank presidents and the adoption of reso lution to use certificates representing seventy in five per cebt of securities held by any bank its settlements; the peremptory closing of the stock exchange, and the suspension of additionbanking institutions and houses. There was also the offer by the government to buy bonds to the amount of $10,000,000, which elicited bids for only $2,672,650, thus showing the inutility of such a measure to materially relieve the money market. There was made known also a defalcation in the Union Trust Company, the defaulter being C. Carlton, son of the Rev. Dr. Carlton of the Methodist Book Concern, and secretary of the Union Trust Company, which caused great surprise. He had been secretary of the Union Trust Company since 1860, and the com ern has grown to be an inmense figancial institution under his management. The additional suspensions are as ful lows: The Union Trust Company, the Bank of the Commonwealth. the National Trust Cour the Mechanics' Banking Association, C. pany. G. White & Co., E. C. Broadhead & Co., Ketchum & Belknap, Brown, Wadsworth & Co., Taus-ig & Fisher, P. M. Myers & Co..