Merchants Bank - New York, NY

Bank Information

Episode Type: Run Only
Bank Type: state
Start Date: June 26, 1839
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: 1cd9b21a

Response Measures

Accommodated withdrawals

Other: Merchants' Bank redeemed certificates and used own funds; expected loan from Col. Gamble in England failed to arrive, causing exhaustion of funds.

Description

Article (Morning Herald 1839-06-27) describes the Merchants' Bank of New York redeeming large amounts of certificates until funds were exhausted after an expected loan from England failed to be negotiated. This depicts heavy withdrawals/redemptions (a run) but there is no explicit statement that the bank suspended payments or closed, nor that it later reopened or was placed in receivership, so classify as run_only. Cause attributed to failure/hold-up of an expected correspondent/foreign loan (funding source).

Events (1)

1. June 26, 1839 Run

Cause: Correspondent
Cause Details: Expected loan negotiated by Col. Gamble from England failed to materialize; bank redeemed certificates until funds were exhausted.
Measures: Redeemed certificates and bank bills to satisfy holders; proposed exchange of notes (offering interest-bearing notes) to cover protested paper.
Newspaper Excerpt: On this intelligence the Merchants' Bank of this city commenced redeeming certificates, which was done until the funds were exhausted.
Source: newspapers

Newspaper Articles (1)

1. June 27, 1839 Morning Herald New York, NY

Article from Morning Herald, June 27, 1839

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Article Text

MONEY MARKET. Wednesday, June 26--6 P. NI. revulsion in a prices and banking operations is gradually itself. The The over action of the banks is correcting which is progressing. of holding" has reached a magnitude Exchange The system the speculators by its weight. At the Stock however, crushing fair business was been done. Prices do not. of Commerce to-day a material change since yesterday. Bank Vicksburg show any 1/4 per cent Dry Dock receded per cent; cent. A improved Stouington 1; Bank of Kentucky rose t per the amount of 11; 4 cent New York State stock, to 85 cent, sale of was per made at auction this morning at per This sale $100.000, whole amount taken by Isaac Carow, Esq. The cash; the the great scarcity of money w hich prevails.. antici indicates of a specie draft from Philadelphia, although The posiappearance in certain quarters, caused some uneasiness. is put in repated banks is such that their utmost means which they tion of the sustain the mercantile operations in little quisition immediately to interested. There is, therefore, very ability to are harmony or unity of act on among our own banks, or pay among proceeds those of the of the South. crop, the Southern institutions, but have In the them, had the meaus of paying their debts ; retained within many done'so? of On the contrary, they have in order they the crop which should have been sóld, and the is we themselves have borrowed further sums of the North by ou borrowto do so To meet these notes they depended and the proof post notes. England. This resource has failed, of general of the holders. test ing money of the in notes has commenced, as the precursor a downfall of this view, we may take the movement Gamble. of As an instance Bank of Florida, under the direction of Col. which the Union institution had out a large amount of certificates, merchants. The great discount in city and held by on were at dealers a in Florida could not procure exchange and The from the Bank, but she promised to resume from the North cent so soon as Col. Gamble should arrive gentleman draw at 2 where per he went to negociate a loan. That sold England in this city about the middle of April last, having train arrived of his bonds, and having left $700,000 in the such receipt a of $1,300,000 probably lead to a favorable result. On drawas would in Florida, the Union Bank commenced redeemthis intelligence the Merchants' Bank of this city commenced provided by ing, and certificates, which was done until the funds the ing the were exhausted. In the expectation of receiving continued Col.Gamble of the loan from England,the Merchants' Bank She then balance to the extent of $90,000 of her own funds. to redeem about $150,000,which fell due thereafter, was protest Engheld up,and balance of the loan having failed to be negociated protested in ed. The Col. Gamble now proposes to exchange these allowing land, U. S. Bank notes having six months to run, for notes for cent interest for six months, or in that proportion in 41 per due, paying the face of the note and the expenses is turned the time protest. By this operation the Engli h loan hereafter be red the by hands of Mr. Jaudon, by whom it may the cerupon The other banks of Florida pay nothing : of the negociated. of the Sourhern Life and Trust which was When one these riticates are selling at 20 per cent discount. in Union first are presented to resume, at their counter, they redeem Florida. them Bank bills, which are the only currency in state of things is at a period which at the time of susThis looked forward to as that at which the crops would is a pension was off the debts of the South, and have left them have been have paid to resume easily. This would undoubtedly the marcondition had that crop censent forward and sold which at is now the case In such an event the amount of money means of ket price. absorbed in holding would have afforded the is now done entirely ten times the amount of business which " nimble sixtransacting on the principle of the old adage that this time with ease, is better than a slow shilling." There is at the case pence amount of specie in the banks than was ever ample a larger quite sufficient to afford the basis of a circulation But the curse before, give vigor to every branch of trade. The enough to hangs over all the institutions of the country. section of holding resources, the energies of the banks ia each different credit, the are locked upii stocks of produce of cluster of the country In one quarter a group of speculators the descriptions quantity of Hour; in another, pork is another, magnet around draws a all the capital within its influence, in of the which the weight which drags down the enterprises the vitallead is Throughout the South, cotton absorbs all berrowmerchant. the money circles, together with all that can land, be horses ity of North. Minor speculutions in negroes, meansed at the occupy the attention of those of smaller different bagging, &c. form a multitude of circles, each of of a These operations the sole object of which is to support the prices Each iminterests, article at the expense of the consumers. t ey particular that the whole country is interested in the amount be the agines from the consumers above what would case, may obtain transactions were direct from the farmer to the consumer. if the is, however, that the whole country is groaning fal- unThe truth oppression, and cannot be relieved until prices have and der the extent which will carry ruia among the holders, deprive len to an them of the power of doing mischief hereafter. sales at the stock Exchange. 30 Bk of Commerce Tradesman's 1011-100 Bk 125-5 Dry of Dock N York 101660-100 da 129-50 do 99je Phenix 105- 100.30- do 991-30-20 do 1001- State .00 Bk 100 1001-100 100-200 do do 991s30-1 99-30-25 Ass 86- 3 N Y 30-65 do 1071-40 Mechanics Bk do SOLGO -10 1073-15 N do Am T & Bk 781- do 781mw- do 712-30-100 50 Bk Co 104-1 87-25 Del & Hudson 72630-23 do 721630-25 do 72-10-50 711-30-100 do 20 lilinois 72c-56 do 713-80 do 72-25 do 721630 do 74 do 72jb60 do do 713:30-10 do 713c- do L & 1046c-20 Mer ExBk 118-12 Ohio 47c-15 do 46 Leather 461117-10 Vicksburg 931c-25 do 881 60 do 1.90-1 50 Bk of Kentucky Mar Co $0-20 Contributionship 10a-25 N 50 de 517 112-10 Jackson slic-D do 514-250 619830- do 516-30Am 7oc-250 Harlem 50 de 0131-3- & Provi523b60- do 513s30 20 Boston Canton Long Island 524. dence 100 do R 51je-12a do R 1051-120 Stonington 28c-10 de 27 e-15