16226. Merchants' Exchange (New York, NY)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
October 13, 1857
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
1e8bb909

Response Measures

None

Description

The Merchants' Exchange (New York) is listed among banks that suspended on Oct 13, 1857 amid the wider financial panic triggered by the Illinois Central Railroad assignment and widespread runs. Articles describe a general suspension of specie payments (Clearing House arrangements) and indicate suspensions were expected to be temporary. No article reports a permanent closure or receivership for this bank in the provided set.

Events (2)
1. October 13, 1857 Other
Newspaper Excerpt
The banks have all resolved to suspend specie payments, as far as paying at the counter is concerned, and to make a regular exchange of each other's bills at the Clearing House. It has also been resolved to send a committee to confer with the Governor ... to call the Legislature in extra session to legalize the suspension: 12 o'clock to-morrow.
Source
newspapers
2. October 13, 1857 Suspension
Cause
Macro News
Cause Details
Part of the widespread 1857 financial panic (panic following Illinois Central Railroad assignment and runs on many New York banks); general loss of confidence and runs on Wall Street banks prompted suspension of specie payments and Clearing House arrangements to exchange bills among banks. (Articles cite Oct 13, 1857 panic.)
Newspaper Excerpt
Up to two o'clock fifteen city banks had suspended, of which the following is a revised list, viz: ... Merchants' Exchange ...
Source
newspapers

Newspaper Articles (10)
1. October 14, 1857 Worcester Daily Spy Worcester, MA
Article from Worcester Daily Spy, October 14, 1857

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Article Text

Money and Business. Early yesterday afternoon the telegraph announced the failure of the following banks in New York city: Capital. $1,235,009 Merchants' Exchange: Ocean 1,000,000 Mercautile 1,000,000 North River 655,000 Irving 300,000 Marine 309,000 New York Exchange 100,000 St: Nicholas 750,000 Citizens' 400 009 Bull's Head 173,800 Pacific 422 000 Peoples' 412,000 Total 812,200 There was reported. also, at the same time, a heavy run upon the Bank of the Republic. There seems to be an entire want of confidence in the banks among the New York people, and Wall street was almost impassable on account of the crowds of people assembled aboutsome of the banking houses in that locality. In another part of this] day's paper, we publish a list of New York business[firms that "succumbed to the pressure yesterday. The returns of the week show that the New York banks have contracted their loans four millions of dollars within the last seven days, and the deposits have fallen off about the same amount. The stoeks of the New York banks have run down to a very low figure, even the best of them, and this is probably not only an indication of the severity of the pressure, but also that those in the secrets of the back parlors, think unfavorably of most of their paper The stocks of some of the leading New York city banks, sold as follows, on Monday: Bank of Commerce 70, Bank of New York 76, Bank of America 75. Phoenix Bank 55, American Exchange 55, Metropolitan 58, Park 58, Bank of the State of New York 65. At Boston yesterday, the following additional failures are reported, viz: Francis Skinner & Co., the largest dry go ds commission house in the city-they were agents of the Pepperell, Bates, Vassalboro', and many other prominent manufacturing companies; Blanchard & Gross, shoe dealers; Hutchins, Brown Co., F. & F. Rice, John P. Whiton, West India goods; Geo. T. & W.P. Lyman, commission merchants; Otis, Cushman, & Bancroft, dry goods; and Crane & Glover, paper dealers It is reported that Moses Taylor & Co., of New York the largest and wealthiest grocery house in the country, has failed. The Boston Transcript of last evening, says: "The Boston banks are stronger today than they have been for a considerable time. Last week the increase of specie in their vaults was over $300,000. and yesterday this amount was augmented. Should the New York banks suspend, it is the opinion of many prominent financiers, that the banks in Boston would not suspend, but would breast the storm, manfully redeem their promises, continue to pay specie, and thus show to the boasters of the metropolitan city that the disgrace of violating pledged faith, does not rest upon the managers of our city banks at least." The following is from the Providence Journal of yesterday morning: "Yesterday was apprehended as a day of disaster, but it has passed off not only without a failure, but with the assurance that the failure of David B. Brown & Co, and J. W. Corlies & Co. and Hall, Dana, & Co, which latter was made public today. although it had been confidently known here since Friday, would not drag down anybod in Providence The houses most immediately and deeply affected by these failures are abundantly strong, intrinsi cally, and have received, unsolicited and without concert, such liberal ffers of assistance from banks and capitalists, as leave no doubt of their ability to meet all the paper that comes back upon them. The banks discounted liberally yesterday, but much of the accommodation afforded was for New York and Phila delphia. The chief domestic houses in the great "specte paying centre," have been seeking from our discredited banks the aid which their own refuse them. Al'more cheerful feeling prevailed yesterday, after bank hours. The wise and liberal pollcy of the banks, and the dispo sition of men to stand by each other, gave new courage and confidence."

2. October 14, 1857 Worcester Daily Spy Worcester, MA
Article from Worcester Daily Spy, October 14, 1857

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Article Text

Monetary Matters in New York-Great Excitement. NEW YORK, Oct. 13.-Today has been a very exciting one in financial matters. Up to two o'clock, fifteen city banks had suspended, of which the following is a revised list, viz: Bank of New York, Artizans', St. Nicholas, Chatham, Ocean, Market, Butchers' and Drovers', Merchants' Exchange, Irving, Citizens', Tradesmen's, Bull's Head, New York Exchange, North River, and Marine. The latter, it is said, was stopped by injunction procured by one of its customers, and it is presumed other banks have been stopped in the same way. By this means the penalty of winding up, which is attached to suspension, is evaded. It is believed that suspension in most cases will be but temporary. This state of affairs, when generally known, will undoubtedly serve to allay the present undue excitement. Wall street, at two o'clock, was crowded with an anxious mass of people. The steps of all the banks were also blocked up by people forcing their way into the banks. At the American Exchange Bank, David Leavitt addressed the crowd, assuring them that that bank would pay all up to the last dollar. He also announced that an agreement had been made with several of the strongest banks, to go through without suspension. It is believed, however, in the streets, that the suspension will be general. It is understood that some of our heaviest Houses have withdrawn their gold from the banks and replaced it as a specie deposit. There were rumors during the morning, affecting nearly all the banks in the city, but the above list gives all that had certainly suspended up to 3 o'clock P. M. The others, it is believed, continued to meet their liabilities up to the clocs of businss hours. The sales of Railroad Stocks at the first board were small, at a general decline. In the State Stocks the business was large at a decline, ex cepting Virginia and Missouri. Bank Stocks all sold at a decline. The run on the Brooklyn Savings Bank was renewed today but with less vigor, the banks paying promptly. Several failures in the Dry Goods line are announced, but none of very prominent firms.

3. October 14, 1857 The Washington Union Washington, DC
Article from The Washington Union, October 14, 1857

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Article Text

NEW YORK, Oct. 13.-Tne Marine, Pacific, Irving, Merchants' Exchange, North River, New York Exchange, Citizens', and Ocean banks have suspended-cight in all. E. Fish & Co., and Brown & Cary, merchants, have suspended. Also, the Chatham and Bull's Head Banks have suspended.

4. October 15, 1857 Daily Iowa State Democrat Davenport, IA
Article from Daily Iowa State Democrat, October 15, 1857

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Article Text

LATEST NEWS. The Financial Crisis. New York, Oct. The following banke have suspended today Ocean, Merchant's Exchadge, Chatham, Marine, River, Irving. Citizen's Banks North St. Nicholas and Market Wall-st. Bulls Head, geneneral runson the the streets. There is and a intense excitement in banks to Policemen are banks, stationed at many preserve order. LATER. New York, Oct. 13. was an exciting in had financial susToday 15 city banks list matters. The following is the revised New York, Artirans. St. & Dropended. of Butchers Nicholas Bank Ocean, Market, Citizens, Catham, Merchants Exchange, Irving, River and vers, Bull's Head, North said, was The latter, it is stopped and it Marine. an injunction other Tradesmans, customers, by is presumed procured by way! one of banks its have been stopped in the with same an anx Wall st. at 2 P. M. was crowded of all mass blocked up by banks into the banks. At addressed way David Leavitt them that all also anious can their Exchange were assuring of people. people He the the forcing Ameri banks the the crowd, the last dollar. been made would pay an arrangement had to go of the strongest It is without suspension. nouced through with several that the banks suspension believed however, in the street, that is understood that will be general. heaviest It houses have replaced withdrawn it some of our from the banks and rumors du their special gold deposits. There were nearly all the ring the morning city, affecting but the list 'gives all that The banks certainly in the suspended up to 8 to p. m. meet all had it is believed, continued hours. others. to the close of business at the liabilities sales of railroad stock In State 1st The were small, at a decline. decline, exMo. stocks Board business was large at Bank a stocks are cept in Va.'s and Run on Brooklyn Savings vigor, sold Bank at was decline renewed to-day with less the bank paying promptly. LATEST-FOUR MORE SUSPENDED. run upon the Mechanics and & Merchants, American The of America, Manhattan and continued Bank Banks severe. Broadway Exchange close of business. The out $140, up to the held out till nearly 3, paying The LeathBank when it gave out. 000 in Bank held er and Fulton Banks a tremendous The7th under Manufacturer's specie, 'Ward pressure. subsequently o'clock. closed. out afBank closed at 2 during the The People's out $19,000 specie New York ter paying Bank of the State of certified day. The dollar, and The paid checks out presented, and Bank then paid all demands, its Exchange last yielded. customers all American others shut out their North America but several The Bank of Corn Ex at was 3 o'clock. protested this P. pay M. specie The or bills, change Bank checks. refused to The Oriental, Mecha- Shoe but certified Traders, Brewery American Savings, Exand nics and Leather, Continental, Banks paid their change demands and up to Metropolitan 3 o'clock, the usual hour for closing. number suspended to-day, the The those whole that were included in returns with of yesterday, meeting was is sixteen. held this P. of M., gen- at which A bank it is understood discussed, a proposition as also the propriety eral suspension of urging was the of Governor the Legislature. to conan second board of under the At the all took a rise paychange banks will suspend 60 that the Missouri sixes, lief vene to-morrow. Stocks extra session the Reading, specie Stock 1-2; 33; Ex be- the ments Chicago and Central, Rock Island, F5: Panama, 58; 31. on New There York was no run of any account the Broadway Savings Banks, Blecker excepting street. They are of hand the and the in the city and The have former on at strongest of specie. availathe large opening quantities -day had $100,000 in dited ble The means following country banks are discreto-day River Bank, Goshen, Clyde, Merchants Bank Bank, Oswego, Syracuse. Carmel, Briggs Eagle Bank, Bank, Rochesof Commerce, Hudson County ter, Bank Poughkeepsie Farmers Bank, and Traders Bank, of Bank, Newburg, Ulster County City Bank, Bank, Sussex State of N. Y., Hoboken, Bank of Bank, Jersey Bank City Bank, Farmers the Montague. following are in substance: The resolutions passed this at of the New York meeting The That official the banks Bank Presidents of the paying suspend it even- over specie payment is as concerned, but bills made at of one Committee be aping: lar their exchanges counters that far another's as u of regu- the the Clearing to House; confer with the Governor an extra session State pointed in reference to calling legalize the suspension: 12 o'clock to-morrow. that of the such Legislature Committe to leave for Albany at Boston, Oct. 13. & W. Lyman, The suspension commission of Messrs. merchants Gen. on T. State street, P. is announced. considered Harrisburg, yesterday's Oct. 13. 32. vote The on the House relief re bill, by a vote of 55 to

5. October 15, 1857 The Daily Gate City Keokuk, IA
Article from The Daily Gate City, October 15, 1857

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Article Text

News. The following banks are reported suspended on the 13th : Marine, Ocean, Merchants' Exchange, N. Y. Exchange, North River, Irving, Citizens', Chatham, Bulls Head, St. Nicholas, and Market. There is a general run on the Wall Street banks, and intense axcitement prevails in the street. Policemen are stationed at many of the banks to preserve order. Banks.-We add to our list of suspended Banks: Pratt Bank, Buffalo, Pine Plains. The Bank of Worthington, N. Y., and Marine, Chicago, are againreceived. Samuel Hueston, of New York, the publisher of the Knickerbocker Magazine, died Tuesday of last week.

6. October 16, 1857 Richmond Enquirer Richmond, VA
Article from Richmond Enquirer, October 16, 1857

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Article Text

MISCELLANEOUS. THE BANK FAILURESIN NEW YORK-MEETING OF BANK OFFICERS. NEW YORK, Oct. 13, P. M.-To-day has been a very exciting one in financial matters. Up to two o'clock fifteen of our city banks had suspended, of which the following is a revised list, namely:-Bank of New York, Artizan's, St. Nicholas, Chatham, Ocean, Market, Butchers' and Drovers', Merchants' Exchange, Irving, Citizens', Tradesmen's, Bull's Head, New York Exchange, North River, and Marine Bank. Wall street, at two o'clock, was crowded with an anxious mass of people. The steps of all the banks were also blocked up by the people foreing their way into the banks. There were rumors during the morning affecting nearly all the banks in the city, but the above list gives all that had certainly suspended up to three o'clock. The sales of rail road stocks at the first board were small at a general decline. In State stocks the business done was quite large at 8 decline, excepting Virginia and Missouri stocks. Bank stocks were all sold at 8 decline. The run on the Brooklyn Savings Bank was renewed to-day, but with less vigor and the bank pay. ing promptly. There have been several failures in the dry goods line announced to-day, but none very prominent. GREAT RUN ON THE BANKS AND FAILURE OF SOME OF THE STRONGEST IN THE CITY. The run upon the Mechanics, Bank of America, Manhattan and American Banks was very severe, and continued up to the close of business. The Broadway Bank held out till nearly 3 o'clock, and paid out $140,000 in specie, when it gave out. The Leather Manufacturers' Bank subsequently closed its doors. The Seventh Ward and Fulton Banks held out under 8 tremendous pressure. The People's Bank closed at 2 o'clock, after pay. ing out $19,000 in specie during the day. The Bank of the State of New York paid out its last dollar, and certified all checks presented, and then yielded. The American Exchange Bank paid all demands upon it, but several others shut out their customers at 3 o'clock. The Bank of North America suffered protest this afternoon. The Corn Exchange Bank refused to pay specie or bills, but certified checks. The Oriental, Mechanics and Traders', Bowery Savings, Shoe and Leather, Continental, American Exchange, and Metropolitan, paid every demand up to the usual hour of closing. STILL LATER-THE BANKS RESOLVED TO SUSPEND. NEW YORK, Oct. 13-11 P. M.-The following official announcement has been made from the bank meeting: The banks have all resolved to suspend specie payments, as far as paying at the counter is concerned, and to make a regular exchange of each other's bills at the Clearing House. It has also been resolved to send 8 committee to confer with the Governor in reference to calling a meeting of tha Legislature. The committee will leave for Albany to morrow at 12 o'clock. It appears that the Marine Bank was stopped by an injunction, at the instance of one of its customers. It is presumed that the other stoppages were effected in the same way. By this means the penalty of winding up which attaches to suspension under the banking laws af this State is evaded, and it is rendered probable that the suspension in most cases is only temporary. This understanding relieves the excitement.

7. October 17, 1857 Semi-Weekly Standard Raleigh, NC
Article from Semi-Weekly Standard, October 17, 1857

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More Bank Suspensions. NEW YORK, Oct. 13.-Eight Banks have suspended here to day, viz : the Marine, the Pacific, the New York Exchange, the Merchants' Exchange, the North River, the Citizen, the Irving and the Ocean. -

8. October 21, 1857 Weekly North Carolina Standard Raleigh, NC
Article from Weekly North Carolina Standard, October 21, 1857

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More Bank Suspensions. NEW YORK, Oct. 13.-Eight Banks have suspended here to day, viz: the Marine, the Pacific, the New York Exchange, the Merchants' Fxchange, the North River, the Citizen, the Irving and the Ocean.

9. October 21, 1857 The Spirit of Democracy Woodsfield, OH
Article from The Spirit of Democracy, October 21, 1857

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TEN NEW YORK CITY BANKS GONE UP. -The following banks of this city suspended this morning, Oct. 13 : The Marine, Pacific, Irving, Merchants' Exchange. North River, New-York Exchange, Citizens' and ocean- Chatham and Bull's Head Banks have suspended--(in all 10 banks.

10. November 21, 1857 San Andreas Independent San Andreas, CA
Article from San Andreas Independent, November 21, 1857

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They have voted to resume specie payments, at the earliest moment, and in the meantime it is expected that they will increase their discounts. The feeling is now that the bottom has been reached, and that after a little time, necessary for men to look about them, and see where they are, business will improve. The prospects for the working classes, during the coming winter, are anything but encouraging. On the 13th, ult., the money market was extremely tight, and the failures constant and heavy. The Illinois, Michigan and Central railroad occurrences precipitated the climax which took place on Thursday, the 13th, up to 2 o'clock, fifteen City banks had suspended. The following are some of them :-Bank of New York, Butchers' and Drovers' Bank, Merchants' Exchange, Irving, Citizens' Bulls Head, New York, North River, Exchange and Marine. The assignment of the Illinois Central Railroad, caused great excitement in Wall street, New York; a general suspension was resolved upon. RAILROAD ACCIDENT.-A dreadful accident happened on Central Railroad, about six miles west of Syracuse. The recent rains had weakened the embankment on Nine Mile Creek, so that when the train came along, it gave way, and the cars were precipitated, one upon the other, into the stream. To add to the horror of the scene, the mail car caught fire, and all the mail bags save one, were destroyed.