16227. Metropolitan (New York, NY)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
state
Start Date
October 14, 1857
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
c3ea51f3

Response Measures

Accommodated withdrawals, Public signal of financial health, Full suspension

Other: Banks met at the Clearing House and jointly resolved to suspend specie payments.

Description

Contemporary coverage (Oct 1857) describes Metropolitan being heavily run upon during the panic and then listed among banks that suspended specie payments on the morning of Oct 14. No article here reports a reopening or permanent failure/receivership, so outcome is unclear — classified as run_suspension_unsure. OCR errors in Article 1 were present but did not affect identification of the bank.

Events (2)

1. October 14, 1857 Run
Cause
Local Banks
Cause Details
Heavy withdrawals as part of the widespread New York panic of October 1857; runs spread from other banks and many institutions were pressured.
Measures
Bank reportedly paid out specie and was 'severely run upon' but had specie left at closing; no specific emergency measures described in the provided articles.
Newspaper Excerpt
the Metropolit an ... were severely run upon, be had specie left in their coffers at the hour of closing.
Source
newspapers
2. October 14, 1857 Suspension
Cause
Local Banks
Cause Details
Collective decision amid widespread panic and overwhelming demands; Clearing House resolution and heavy withdrawals prompted suspension of specie payments by many New York banks on Oct 14, 1857.
Newspaper Excerpt
on the morning of the 14th. the following banks suspended: ... Metropolitan.
Source
newspapers

Newspaper Articles (3)

Article from Wheeling Daily Intelligencer, October 16, 1857

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many 168 firms staggied, cannot be known for anibady after such min matters Lien But If David, when his bai had died, rise up and was comforted, 50 di people, when they NEW bottom, shork hands 27 locked cibertul out ad their missary. The mus being out any, the slip was eased. Peag generally are their breakfasts in tranquility F' terday morting, and registed to their places business, as men de in the cholera Retist thankful that if the plagne is DIE stred, is DIE much aggrarated. And so things west till about 10) o'clock-inlf an hour befo landa time, -when the first peal of thand muttured in the distance. The Ocean Bar chened its doors, and placarded the following notice: This bank las citaed and suspended A great many people, who had = funds in th bank, and possibly no funds in any bank are ted a Ettle excitement by blocking up the sid walk in front of the building, and monderia what was to cume text. The buy with his in bet of applies stopped; the girl with ber back of peasures stopped; the sosp-fet man stopped in short, there THE ROOD a large crowd collects and people who lad deposits in the had bills on the tank, or bad in some expectancy 00 the bank, came au went away. And that made tounder. the Half an hour later, Grander closed its doors. The er. All the people and Greenwich bill themselves of the stey checks, stem front and met your institution liters The porter, wit had The bill-holder positors said, with empha is Fourth Commandment, it 10°1 not go way, And 50 the crow shame, the thunder kept coming near and growing louder and londer. Just at this time the Merchants' Exchang Bank followed suit. Then went the Irving Bani then the Marine Bank, then the New York E: change Bank, then the Citizens Bank, then th Bull's Head, and then the Merchants Exchang Everybody could hear the thunder now. was full upon the City, presaging tornados, earth quakes, volcanox, universal destruction, Th pante was immense. A rush was made on a the Banks by holders. In quick successio went the Butchers' and Drovers' Bank, th Chatham Bank, the St. Nicholas Bank, th Tradesmen's Bank, the People's Bank, the Bai of New York, the Market Bank, the Broadwa Bank, and the Leather Manufacturers' Bank These succumbed to the storm, but other though Bereely tried by the whirlwind, resisted The American Exchange, the Nassan, the Part the St. Nicholas, the Mercantile, the Metropol tan, the Phenix, the Bank of Commerce an the Continental, were severely run upon, be had specie left in their coffers at the hour ( closing. They were shaken by the storm, be did not fall. But long before the closing hour the way th Banks were going got abroad, and set everybod agog through the City, Business was suspend ed, almost to the cases, civil and criminal, be fore the law Courts-the Judges on the Benef and the lawyers engaged in argument havin got wind of the thing, and sending out specia messengers to bring in extra news every te minutes. The American Exchange Bank, a tracted, perhaps, more direct notice than an other. The crowd on Wallstreet was very grea The President of the American Exchange Ban appeared on the steps and made a speech, assui everybody interested, or otherwise that ti Bank would pay everybody in specie. Th crowd, especially that portion who had nothin to expect from the Bink's solvency, vociferous) cheered, but every moinent the throng kept in creasing. The Bank, however, came well or of the difficulty, up to the hour of closing. Before the doors of every Bank, and with every Bank in the City, yesterday, the crow was immense. As a rule, nothing but good hi mor prevailed. Men even smiled when their to were trodden on. There is a feeling of cont dence and security when all suffer alike. such cases there is a mirth in misery which shared in common. And didn't those who got and force their way out, chuckle at their eager frien who were forcing their way in, especially with a few minutes of the closing hour? "Eve Bank shuts off specie to-morrow." they wou say, "No get in as soon as you can." Never d n double eagle look more gølden,-never was more the representative of the wealth "of o muz and of Ind" than yesterday afternoon. f Even the thieves had n respect for the man W had his pocket full of them, and only dared follow him for the space of a block and a half. But we noticed a sad background to yeste day's rush upon the banks. The men who ma the rush were moneyed men, least in all ses, comparatively so, Bnt standing, not wit out interest, but without object, in crowds 1 yond these who werestriving to pass in and of were hundreds of discharged workmen,-m who had no hope in the future of the terril Winter that is before us. It seemed to us ti they looked on with n melancholy pleasure; perhaps we did them injustice; let us say th regarded the scene with blank despair. WI the coming Winter will bring to many the sand of our fellow-creatnres in this city, i contingency too disagreeable to contemplate. d There is a great rush of the unemploye the Intelligence Offices. Quantities of servi girls out of work, and unable to obtain it, go these places in the hope of getting something do, but even here, as a general thing. they unsuccessful. At one of these establishme in the Bowery we were told yesterday that re many as 250 girls presented themselver dai offering their fifty cents a piece for a situati Most of these were turned away, for the app cations for servants are by no means proporti


Article from The Weekly Pioneer and Democrat, October 22, 1857

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ing the day-irrespective of the vague rumors with reference to others flying around through an already over excited community -it is no wonder that the equanimity of the city should have been seriously disturbed. In another article the Herald of the same date.-the 4th-says: Considering the tremendous pressure brought to bear upon these banks, the course is, perhaps. the best which they could have adopted. But for the overwhelming demands by mercantile depositors of the speculative and overtrading class, resolved upon forcing the banks to an expansion or a suspension. this alternative of a substantial suspension of specie payments might have been avoided. The result, as it is, will probably be equivalent to the direct loss of a hundred millions to the business community of this metropolis, from the inevitable reaction of this movement upon the banks and the financial and commercial interests of the State and the Union. Thus, in the interval to the meeting of Congress and the several State Legislatures, our city, our State, and all the States will be reduced to an irredeemable paper curreney ; for the example of this metropolis will doubtless be seized upon immediately by the interior banks of the State, and by the remaining open banks of all the other States, resting upon the faith and solidity of our city banks. Thus we approach the climax of the revulsion. On the evening of the 14th. ameeting was held by representatives of the various banks at the Clearing House, at which the following resolution was adopted : Whereas. in view of the excitement prevail ing in this community, and the fact of the ac tual suspension of a number of the banks of this city, Resolved. That it expedient that the banks of this city suspend specie payments to morrow. A Committee was also appointed by the meeting. to wait upon the Governor of the State, and request him to convene an extra ession of the Legislature. In accordance with the resolution adopted on the 13th, on the morning of the 14th. the following banks suspended : Merchants, America. Mercantile, Am. Exchange, Metropolitan. Atlantic. Nassau, City, National. Commerce. Commonwealth, New York County, North America. Continental, Oriental, Corn Exchange. Park. Dry Dock. Pacific, Fulton, Phonix, Greenwich. Hanover. Republic, State, Imp. & Traders. Seventh Ward. Manhattan. Shoe and Leather. Mechanics, Union. Mech's and Traders, In reference to the excitement on the streets, the Herald says: "The crowd in the street was no greater


Article from The New York Herald, November 9, 1857

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their banks to resume, and a law is passed commanding them to do so before February 1, 1841. 1841, JANUARY 15. The banks of Philadelphia resume. The United States Bank publishes a statement, from which it appears that the bank owes twelve millions, payable on demand, while it had only three millions available cash to pay with. The stock is down to seventy, and falls still deeper. FEBRUARY 4. The Bank of the United States again suspends specie payments. The other banks are obliged to do so likewise, but they gradually resumed, the Legislature passing a relief act, by which the State took their notes as loan currency. APRIL-Important frauds are discovered in the management of the United States Bank. The assets have depreciated seventeen millions in value, making a loss to the stockholders, if the concern was wound up, of twenty millions. The bank officers borrowed money abroad and lent it at home on worthless stocks. Messrs. Biddle, Cowperthwaite and others likewise went into cotton speculations, using the money of the bank therefor without the knowledge of the directors, and allowing it only simple interest. There was a loss of $600,000 on one of these transactions, which after some difficulty, was assumed by Biddle, Wilder & Cowperthwaite. They settled with Texas bonds, wild lands and some cash. Other investigations proved that the bank was rotten to the core. AUGUST 19. Congress passes the Bankrupt law. 1842, JANUARY.-Biddle, Cowperthwaite, Jaudon, Andrews and Dunlap were indicted for conspiracy to defraud the stockholders. They were all brought before the General Sessions on habeas corpus, and discharged on the ground that there was nothing legally to justify the charge. FEBRUARY 1.-Bankrupt law goes into operation. Wipes out $440,934,615 of debts, and clears 33,739 bankrupts. MAY. The United States Bank closes up, and makes a partial assignment. In September an entire assignment was made. During this year the Girard Bank made an assignment, but afterwards paid all its debts and was allowed to resume its business. # THE RAILWAY SMASH OF 1854. 1852 and 1853 were flush times, and the people over-traded and over speculated as if there could not be another '37. They were all at once astounded in 1854, JULY 5. Panic in Wall street. It is announced that Robert Schuyler, President and Transfer Agent of the New York and New Haven Railway Company, has defrauded the bona fide stockholders of two millions of dollars by an overissue of stock to that amount. The NEW YORK HERALD (6th) says "most of the railroad stocks fell two per cent," and characterizes the affair as "another evidence of the extravagance in living and over-speculation which characterize the mercantile population of New York." JULY 7. The panic in Wall street is still worse. It is announced that there has been an overissue in Harlem Railway stock, not heavy, but sufficient to destroy confidence in this class of securities. Schuyler, the New Haven Railway swindler, escapes from the city, and nothing more is heard of him. JULY 12. The HERALD estimates the railway swindles at twelve millions. Stocks go down, but the money market remains easy. AUGUST. Things are still very blue in Wall street. Several stock houses are obliged to suspend. Another fall in fancies, and activity in breadstuffs. Other trade is very dull, and rents go down. The HERALD predicts a general collapse. SEPTEMBER. During the latter part of the summer there has been a great drought, and there are rumors of short crops. The HERALD sends a circular to prominent agriculturists throughout the country requesting information. The answers are of a mixed character, but generally unfavorable. OCTOBER. Fall trade opens dull. Light receipts of breadstuffs and high prices. Railway stocks have depreciated on an average thirty per cent, fancies seventy-five, real estate twenty-five. It has been a bad year all round through over-trading and over-speculation. NOVEMBER. Several heavy failures are announced in the West, and some small banks in the country are obliged to close up. DECEMBER. Hard times have come. No money to pay for the extravagances of the spring. Everybody contracts. Thousands of laborers thrown out of employment. Breadstuffs high. The effects of the hard times tell on all kinds of business. DECEMBER 19. The first soup kitchen is opened in the Seventeenth ward, New York city, and good beef soup is distributed free to all applicants. The number of applicants for admission to the Almshouse increases one-third. DECEMBER 22.- The workingmen hold meetings in the Park. Relief associations are formed in several wards and distribute fuel and food to the poor. DECEMBER 29.-Meetings are held in nearly all the wards and in several other cities, to devise means for the relief of the poor. 1855, JANUARY 6. Times are harder and more distress among the poor. A grand charity ball at the Academy is projected. A fashionable lady issues cards for a party where all the guests are requested to dress in calico. Several heavy failures announced at Boston and New Orleans. JANUARY 15. Several heavy arrivals of gold from California, without corresponding shipments to Europe. Fancy stocks go up a little, but things are as bad as ever with the merchants. FEBRUARY. Stagnation. Trade no better, money no easier. MARCH. Many of the New England manufacturers resumed work which had been suspended two months, and things began to grow easier. MAY. The spring trade opened pretty well, and business prospects being encouraging, things went on in the old way again. # THE REVULSION OF 1857. During the first part of this year, and indeed during the whole of the preceding year there were premonitory signs of a crisis, which were apparent to every one acquainted with the laws of commerce and finance. The HERALD, as in '36, predicted the crisis, from overtrading, stock gambling and inflation of all kinds. Some prudent men took heed of the warning and carried less sail; others however carried on more than ever. 1857, AUGUST. In the early part of this month a few failures were announced, and the list of the Independent newspaper was further enlarged about the 15th. The HERALD (14th) reiterated its statements that we are on the brink of a crisis. AUGUST 17. Over issues and frauds in some of the Western railway stocks. A fall and want of confidence in the street. AUGUST 21. The Persia takes out nearly two millions in specie. The HERALD says this will draw down the bank reserve, and blames the banks for expansion by wholesale. Severe stringency is anticipated. AUGUST 24. Panic among the stock brokers. Everything had a tumble. At about three o'clock great excitement was caused by the announcement of the failure of the Ohio Life and Trust Company. It was a bank of deposit and discount, with a capital of two millions. It had recently paid five per cent semi-annual dividend, and its stock sold at 102. It was ruined by loaning money to railway companies without sufficient security. Several failures in Rochester and Boston announced. Panic in Cincinnati, and a run on the banks. AUGUST 25. John Thompson, Beebe & Co., De Launay, Iselin & Clark, and Jacob Little & Co., heavy brokers in Wall street, are obliged to suspend. The liabilities of the Ohio Life and Trust, are stated at five millions. AUGUST 26.-Long list of country bank failures. The Banks commence to contract their loans. AUGUST 27, 28, 29. There has been a great pressure for money, and two per cent is the lowest street rate for money. AUGUST 31. The bank statement is unfavorable. The deposits and specie have decreased, and the contraction in two weeks amounts to five and a half millions, equal to the whole expansion of the previous six weeks. SEPT. 1. Panic in Wall street. The Mechanics' Banking Association closes its doors. Beebe & Co., specie brokers, connected with the Ohio Life and Trust, suspended. Also several mercantile houses. Mr. Van Blarcan, Teller, of the Mechanics' Banking Association, is reported a defaulter to the amount of $72,000. There was a run by depositors on the Bank of Commerce, Metropolitan, and several other banks. At the second board all the stocks declined. SEPTEMBER 3, 4 and 5. Stocks go up a fraction. Wall street recovers a little. General opinions that there won't be much of a shower. Saturday (5th), however, the market closed depressed. SEPTEMBER 7.-Bank contraction eight millions. The bank statement is bad, and more failures announced. SEPTEMBER 8. The money market tighter than ever. Panic at the stock board. SEPTEMBER 9 and 10.-Several heavy failures among the dry goods houses. Bad news from Boston and the Western cities. Bank of New Jersey, at New Brunswick, and several country banks closed their doors. More failures. SEPTEMBER 12-Wm. J. Bell & Co., bankers, suspend. News of the suspension of several banks in the interior. SEPTEMBER 15. Statement shows that the banks have sustained themselves at the expense of the merchants. Wesley & Co., "bull" stock brokers, are obliged to suspend. SEPTEMBER 16.-News of great stringency in Philadelphia and Boston. SEPTEMBER 18.-The total loss of the California mail