16230. Metropolitan 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
81d1bb9a

Response Measures

Accommodated withdrawals, Borrowed from banks or large institutions

Other: Negotiated with Suffolk Bank to obtain eastern money; accepted country (uncurrent) notes under Clearing House arrangements.

Description

During the Panic of 1857 the Metropolitan Bank experienced a heavy depositor run (mid-October 1857) but met demands and did not suspend specie payments. Subsequently it negotiated arrangements (with Suffolk Bank and via Clearing House country-note arrangements) to resume/handle country/uncurrent notes and helped restore normal operations. Classification: run only (no suspension of this bank is reported).

Events (1)
1. October 13, 1857 Run
Cause
Local Banks
Cause Details
Heavy withdrawals driven by panic and runs on multiple New York city banks during the October 1857 crisis (runs and suspensions of other local banks).
Measures
Paid large specie out (over $200,000) to depositors; later negotiated with Suffolk Bank/Clearing House arrangements to receive country (uncurrent) notes and resume dealings, aiding restoration of specie/clearing.
Newspaper Excerpt
The Metropolitan Bank paid out something over $200,000.
Source
newspapers

Newspaper Articles (10)
1. September 2, 1857 The New York Herald New York, NY
Article from The New York Herald, September 2, 1857

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ATINANCIAL AND COMMERCIAL MONEY M A E MARKET. TUESDAY, Sept. 1-6 P. M. There mm a very severe panic in Wall street this morning. n is may years since we have seen anything like 18. The suspers tom of a New York city bank is rather an uncommon but coming at this part cular june. ture in an even calculated to alarm the most courageous. The public mind is not in . condition to bear such an an nonnoement with composure, and It is not, therefore, at all surprising that quite . panto was produced. We are not at all astonished at the on suspension of the Me shanios' Banking Association. We mentioned a few days since that " was in difficulties at the Clearing House, and had to call upon the other banks for assistance It is now reported that the immediate cause of the suspension was the defalcation of one of the clerks of that Institution. The cause will be found more in the action of the management generally than in the acts of the clork, ho wever criminal they may be. The Institution has from the first been raiher an unfortunate one. We believe that several defalcations have before this been developed among its officers. The suspension of the Mechanios' Bansing Association led to distrust of several other banks, and there was quite a run upon the Bank of Commerce, the Metropolitan and the Nacsau Banks, from depositors. The excitement in Wall street and its vicinity was most intense. Crowds filled the sidewalks, and public confidence appeared to have completely deserted the minds of the masses. The ma nagers of the banks seemed to realize for the first time the danger of their position. Several failures were announced this morning among the me reantile classes, and that added fuel to the flame. We are, beyond, all question in the midst of fearful revulsion; and where it will end the wisest among us cannot tell. We do not look for any miligation of our embarrassments and difficulties until soores upon scores of failures have taken place, and a long period of prostration. The recovery from this collapse must be very gradual, and it will leave marks of its exist ence and power for years. The end is by no means yet. We have just entered upon it, and as 11 extends it will gather force. It is to be hoped that our banking institutions may safely weather the storm; but an examination of their last returns shows that COME of them are entitled to no sort of consideration. A close investigation of our trust companies would not be amiss just now. The New York Life Life and and Trust Company, for ox ample, bad, according to its last report, upwards of two and three quarter militons of bills receivable; and we an derstand that 11 is a very "sweet" lot, In other words, there is considerable "sugar" among 11. Here is Life and Trust Company daily in the street buying notes of hand, because, we suppose, they can get them at high rates of interest. The Bank of Commerce is another weak concern. The last report showed that its loans and discounts were $12,101,368, and the deposits but $6,107,263 It It is our duty to hold up such management on the part of a leading banking institution to public condemnation, and we intend to take the responsibility of doing so. The Bank of New York used to be considered one of the strongest backs in the city. Look at It now. With loans amounting to $4,144,341, It has a deposit line of but $2,630,056 There are good many other weak ones on the list; but the two we have named are among the most prominent, and therefore the most culpable. The circulation of our city banks is without doubt pretty safe. It is secured principally by State stocks, deposited with the Comptroller. In the event of large amount of these securities being thrown upos the market at once their margin for depreciation would no doubt be partially used up; but such a contin gency is not likely to occur. The failure of Beebe & Co., brokers and bullion dealers, was reported this morning. This is one of the oldest houses in the street, and was sup. posed to be very rich. The immediate cause of failure was entanglements with the Ohio Life and Trust Company. The securities received on loans to the Trust Company, amounting to more than $800,000, were not available in the market. We understand the house has a large surplus. Mesers J. H. Prentice & Co hat and fur dealers; Adams & Buckingbam, flour dealers; and Breese, Kneeland & Co., car and locomotive manufacturers, Jersey City; were also reported to day. These comprise the principal events of the morning in financial circles. The effect upon the stock market was, of course, very bad. Lower prices were realized than have been touched at any time within the history of the securities named. There appears to be no bottom to railroad stocks. It is true, there is very little value in most of them, but at the present rate of decline most of them must soon run completely out of sight A1 the first board to day Indiana 5's fell off ½ per cent; Virginia 6's, %: Missouri 6 6's, 2; LaCrosse and Milwaukie Railroad, 5; Illinois Central bonds, 2; Harlem first mort gage bonds, 2; Delaware and Hudson, 3; Pennsylvania Coa Co., 1; Pacific Mail Steamship Company, 2; New York Central, 3; 3;Erie, 3%, advanced afterwards IX per cent Cleveland and Toledo fell off 8½ per cent; Milwaukie and Mississippi, 5; Reading, 4; Michigan Central Railroad, 2 Michigan Southern, 3; Galena and Chicago, 2½; Cleveland and Pitisburg, ½; Chicago and Rook Island, 2½. The Erte Railroad Company succeeded this morning in raising the money to pay the interest due to day. The company ha not, therefore, failed upon its interest just yet. The banks made a bold push this morning, and came up to the scratch just LE time. It was a narrow escape for the foreign bondhelders. The company now have until the 1st of November to gather strength for the interest pay. ment then due. The position of the New York Central Railroad Company is one of great danger to stockholders The road does not much more than pay its operating ex penres and provide for the interest on the funded debt Every cent of dividend is borrowed and added to construc tion account, or indebtedness, just as much as with the Cleveland and Toledo, or any other rotten concern. The Central Railroad Company is not to-day a bit better off than the Erie Company, so far as the stock is concerned The Central Company manages at present to pay the in terest on its indebtedness without borrowing money, which is more than the Erie Company does. It is well khown among railroad men that two cents a mile for express trains, to which the New York Central Company is held as a condition of consolidation, dees not pay running expenses We have in the finances of the Erie Railroad Company an index of those of the Central. No man in his senses can compare the gross earnings of the two roads and come to a conclusion more favorable to one than the other. In a few years the funded debt of the Central will be full as large M the E- le company. Every addition to the Central's debt endangers the dividend. The company's credit is still good, and probably will continue so for a while longer; but the time is not far distant when a large loan will have to be negotiated directly for construction account, and then we shall see where the stock stands. The roadway of the Central is running down in the face of reduced earnings All repairs which can for the moment be die pensed with are left for some future time. In this way the expenses may be for the moment reduced, but the company will ultimately have to crowd into a short period heavy outlays, M If did a year or Nwo since, when It sus. pended dividends for that purpose. stocks State Ohio of following the

2. October 14, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, October 14, 1857

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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.

3. October 16, 1857 The New York Herald New York, NY
Article from The New York Herald, October 16, 1857

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THE MONEY CRISIS. QUIETNESS THROUGHOUT THE METROPOLIS. BUSINESS CONFORMING TO A PAPER CURRENCY. Savings Banks. Stoppage of the Rnn on the The the Week. Mercantile Failures During Classes. Effect of the Revulsion on the Laboring WHAT WILL GOV. KING DO? Country. State of Things in Other Parts of the &c., &c., THE PANIC IN NEW ORLEANS, &c. WALL STREET LOOKING YESTERDAY. BRIGHTE GOING THINGS OLEANING HOUSE. STOCES Nothing BANKS could be AND more THE Wall miriking street than yesterday the contrast and ment be on tween the appearazoe of was surging BOA of exolk The Tuesday. On Tuesday still 18 almost as the Catacombi. and the brighter Yesterday aspect it was Cransaction assumed as by of the banking Stock effect Exchange, business on every the Clearing House, had a a decided improvement l in day facilities by for manifest afferded one; the there was consequently Wall street. Though the locks and dull, of the dismal frequenters and dirty, of one could shoorfall almost faces fancy seamed that the to sun wa: was shining there, so many looking locally illuminate banks. At the Balances Clearing that recently were House namely, gloomy prompt every the thing paid Artizans'. looked up, and Bowery well three Citizens' for of and the the Ocean, suspended were banks, again represented. Association The still Grocer's remain uprepre will and Mechanica' Banking is that the two former House in a but the probability in the Clearing fow day institutions. sented; take their accustomed All the places rest are now living and thriving very but the bills of city yeterday; banks and but speaks 18 were was Nething at the Clearing House bills of all secured State then that 10-day the taken. Deposits of themes State tanks will be in the Metropolitan Bank, and money will be male issue certifica es in different sums, the balances. This plan is that which institution . e 111 be received will calculated at the Clearing to . House rk weil, to meet and will facilitate operations. on but deposit, of the those checks greatly The bills of all theoly banks banks going are into taken liquidation are of course refused. realices condition of affairs All It is prices impossible were In the present value of uncurrent money. Ellis of the same the for yesterday. at two asked and to different were sold will indiacriminately given was-cone broker hap-hamard. and the RE Eve per cent state Everything of New York were at of par. shings Is may of the few days more healthy adopted state by the bank# COUPED of and as ocon as the confidence will la underelcod and who have a measure restored. wocks-wh hero no expected, be in great death appreciated for the past Yew People abroad, themselves and been the frightened unwittingly to to break are line been trying by participating in the senseion drove the city almost to be basks laughing a: backs the folly were which solvent, and the country then richer rain, while its and in provisions in money, in gra'n like individuals, sometimes go Communities, generally, paroxysase, lerer and to was. with fear, and do verious damage in their and their neighbors. . begin themsolves out of which many think we are no fact. The to erials emerge is an excellent illnetra ion of that ming CURRENCY AND THE MERCHAN la which THE much satisfaction, The merchants expressed raily shared, as the action of the for It is likely their the [adicial banks decision regarding men ap Hostion considered Injunctions Judges in against of the the banks. courts orer Bariaces the backs to the litigation and distarban c, all that them ghield wanton to mect while about protect their they from most sample ability, If let alone, to do what ing the and perfect willingness requirements, wst engagements, with all just and legal legislative to comply forall conterned, probably, as any weal of about could be invoked. The that ani other States action people could which good this demanded public were; things and the of should go on as they woman and for the present the interest of every man, not. while is was State that the backs should in the compolied by neotless fully solven, be would tarsive wide to into in which all classes and child rutneus liquidation, direators which expressed would thus Interfarence much partict- spread in Yet, while the merchants ezonerate them pate. the banks, many of them did not Thiy said, behalf of severest consure for their course. upon the in the Interior which depended for their profits, the oily deposite of beciness man for their from unike etroulation the banks the institutions ebior the 9aske, source 70 Hed upon earnings. the They therefore, argued that of contraction of shair et continuing to the strown past wesk inclod and causing merchants for the to go down day by day, in excess of liabilities, two. they should, some three or to good have almost with cally, assets revailably largely expanded their lease four conalry-or weeks homes alsoe For either bazards as no gold was leaving the on ie at all their minds to suspend at made up of decided mollon at the proper to make in be want merchants and others were forced enorgette ment which might, to great extent, by the lessoned and sacrifices proper action of the banks, have been greatly increase or prevented altogether. of State and city paper money a thriwn frank By the market, the channels of trade were no to those upon the It was believed that 11 would give rise and tol opened. forwarding of produce from the interior, thus broak. 170 motion from the city to the country; time intering goods the in looks and dams which have for some with the currents of trade. ferred exchange was also better, and produce while Bills prime on Sterling were scarcely to be had under 100, rates, bankers' London bills, though irregular, were held al better CARES as high as 108 asked. and Freights in some were farmer, and more produce efforing for shipment advanced 153 a 20c. par barrel, Wheat and was 10 per some Flour cases again 250 per barrel bushel, was aad Indian realized. corn sold higher Advance by of 20. about 30 35. per bushel. talked of the day previously the The l'etreninstances second was meeting not to amed be of unnocessary. upon, merchants, was deemei under THE BANK TROUBLES IN COURT. ATTACHMENT ISSUED REBRS' AGAINST AND CLOZENS o. M. BEACH, RANK CASHIES OZ WIL

4. October 16, 1857 Wilmington Journal Wilmington, NC
Article from Wilmington Journal, October 16, 1857

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From the Special Dispatch to Baltimore Sun. An Exciting Day In New York-Heavy Run on the Banks-Suspension of Specie Payments by Eighteen Banks-Others Holding Out, &c. NEW YORK, October 13.-Wall street has been blockaded to-day. The excitement was intense and all business paralyzed. The Post of this afternoon says : There has been some drawing by depositors from the city banks generally for a number of days past, though it was carried on quietly. Yesterday there was the first decided manifestation of a systematic run. It was directed particularly against the North River, Ocean and Merchants' Exchange Banks. The first named was reduced $10,000 in coin at three o'clock. A conference was then had with some of the officers of the leading banks as to the proper course to be pursued. If the run recommenced this morning the advice was to close the doors at once. As soon as the hour for drawing checks arrived this morning the depositors showed an unmistakeable determination to withdraw their balances in gold. They were paid long enough to assure the officers that the process would go on, and that an exhaustion of their means was only a question of a few hours. The North River, the Merchants, Exchange and the Ocean banks resolved to close immediately. The intelligence spread over the city as rapidly as an alarm of fire. In an hour more the Marine Bank was added to the list. Knots of bank directors and ot her officers were seen in consultation in every banking room. The alarm was now an established epidemic. Residents who yesterday would not admit the possibility of a suspension, began to share in the common consternation. Soon after the St. Nicholas, the People's, Butchers' and Drovers', Bull's Head, Bank of New York, Irving, Market, Chatham, Tradesmen's and New York Exchange banks all announced their inability to continue specie payments. Heavy runs also upon the Continental, Metropolitan, American Exchange, Nassau and Phoenix banks followed, but all of them met the demands. David Leavitt, Esq., of the American Exchange Bank, made a speech to the crowd, declaring his determination to-pay to the last dollar. He also announced that an agreement had been made with several of the strongest banks to go through without suspending. The officers of one of the principal Wall street banks advised its dealers yesterday that it would not take certified cheeks on deposit without reserving the right to return them if not made good at the clearing-house.The consequence was that the gold was drawn from all the banks that were not flikely to go through another day. This aggravated the excitement among dealers,

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

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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.

6. October 20, 1857 Daily Iowa State Democrat Davenport, IA
Article from Daily Iowa State Democrat, October 20, 1857

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Financial Intelligence. New York, Oct. 17. Messrs. Winslow, Lanier & Co., brokers, have suspended. They have never been borrowers, and owe nothing but balances due their correspondents, principally at the West. Within the past three months their means have been invested in strictly first elass commercial paper, and call loans with stock collaterals The call loans are not responded to, and a large amount of the paper in a state of suspension. They have been gradually winding up their affairs for a year past, and will now go at once into liquidation, abundantly able to pay all their liabilities and have a large surplus. The Metropolitan Bank has been for several days past in negotiating with the Suffolk Bank, of Boston. in regard to eastern money. and an arrangement will probably be made in a few days under which the former bank will resume the reception of eas. tern money in deposit at 1-4 per cent discount. The rates for uncurrent money are becoming easier. State at halfal per cent, Eastern at 2 per cent, Philadelphia at 2a3 per cent, Pennsylvania 5a6 per cent, and Western and Southern at 5al0 per cent. Philadelphia, Oct 17. A rumor was prevalent here that the Penneylvania Bank had made an assignment, but is authoritatively contradicted this morning by a Director, who positively declares that the subject has never been broached in the bank, por entertained by any member. Hartford, Oct. 17. The Charter Oak, Moreantile and L. change Banks continue to receive the bills of the other suspended banks, discount them tales they

7. October 24, 1857 The Texas Republican Marshall, TX
Article from The Texas Republican, October 24, 1857

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General Intelligence. NEW ORLEANS, Oct. 14-Wo are as. sured by excellent authority that the suspension of specie payments by the New York banks does not affect any of our banks unfavorably. As all our banks have drawn up closely for thier cash balances, no loss can occur to them by even the failure of all the banks of the city of New York. The following dispatches received by L. McKnight, Esq., one of the directors of the Citizens' bank, makes a welcome annoucens ment that relief is at last afforded to our banks. ASHINGTON, Oct 13. 1857.-SIR The treasurer of the branch mint has been aus thorized to purchase two hundred thousand dollars in silver bullion at the established rate, and to pay for it in gold coin. HOWELL COBB, Sec'y Treas. The Citizens' bank of New Orleans has thus been strengthened in her gold coin, $100,000; Louisiana State bank 50,000 Canal bank 50,000; and smaller sums are given to private parties. NEW YORK, Oct. 15.--An engs ment had been fought between general Haves lock's forces and the rebels near Cawpore, and the latter were defeated. The cholera was raging dreadfully at Cawpore. Lieut. Campbell had fallen a victim. The Emperors of Austria and Russia met at Vienna (Qy., Welmar) on the 1st inst. The Emperor of France had gone to Trieste. fie desires a personal meeting of all the principal sovereigns of Europe. NEW YORK, Oct. 12 The British admiral Seymour has recently ordered the block ade of Canton river. Telegraphic advices had been received in London to the effect that the state of Affisirs in Bombay was disastrous. The rebellion was raging fiercely. Disaffection was commeneing in the Sepoy regiments in the Bombay and Madras presidencies. The latest accounts from India are very unfavorable. General Havelock's situation was regarded as crits ical. A dispatch received at Paris, from Mars seilles, says that the Bengales are beginning to rise, and are killing the English. The war is becoming general. Mutinies are 00 curring among the Bombay troops, and several regiments which were suspected, have been disarmed. The organization of the Sikh regiments for the relief of Delhi is rapidly progress ing. The grand (English) magazine at Joah. pore, had been struck by lightning, des troying one million of pounds sterling of property, and five hundred lives. Calcutta is crowded with fugitives from all parts of Bengal. The paper of the East India company is quoted at 25 per cent discount. NEW YORK, Oct. 13-The following suspensions are announced Bliss, Dougs lass, Wheelock & Co.; J. A. Hearn; M. Langdon, and W. T. Dunean, dry goods merchants. Blackwell, hittemore & Co., cloth houses. Ames, Herrick & Rhode, stationers. Dycksers, Alstine & Co, wealthy stock brokers. All these are first class houses, of many years standing The failures are mainly caused by the blockade of exchange. The Irving, Ocean, Marine, North River and the Merchants Exchange banks have suspended. There is great excitement. There is a run on the banks of the Repub. lie. The People's bank, Bull Head's bank and Citizens' bank have suspended. There is & severe pressure on nearly all the banks Business is generally suspended. The St. Nicholas, Butchers and Drovers', Chat ham, Tradesmen's and Market banks have suspended. Wall street is bockaded with people. The Broadway Artisans' and the Leather Manufacturers' banks have aus pended. Seventeen banks in this city have now suspended, leaving thirty five solvent. The Bank of New York has just suspended Also, the Bank of the State of New York This ends the dire catalogue of the city bank suspensions to day There has been a heavy run on the Metropolitan bank to day. NEW YORK, Oct. 14.-The bank presidents adopted last evening a resolution unanimously to suspend specie payments this day. The meeting of bank directors last eve ning passed the following resolution: Whereas, in view of the excitement prevailing in the community, and the actu suspension of a number of the banks of this city, it has been resolved expedient that all the banks suspend specie payments to-morrow. Resoived, That a Committee of three appointed to proceed to Albany and re quest the Governor to convene the Legis lature, for the purpose of considering the necessity of enacting some law to give relief." The Now York banks certify checks and out bills. The Massachusetts and New Jersey banks are suspending. Stocks have undergone a further decline five to ten per cent. Ten thousand

8. November 26, 1857 Daily Iowa State Democrat Davenport, IA
Article from Daily Iowa State Democrat, November 26, 1857

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The Money Market, &c. The redemption of uncurrent money went into operation in New York on the 19th, per resolution of Clearing-house, and the Metropolitan Bank has resumed its charge upon 'uncurrent.' The whole matter pas. sed off without attracting attention, and the regular current of business with the interior of the State is restored. The banks continue nominally suspended, but there is no difficulty and no distinction between the paper and the specie in circulation. The issues of the City Banks, by the operation of the country money, and by the hoarding of each others' notes fell from $8,000,000 to $6,250,000, a reduction of nearly $2,000,000, and this will now require to be restored to circulation, since the country notes have resumed their homeward route. The amount is required for use, and since the banks hold at least $20,000,000, with a strong current towards them, they may well loan "the $2,000,000 of notes, if they can find the right kind of paper, which will be difficult. The exchange market is rather dull for the Adriatic sailing on Saturday. One drawer asked 9 12 for eterling, but bankers' names were had at 8a8 1 2, and france 5,45a5 121-2. Ths letters by the Niagara, which brings $100,000, were looked for before closing for the Adriatic. Gold was done at 20a25 cents per $100. The total amount of imports for the past nine months of this year amount to $91,642,17 exports for same time, 43,250,244.

9. December 1, 1857 Mineral Point Tribune Mineral Point, WI
Article from Mineral Point Tribune, December 1, 1857

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New York Banks-Virtual Resumption of Specie Payments. The Associated Banks of this city met at the Clearing House this afternoon, the (18th,) and after receiving the report from the Metropolitan Bank on the country currency, adjourned without further action. The report was to the effect that the notes unemployed and represented by certificates, amount, at the close of their par arrangement this afternoon, to seven and a half million dollars, and that on the return to-morrow, to the old quarter per cent. redemption, the Metropolitan Bank will be prepared to take nearly all of the New York country circulation, at this rate as allowed by law, converting the same into bankable city funds, the day after their deposit. With this understanding, the same that preváilad for several years up to the general suspension of payments in specie in October, most of the other city banks will receive these notes, in moderate sums, in the course of ordinary business, from their regular dealers and the change will consequently scarcely be felt by the community, SO far as the country note circulation is concerned. At the same time, the new provision, as adopted on and after this date, virtually restores specie payments at the city Banks, as in effect, it brings back the country to redemption in specie, in the city, less the quarter per cent. abated, under the redemption law. The country note circulation, which for five weeks has been recognized as Current funds will no longer be received from or paid to the public as such. The $37,500,000 certificates, representing the reserve of this circulation, have no currency except as between the banks themselves in settling their daily balances at the Clearing house. On the city note circulation specie has seldom been refused at the counter since the suspension. It is now in all respects equal to gold. And the remaining slight distinction between the curent funds and gold-and this must immediatel pass away, as the Metropolitan Certificates begin on the 1st of December, to bear 6 per cent. interest, and thus become in the existing state and prospects of the money market and foreign exchanges, a more valuable reserve in bank than gold itself -is, that & dealer depositing the marked checks of his neighbor on another bank will be expected, as a matter of course, to demand gold on his checks as against such deposit, We donbt whether this distinction, slight as it is, will be known after a few days. All concern about the use and final disposition among themselves, of the certificates would seem to have been dismissed by the Associated banks. They adjourned this afternoon without a word on the subject. In fact the country note arrangement has worked admirably throughout. It has proved itself the chief anxillary to the early and almost imperceptible return of specie payments, besides holding the popular confidence SO steady in the practical working of the New York Bank Note System, as almost to destroy the difference for gold for suspension.

10. March 4, 1858 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, March 4, 1858

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institut He notice. report, hasamo given American and solican of The saye a country Exchange produced bank banse clearing the 10 anything operAtion interior banks. He proposes. 88 8 remedy of the the'establishing bank clearing. house by wer the bank inselves and says: Abundant p exists for purpose in section chap er 202, of the It lawe of 1840. The law referred to is 88 follows: shall be Cawful for any number of banks, by agreement, to associate together for raining a joint fund, the to placed in the hand- of their common ageat, for of redemption of their circulating no eain we cities New-York or Albany, in manner and under With such such regulations be agreed upon, full ba ked by & direct recommendation from Bank powers, Department it apparently quite regular the that the country banks remain oppressed ar eTIdangered. by the coersive operat on of the Metro. potitan system opressive, because & tribute of 1 of 1 We say went is required be entire amount of redeseptions, in addition to a deposit or contribution of capital. We say endangered, because the experience e of last Fall clearly shows that the country banks know not the day nor the hour when peir redit may be crushed, and their good name heralded to the world 88 broken institutions. In September and the first half of October last, 32 Free Banks were thus stricker down, and their well. secured notes were freely sold by the penie-stricker holders at & cent discount. On the 15th of October, the day after the grand suspension, the following notice was issued by the Metropolitan and American Exchange Bank in the City of Ne A. York: "The general expension of specie payments by the bauks of hie city has 80 changed the regular curre of business as to render it proper to arrest the operations of our uncurrent depart ment as hitherto conducted. A temporary arrangement having been made by our city banks to receive and pay out, at par, the notes of solvent banks in the State of New-York, this bank will thus receive such notes for account of their expondents." By virtue of this notice, twenty-one of the thirtytwo broken banks were restored to credit, and their circulating notes were made Clearing-House money by the city banks, thus acknowledging their solvency; and, in due course of time, all but two have either resumed business or are wound up without loss to the pablic. These two have been closed by the Superintendent, and one (the Hamilton Exchange) pays 81 cents on the dollar, and the other (the Pratt Bank) pays 94 cents. the of time this crushing of banks, withoutcause, other than the simple fact that their deposits were not sufficient to cover all their redemptions for the day, the redeeming banks held, in the aggregate, over & million dollars of country bank deposits. On this but point the Superintendent says: And there is little or DO doubt, upon examination of the general po. sition of the country banks' accounts, and those of the different cities, that the redeeming banks in the City of New-York, making a liberal allowance for & very large balance due foreign banks, were debtors to the interior ones, as a body, over $1,000,000; while & portion were posted daily in that city, under the quarter cent system, as failed or suspended. With individuals the secured currency is held to be of value, but, with the redeeming banks, the secured bank notes are treated as of no value, and are thrown out the minute the bank's deposit is not good to cover the redemption. Under such circumstances the question, "Why do not the banks establish or organize & clearing-house of their own ? is answered only by those who fore. see the trouble and warfare that the Metropolitan Bank is sure to inflict. Whenever the country banks have taken the ground that they would redeem at their own agents', the Metropolitan would accumulate their currency, and by running for specie or threatening to discredit, and in various ways annoy them, till their terms were yielded to. It is folly to act upon the ground that a country bank clearing-house would remove this warfare, 80 long as the laws of the State are unchanged. Legislative action is necessary to the successful establishment of a clearing-house. That law should be simple and direct-forbidding any bank, except legally appointed agents, taking, at & discount, the notes of any other bank. An act emb dying this principle would be followed by the organization of & clearing-house, both safe and beneficial-safe to the interior banks, and beneficial to the community.