National Bank - New York, NY

Bank Information

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

Metadata

Model: gpt-5-mini
Short Digest: f43a2a7b

Response Measures

Public signal of financial health, Full suspension

Other: Collective Clearing-House resolution to suspend and later coordinated agreement to resume specie payments.

Description

Articles describe heavy withdrawals on Oct 13-14, 1857 (run), the National Bank is listed among banks that suspended specie payments on Oct 14, 1857, and later is named among banks resuming specie payments in December 1857 (resumption around Dec 14). Classified as a run causing suspension with later reopening.

Events (3)

1. October 14, 1857 Run

Cause: Macro News
Cause Details: Part of the October 1857 widespread panic and heavy withdrawals by mercantile depositors and general loss of confidence across New York banks.
Measures: Paid out large sums of specie and certified checks; continued to meet demands while possible.
Newspaper Excerpt: The National Bank paid out some $43,000 in coin, which leaves it $458,000.
Source: newspapers

2. October 14, 1857 Suspension

Cause: Macro News
Cause Details: Collective suspension by New York banks in response to the October 1857 panic and heavy demands for specie; adopted at Clearing House meeting and by multiple banks that morning.
Newspaper Excerpt: In accordance with the resolution adopted on the 13th, on the morning of the 14th. the following banks suspended: ... National.
Source: newspapers

3. December 14, 1857 Reopening

Newspaper Excerpt: The Commerce, American, Manhattan and National Banks will resume on Monday. ... they will resume specie payments on all obligations. (Dec. 10 circular; resumption on Dec. 14 reported.)
Source: newspapers

Newspaper Articles (6)

1. 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.

2. October 15, 1857 The New York Herald New York, NY

Article from The New York Herald, October 15, 1857

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FUD took place they throw themselves on the rales of the bank, asd requested of their depositors a month's notice, M provided for. Before the month transpired the panto passed off, and there was no further occasion for infulgence; everything went on as usual. This stipulated no tice the trustees feel should be always demande as pro tection to themselves and their depositors We learn that in the year 1837 the pazio mania as the Bowery Savings Bank resulted in an extra dividend to those of their deposit who held on. The same will be the result of the present panic mania. PUBLIC MEETING OF MERCHANTS AT THE EXCHANGE. EXTRA SESSION OF THE LEGISLATURE RECOMMENDND CON-COMMITTEE APPOINTED TO GO TO ALBAN FIDENCE EXPERSEND IN THE CITY AND et ATK BANKS -UNDUE HASTE IN CLOSING THE PROCARD ING8-DIFSATISFACTIONOR THE MERCHANTS. The following call was circulated among the merch unia on Change yesterday :meeting of merchants le Invitei at the Exchange al half-part block day to consider the state of public interests as connected with the suspens item of specie pay ments by the banks, and to adopt such measures 45 the public welfare may require. Henry Coll. Mones Taylor & Co Gorden Talbot & Co. D. Morgan & Co. Adams, Brown Brothers French, Maitland, Phe pe & Ob. Son, William Nelson & Barclay & Livingston Foster, Eusot & Oo., Grinnell Wintarn O)., Howland & Aspinwall Tucker Cooper & Co., Charles H. hussell, Augustus Schell, J. H. Brower & Oo There was quite a large attendance of merchants and others interested in the object of the mesting, and had not the proceedings been characterized by unseemly have, and the meeting commenced and closed prematurely, some important results might have flowed from 18. At al, events, some measures might have been agreed upon that would have proved beneficial in the orials. Bat for res sons best known to the prominent actors in the affair, snap judgment was taken; as interchange of opinion was had or permitted; the resolutions were declared car. ried because few understood what they were, and the meeting ad journed within five minutes after the time fixed for its convening Full ten minutes before the hands on the dial on Trinity church pointed to half past three, the meeting was called to order by Mr. Morgan, who read the call, and pro posed as chairman Mr. James Brown. The proposition was unacimously carried, and Mr Brown took the chair smid some dem strations of ap plause On motion of Mr MORGAN, Mesers. James Lee and Robert Goodhue were appointe Secretaries The following resolutions were then offered by Mr. PELAResolved, as the sense of this meeting, that the exigen cies of public affairs require an immediate extra session of the Legislature, in or for that such measures of relief may be granted in their wisdom may be deemed just and pedient for the public good, and to enable the backs to continue their aid to the manufacturior. mechanical, agri cultural and commercial induary of the State,to five em ployment to the labor of the city and to renew specie pay ment an early day Resolved with the view to liquidate the indebiedness of interior. and to hasten the shipment of produce I seaboard, that is the duty of New or me chante and of the banks to afford every facility in their power without delay Resolved, That in the judg ment of the Nev York chante looking as those great elements of wealth, the varied and large crops of the United states. the existing monetary dera ement may with certainty be speedily corrected, and be followed by restoration of confidence to the ordinary machinery and credit or busi nets; 10 that while everity of the crieis will be long remembered too the speedy arrival of prosperity committee to these present be That Resolved, resolutions to the Governor of the State, at Albany, and to sollcit bis immediate action thereon Mr. Paris submitted some brief remarks in support of the resolutions. He said that the merchants found them selves to day in novel condition of affairs, with the city banks obliged to suspend payment, although the day before their respension they were known to be perfectly solvest As it was the merchante had still perfect cont dence in the solidity of these banks: and there could doubt that their assets were sufficient to meet all their liabilities. In this state of circumstances, then, he held duty of the merchants to sustain the banks means in their power. He considered that It perative duty of the merchants to represent to the Governor of the State the necessity that existed for the immediate celling of an extra session of the Legislature, to remove the penalties now imposed upon of specie payments, in order that the regular current of business mar be restored to legitimale channel That step was provided for in 11 the Imperative also the resolutions was the duty merchants their and all their aid to sustain the banks in the present crists, and also in their dealings with each other to use all the poest ble, and to give every indulgence allowable by the times the pressure CORNER seconded the resolutions, which were put adopted Mr. THEODORE DEMON moved the appointment of the Albany proceed to to mittee The CHAIRM named the following gentlemen John C Green, Mours H Grinnell Charles H Russell, Abraham Hewiss, Mores Taylor, Royal Phelps, Schay lar Livingston, R Marahali Chas to motion, the Chairman and Secretaries were added the committee, and the appointments were unanimously confirmed Mr. Mouns H. GRINNELL said that he did not rise to offer extended smarks upon the present state of things Mr. the offered seconded Perit; they spoke for FEE They had Hittle do now except he these who, had present no doubt, would respond mediately request tained in them He would, therefore. leave that subject had another resolution to propose, which was as Resolved, That we, as march ants and citizens, have en tire confidence the ability of the banks of the cliy and State of New York to meet all their engagements, dollar dollar said that felt it to be the imperative duty of the merchants this juncture to unite this deciaration confidence in the banks, although they yesterday been compelled to suspend was a mared that although the banks had payments, as (Mr. fide had. they had toma (the merchants) know they intended to pay their debts, banks meet all their liabilities (Applease Therefore. he urged the confidence resolution this of had passage banks ibe ability and would The resolution by Mr. James Brown, and was carried unanimously On motion. the meeting then adjourned. The committee appointed to wall upon the Governor left for Albeny in the train Much dissatisfaction was expressed on all at fee hurried and loose manner in which the business meeting had been forced through without Interchange opinion on the part of the was charged. seemed to he universal opinion. that meeting got up in the interest not of the merchants but of the banks Conspl among those protested vehe h whole was Mr. mently Richard against Schell, brother to the Collector of the Port He his regret that man of Mr. Integrity should presided at this meeting and allowed to be conducted twas. He remarked that the meeting controlled such men as Pelettah Perit, E D. the of Bank Oom family of "the Klage, merce He sald that that bank by cashier and who named had Vall. Blevens gone principle of breaking all of their neighbors were Habilities. their to meet show means large And now said these men have had the effrontery have they whom seek and sided to rain this strain remark for him collected and time around cashiers of spoke sympathising hearers. Wal the street and of three presidents of noodles who held their places commans whose and services favorition, salary or $600 in any He describes meeting mutual distinction society directors of the Bank of Commerce and he charged officers of the bank. of the Mer hanta Bank, of the Na. tional Bank, and of the Bank of America with endeavor lag by their course at the Clearing House to create all possible difficulties and to throw every obsta they could is the way of merchants paying their debts said that the first resolution that ought 10 have been offered at the

3. October 22, 1857 The Weekly Pioneer and Democrat Saint Paul, MN

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

4. December 12, 1857 Evening Star Washington, DC

Article from Evening Star, December 12, 1857

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RESUMPTION OF SPECIE PAYMENT BY THE NEW YORK BANKS - The presidents of the Banks of America, Cômmerce, National, and Manhattan, have just issued the following important circular : "NEW YORK, Dec. 10th. "STR-Annexed is a copy osa proposed agreement for the resumption of specie payments by the banks of this city. The concurrence and cooperation of your bank in this important and most desirable object is earnestly solicited. The agreement will be presented to you on Saturday for signature. "Your obedient servants, "GEORGE NEWBOLD, "JOHN A. STEVENS, "C. 0. HALSTEAD, "JAMES GALLATIN." The following is the agreement referred to in the circular: "In view of the present strong condition of the banks of this city, and their duty to the community and themselves, the undersigned banks of the city of New York hereby give notice that on after Monday next they will resume specie payments on all obligations." The proposition meets with great favor in New York, and it is generally supposed that half of the banks will agree to it, though it is well known that some banks oppose the measure as tending to advance the rates of exchange on New York, and thus retard remittances; and, further, that it would cause a heavy drain of specie for export and render a second suspension imminent. In any event, however, the Commerce, American, Manhattan and National Banks will resume on Monday.

5. December 12, 1857 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, December 12, 1857

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in forces of this party having been divided, and a portion of their stock having found its way back into the street again, the bears in their turn have beco ne the influential parties, and now, strengthened by moderate success and the continued indifference of their rmer opponents, their movements become more determined and confident for a decline. Thus the market stands in its essential points, and while entsiders keep 80 entirely clear of the field, the chances for improvement do not appear encouraging. A more decided fall, together with cheerful accounts from Europe, may stimulate a reaction rapid and strong; but the market needs some items of nourishment of this kind to start from the lethargy which now hangs heavily upon it. At the First Board, lthe went at lower qotations, including New.York Central, which opened at 73% but fell to 731, Erie, which went down to 151, Reading and Toledo. La Crosse was one of the firmest at & practical advance over opening sales, which, however, was lost in the afternoon. At the Second Board, the decline continued as & general thing, and without any special effort on the part of the bears, the market seeming to fade out more in consequence of the "typhoid" state into which the stock business is for the time gradually set thing rather than on account of the movements of those supposed to be interested in producing & depression. As the session tapered off, there was a elight improvement in the tone of the market, prices leaving off with tolerable steadiness. At & later hour, in the street, quotations were given at a trifling improvement. Reading closed at 501 bid; Toledo, 411; N. Y. Central, 721: Erie, 151; Michigan Southern, 181. The floating debt of the Reading Railroad is gradually being absorbed in exchange for bonds of the Company 70. We understand that about half a million of dollars have already come in, and holders of the paper are beginning to be more disposed to the exchange as money becomes easier and rates of interest decline. Bond transactions were light during the day, with a moderate decline in several of the prominent State Stocks. Illinois Central bonds were a little firmer at quotations. The transactions in bills have been very light for the steamer to morrow. The supply is fair and rates are steady. Sterling 108} 1092; Francs, 5.30 181. The non arrival of the Europa checked transactions. Freights are better and more active. To Liverpool, 2,500 bble. Flour at 1s. 6d. 1s. 71d 27,000 bushels Grain at 41d., in bulk, and 5d. in ship's bags; Cotton at 5-32d.; 300 bexes Cheese at 22a. 6d.; 100 bales Oakum at 3-16d. To London, 1,200 bbls. Oil Cake at 2a. P bbl 500 do Rosia at 2a. 6d.; 1,000 do. Flour at 2s.; 50 hhds. Tobacco at 20s.; 50 tes. India Beef at 4a. 6d.; 300 tes. Navy Pork at 4s. 6d.; 400 bbls. do. at 3s. To Glasgow, 40 tuns Oil at 35a.; 75 pkgs. Tobacco at 28 6d. To Rotterdam, 400 bbla. Rosin at 3s. 3d.; 50 bble. Spirits at 4c. P gallon. A bark of 260 tuns to Windward Islands for $1 300. A brig of 350 tuns to Turks Island and back, with salt, at 13c. Sold, by Henry Moulton, ship broker, the superior new ship Augustus, built at Bath, May, 1857, 737 tuns register, on private terms. The business of the Sub-Treasury was: Receipts, $431,218 91, including $54,000 from Customs; Payments, $118,171 21, including $300,000 for tranfer draft on New-Orleans; Balance, $4,230,987 72. The most important financial event of the week is the movement of & portion of the Banks toward specie resumption. A meating of the fourteen Banks which voted at the Clearing-House meeting on Wednesday in favor of settling balances in specie, was held to day, and a Committee was appointed to invite the City Banks to resume specie payments on Monday next. The Committee have issued the annexed circular to the Banks of this city: 'NEW-YORK, Dec. 10, 1857. "SIR: The annexed is a copy of a proposed agreement for the resumption of specie payment by the banks of this city. The concurrence and cooperation of your bank in this important and most desirable ob. ject is earnestly solicited. The agreement itself will be presented on Saturday next for your signature. Your obedient servants, "GEORGE NEWBOLD President. JOHN A. STEVENS, President. C. O. HALSTED. Prendent " JAMES GALLATIN, President." On the third page 18 the following notice, to which the signatures of the various bank officers of the city are solicited In view of the present strong condition of the bar ks of this city, and of their duty to the community and to themselves, the undersigned banks of the City of New-York do hereby give notice that on and after Mond next, the 14th inst. they will resume specie payments on all their obligations. New York, Dec. 10, 1857 The fourteen banks which are parties to this movement are the Commerce, America, Manhattan, Merchants', American Exchange, Phenix, National, Fulton, Chemical, Greenwieh, Leather Manufacturer's, Broadway, Mercantile, Irving. All the banks will probably join in this resumption if it be persisted in, in which case the suspension will have lasted just two months. There will probably be & Clearing-House meeting to morrow (Saturday), to take the matter into consideration. It is understood that an istimation had been received from Gov. King that resump ion was very desirable before the meeting of the Legislature, and he has been telegraphed that it will take place on Monday. Communication has also been had with the Boston banks, which are prepared to resume as soon as New-York is on a specie paying basis. The action of the banks was the prominent topic of conversation on "Change, and that the gereral sentiment appeared to be that it was premature. Some of our leading financiers expressed fears that mischief might grow out of it. The Commerce, the National and the American have been the active movers in this step, these institutions having been desirous of resuming some time since. Those banks which have been opposed to resumption have, however. only urged a short delay on the ground that

6. December 14, 1857 The Day Book Norfolk, VA

Article from The Day Book, December 14, 1857

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LATEST NEWS. Resumption of Specie Payments by the New York Banks-Accumulation and Export of Specie, &c. NEW York, Dec. 11.-The presidents of the Banks of America, Commerce, National and Manhattan have issued the following important circular : NEW YORK, Dec. 10th. "Sir :-Annexed is a copy of a proposed agreement for the resumption of specie payments by tha banks of this city. The concurrence and co-operation of your bank in this important and most desirable object is earnestly sollcited. The agreement will be presented to you on Saturday for signature. "Your obedient servants, "GEORGE NEWBOARD, "JOHN A. STEVENS, "C. O. HALSTEAD, "JAMES GALLATIN." The following is the agreement referred to: "In view of the present strong condition of the banks of this city, and their duty to the community and themselves, the undersigned banks of the city of New York hereby give notice that on and after Monday next they will resume specie payments on all obligations." The proposition meets with great favor, and it is generally supposed that half of the banks will agree to it, though it is well known that some banks oppose the measure as tending to advance the rate of exchange on New York, and thus retard remittance; and further, that it would cause a heavy dran of specie for export and render a second suspension imminent In any event, however, the Commerce, American, Manhattan and National banks will resume on Monday. Money is very abundant, and the influx from the West is excessive. Should it continue it will nearly balance the heavy export. The Fulton to-morroy takes about three-quarters of a million for Europe.