16307. National Bank of the State (New York, NY)

View Charter #1476 on SPMC

Bank Information

Episode Type
Suspension → Closure
Bank Type
national
Bank ID
1476
Charter Number
1476
Start Date
March 14, 1876
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
8ad47cbb

Response Measures

None

Description

Contemporary reports (Mar 14–17, 1876) state the National Bank of the State of New York suspended payment and was expected to have a receiver appointed or go into voluntary liquidation. Coverage blames bad management, large unsound advances (notably on cotton) and loans by Vice-President Richard Patrick to related parties. There is mention of excitement and fears of runs, but no clear reported depositor run/withdrawals — the articles emphasize suspension/failure and likely permanent closure/receivership.

Events (5)
1. July 21, 1865 Chartered
Source
historical_nic
2. March 14, 1876 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bad management and large unsound advances/loans (notably advances on cotton) and related-party loans by Vice-President Richard Patrick (Smith & Girvan connections) leading to insolvency; overdrafts/warehouse receipt loan issues mentioned; directors investigating and Comptroller considering voluntary liquidation or receiver appointment.
Newspaper Excerpt
The announcement was made officially at the Stock Exchange Tuesday morning that the Bank of the State of New York had suspended payment.
Source
newspapers
3. March 15, 1876 Other
Newspaper Excerpt
The suspension ... caused intense excitement on Wall street, and the prices of all securities at the stock exchange fell off with a feverish feeling prevailing. At one time there were fears of a run on other banks, and that a calmer and quieter feeling prevailed subsequently.
Source
newspapers
4. March 17, 1876 Other
Newspaper Excerpt
The new Board of Directors is busily engaged investigating the accounts ... it is still stated that [the Comptroller] is inclined to [permit voluntary liquidation]. It is equally certain that he had not appointed a receiver, according to the latest accounts.
Source
newspapers
5. December 6, 1882 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (11)
1. March 15, 1876 The New Orleans Bulletin New Orleans, LA
Article from The New Orleans Bulletin, March 15, 1876

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EXCITEMENT IN NEW YORK. Bank of the State of New York Suspended. The announcement was made officially at the Stock Exchange Tuesday morning that the Bank of the State of New York had suspended payment. The excitement occasioned in New York by the suspension is very great, quite a panic having existed there yesterday. The capital of the bank was $2,000,000, with Ph surplus of $400,000. Geo. W. Duer is President. The National Bank of the State of New York, which is reported as suspended, has no correspondents in New Orleans, and should not be mistaken for the Bank of New York National Banking Association, which is one of the oldest and most conservative banks of New York. We have been shown a dispatch from a prominent banker in New York to a gentleman in this city, which states that the depositors in the above bank will be paid in full. No other banks affected.

2. March 15, 1876 New Orleans Republican New Orleans, LA
Article from New Orleans Republican, March 15, 1876

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MONETARY AND COMMERCIAL. MONETARY. NEW ORLEANS REPUBLICAN OFFICE, TUESDAY EVENING. March 14, 1876. There was some improvement in the demand for discounts at one or two of the banks to-day, but generally the market was without material change. The announcement of the suspension of the National Bank of the State of New York has had no perceptible effect upon this market. The bank had no correspondente here, and, so far as we can learn, notransactions of any character beyond a few bills sent here by it for collection. We have heard of but few private dispatches being received upon the subject, from which fact it seems fair to infer that the suspension IS regarded as of or ly local significance. So far as we can learn, no intimation that the bank was in difficulties had been received here. It is stated that its surplus was $400,000. The following is the statement of its condition, reported in the statement of the associated banks of New York city, for the week ending at the com mencement of business on March 4, 1876: $2 000,000 Capital 3921,000 Loans and discounts 292.800 Specie 1.120,100 Legal tenders 2,826 800 Net deposits. 247,900 Circulation According to the New York Financial Chronicle, it paid 8 P cent dividends in 1874 and 1875, paying a semi-annual dividend of 4 P cent November 10. 1875. The Cbronicle of the eleventh instant quotes the stock at 105@1061, on a par value of 100. We continue to quote exceptional commercial paper at-@8 P cent ₽ annum discount; Al do at 9@10, and second grade at 12@18; first class mortgage paper at , and second grade entirely nominal. Gold opened at 11434 @115, against 1144 at New York, and after a moderate business, closed at 1145, against 114% in that market, after touching 114% in the interim. The sales summed

3. March 15, 1876 New-York Tribune New York, NY
Article from New-York Tribune, March 15, 1876

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ceeds of the claim. But after all, it is not Mr. Pendleton who is on trial. In the case of Mr. Kilbourn, sent to the District Jail by the House of Representatives, there is a prospect of an interesting trial in the courts to determine the rights of witnesses called before Congress committees. The threats of the angry Congressmen in this instance will be coupled by the public with similar expressions in previous cases of the kind, when the Republicans held full sway. It may be fairly inferred that members of Congress, without distinction of party, are likely to push their power to its extreme limits in dealing with recusant witnesses; and if this is to be a free country those limits should be very clearly defined by law. The sudden failure of the National Bank of the State of New-York caused a flutter in Wall-st. yesterday that was in its way a small panic. The amount of money lost is not very large, but the suspension was keenly felt because the bank was old and respectable, But on examination, now when it is too late, it is found that this respectable old concern was sadly mismanaged. The elderly gentlemen who officiated as directors had not troubled themselves much as to how affairs were going, and hundreds of thousands of dollars were put out here and there on very slender security. Perhaps it will console the stockholders and depositors to learn that the directors are quite as much astonished as anybody else at the catastrophe.

4. March 15, 1876 The Morning Herald Wilmington, DE
Article from The Morning Herald, March 15, 1876

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NEW YORK'S LAST EXCITEMENT. A Heavy Bank Failure." By American Press Association. NEW YORK, March 14.-The failure of the National Bauk of the State of New York to-day, caused intense excitement on Wall street, and the prices of all securities at the stock exchange fell off with a feverish feeling prevailing. The prices however afterwards rallied. At one timethere were fears of a run on other banks, and that a calmer and quieter feeling prevailed subsequently. The capital of the bank is $2,000,000; this it is thought will be reduced to $1,000,000 by the classes sustained and stockholders assessed for the deficiencies. The troubles of the Bank, it is understood arose principally from bad management and unfortunate advances made upon cotton, the price of which has been gradually sinking here and in Liverpool for some time past. The Bank however holds some of this staple as secnrity for loans. The Bank examiner says the bank will probably pay 50 cents oh the dollar to shareholders but au officer of the institution says they will pay 75 cents. At a meeting of the Clearing House Association this P. M., it was decid ed to suspend the bank from further privileges. It is expected a receiver will be appointed SOOD. An evening paper says. suspension of bank is partly due to overdrafte the result of loaning on warehouse receipts that these overdrafts amount to $80,000 and that an officer of the Bank is rumored to be connected with them.

5. March 15, 1876 The New York Herald New York, NY
Article from The New York Herald, March 15, 1876

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of the National New York. Failure news State which of little began before to circulate noon The street a flutter of bein the caused a hours, excitement but under the ship" yesterday ensuing two wave passed closed still comparative an old fore for three the and o'clock the business "the water. of the The day sudden which had never institutionstorally a and shock gave alarm, excited of the suspension in of been 80 distrusted, but the refacts assuring developed character and the the day during allayed uneasiness, it is the that only serious believed sufferers be the of The the will bank. stockholders be will full, they paid although depositors by suffer some inability inconvenience of the while affairs in are But bank be will they paid ultimately will to use their the funds course of settlement. in full, and the of are, note course, holders secured against all as our note under national holdersare, of the large proportion in this up less, bank system. the bank A is swallowed falls on the suffer. stockon effect capital of but the loss will not slight holders, failure, and the general community business will be imperceptible. This consequences of so little of the and The almost event, whose immediate importance, deserves condian of our and tion of the merits indication We will first attention are happily as a national symptom banks, and defects look we which the system. of the picture, light than at the bright in a more with the pected cannot of present side this failure favorable house of unex- Dun& Co., den many by comparing failure of the banking which was equally victims sudits into vortex. the two When failures. can, and Sherman startling There and drew is a striking Duncan, contrast it was their found suspended fell assets several and that besides many between Sherman & short Co. of their liabilities the irretrievable individuals by the millions, of the banking house sufferers whereas State of York ruin firms were National severe Bank of the except the the bank. of one and failure of the drags nobody down This difference the illustrates bank national Duncan, system. stockholders New of of the best features Sherman & to do for Co. after years business continued it because became insolvent, of was any control authority empowered its and affairs condition. publish the free concern from the supervising by law to inquireintoi Nonational its its on can and thus bank trade reputation a if the credit, maintain national factitious or adlaw even fairly banking is rigorously It a is of the chief merit system ministered. of it in the can none go banks included on the for public imposing insolThe vent. that on deceiving and time after it has become Bank of the of has New State York a of that none early stage any length career of of the National been arrested will at be SO creditors in a loss, whereas serious involved banking the of kind same supera on vision false may it until reputation in the final crash. parties innocent house not subject continue to to engulfs do business a multitute Had of & Co. to been obliged Sherman Duncan, of to the their reports condition been they a to liable of make frequent of the Currency, affairs had under the that direction officer as it their Comptrollectratiny of their as he thought been have would career necessary, it cut unand than was, short much earlier have from been saved suspecting people would The these between difference a is failure strong great conspicuous losses. cases of the of national at bank so early sys- a argument two in detects favor insolvency bank cannot be tem, which that creditors reasonable of a vigilance on stage if there Comptroller is of the supervision Currency. ruined the part of the of government also furnishes The banking advantage institutions the wild crotchet who an the soft money the of argument against democrats, national banks and only If that currency. would of abolish tender notes the the busibe would make legal should be done into surrendered be no effiwould check private ness of banking hands, on such and abuses there Sherman were practised & Co. by cient the house of acquires Duncan, its right through of super- the government - omination with of by vision connection The and of the currency, national and banks the if gov- all the the currency issue and banking were issued were made would a lose priernment the community the abuses of a vate chief business, safeguard against banking firm which could its factitious credit. Any a high reputation it had had once enjoyed reputation long after an unsustrade on that and inveigle which become community insolvent, to make sham deposits was exposed, bank pecting lost when the creditors of the of the losses would security be of the as contrasted with private the house which banking a of the The which failed creditors yesterday, of the failed important last autumn, system superiority an suractive under and before veillance the have sunk part they greater demonstrates which keeps the forces banks them to suspend of their assets. account; This is the favorable side of is the not

6. March 16, 1876 The New Orleans Bulletin New Orleans, LA
Article from The New Orleans Bulletin, March 16, 1876

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POST'S FINANCIAL ARTICLE. NEW YORK, March 15, Evening.-The Post's financial article says the excitement which followed the suspension of the National Bank of the State of New York has disappeared and Wall street markets are quiet. Gold opened at 114g, advanced at 10 o'olock to 1141, and all sales since have been at 114} @114g. Gold loan rates have been 4@7 for carrying, renewals having been at 4j. Exchange nominally 4.861@4.90 for prime bankers' bills, with actual rates at 4.86@4.861 and 4 891@489. The money market has not yet recovered from the violent disturbances of loans yesterday but is in process of recovery. The rates for call loans at the Stock Exchange are 5@7 F cent. Government bonds in the market are 1/2 lower for 65's and 67's, 1 higher for 68's and currency 6's. The stock market is quiet ; prices opened @1 F cent higher than yesterday's closing prices, except for Lake Shore, which is 180 lower and Union Pacific, Rock Island and Michigan Central, which are unchanged.

7. March 17, 1876 The New York Herald New York, NY
Article from The New York Herald, March 17, 1876

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THE BROKEN NATIONAL BANK. Very little additional light was shed on the affairs of the lately suspended National Bank of the State of New York yesterday. The new Board of Directors is busily engaged investigating the accounts, but the results of its examinations and deliberations are kept strictly secret. In the morning a meeting was held, at which Mr. Lawrence Turnure was elected Vice President, and a committee was appointed to examine the books and ascertain the value of the securities on which ex-Vice President Patrick made his loans. Mr. Patrick did not put in an appearance at all during the day. At present no one can surmise how he will come out of the mire into which his management of the bank has drawn him. The situation, however, though unpleasant, is not a novel one to him. It appears he failed at one time before for the sum of $2,000,000. Satirical people suggest that this was the circumstance which commended him to the friendly attention of the bank and ultimately procured his elevation to the management of the institution. In aadition to the report of his own failure for the large sum mentioned, a business concern in which he is said to have been interested also failed for a large amount. To the casual visitor the bank yesterday presented a rather dull appearance. The clerks and employés stood around in groups, waiting, Micsweer-like, "for something to turn un," except when called upon by the directors to explain certain accounts under examination. The morning meeting of the directors was adjourned at noon. An afternoon meeting was held also. It commenced at two o'clock and was to continue until ten P. M.-at least so a director stated to the writer at four o'clock. It was understood that telegraphic communication was kept up by the bank during the day with Comptroller Knox, but no definite results were arrived at. He has not yet given formal permission to the bank to go into a voluntary liquidation, although It is still stated that he is inclined to do so. It is equally certain that he had not appointed a receiver, according to the latest accounts yesterday alternoon. Possibly he is awaiting the result of the new directory's examination of the accounts. Before they can determine upon their course the new directors are naturally desirous of finding to what extent they are involved by Mr. Patrick's management. His dummies, Smith & Girvan, were as inaccessible as ever yesterday, so their large loans continue unexplained, and it is getting to be very generally believed that explanation would not help them much. A number of bank presidents and cashiers called at the bank in the morning and held consultations with the directors, possibly with a view to aid them in their intended resumption. It is announced that drafts crawn by the San Joaquin Valley Bank, of Stockton, Cal., on the Bank of the State of New York are ordered to be presented to Drexel, Morgan & Co. Drafts on the bank drawn by J. S. Lockwood & Manning, of San Antonio, Texas, are ordered to be presented to J. & W. Feligman. The coupons of the town of Paris, Oneida county, due on the 1st of April, will be paid at the Oneida Bank, of Utica, and not at the Bank of the State of New York,

8. March 24, 1876 The Marietta Journal Marietta, GA
Article from The Marietta Journal, March 24, 1876

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THE National Bank of the State of New York suspended last week. Its capital was $2,000,000. The de- positors in the bank will lose noth- ing, neither will the note-holders. The total loss will fall on the stock holders, who will realize only about 50 cents on the dollar of their stock.

9. April 8, 1876 The Pacific Commercial Advertiser Honolulu, HI
Article from The Pacific Commercial Advertiser, April 8, 1876

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THE PACIFIC Commercial Adbertiscr. SATURDAY, APRIL 8. FOREIGN NEWS. LONDON, Mar. 14.-The Marquis of Hartington, of the League of Liberals. gave notice in the House of Commons this evening that he would oppose the assumption by the Queen of the title of Empress of India. PARIS, Feb 14.--A statement has been issued by the Ministerialists setting forth that a Republican form of government has been founded in France, and that there never was a government more legitimately established and that it will endeavor to secure external peace, regretting all warlike adventures, and asks the confidence and loyalty of the people toward the President. BELGRADE, Mar -The Turkish troops massed upon the Servian frontier having committed depredations, the Servian militia has been mobilized and ordered to march to the frontier. DISASTROUS INUNDATIONS IN CENTRAL ECROPE.LONDON Mar. 16 5 A. M. -A Paris dispatch in the Times reports that the inundations have stopped work in the tobacco factory and in the foundries of Alfortville. Two hundred houses are flooded at St. Maur. The gale of Sunday caused a frightful destruction of life and property. Eleven persons were killed in Cambray. At Lettiers the Rhone rose twenty or thirty feet. inundating the whole country. At Coblentz the Rhine rose below the railway bridge like a water-spout to the height of houses. Hamburg and Frankfort have also suffered. NEW YORK, Mar. 14.-The failure of the National Bank of the State of New York to-day caused intense excitement on Wall street, and the prices of securites fell off. with a feverish feeling prevailing Prices, however, afterward raised. At one time fears were entertained of a run on other banks, but a calmer feeing prevailed subsequently. The capital of the bank was two million. This, it is thought will be reduced to one million by the losses sustained, and the stock holders will be assessed for the deficiency arising from the troubles of the bank. It is understood the failure arose principally from bad management and upfortunate advances made upon cotton. the price of which has been gradually sinking here and at Liverpool for some time past. LONDON, Mar. 16.-A Times special from Berlin says a letter from Peko Paulovich, who commanded the insurgents at the battle of Muratovizza, asserts that a force of 1,550 insurgents attacked 3,200 Turks. Only 700 of the latter returned to Gatzchko. About 800 were killed, and the others were drowned or dispersed. The insurgents captured 675 rifles, and four rifled cannon. BOSTON, Mar. 16.-A dispatch to the Globe, from Concord, N. H., saysthat the nearly complete returns show that the Republicans have carried the State and have a majority of the council. and will have at least 28 majority on joint ballot. LONDON, March 17.-The Paris correspondent of the Times says the recent report of the probability of war between Japan and Corea attracts considerable attention here. It must have been circulated purposely to direct attention to the Corean question and to the Russian action in Asia. I learn that the Russian army, numbering 12.000 men, has entered Corean territory under pretext pursuing brigands. If war on the southern coast of Corea, Russia would be quite ready to co-operate in the north. The occupation of Corea or at least of Corean ports, may be presumed to have been not unforeseen. We shall perhaps hear more concerning Russian action in Corea. Meanwhile the Russian Government is taking measures to practically utilize the recent acquisition of Saghalein. A regular steamer service will soon be commenced between Saghalein and Shanghai. It is announced that the steamers of the new line will be gunboats. BOSTON, March 17.-In honor of the one hundredth anniversary of the evacuation of Boston by British troops, business was generally suspended to-day. Flags were displayed from the shipping and from the State and national buildings, and many private residences. NEW YORK, March 17.-A foot of snow has fallen to-day in the northern portion of the State. and in portions of Maine, New Hampshire and Vermont it is still snowing. LONDON, Mar. 17. A Vienna dispatch asserts that the Servian ministry seems to favour immediate war. The situation is aggravated by continued raids of Turkish troops on the frontier. The Turks are rendered utterly reckless by want. LONDON, Mar. 18--6 A. M.-A Vienna dispatch says it is stated that Servia has determined to rise a compulsory loan for military purpose. and to exact it immediately, with the utmost rigor. It is reported that Greece has offered to form an offensive alliance with Servia and Roumania. All the Servians are convinced that Russia, although temporarily co-operating with Austria, cannot, for her own interest, permit Austria to occupy Servia. The Servians, therefore, disregard Austria. They are preparing to take the consent to grant, though it would accept accomServian race. MADRID, March 16th.-Don Caldron Coolants, Foreign Minister, speaking in the Cortes relative to the religious question, said the Government trusted to the Pope and his affection for Spain. They hope Providence will prevent 80 eminently Catholic a nation from being divorced from the common head of the faithful. Later on, Senor Sagasta, in opposing the address in reply to the speech from the throne, defended religious toleration, which he declared the Vatican would never consent to grant, though it would accept accomplished facts.

10. April 10, 1876 New-York Tribune New York, NY
Article from New-York Tribune, April 10, 1876

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RICHARD PATRICK'S BANK LOANS, RELATIONS BETWEEN SMITH & GIRVAN AND THE BANK or THE STATE OF NEW-YORK. To the Editor of The Tribune. SIR: In connection with the recent suspension of the National Bank of the State of New-York, the name of our firm has been freely placed before the public by those who have no special interest in our good name. We have not taken any notice of remarks from time to time published, tending to our disparagement as an honorable business house, knowing that our vindication would in due time appear. The transactions of our firm with the bank have extended over several years, have been large, and it has received property from us of much greater amount and value than the loans. It has been alleged in published statements that our firm has received large loans on stock of "The United States Attrition Co., Limited," and the "NewYork City Attrition Mill Co." This is a mistake. These stocks represented a large value, and were merely placed with the bank as further collateral. In all the circumstances of the case it is due to our friends, and also to ourselves, to say that whether any loss will be sustained by any interested in our affairs depends on the judicious action of the holders of SMITH & GIRVAN. our property. Respectfully, New-York, April 8, 1876. [Messrs. Smith & Girvan are alone to blame, if the facts of their relations with Richard Patrick, Vice-President, and the Bank of the State of NewYork were not clearly set forth. They were applied to for their statement several times, but declined to make any. The card of Smith & Girvan will hardly satisfy the stockholders of the bank, who find that in consequence of the operations of Vice-President Patrick with this firm and others their capital of $2,000,000 has been reduced to $778,000. with no immediate prospect of recovering the $1,222,000 deficit. What is wanted from Smith & Girvan is a clear and detailed statement of their relations with Richard Patrick, and how it was that they received loans of $875,000 on "security" of such problematical value.-Ed.]

11. April 10, 1876 The New York Herald New York, NY
Article from The New York Herald, April 10, 1876

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THE RECENT BANK FAILURE. NEW YORK, April 8, 1876. To THE EDITOR OF THE HERALD:In connection with the recent suspension of the National Bank of the State of New York the name of our firm bas been freely placed before the public by those who have no special interest in our good name. We have not taken any notice of the remarks pub. liahed from time to time tending to our disparagement as an honorable business house, knowing that our vin dication would in due time appear. The transactions of our firm with the bank, extending over several years, have been large, and it has received property from us of much greater amount and value than the loans. It has been alleged in published statements that our firm has received large loans on stocks of the United States Attrition Company. Limited, and the New York City Attrition Mill Company. This is a mistake. The stocks represented a large value, and were merely placed with the bank AS further collateral. In all the circumstances of the case it is due to our friends and also to ourselves to say that, whether any loss will be sustained by any interested in our affairs, depends on the judicious action of the holders of our property. SMITH & GIRVAN. Respectfully,