16406. North River (New York, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
November 13, 1890
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
f804e796

Response Measures

None

Description

Contemporary reports state North River was unable to make its clearing-house settlement and closes its doors, and later is described as having gone into the hands of a receiver. There is no explicit description of a depositor run/withdrawal in the articles; the problem derived from tight money and large failures (Decker, Howell & Co.) that produced clearing-house imbalances. Dates taken from publication dates (Nov 12–20, 1890); the Tribune headline (Nov 13) reports the bank closed its doors.

Events (2)
1. November 13, 1890 Suspension
Cause
Local Banks
Cause Details
Unable to settle its clearing-house balance amid severe money tightness after large broker failures (Decker, Howell & Co.) and general scarcity of lawful money.
Newspaper Excerpt
WALL STREET EASIER. ANOTHER BANK SUSPENDS. THE NORTH RIVER CLOSES ITS DOORS.
Source
newspapers
2. November 20, 1890 Receivership
Newspaper Excerpt
one bank-North River-a state institution succumbed and went into the hands of a receiver.
Source
newspapers

Newspaper Articles (8)
1. November 12, 1890 Los Angeles Herald Los Angeles, CA
Article from Los Angeles Herald, November 12, 1890

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Article Text

EXCITED MARKETS. Another Panicky Day in Wall Street. Several Failures on the Stock Exchange. The Collapse Due to the Scarcity of Money. The Bank of North America and Two Other Banks Unable to Make Settlements. Associated Press Dispatches. NEW YORK, Nov. 11.-There was a general and an important reaction in the stock market this morning, due to the improvement in the financial aspect in London. Early cables announced that £2,500,000 in gold was on the way from the continent to the Bank of England, and that confidence was consequently, to a large extent, restored. Stocks on the London exchange opened 3 1/2 higher, and at close were rampant. Everybody was scrambling to purchase, and prices were leaping up 2 per cent. at a bound. There was a panic among the holders of Villard stocks, and prices for North American and Northern Pacific collapsed. One broker sold 15,000 shares of North American, and 50,000 shares were sold by other brokers, causing a decline of 8 per cent. Northern Pacific, preferred, at 2 p. m. had declined 121/2 per cent since opening, most of it since noon. At times the crowds in Villard stock were enormous. Banks Unable to Settle. Rumors of trouble among banking institutions were current all day, but no one paid much heed, thinking they were the usual emanations of bear minds. After closing, however, it was learned that three banks, members of the New York clearing house association, had difficulty in settling the claims of other banks against them. There was a balance against the bank of North America of $1,400,000, which it was unable to settle. The other banks were the North River and Mechanics and Traders. How this heavy balance was created against the Bank of North America was a puzzle. During the day the Mechanics' and Traders' made its settlement with the clearing house all right, and the other two banks received assistance from other banks in the association. and pulled through all right. At the Bank of North America it was stated that the trouble was directly due to the account of Decker, Howell & Co., and except that account, the bank was in a stronger position than ever. The most important factor in the developments was the scarcity of money. Right up to close it was in urgent demand, and 1/2 per cent. and legal interest was charged on loans, equal to 189 per cent. per annum. This fact and the troubles of the banks caused a special meeting of the Clearing-house association, and after a long session it was decided to appoint a committee with authority to issue clearing-house loan certificates in order to enable the banks to settle the balances between themselves. This action is expected to restore complete confidence.

2. November 12, 1890 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, November 12, 1890

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HELPING THE BANKS Wall Street's Semi-Panic Over for the Present. ONLY THREE FIRMS SUSPEND The Clearing House Com 8 to the Resou in Time. Three Banks Pulled Through by Prompl Advances-Decker, Howell & Co.'s Lia. bilities Over $10,000,000-Wild Specula. tion Caused the Monetary Stringency. Millions Lost by the Panic Wave. NEW YORK, Nov. 12.-The stock market opened this morninh with an improved tone and it was believed that the flurry of the past two days is over-but millions have been lost by the panic wave. The last hour of business on the exchange yesterday will be long remembered. There had been whispers all the day-in fact, they had first been heard on Monday night at the Windsor-that a certain big house was in trouble and was sure to go, but there was wild excitement when the announcement was made that "Henry Villard has gone to smash again." That was the cry when his brokers, the big firm of Decker, Howell & Co., announced its failure, and the stocks with which Villard has been identified were knocked into flinders. A fall of a dozen points in Northern Pacific Railroad shares and in those a the North American Company, which has owned a controlling amount of the railroad's securities, was incidental to the failure and marked a decline of $30 and $40 per share respectively in those stocks from the prices at which they sold last spring. Failed for $10,000,000. The liabilities of Decker, Howell & Co. amount to about $10,000,000, but the firm claim that they will be offset by their assets. This sort of statement, however. is very common when failures occur. It transpired, however, that the firm had seriously involved the Bank of North America, which on Monday certified checks to the amount of some $900,000, which the firm failed to make good, and the bank in consequence had a heavy debit balance in the Clearing House in the morning. The North America was not the only one in trouble. The North River and the Mechanics and Traders'-smaller institutions, having no connection with Wall street-were unable to supply the lawful money to make their balances good at the Clearing House. All these banks had ample resources, but could not obtain the actual cash. Their balances were made good by other banks, and in the afternoon the association resolved to issue certificates to any Clearing House banks on deposit of good collateral. The amount to be issued is unlimited and they are to be used only in settling balances at the Clearing House. Thus no bank having resources can hereafter be put in difficulty by temporary inability to obtain lawful money. The failure of the firm of C.M. Whitney & Co., a Stock Exchange house, and of Mr. David Richmond, of the Stock Exchange, were minor catastrophes of the day, as was also the suspension of Messrs. Narr & Friend, of the Philadelphia Stock Exchange, whose liabilities are small. The failure of the silk importing house of John T. Walker, Son & Co. added tc the general disquiet of the day in business and financial circles, and was also attributed to the general tightness of money and inability to obtain accommodation. S What Caused the Trouble. , Two causes are at the bottom of the monetary stringency. The exigencies of London, brought about by wild speculaS lations in the Argentine Republic and I pretty nearly every other part of the t world; and also the great business activS ity of this country, which has drawn , away money from eastern centers. The failure of Decker, Howell & Co. is also e due to this situation, but it was directly brought about by the studied and relentless pursuit of a clique of bear operS ators who saw the weakness of their t position and persistently sought their ruin.

3. November 12, 1890 Sacramento Daily Record-Union Sacramento, CA
Article from Sacramento Daily Record-Union, November 12, 1890

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Article Text

bling to purchase and prices leaping up 2 per cent. at bound. At noon money was tight, with no offers and 20 per cent. bid. The stock market after 11 o'clock showed a moderate volume of business in comparison with the enormous sales of the first hour, and while a firm tone prevailed the bighest prices were not generally maintained. Reading and Burlington were conspicuous for weakness and Louisville and Nashville and North American displayed most strength. Union Pacific held at from 48 to 463, and afterward held steady at about 47 Some sales were made under the rule for the account of Whitney & Co. Rumors of trouble among the banking institutions were current all day, but no one paid much heed, thinking they were the usual emanations of bear minds. After the close, however, it was learned that three banks, members of the Clearing House Association, had a difficulty in set tling the claims of other banks against them. There was a balance against toe Bank of North America of $1 400.000, which it was unable to settle. The other banks were the North River and Mechan ics' and Traders'. How the heavy balance was created against the Bank of North America was a puzzle. During the day the Mechanics' and Traders made its settlements with the Clearing house all right, and the other two banks received assistance from other banks in the association and pulled through all right. At the Bank of North America it was stated that the trouble was directly due to the account of Decker, Howell & Co., and now that account with that bank was in a stronger position than ever. The most important factor in the developments was the searcity of money. Right up to the close it was in urgent demand and 1 per cent. and legal interest was charged, equal to 189 per cent. per annum. This fact and the troubles of the banks caused a special meeting of the Clearing House Association, and after a long session it was decided to appoint a committee consisting of the President, with authority to issue clearing house loan certificates in order to enable banks to settle the balances between themselves. This action is ex pected to restore complete confidence. The failures reported are numerous. The first announcement to-day was that of Charles M. Whitney & Co., prominent members of the Exchange. Charles M Whitney & Co. represent here the Whitney National Bank of New Orleans and some other Southern financial institutions. The firm was composed of Charles M. Whitney, Edwin S. Larcher and Frank M. Larcher. Their assignment is to George W. Quintard, with no preferences. Whitney & Co. have been heavy losers in several stocks, of which they carried a large line. and some of which for a month past have been almost unsaleable. It is not known yet whether the aggregate lia bilities will be sufficient to cripple any other traders. The assignment is reported of John T. Walker, Son & Co. importers, etc. They are rated by R. G. Dun & Co. at over $300, 000. The tirm was composed of John T Walker, John W Coombs and Joseph Walker. William T. Ryle was made as signee. The cause of the failure of Walker & Son was the inability of Nightingale Bros. & Knight of Paterson, N J., silk manufacturers, to liquidate their liability to the firm. According to Assignee Rytes, the Paterson firm owes the estate of John T. Walker & Son, $140,000, of which $100 000 is overdue. The active capital of Walker & Son for the past two years has been $300,000, so they were unable to withstand the loss. The firm has been carrying a heavy load for the past four years, and whenever the Paterson firm was unable to meet its obligations it was taken care of. Owing to the tight money market and a suspicion as to the silk firm's paper, caused by several recent failures, the firm was unable to get the usual commodations and suspended pay. ment. The liabilities are $1,100,000. The nominal assets are $1,300,000, composed of $500,000 in merchandise, and $800,000 worth of accounts and bills receivable, of which over $400,000 are due from Nightingale Bros. & Knight. An attachment was issued this afternoon against Nightingale Bros. & Knight, silk manufacturers of Paterson, N. Y. for $63,069 favor of Walker, Son & Co., assignees of the Walker firm. It is said the attached firm owes them $410,000. The failure of Decker, Howell & Co. is also announced on the Stock Exchange Decker, Howell & Co. made an assignment to William Nelson Crowell. The firm is one of the largest on the exchange, and is considered very wealthy. It has been identified for years with the movement of Villard stocks, and was generally considered Villard's special brokers. The failure dispersed the cloud that had been hanging over the market. and after it was announced a rally of to per cent. occurred. Assignee Cromwell said this afternoon The liabilities are about $10,000,000 and the assets at present market prices largely exceed that sum. The liabilities are due almost entirely to banks and bankers on loans made in the course of business and are well secured. The cause of the suspension was the inability to borrow the necessary amount of cash required in the day's business. The firms transactions were very large, it being necessary to borrow several millions daily The firm had an abundant of collateral to-day and it was not for the lack of security, but the inability to make it available that caused the crash It was simply a matter of absolute inability to get money on the best securities, owing to extraordinary money stringency now prevailing As securities are their special line there may be a disposition on the part of the creditors to sacrifice them on the market but such a course would be suicidal It the creditors have good judgment to hold securities they will be amply protected The firm of Decker Howell & Co. was one of the most prominent on the Stock Exchange. It was identified not only with the Villard stocks but with the Standard Oil interests as well, and also carried ac counts of some of the largest stock operators in Chicago. After their failure was announced. large sales for their account were made, under the rule, in the Edison General Electric stock, forcing it down 241 points. A large amount of Great Northern preferred, Northern Pacific common and preferred, North American, Manitoba. Wisconsin Central and Missouri Pacific was also sold, causing depression in those stocks. PHILADELPHIA, November 11th. - The stock brockerage firm of Narr & Friend has suspended. They say their embarrassment was caused by the continued drains produced by the active market of the past ten days. The firm hopes the suspension will only be temporary. They are are unable yet to make a statement of the assets and liabilities, but it is thought they are heavy. The firm has been long of the market lately. especially on Northern Pacific stocks. When these stocks broke badly to-day on account of the failure of Decker. Howell & Co. in New York, Narr & Friend called upon a number of customers for margins, but they failed to respond, and the firm could not carry out their contracts. This evening it is said that $25,000 will cover their differences. ASHINGTON, November 11th -Secretary Windom said this evening that his latest information from Wall street was that the situation was improving, with indications

4. November 13, 1890 New-York Tribune New York, NY
Article from New-York Tribune, November 13, 1890

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WALL STREET EASIER. ANOTHER BANK SUSPENDS. THE NORTH RIVER CLOSES ITS DOORS.

5. November 13, 1890 Daily Tobacco Leaf-Chronicle Clarksville, TN
Article from Daily Tobacco Leaf-Chronicle, November 13, 1890

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A MAELSTROM Into Which Several Wealthy Firms Are Drawn. Disastrous Days In the New York Stock Exchange. As Usual Jay Gould is Held Responsible for It. Among Them is C. A. Whitney & Company, Brokers: John T. Walker, Sons & Company, silk Importers, and Decker, Howell & Company, Brokers -Liabilities of the Latter Estimated at $10,000,000. Three Banks Unable to Settle. NEW YORK, Nov. 18.-Monday and Tuesday was two of the most disastrous days in the history of the Stock Exchange. Alarming cablegrains from abroad started the breakup, and as the prices plunged downward numerous firms were forced to assign on account of tight money The banks- the Bank of North America, the North River and the Mechanics' and Traders' at the close of business Tuesday night had difficulty in settling the claims of other banks against them. The first named had a balance of $1,400,000 against it. C.M. Whitney & Company Go Under. One of the most prominent houses on the Exchange went under early in the day, C. M. Whitney & Company, brokers, of 96 Broadway, making an assignment as soon as the county clerk's office opened. The firm was one of the richest in the street. They were known as the Louisiana Whitneys, and represented many southern institutions. including the Whitney National bank. of New Orleans. They were identified heavily and interested in the Toledo and North Michigan railway, and the Hocking Coal and Iron company, and Texas Pacific. The liabilities were given in round numbers at $850,000.* John T. Walker, Sons & Company. A second failure. one for $1,000,000, was announced. Great surprise was expressed when it became known that John T. Walker. Sons & Company, importers of silk at No. 81 Pine street, had made a general assignment to William T. Ryle, of the firm of William Ryle & Company, in the same line of business at No. 54 Howard street. The assignment was drawn up Monday night and filed the first thing Tuesday morning in the county clerk's office. The cause of the failure was the inability of Nightingale Brothers & Knight, of Paterson, N.J., silk manufacturers, to liquidate their liabilities to the firm. The firm is rated by Dun & Company at over $300,000. Deeker, Howell & Company. Just after 2:15 p. m. the failure of Decker, Howell & Company, of No. 44 Broadway, was announced in the Stock Exchange. The firm is one of the largest on the exchange, and was considered very wealthy. It had been identified for years with the movements of the Villard stocks, and were generally considered Villard's special brokers. The failure was considered the cloud that had been hanging over the market. and after it was announced a rally of 1 1 to 2 per cent. occurred. W. Nelson Cromwell, the assignee of the firm, made the following statement concerning its affairs late in the afternoon: The liabilities are about $10,000,000. and the assets, at the present market price, largely exceed that sum.' David Richmond Goes Down. David Richmond, stock broker at 38 New street. made an assignment to Frank L. Requa. Mr. Richmond has been a member of the Stock Exchange since 1870. A number of smaller firms also went down in the crash. Money was exceedingly hard to get at enormously high rates, and confidence was not exhibited in any quarter. Tuesday night it was thought that the worst was over and that things would settle themselves into the usual channel. Rumors were current that the Vanderbilts would come forward and sell $10. 000.000 in bonds to the government and thus ease the market. Jay Could Blamed. The trobule was laid to Jay Gould Wall street has for years looked upon Mr. Gould as its evil genius. Any decline in stocks. any stringency of money. is at once ascribed to his wicked machinations. The method of explaining away disagreeable events is popular in Wall street, because it saves thought. Tuesday his name was on many lips, and was not joined with blessings, but with maledictions. Mr. Gould was quoted as having said that he had 'got what he wanted in Union Pacific. These things seem to give authenticity to reports which have been in circulation of late, that Mr. Gould was trying to depress the market with a view to acquiring stocks.

6. November 15, 1890 Baxter Springs News Baxter Springs, KS
Article from Baxter Springs News, November 15, 1890

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UNEASY WALL STREET. Three Large New York Banks Narrowly Ese cape Suspension. NEW YORK, Nov. 12.-Rumors of trouble among banking institutions were current all day in Wall street, but no one paid much heed to them, thinking that they were the usual emanation of bear minds. After the close, however, it was learned that three banks, members of the New York Clearing House Association, had difficulty in settling the claims of the other banks against them. There was a balance against the Bank of North America of $1,400,000, which it was unable to settle. The other banks were the North River and the Mechanics' & Traders'. How the heavy balance was created against the Bank of North America was a puzzle. It was thought that the firm of Decker, Howell & Co. had overdrawn their account to that extent, but this could not be definitely ascertained. During the day the Mechanics' & Traders' Bank made its settlement with the clearing house and the other two banks received assistance from the other banks in the association and pulled through all right. At the Bank of North America it was stated that the trouble was directly due to the account of Decker, Howell & Co., and that now the account of that firm was closed, the bank was in a stronger position than ever. The most important factor in the developments was the scarcity of money. Right up to the close it was in great demand and one-half per cent. and legal interest was charged on loans, equal to 189 per cent. per annum. Oliver Peabody, of the banking house of Kidder, Peabody & Co., expresses views of the situation which are worth remembering, because they are tersely and clearly stated and are comprehensive. He says: "While imprudent business men are at present spreading adverse reports I can not see otherwise than that the commercial trade of the United States is on a sound basis. There is no great expansion and no large over speculation here in the country, and the community as a whole is not over invested. Europe has sent us an enormous amount of money for our breweries and industrial undertakings, but we have the money and Europe has the properties. I do not see why it should be any concern of people here whether the English people or the English underwriters hold their shares. Whatever may be their intrinsic value they can not sell them now and they can not send them here and get their money back. It may be squally in the financial world for the next two months, but except for the low rates that some Western railroads are getting, I can not see any thing radically wrong in the situation here."

7. November 20, 1890 The Sauk Centre Herald Sauk Centre, MN
Article from The Sauk Centre Herald, November 20, 1890

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# CLOSE MONEY. There has been almost a panic in financial circles on both sides of the Atlantic during the past week-a great stringency in the money market, and a depression in stocks, bonds and bread stuffs which has forced a half dozen firms of brokers to the wall. The primary cause was the demand made upon the great London banking house of Baring Bros. by the Russian government for $25,000,000 in gold, which was transferred to Germany. The Russians became suspicious of the banking firm on account of its large holding of depreciated Argentine Republic securities, and thereupon demanded the money it had on deposit. The firm attempted to save itself at first by throwing a vast amount of securities upon the market and an excited state of affairs resulted. The Bank of England and other great banking houses came to the relief of the Baring Bros., and they were saved the disgrace of suspension. They are solvent, but the immense drain upon their treasury for cash was greater than they could stand without sacrificing securities. The New York market, in sympathy with London became excited and panicky, and one bank-North River-a state institution succumbed and went into the hands of a receiver. Confidence has been restored, and while money is still very close, yet it is believed that the worst is over. During the height of the excitement, money loaned on collateral security for short time at the rate of 186 per cent. per annum.

8. November 21, 1890 The Great West Saint Paul, MN
Article from The Great West, November 21, 1890

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That Panic in Finance ! Now, men of toil in the West, what will you say as to the judgment of the GREAT WEST? More than ten months ago, before the first ripple had moved out on the calm commercial sea, we stated in great double-column editorial articles that ere many months rolled by the world would be shaken by an awful commercial crash-such as the world rarely witnessed. Within a few weeks the first ripple started from Wall Street Center. Knowing well the awful expansion of the bogus securities drawing blood from the producer, the gamblers were frightened and appealed to the government. Quick as lightning, call exchange-short loans-went up to 190. The Government sneaked in at the back door of a bank and told them to placard loans at 6 per cent-and the U. S. G. would back them ! This promptly brought down the market and there was no crash ! Such a thing had never been done before-and if Wall Street were not the real seat of government such a step would have been TREASON! But it worked. Again the suggestion went forth from this office-that the irrepressible fever would return-and that every laboring man should get a $50 bill by him, and look out for his funds. It did return-and this time the government not only poured millions into Wall Street, but it actually gave several millions without any consideration whatever. Again the storm was arrested. But the devouring maw of plutocracy, fed upon paper which drew blood and then increased its remorseless stomach-must reach its bursting point. And thus, within a few weeks the Stock gambling hell-or in other words, the CENTRAL GOVERNMENT became convulsed again. This time two of the greatest corporations in this country went over, and the grey-aged, rock-buttressed, centurybound house of Baring Bros., of Europe, succumbed. Others followed. But some of these were restored!-and the very process of restoration saved the entire country from a smash-up for a brief period. This PROCESS OF RESTORING BANKS is one to which we have often referred. It is a combination amongst themselves to stand by each other in danger, realize for each other on their securities, and thus maintain both the paper and the banks. The associations are known as Clearing Houses, in the cities. The officials of the Clearing House examine the securities of the breaking bank, and take money over to that bank from the other banks. Thus the "run" is met-the depositors feel secure, and the bank soon pays back, from re-deposits or by sale of the securities, the cash brought over. But there is another method of forcing quiet throughout the country. THE ASSOCIATED PRESS is wholly owned by the plutocrats. The daily papers can only get such information as this monopoly chooses to give. And it gives an understanding to the journals of the west not to put it as badly as it is even on the limited despatches sent. As Beerbohm's European grain despatches are frauds so are the panic despatches. There was a more terrific panic on Wall Street last week than ever before occurred on the face of the globe-but the great western dailies made light of it. Had the news of the explosion of the vast bubble of Villard's, (the "North American Company" being capitalized at nearly seventy-five millions), to say nothing of the ten-million failure of his bankers, and the four or five other failures-been known as was the Jay Cooke failure of 1873, there would not be an open bank to-day in the United States Here are the headlines for one issue of the N. Y. Daily Herald-compare it with what we got out west. We put these in small type, but the Herald blazed them forth in large display type, with a picture of the throng crowding on even the curbstone far outside the stock exchange: MILLIONS LOST IN WALL STREET'S WAVE OF PANIC. Three firms carried down in the wild swirl and three banks shaken almost to their fall by the shock of the financial elements. Decker, Howell, & Co. under-liabilities, $10,000,000. C. M. Whitney & Co., with liabilities near $1,000,000, also submerged, and and David Richmond so far out of sight that he can make no statement. Bank of North America $900,000 short for awhile. But, like the North River and Mechanics and Traders', it was pulled through by prompt advances from other banking institutions of the city. Clearing house to the rescue. For the third time in Wall Street history the associated banks at a hastily called special meeting issue certificates to relieve New York from one of her darkest financial days. Has Villard been caught? Decker, Howell & Co., were swamped by his securities-the stringency of money at nearly one hundred per cent responsible for the general panic in the market. The awful period, again averted, may be regretted and postponed, but it has got to come. Fully one hundred millions of bogus leech-sucker bonds and stock were wiped out by this blow-but they will suck blood and