Pacific National Bank - New York, NY

Bank Information

Episode Type: Suspension → Closure
Bank Type: national
Bank ID: 1224
Charter Number: 1224
Start Date: November 19, 1881
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: fdc4aeb1

Response Measures

None

Description

Article (New-York Tribune, 1881-11-19) reports the Pacific National Bank 'had suspended' due to large overdue paper concentrated in one broker (Theodore C. Weeks). There is no description of a depositor run; suspension appears linked to bank-specific bad loans and attempts to reorganize/obtain support failed, consistent with permanent closure/receivership risk.

Events (3)

1. June 5, 1865 Chartered

Source: historical_nic

2. May 10, 1869 Voluntary Liquidation

Source: historical_nic

3. November 19, 1881 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Large concentration of overdue paper (about $500,000) tied to broker Theodore C. Weeks; inadequate collateral and inability to secure support led to suspension.
Newspaper Excerpt: he had suspended. CAUSE OF THE FAILURE. ... the Pacific National had out about $500,000 of overdue paper, all of which amount was held by a single concern.
Source: newspapers

Newspaper Articles (1)

1. November 19, 1881 New-York Tribune New York, NY

Article from New-York Tribune, November 19, 1881

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Article Text

Total The capital of the bank was originally $500,000 Recently it was increased to $1,000,000, and it is understood that the entire amount, except $3,000, has been paid in. A well-known broker said this afternoon that be was not surprised at the suspension, from the fact that the Pacific National Bank was not in the receipt of Clearing House privileges, and was consequently liable to suffer from unusual demands. He did not believe there was any defalcation or shortage in any official's accounts. A Congress-st. banker said that he was not SILEprised at hearing that the bank had suspended. Within the last twenty-four hours the bank had offered him its certificates of deposit at an extraordinarily high rate, and he had refused to take them. Beyond that he had had no dealings with the bank and knew nothing relative to its affairs. He had heard that the bank had $1,300,000 of its certificates of deposit scattered all over the city, and that this morning it had suspended. CAUSE OF THE FAILURE. Another account says: The present catastrophe has been impending since last January, when the Pacific Bank began to carry Theodore C. Weeks, a stock broker, who became heavily indebted to the bank. At a meeting of the creditors of the bank held last evening, it was found that the Pacific National had out about $500,000 of overdue paper, all of which amount was held by a single concern. Most of this paper consisted of Weeks's notes, and when interrogated the Pacific Bank people admitted that they had no money with which to meet them. An effort to save the bank from disaster was made this morning, when an offer of support was made by other bank presidents to the amount of $500,000, provided satisfactory collateral could be offered. Certain collateral was offered by the Pacific National, but on examination it was not considered satisfactor by the bank presidents referred to, consequently, aid not forthcoming from this or any other quarter, the Pacific Bank was obliged to suspend. A prominent bank official said to-day that Weeks has been dealing extensively in the stock of the Eastern Railroal. Silver Islet mining stocks and Erie bonds. Weeks owes various banks in Boston upward of $4,000,000, all supposed to have ample security, based on to-day's valuawas tion, except the Pacific. A meeting held later 111 the day at the Pacific Bank, with a view of inducing one of the wealthiest directors of the bank, Lewis Coleman, to become its president upon a new organization, which will include some new directors and the reduction of its capital stock to one-half of what it now is. Should this be successful the five banks above referred to will renew their offer, and put the bank in a position to reopen its doors immediately. The excitement has give rise to a vaof wild reports regarding the effect riety of this suspension upon other banks. There IS the best authority for believing that none of the other banking institutions of the city will suffer to an extent sufficient to impair their soundShould the collateral, which one or two ness. depreciate largely, there would still be to meet the obligations a banks margin hold, of the Pacific Bank. Eastern railroad stocks, which was largely held by the Pacific National Bank, dropped from 48 to 38, on sales of about 12,000 shares, and closed at 39 bid.