16487. Prime, Ward & Co. (New York, NY)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
private
Start Date
September 9, 1847
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
44d73703

Response Measures

None

Description

Contemporary articles (dated Sept 9–24, 1847) uniformly report that Prime, Ward & Co. suspended payment on Sept. 9, 1847, citing failures of European correspondents (Overend, Gurney & Co. and others). No explicit contemporaneous article in the set confirms a resumed operation, but multiple pieces state a resumption is expected upon receipt of advices/acceptances by the next steamer and that suspension was an act of prudence rather than insolvency. Given the consistent expectation of prompt resumption and absence of evidence of permanent closure in these items, I classify this as a suspension with likely reopening.

Events (1)
1. September 9, 1847 Suspension
Cause
Correspondent
Cause Details
Failure/embarrassment of European correspondent banks (e.g., Overend, Gurney & Co., Giles Son & Co., Alexander & Co.) leading to large unpaid bills and prudential suspension of payments.
Newspaper Excerpt
We regret to inform you that owing to the recent failure of some of our correspondents in Europe, whom we have a large amount of bills running, we feel it incumbent upon us, both from a sense of duty and as an act of prudence, to suspend payment. (Signed) PRIME, WARD & CO.
Source
newspapers

Newspaper Articles (10)
1. September 10, 1847 The Daily Union Washington, DC
Article from The Daily Union, September 10, 1847

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EDITOR'S CORRESPONDENCE. From our New York Correspondent. NEW YORK, September 9, 1847. In the legislature this morning a communication was sent in by the governor to both houses, announcing the death of Mr. Wright. It was referred to a joint committee to report at 4, P. m., until which hour both houses adjourned. Doubtless appropriate action will be taken in the matter. The event is too recent and too great to have it otherwise. The stoppage this morning of one of our greatest banking houses, Prime, Ward & Co., though some time feared by those best acquainted with Wall street, has produced a profound sensation in this city. The house is as well known in America as that of Barings in England, and has held the very highest position in the mercantile world. Its draits always commanded the best rates, and were counted as good as gold." Its engagements are believed to be very large; but there is hope that they will be promptly met, and that the present suspension is merely temporary. It has been rendered necessary by the recent embarrassment in the English money market, and the failure of several English houses connected with P., W. & Co.'s house here. The export trade of this port for the current year will be large beyond example-exhibiting, on the whole season, a heavy increase on the business of any former year. The annexed table exhibits the exports for the first eight months (from January to August inclusive) of this and the two previous years:

2. September 10, 1847 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, September 10, 1847

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COMMERCIAL AND MONEY MATTERS. For sales of Stocks, &c. see Fourth Page. THURSDAY P.M. There was a rally in the market to-day among the fancies, and a general Improvement Norwich sold 2) per cent above the lowest point of depression yesterday. Harlem also improved. For Treasury Notes there was fair demand at 21 per cent. The sales at the Board of the fancies were large. Gossip in the street tella some rather rich incidents consequent upon the graud Norwich explosion yesterday. In Bills there is little or nothing doing. Sterling held at 81@9, but remitters are unwilling to pay these rates. France are The market for Freights is firm but inactive. An engagement of 2,000 bble Flour was made for Liverpool at 2s. Grain is entirely nominal at 6d@7d. Cotton is going forward at 3-16d@7-32d. The rate to the Contineut ic. Wall-st. this morning was greatly agitated by the announcement that the highly respectable Exchange and Banking house of Prime, Ward & Co. had suspended payment. They have published a Card stating the cause to be the failure of certain houses in England, whose bills they have taken to a large amount it is understood that they have made large advances upon Flour and Grain shipments to those houses, which have and are likely to turn out very disastrously. We hear of DO other houses here likely to be affected by this event, and on all sides great sympathy is expressed The stoppage we understand was an act of prudence rather than of necessity, and if there had been any good grounds for hope that the news by the next stesmer would show an improvement in prices and in the money market, they would have continued The liabilities of the house are between one and two millions. a large part of which is understood to be held by the Barings, who have protect ed many of their bills. The London houses which have recently failed, Messrs. Giles Son & Co. and Messrs. Alexander & Co. it is hoped will be able to pay twenty shillings to the pound, in which case Messre Prime, Ward & Co. will lose comparatively little. And at any rate their assets are very large, and the deficiencies we should suppose could not be very considerable. The head of this house, Mr. John Ward is also of the house of John Ward & Co. which firm has been dissolved day. The remaining partners continue the business with & large active capital. The following is the Circular which Mesare. Prime, Ward & Co. issued this morning NEW-YORK Sept 9, 1847. Dear Sir: We regret to inform you that owing to the recent failure of some of our correspondente in Europe, whom we have a large amount of Bills running, we feel it incumbent upon us, both from a sense of duty and as an act of prudence, to suspend payment. Very respectfully yours. (Signed) PRIME, WARD & CO. The Albany & Schenectady Railroad Co. (late Mobawk & Hudson) have declared a dividend of two and a half per cent payable on 15th October proxtino.The earnings of this road for the past year have been very large, and are still increasing yielding, it is understood. full seven per cent not on its capital. This is the commencement of its dividends, and will doubtless be followed by others at regular six month intervals The Board of Directors of the Long-Island Rail. road Co. have ordered a revision of their tariff of passenger fares. The same to be advanced to two and A half cents per mile in lieu of the present rates of two cents and under. The new rates will be much below the rates charged by the roads West of Albany, and even below the rates charged by the New-England roads. The increase will give the Company about 25 per cent. increase of income. to which they are fully entitled in considerstion of their large expenditure, and for which hitherto the stockholders have had no returns. The receivers of the Manhattan Insurance Company have declared a final dividend of two per cent. making in all 82 per cent. to claimants of losses by the great fire of July, 1845. payable on demand. We understand that a quarter eagle was offered at one of the Wall-et. Banks yeaterday, of which the exocution was ao good that it was almost impossible to detect the fraud. The mechanical execution of the piece is equal to that of the mint and it is within a small tride of the weight of the genuine $2.50 pieces.

3. September 15, 1847 The New York Herald New York, NY
Article from The New York Herald, September 15, 1847

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THE CASE OF PRIME, WARD & Co.-The suspension of this extensive private banking establishment, will not create so much embarrassment in financial circles (as first anticipated. The liabilities of the house are not near so large as reported, and there is every probability of a resumption taking place immediately upon the receipt of advices by the next steamer. Should the accounts from England be at all favorable, every farthing of their debts will be promptly paid. The surplus exhibited is very large, and it would take a series of serious losses to make the concern bankrupt A very large amount of their bills have been protested for non-acceptance, which places them in H better po ition than if they had been pro tested for non-payment, as the property upon which the non-accepted bills were drawn falls again into their hands, and is appropriated to their liquidation. Bills protested for non-pay. ment take their chance amongst the liabilities of the house upon which they are drawn.

4. September 15, 1847 The North-Carolina Standard Raleigh, NC
Article from The North-Carolina Standard, September 15, 1847

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Heavy Failure in New York. Prime, Ward & Co. of New York have failed. The New York Correspondent of the Washington Union thus notices the fact : 66 The stoppage this morning of one of cur greatest banking houses, Prime, Ward & Co., though some time feared by those best acquainted with Wall street, has produced a profound sensation in this city. The house is as well known in Amerca as that of Barings in England, and has held the very highest position in the mercantile world. Its drafts always commanded the best rates, and were counted "as good as gold." Its engagements are believed to be very large; but there is hope that they will be promptly met, and that the present suspension is merely temporary. It has been rendered necessary by the recent embarrassment in the English money market, and the failure ot several English houses connected with P W. & Co.'s house here."

5. September 16, 1847 Vermont Watchman and State Journal Montpelier, VT
Article from Vermont Watchman and State Journal, September 16, 1847

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Money Matters. The Treasury Department reports that it had Treasury notes to the amount of $15,808,439 31 outstanding on the 1st instant; and on the same day the funds in the hands of the sub-treasurers, subject to draft, amounted to barely $4,727,051 54. Prime, Ward & Co. bankers, of New-York city, have suspended payment. This was the heaviest establishment in this country-excepting perhaps the government bank of Bob Walker; and that seems bound to a speedy suspension.

6. September 16, 1847 Vermont Phœnix Brattleboro, Bellows Falls, Ludlow, VT
Article from Vermont Phœnix, September 16, 1847

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GREAT FAILURE.-The firm of Prime, Ward & Co., perhaps the most extensive banking firm in the country, suspended payment on the 9th inst., in consequence of the failure of some of their European correspondents. The failure produced a great sensation in the monied circles in New York. It was feared that another banking house, of which Mr Ward was a partner, viz., John Ward & Co., would go down too, but it is stated that Mr Ward has withdrawn from the firm, and all its engagements will be fulfilled -the business being carried on by the remaining partners. The New York Express states that it is believed that the failure of Prime, Ward & Co. will not bring down any other house. Their liabilities have not yet come back, but they are expected by the next steamer.

7. September 17, 1847 The Lancaster Gazette Lancaster, OH
Article from The Lancaster Gazette, September 17, 1847

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GREAT FAILURE IN NEW YORK.-The Eastern mail this morning, brought the intelligence of the stoppage, yesterday, of the great banking house in New York of Prime, Ward & Co. The announcement has caused quite a sensation, as it was well calculated to do, in New York and almost everywhere else, so extensive were their operations, and so high their character for wealth. The Express referring to the suspension says: It is well know that this firm is composed of gentlemen of the highest character for integrity and honor-and until within a few days have enjoyed the highest confidence as Bankers. The failures of certain London houses have brought about the necessity of the house to suspend operations, for the present. Their engagements are large, and the report has cre ated quite a sensation in Wall street.Balt. Patriot.

8. September 21, 1847 The Northern Galaxy Middlebury, VT
Article from The Northern Galaxy, September 21, 1847

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comprised an area of 371,124 square inter. 226.which the six Slave States contained nonof or 22 37ths of the whole. and the 000, slaveholding States 145,124, or 15-37ths. the entire extent of our 9.920.000 square miles, of Now. is common which quite coun- the 11try Slave States possess 860,000, not 37ths; and the others 2.060,000, or 25 27ths; times being a growth in the latter of fourteen their original cize, while in the same period of time the Slave States have not quadrupled theirs. PUBLIC OPINION IN TENNESSEE. The Ohio Press makes the following statement:ourselves heard Senator Janargin that if the submitted to the people declare We tion were have repeatedly. abstract them of Tenne- would quessseee to-morrow. three-fifths of vote for the abolition of slavery.' The will of Mr. Stoyvesant, recently deceased in New York gives the following sums to public institutions:85,000 American Bible Society, 1,000 American Tract Society. 3,000 Institution for the Blind. Protestant Half Drphan Asylum, 5,000 estate is estimated by with his property, at leaves r quainted His real He about $2, those well 000,000-personal at $300,000, half his real estate to twelve nephews the one and neices; and to three other nephews other half. `IMPORTANT FAILURE IN New YORK. the The fail. Papers bring 118 an account of bankNews of one of the most extensive private which has ure houses of that city- a house ing been a lower of strength-that of also Ward & Co. Mr. Ward was Prime, another house, that of John heretofore partner of said will not & Co., which firm. it is other. Ward affected by the stoppage of the New be The following circular appears in the York papers - NEW YORK, Sept. 9, 1847. We regret to inform you that, owing to the failure of some of our correspondents recent on whom we have a large amount of in bills Europe, running, we feel it incumbent an upon act both from a sense of duty and as of Us prudence, to suspend our payments. Very respectfully yours, (Signed) PRIME, WARD & Co. The Express firm of John says Ward & Co., will be 'The by the withdrawal of Mr. A Ward new dissolved, all their engagments be fulfilled. of the will be established, composed on of the house, who go with the business. other firm and members will Co. None of the bills of Prime, Ward & come back, but it is anticipated that have vet will be returned by the nextsteamthey It is also believed that the stoppage will er not bring down any other house. The Journal of Commerce estimates, who have in of the number of immigrants eight arrived view in this country during the past months, that the total number for the of present million, year will amount to a quarter a POWERS' STATUE OF THE GREEK already SLAVE. production of our countryman, world as one The the civilized and most perfect specimens art, celebrated the through works of of living the of of any of the of most is now to be seen at the on the corner has s and Leonard street. artists. National perfect academy This statue rooms of of elaborate Broad- the way been made the subject by those frequently and pronounced faultless discriminacriticism. to speak with are do not feel it necessary to attention. It cannot its tion, who claims that qualified we admiration, be and contem- to urge while that without intense the fact plated pride is gratified by and in national of countrymen in his youth thus atone youthfulness our of his country has the highest the the highest eminence in still be more rained of art. the beholder will be of human walk impressed by the power the block deeply thus to mould and fashion beauty genius into the form of life and intelliof marble the expressions of feeling, revealed.with gence all and grace which are here [N. Y, Observer. the prevalence of the yellow fever of During Orleans. four of the newspapers times at New will be published but three And the that city The Commercial Bulletin and week. will appear on alternate days; by the Times same arrangement has been adopted the Courier and Bee. LAW SCHOOL. Judge Storrs Profess- has YALE tendered his resignation been as accepformally Law in College, which has and Henor of His Excellency Gov, Bissell been elecred. Dutton, Esq. of Bridgport, have the resry fill the chairs made vacant by death of signation red to of Judge Storra and the Isaac H. Townsend, Esq. has heen decided by the Corporation have at It scesion, as we learn, to with their public exercises some School-a law have Law present annual commencement. connected Schools the Medical and Theological to be a proThe already, and there seems favor to the this extending the same Palladilegal priety department. in New Haven UBI. of The Liberty met Party at Worcester State Convention on the in Massachusetts and nominated S. S Sewall and J. GovM. 1st inst. Brewster for Governor and Lieut. ernor. resolution nominating John P Haleto was the A Presidency, after a sharp debate, voted down. MR, MARSH'S ORATION. BEFORE THE PHI BETA KAPPA SOCIETY AT HARVARD UNIVERSITY. accounts coneur in pronouncing The this effort All an admirable performance. Boston Atlas says: The Hon. George P. Marsh addressed quarter in the a for hour and a rivetted the assembly of elequence an that closely strain quention of his large audience.

9. September 21, 1847 The Daily Union Washington, DC
Article from The Daily Union, September 21, 1847

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EDITOR'S CORRESPONDENCE. From our New York Correspondent. NEW YORK, Sept. 20, 1847. Friend Greeley allows his milk of human kindness to be too much soured by the defeat of his party in Maine. He does not spare the bitterest invectives against the whigs of that State. He calls their conduct "dastardly, treacherous, infamous." In his wrath he does not spare any of themthose who voted, or those who did not; but declares "Not merely those of them who neglected to vote, but that larger number who failed to use proper exertions to secure a full vote, have richly deserved the execration and contempt of the faithful upholders throughout the Union of the cause they have so basely betrayed." Such passionate and sweeping invective as this is not at all philosophie, and scarcely to be expected from a veteran politician. The acceptance of Prime, Ward, & Co.'s drafts, by Overend, Gurney & Co., of London, to the amount of £70,000. and of some others on other houses to the amount of £30,000 more, has given marked satisfaction in Wall street, and greatly relieved the feeling of those who had bought the drafts for remittance. The fear that these very drafts would not be accepted, was the immediate cause of the suspension of Prime, Ward & Co. They could have had ample means to enable them to go on but if these draft were to come back upon them, it was thought unjust to the creditors at large to attempt it. Now it appears that from these drafts nothing was to be apprehended. What a pity there could not have been a telegraph across the Atlantic The great New York banking-house, for a quarter of a century sans peur et sans reproche, need not have bowed its high head to discredit. The business of the custom-house for the last week sums up as follows, showing a handsome increase in the receipt of duties: 1837 Week ending Sept. 19. 1846. Free goods - $240,857 146,647 Decrease, $94,220 907,746 Dutiable goods 1,832,463 Increase, 924,717 Total merchandise, $1,148,613 1,979,110 Increase, 830,497 9,838 34,242 Specie Increase, 24,404 Total - $1,158,451 2,013,352 Increase, 854,901 Duties 273,886 464,695 Increase, 190,809 This is exclusive of goods sent to the warehouse. The exports for the same week were $701,675. Passengers arrived, 5,945. The Britannia comes round here to-morrow, to repair damages sustained by her when she rubbed her keel upon the sand-banks of Cape Race, Newfoundland, on the 14th instant. We shall have our "Bosting" friends giving all sorts of reasons for her coming here to be repaired. except the real one-that it can be done here best. She will be an object of very general curiosity, as one of the finest line of sea-steamers in the world. The whole number of deaths last week was 261 ; which shows that the city is rapidly recovering its ordinary healthful state. The deaths of children under two years was 102. The aggregate quantity of flour, wheat, corn, and barley left at tide-water, from the commencement of navigation to the 14th September, inclusive, was as follows : Flour bbls. Wheat hush Corn hush Barlay heh

10. September 24, 1847 Wilmington Journal Wilmington, NC
Article from Wilmington Journal, September 24, 1847

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The case of Prime, Ward & Co.-The suspension of this extensive private banking establishment will not create so much embarrassment in financial circles as at first anticipated. The liabilities of the house are not near so large as reported, and there is every probability of a resumption taking place immediately upon the receipt of advices by the next steamer. Should the account from England be at all favorable, every farthing of their debts will be promptly paid. The surplus exhibited is very large, and it would take a series of serious losses to make the concern bankrupt. A very large amount of their bills have been protested for non-acceptance, which places them in a better position than if they had been protested for non-payment, as the property upon which the non-accepted bills were drawn falls again into their hands, and is appropriated to their liquidation. Bills protested for non-payment take their chance amongst the liabilities of the house upon which they are drawn N. Y. Herald,