New Haven County Bank - New Haven, CT

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: *
Location: New Haven, Connecticut (41.308, -72.928)

Metadata

Model: gpt-5-mini
Short Digest: 52b3d556

Response Measures

None

Description

Article (Nov 19, 1839) discusses the bank's actions during the suspension of specie payments and describes the bank purchasing other banks' notes to circulate. No explicit run or receivership is mentioned; the bank appears to have continued operations, so classified as a suspension with subsequent reopening/continued operation. Date of the suspension is not specified in the excerpt.

Events (1)

1. * Suspension

Cause: Macro News
Cause Details: Suspension of specie payments amid widespread currency difficulties and strained specie reserves; banks generally had more funds in New York and specie scarcity led to suspensions and evasive practices (buying other banks' notes).
Newspaper Excerpt: In this way the New Haven County Bank purchased $50,000 at an average discount of 2 per cent in a few months, during the suspension.
Source: newspapers

Newspaper Articles (1)

1. November 19, 1839 Morning Herald New York, NY

Article from Morning Herald, November 19, 1839

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Article Text

Other liabilities, 29,352 Specie, 31,728 Totat liabilities, $940,043 Total resources, $940.043 A great proportion of the paper discounted by the Connecti- cut banks, is payable in New York. They have therefore usu- ally more funds here than they find it convenient to draw for. The balance is used for the redemption of their notes generally If their notes therefore are at a discount of 2 per cent, the per- son who brings them here suffers the loss, and the bank redeem- ing them with her surplus funds, pockets the gain. This has opened the door to abuse. and some of the banks have used their means iu buying the notes of other banks, for the purpose of furnishing themselves with a circulation, after calling in their own notes. In this way the New Haven County Bank purchased $50,000 at an average discount of 2 per cent in a few months, during the suspension. The same bank, during the past year, kept an account with the United States Bank and purchased, in Boston, bills of exchange on Philadelphia, to a large amount, at a discount of 2½ per cent, and paid for it in New York funds. She made ano her purchase of Philadelphia exchange in New York, at a discount of three per cent, and paid for it partly in New York funds, and partly in other funds, and the whole amount was placed to the credit of the New Haven County Bank by the United States Bank, and payment received in the bills of the late Bank of the United States, which were then paid out by the New Haven County Bank in lieu of their own notes. All these operations are discreditable, although they do not come within the pale of the law, and their present ingenious method of suspending specie payments is more cre- ditable to their ingenuity than their integrity. Notwithstanding the difficulties which environ the currency of the country, we hear daily of banks starting up under the new law, each one of which lives a few days and then stops-- thereby increasing the distrust in the public mind, and retard- ing that return of confidence in banks which would otherwise accompany the increasing ease in the market arising from na- tural causes. The Clinton Bank of this city is preparing to commence business on the 1st January next. They have al- ready ordered $60,000 of circulating bills. At Buffalo an as sociation called "The Western Agency Bank," has been or- ganised, E. G. Spaulding, President, and John R. Lee, Cash- ier. This gentleman was formerly cashier of the bank of Buf- alo. It is particularly unfortunate that such endeavors should be made now to extend he already superfluous banking capital of this state. The banks already established with sound ca- pital find the greatest difficulty in maintaining themselves, and every association added to the number increases that dim- culty, by dividing the specie which is the basis, into sums so small, that a very moderate demand closes them up. This difficulty has given rise to that surreptitious issue of post notes and certificates of deposite, payable at a future day by the security banks, to which we have so often recurred. The same difficulty has induced malpractices on the part of certain of the safety fund vanks, whien have induced the inter- ference of the chancellor at the instance of the commissioners. The securities given by the new banks for their legitimate cur- rency, are daily depreciating, and require the exercise of great vigilance on the part of the comptroller to protect the public from loss according to the spirit of the law. The predicament in which most of the states stand in relation to their mears of meeting the interest falling due on their stocks, seriously affects the standing of all the banks doing business on this description of security. The events which have been maturing in England during the past few weeks, are rapidly approaching a crisis, the denoue- ment of which a few weeks will put in our possession. By that event, should American interests materially suffer, an ex- plosion in the state stocks must result, and as a consequence involve the ruin of the new banks. The progress of these events will reach us by the British Queen, but the return of the Liverpool will alone furnish the effect of the failure of the United States Bauk on American affairs generally. ### Sales at the Stock Exchange. $2500 Corpcration Bonds, 98-50 shares U. S. Bank, 71. 6 30 ds; 50 do 72, s 30 ds; 50 do 72s lw, 50 de 73, s 20 ds; 47 do 74-25 do Bank of Commerce, 93, s 30 ds; 5 do 93; 50 de 93, 16 ds; 40 do 93½-50 do American Ex Bank, 73½-10 do Union Bank, 97-10 do Seventh Ward Bank, 85-170 do Mechanics' Bk Ass. 61½; 60 do 61; 50 o 62, b 30 ds: 50 do 62½, b 30 ds- 47 do Kentucky Bank, 65; 25 do 65½, s 3 ds-25 do Vicksburg, 46, opg-7 de Illinois, 60-25 do Del & Hud 62¼. b 30 ds; 275 do 63 50 do 62¼, b 30 ds; 60 do 62, s 10: 125 do 62, b tw; 150 do b½, s 30 d 50 do 62, b3; 25 do 62; 50 do 61½, s 15 ds-50 de NA Trust 89.9 50 ds; 118 do 39½; 50 do 39¼, 1m; 60 do 38¾, s 60 ds; 25 do 39½, b tm-150 do Utica and Syracuse, 100 -26 do Paterson Railroad. 45-10 do Stonington, 15½; 6 de 164-10 do Mohawk RR 50¼-100 do Harlem Rts, 40½, 60 ds; 150 do 41, t w; 165 do 41; 100 do 41¼. b 10 ds; 350 do 41, b 10 ds; 50 do 41, s 30 ds.