16760. banks of New York (New York, NY)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
January 1, 1814*
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
59c5e0e9

Response Measures

None

Description

Articles discuss historical general suspensions of the banks of New York (plural) in 1814 and 1837. Both are described as general suspensions tied to broad events (capture of Washington/War of 1812 effects in 1814; widespread commercial distress/panic in 1837) and later resumptions years afterward. The bank name is plural/generic, so it's unclear which specific institution(s) are meant.

Events (2)
1. January 1, 1814* Suspension
Cause
Macro News
Cause Details
Suspension occurred immediately after the capture of Washington by the British (War of 1812 aftermath), a national wartime shock.
Newspaper Excerpt
The first general suspension of specie payments by banks, occurred in 1814, immediately after the capture of the city of Washington by the British. The banks of New York and all South and West suspended, and did not resume for three or four years.
Source
newspapers
2. May 10, 1837 Suspension
Cause
Macro News
Cause Details
Widespread commercial distress and failure of many firms in New York in spring 1837 precipitated the suspension (systemic panic/financial crisis).
Newspaper Excerpt
The general suspension, in 1837, began at New York, May 10 ... A general resumption of specie payments was attempted in 1839, but a large proportion of the banks did not succeed ... a universal resumption was not effected until 1843 and 1844.
Source
newspapers

Newspaper Articles (2)
1. October 20, 1857 The Western Democrat Charlotte, NC
Article from The Western Democrat, October 20, 1857

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Article Text

FORMER BANK SUSPENSIONS.-The first general suspension of specie payments by banks, occurred in 1814, immediately after the capture of the city of Washington by the British. The banks of New York and all South and West suspended, and did not resume for three or four years. The general suspension, in 1837, began at New York, May 10, and the next day the banks of Boston, Philadelphia and Baltimore followed. The banks of Cincinnati suspended on the 17th. A general resumption of specie payments was attempted in 1839, but a large proportion of the banks did not succeed in the operation, and a universal resumption was not effected until 1843 and 1844. The suspension in New York, in 1837, was preceded by a period of unprecedented commercial distress. Three hundred heavy firms failed there that spring, with liabilities estimated at forty millions of dollars, and it was said that two thousand men, dependent on their daily labor for their support, were thrown of employment. The pressure was equally severe in other places -one hundred and sixty-eight firms failed in Boston during the six months preceding the suspension.-Er. Paper.

2. April 1, 1903 The Weekly Register Point Pleasant, WV
Article from The Weekly Register, April 1, 1903

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Article Text

England and France the periodicity of panic is more noticeable than in other countries. This is attributed to the fact that these nations, along with a high degree of development and large accumulations of available capital, have also reached a stage of greater unifermity in commercial and industrial operations. For this reason the tendency toward a regular increase and decrease in industrial activity is more noteworthy. In countries like the United States. the industrial changes are more severe but less regular. This is attributed to the fact that in such countries new fields for enterprise are constantly being opened, which causes a more defined but less regular alternation of prosperity and depression. In the United States it appears that panic and business depres. sion recur about once in every 20 years. According to the twentyyear theory the first three crises during the last century were due in 1817, 1837 and 1857. The crises actually occurred in 1814, 1837 and 1857. The first crises was hastended three years before it was due by the capture of Washington by the British. This was followed a few months later by the suspension of specie payments by the banks of Philadelphia and New York. This precipitated the crisis. The second and the third crisis were in 1837 and 1857. The next one would have been due in 1877, but it was also hastened by the enormous businees disturbances caueed by the after effects of the Civil war. As a result the crises occurred four years earlier, in 1873. The next panic occurred exactly 20 years later, in 1893. Ao. cording to the twenty-year theory the next panic is not due until 1913. By that time it is contended the present prosperity this country is enjoying will have spent itself, an enormous amount of capital will have been wasted by being invested in unprofitable enterprises, there will be a large overproduction in certain lines, which extravagances, speculation and inflation will be rampant. The inevitable result will be a panic, followed by a few years of extreme conservatism during which a eufficient amount of new capital will be created to fill up the gaps and losses caused by the extrava. gancy and recklessnes of the previous years -New York Commercial.