banks of New York City - New York, NY

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: December 31, 1861
Location: New York, New York (40.714, -74.006)

Metadata

Model: gpt-5-mini
Short Digest: ff525cae

Response Measures

None

Description

Multiple contemporaneous articles (Dec 31, 1861–Jan 7, 1862) report that the banks of New York City suspended specie payments. The texts describe a collective suspension prompted by Civil War–related events (capture of Mason and Slidell and related international reactions), not by a depositor run. The sources do not state reopening, but historically this was a wartime suspension rather than an immediate permanent failure — I classify as suspension_reopening as the most likely outcome; chosen because there is a single clear suspension event, no run reported, and the suspension is driven by macro/military news. 'Bank name' is plural (city banks), so bank_name_unsure is True.

Events (1)

1. December 31, 1861 Suspension

Cause: Macro News
Cause Details: Suspension of specie payments prompted by Civil War developments and international reaction (capture of Mason and Slidell); depletion of gold reserves and hoarding following news from England and war-related uncertainty.
Newspaper Excerpt: The intelligence received this morning that the banks of New York city have suspended specie payments
Source: newspapers

Newspaper Articles (4)

1. December 31, 1861 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, December 31, 1861

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Article Text

# Total 10781 754 550 22145 233154 661 The intelligence received this morning that the banks of New York city have suspended specie payments, caused considerable excitement in commercial circies; but later in the day the matter was discussed more calmly, and other than a slight inflation in the general produce markets, there was no result of consequence, The receipts of Live Hogs since Saturday amounted to 10,781, and the market was active and brisk and firm, with sales of about 9700 head at $2.25@2.90 gross—the greater portion of the transactions being at $2.40@2.65. Besides a good iqui-ry by packers, there was an improved demand for shipment to Boston, and $2.70@2.90 was paid for extra heavy lots. At the close there was but few lots left over, and the market was steady and firm. The weather was mild, and owing to more liberal receipts of Dressed Hogs, the market was easier, with sales at $3.00@3.15 for light to heavy. The demand for Mess Pork was more active, but it was chiefly speculative—the Canadians being less anxious to buy since the surrender of Mason and Slidell—and the market was firm, with sales of 820 bbls at $9.37@950—chiefly at the inside quota-tions. At a shade lower figures there would have been heavy transactions. Lard is in fair request and steady at 9%@9%c for prime steam and kettle rendered leaf, with sales of about 300 packages. Green meats are steady at 2c for shoulders and 3c for hams, with sales of 4,000 pcs. A lot of 700 pcs Dry Salted Shoulders was sold at 24c loose. There was a more active inquiry for Flour, and the market advanced 5@10c per bbl., with sales of about 2,500 bbls at $3.60@4.10 for Spring extras, and $3.00@3.80 for Spring and Winter supers. The Wheat market was buoyant, and prices advanced 1@2c bushel, with sales of about 75,000 bushels, at 78c for No 2 Red Winter; 70@72c for No 1 Spring; and 65@66c for No 2 Spring—the market closing very firm. Corn was also in good request and the market fully Ac better, with light sales at 23@234c—closing with an active inquiry at the outside quotations. Oats were quiet at 18c. Rye was in good demand at 32c. Highwines were steady at 18c. Seeds were quiet and unchanged.

2. January 7, 1862 The Evening Argus Rock Island, IL

Article from The Evening Argus, January 7, 1862

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Article Text

# Republican Criticism upon Congress. The New York World, an administration journal, has a long and severe article upon the present congress, from which we clip the following: "Every vital interest of the country is drifting to destruction, and there is no effort made to save. The blundering 'congregation of incapables' who have been neglecting the public intesests at Washington for the last month, will to-day learn of the calamity which has overtaken the country in consequence of their impertinent intermeddling with everything but their proper business. The banks of this city decided on Saturday night to suspend specie payments to-day. They have been driven to this measure by the failure of congress to adopt the requisite legislation for putting the financial system of the country on a sound basis. "How does this sage body suppose we are going to get through the war? How is the credit of the government to be sustained? How is the army to be supported after the 15th of January, now close at hand, when the present resources of the treasury will be exhausted? Only an interval of less than twenty days separates the government from bankruptcy, and what has congress been doing since the session commenced? Why, it has been revising the orders of our generals, instituting impertinent investigations into the causes of military disasters, attempting work that properly belongs to court-martials, spout-ing emancipation harangues, plotting to circumvent the president, but postponing and neglecting the only business that rendered their meeting of any immediate public importance. The fact that the government is spending a million dollars a day for military purposes, and that we are without adequate maens of sustaining the national credit and commanding new loans, ought to have been regarded as a fact of great and appalling significance. That body should have postponed not merely all idle debates and impertinent investigations into military proceedings, but all other business, until it had matured and adopted a comprehensive system for providing an adequate revenue. Unless we can subsist an army, we shall have to give up the contest in disgrace."

3. January 10, 1862 The Weekly Pioneer and Democrat Saint Paul, MN

Article from The Weekly Pioneer and Democrat, January 10, 1862

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Article Text

# Suspension of Specie Payments. The banks of New York city suspended specie payments on Monday, and their action will undoubtedly be followed at once by all the banking institutions of the country. At the commencement of active measures to suppress the rebellion, it was hardly expected the banks would be able to sustain specie payments, but gold flowed into their vaults until they had on hand, at one time, nearly fifty millions, and the idea of suspension was scoffed at. The work of depletion, however, commenced immediately on the capture of Mason and Slidell, and was accelerated immensely on learning how the affair was viewed in England, until a loss of about twenty millions was experienced, of which only five millions was sent abroad. The balance was drawn out to be hoarded, and will not see daylight again until peaceful relations with England are restored, and perhaps not until our own domestic troubles are in a fair way of settlement. The effect of the suspension at the East will be to give relief to the business community, as there cannot be much depreciation in the issues of sound banks, even with a considerable expansion of circulation.

4. January 10, 1862 The Weekly Pioneer and Democrat Saint Paul, MN

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Article Text

# Suspension of Specie Payments. The banks of New York city suspended specie payments on Monday, and their action will undoubtedly be followed at once by all the banking institutions of the country. At the commencement of active measures to suppress the rebellion, it was hardly expected the banks would be able to sustain specie payments, but gold flowed into their vaults until they had on hand, at one time, nearly fifty millions, and the idea of suspension was scoffed at. The work of depletion, however, commenced immediately on the capture of Mason and SLIDELL, and was accelerated immensely on learning how the affair was viewed in England, until a loss of about twenty millions was experienced, of which only five millions was sent abroad. The balance was drawn out to be hoarded, and will not see daylight again until peaceful relations with England are restored, and perhaps not until our own domestic troubles are in a fair way of settlement. The effect of the suspension at the East will be to give relief to the business community, as there cannot be much depreciation in the issues of sound banks, even with a considerable expansion of circulation.