First National Bank (Boston, MA)

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Episode Information

Episode UID
20000885
Episode Type
Suspension → Reopening
Bank Type
national
Bank ID
2000 national
Charter Number
200
Start Date
September 27, 1873
Location
Boston, Massachusetts (42.358, -71.060)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
3fa985b899a4819f

Response Measures

None

Events (3)
1. January 16, 1864 Chartered
Source
historical_nic
2. September 27, 1873 Suspension
Cause
Macro News
Cause Details
Boston banks suspended currency payments for large amounts as a precautionary response to the nationwide panic and drains to New York
Newspaper Excerpt
the Boston banks ... do from this date and until further action adopt the same measure
Source
newspapers
3. October 1, 1873 Reopening
Newspaper Excerpt
It is certain that the banks are improving...the banks of both cities will no doubt resume currency payment in full at the same time. Indeed at Boston the banks claim that they have already resumed in full.
Source
newspapers

Newspaper Articles (9)
1. November 13, 1872 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, November 13, 1872

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AFTER THE FIRE. [By Telegraph.] Among the for the DeadLIncendiney Hanged-Others November are busy on steam-engines Arrested, BOSTON, &c., &c. 12-12:30 A. M. - The to-night playing All the streets there no are is the dark débris. strictly and guarded. gloomy- Although being leading the thereto gas- city large crowds hover in the vicinity of the ruins. 3 A. M.-The streets are now perfectly quiet. Two hundred and fifty mounted sol diers patrol the streets, and no one not hav ing official authority from the commandant is allowed to pass the lines of infantry. One man who attempted to enter a store on Winter street, and who refused to leave after being repeatedly ordered, started to run when about to be arrested, and was shot by the guard. Extensive lines of hose are stretched all over the rains and engiues stationed at al most every hydrant, ready at a monent At to be worked if occasion should require it. points where persons are known to be buried the ruins are being cooled with water preparatory to digging out the remains of the victims: Three men were buried under 8 falling wall on Washington street, leaving made their heads only visible. Efforts were rescue them from their horrible position, but to they proved unavailing, and in a fell, few moments after the remainder of the wall It crushing and burying them from sight. is known that thirty-tive lives were lost. men were arrested this morning, in Six northern part of the city, in the act of the building by kindling bonfires in the firing part. R It is rumored that a drunken set wretch rear late last evening attempted to fire to the gas-house near the Charlestown and was seized by an infuriated crowd and bridge, unceremoniously hung up to a lamppost. An immense pile of coal ut the Russia's still wharf-about five hundred tous-is atire. estimated that nearly ten thousand the girls are It is thrown out of employment by fire: Three men were discovered in an attempt House break into a room in the Parker last to night, but they made their escape. authorities have granted of to the as repository dry The goods city merchants the privilege for such of using their the Common as is saved, and to erect use. shanties property structures for temporary and Detachments other of the First and Old Second South reare quartered in the been used giments This building has not officers quartered church. for such there purpose in the since Revolution, the British one hundred years ago. wise. The Results. Financially and otherNew YORK, November 12 The as to papers thereand here take more cheerful otherwise, view of the Bosthere ton sults, fire. financially In the impression shoe and leather that no trade harmful results is a prevailing to trade can before follow, as the prices fire. Several were very low point are already here, who have bought Boston men new stocks and will open iminediately. the wool trade it is stated disastrously that none the In New York actual houses sufferers are will be the affected. large,as The all kinds of woollen expected. goods public at advanced in price, it is New York will be 30 to 40 per cent. Several themselves upon from firms are congratulating deficction of the wool trade wool from the necessary Boston to New York. of the market The Bulletin recently says sold heavil to mostly Bos transit, Dealers merchants here but the wool thus is still escaping held ton here or Only is in small amount of Boston is destruction. account of wool entertained transactions here paper on no fears are will be held here, and than an extension of time partial sus that other on maturing bills. A a week is exnecessary of the wool insurance trade for balance is perpension pected-until reeted-when the the market will be more active than before the goods tire." trade, the same paper says, In the there dry is to much the non-reception confusion and of is uncer- letters mantainty from Boston, owing but no great uneasiness Bul In the absence ifested. Inde and leather trade, says of any the panthat icky feeling, and simply remain letin, the there market is an will entir the shoc general irade impression no crisis steady in the boot and being that all Bos- and 1011 and the standing. and dealers cipated, are sentiment still of time in good will be necessary yesterday only an extension who appeared here credit they asked for. were Boston cheerfully boyers given all the The Bos TESS., November effect on business here. ton MEMPIUS, fire All has cotton had a orders marked have been countermanded. Ensurance companies. 12.-The Condition WORCESTER, of MASS., Company November lose $500,000, People's Insurance are called in Company, for cancellation. losing and The its Bay policies State Insurance Other companies $250,000, has suspended. business. city continue 12.- The Spectator in NEW this YORK, November of losses American, of Mas furnishes the insurance following companies State, Worcester, sachusetty Boston, $1,000,000 Boston, Bay 500,000 (suspended) (suspend 9200,000; Boyston, The Boston $1,200,000 $80,000 (suspended): Meed); City Equitable, of Boston, Provincetown $1,300,000; (suspended); Massachusetts and Farmers, chanics Mutual, Merchants $100,000 Union Mutual, $1,200,000; Quincy Mutual, Exchange Bo-ton, Bos+ ton (sus) First National, $50,000 $300,000 $250,000 Mutual, pended) (suspended) $1,200,000; Fireman's Faneuil Worcester, Hall, Boston, susGloucester, (suspended) Lawsuspended Mer$2,500,000 Howard, Boston, (suspended) Nep pended Boston, $1,800,000 (suspended) Peochants, rence, Boston, Boston, 31,000,000 $2,000,000 (suspended) Prescott, Boston, Bostune, ple's, Worcester, Shoe $500,000 and Leather $250,000; Dealers, Sufsuspended; suspended 000,000 Springfield, (suspended); Dorchester, Wash ton, folk, Boston, Boston, $1,000,000; Mutual, ington, $140,000. Banks. Condition November of the Boston 12-The the Boston following banks Boutwas out official BOSTON, forwarded statement to-day regarding to Secretary the by fire. well Seven banks recovered were burned their business. cash assets I exand have will met All All the immediately have presidents agree that resume the of the total leading loss will banks to-day.

2. November 14, 1872 Nashville Union and American Nashville, TN
Article from Nashville Union and American, November 14, 1872

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of $30,000; the Continental $400,000 instead of $500,000; the Hoffman $100,000; the Market $100,000 instead of $60,000; the Merchants' $116,500 instead of $50,000; the Relief $40,000 instead of $50,000, and the Union, of Bangor, Me., $150,000. The People's Insurance Company of Worcester, has suspended. A special from Boston says the First National bank pays in full. The Boyleston and Washington companies start afresh to-day. The Mutual companies of Massachusetts will pay in full and must assess the full amount required by law. PROVIDENCE, R. I., Nov. 13.-The Equitable Insurance Company of this city has stopped taking risks and called a meeting of its stockholders. The total risks of the company in the Boston burnt district were $317,000; total assets $340,000. The Merchants Insurance Company has also called a meeting of its stockholders to determine what course will be taken in the future. The total assets of the company are $385,461; total risks in the burnt district of Boston $210,000.

3. September 28, 1873 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, September 28, 1873

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BOSTON. Special Dispatch to The Chicago Tribune. BOSTON, Sept. 27.-At a meeting of the officere of the Boston banks this morning, the resolution was taken to follow the course of the New York banks and suspond currency payments. There was but little discussion. It was evident that when 80 many were suspending, to hold out longer would only subject them to an embarrassing and dangerous drain. The step was solely a measure of self-protection forced upon them by the action elsewhere. Checks for small amounts for the current uses of business will be paid as usual. THE SITUATION HERE differs from that in New York in one particular. There they have pooled their resources : here they have not. The resolution adopted at the meeting was as follows: WHEREAR, The banks in all the large cities in the United States have deemed it prudent and expedient to suspend currency payments for largo amounts; therefore, Révolved, That the Boaton banks, as a precautionary measure for themselves and the mercantilo community, and to prevent the consequent drain of the currency from them, do from this date and until further action adopt the same measure, Resolved, That a Committee of Five be appointed by the Chuir, who shall have the power to issue loan-certiticates to the aniount of $10,000,000, upon substantially the same basis as issued by the banks of Now York City. Until yesterday it was confidently hoped that we should ride over the panic without resort to such measures, but the increasing drain of ourrency to New York necessitated action, and the resolutions were adopted unanimously. The interference with business brings the difficulties of the situation more immediately home to large classes than like proceedings elsewhere, but, on the whole, there is as firm faith that we can hold ou and withstand a general crash 88 ever. The first suspension reported since the panic began is that of the New Eugland Iron Company at Hyde Park, a Boston suburb. It is said that the suspension was caused through disagreement of the Directors, which resulted in an attachment, and some notes were protested, though it is understood that the Company has been carrying heavy mortgages, and has lost through the stringency of the money market and the low price of iron. Several large contracts are on hand, some of which are well under way. Three hundred men are thrown out of employment. The selling agent in this city thinks that work will be resumed soon.

4. September 30, 1873 Oxford Democrat Paris, South Paris, ME
Article from Oxford Democrat, September 30, 1873

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LATEST. The latest telegraphie up to Monday, 29th, is that the suspension by banks of currency payments in large sums. is becoming general. The Boston banks have adopted this course, as a precaution. ary movement. The Stock Exchange is to open Tuesday, 30th, and an improved state of feeling exists. Quite an eff'ort will be made to secure specie payments. Five Chicago Banks Suspended. The Union National, Manufacturers National, Second National, Cook County and National Commerce banks have clos. ed their doors. Other National banks are paying regularly. There is considerable excitement among business men, and the grain trade shows the effect.

5. October 1, 1873 New-York Tribune New York, NY
Article from New-York Tribune, October 1, 1873

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THE SITUATION ELSEWHERE. CONDITION OF THE BOSTON BANKS-AN IMPROVING STOCK MARKET-EFFECT OF A BANK DEFALCATION ON HARTFORD AND ERIE-RESULTS OF THE MONEY STRINGENCY IN MANUFACTURES AND TRADE. [BY TELEGRAPH TO THE TRIBUNE. BOSTON, Sept. 30.-The full benefit of the loan certificate arrangement is not yet felt, for the plan is not yet in full working order. The banks were lable to discount more generally than heretofore, but the available supply of money has, of course, been inadequate. In the course of a day or two, however, everything will be adjusted, and it is not anticipated that there will be a lack of currency then. The discounting of the banks to-day has only been to meet urgent necessity, and outside the best paper has gone begging. The bank statement reflects the struggles of the past week. Their available resources have been drawn away to the extent of some $5,000,000; deposits have been drawn down $3,369,700; balances due other banks, $1.753.800; circulation. $4,700. To meet this, loans have been reduced $2,275,000; balances due other banks, $2,516,000. The legal reserve has been diminished less than half a million, and the banks are relatively stronger than before the panic. Stocks sold higher; railroads gaining from one to three per cent (Michgan Central gaining the latter figure), and mining stocksfrom one to five. Late in the afternoon. after the closing of the Board, there was a bad break in Hartford and Eric 78, caused by the discovery that Lovett, the defaulting cashier of the Hingham Bank, had been speculating in them. Prices at the Board ruled at 24 to 25; but 20,000 were thrown on the market then, and the price went down to 22-the lowest price for years. No steps have yet been taken for the arrest of the cashier. and at last accounts he was still at the bank. The depositors will lose nothing. and the directors will reduce the capital and continue. One of the curious features of the pante has been the unusual amount of exports for the past week and the large receipts of breadstuffs. The receipts of flour show au increase of 5.284 barrels, and of corn 78.000 bushels over the previous week. The exports for the past three days have amounted to over $800,000, more than for any three days of the present year. Manufacturers have not been seriously embarrassed, and do not anticipate any more trouble. J.1 P. Squire & Co., large pork packers, having about 1,000 employés, were slightly embarrassed, and discharged about 100 men. but will take them back at an early day. The American Watch Company and the Howard Watch Company are the only other prominent manufacturers that make any reduction in their force. The Hinckley Locomotive Works employs 500 men. and asits present orders re-nearly all for the Chicago, Danville and Vincennes, and the Atlantic and Pacific roads, it expects no trouble from the panic. PHILADELPHIA FAILURES-STATEMENT OF CLARK & CO. PHILADELPHIA, Sept. 30.-A meeting of the creditors of E. W. Clark & Co. was held to-day. A statement was made. showing as follows; $1,042,526 Liabilities secured 1.041.498 Liabilities unsecured $2,084,024 Total Assets. including stocks, bonds, loans. bills receiva2,464,355 ble, and other securities and real estate $380,331 Leaving a surplus of A committee of three was appointed to investigate the affairs of the concern. The meeting was unanimously in favor of rendering proper aid to the firm in its efforts to realize on its assets and make settlements with its creditors, believing that their own interests would not suffer by pursuing such a course. The report that the firm of Martin, Londenberger & Co. had suspended is contradicted. Harrison Grambo, who failed 80 disastrously nearly a year since, has resamed business, having settled nearly $900,000 of his liabilities. STRANGE CONDUCT OF A KANSAS BANK OFFICERSUSPENDED BANKS REOPENED. LEAVENWORTH, Sept. 30.-There is mueh indignation among the stockholders and dépositors of the First National Bank, *in this city, in consequence of the Vice-President ordering the bank to suspend, and at the same time drawing nearly $100,000 in currency to sustain n the credit of Scott & Co., brokers. of which firm the Vice-President, Lyman Scott. is a partner. The German Savings Bank, and Insley, Shire & Co., bankers. reopened yesterday. and are abundantly able to meet all demands. Other banks here are paying checks in limited sums. FINANCIAL EXCITEMENT IN GERMANY-THE BULLION MOVEMENT. LONDON, Sép. 30.-A special dispatch from Berlin hints at financial troubles in Germany. Fancy stocks and bank shares are not salable, and some have fallen as much as 20 per cent. There is some talk of Government interference. The £50,000 drawn from the Bank of England on balance, to-day, is to be shipped to New-York. The steamship Donau, which sails from Southampton for New York to-day, also took £136,000 in bullion. LATER.-The Gazette publishes a notice for a meeting of the creditors of Clews, Habieht & Co. on Nov. 23. The steamer Parthia, which sailed to-day for New-York, took $100,000 in bullion. FINANCIAL NOTES. There was no particular change in the financial situation at Cincinnati yesterday. Harrisburg manufacturers approve the action of the banks of that city in adopting the certified check plan. The banks of Memphis have resolved not to suspend, but to open, in addition to the usual business, an exchange account. to be paid in kind, for the purpose of moving cotton. Responsible merchants have subscribed and paid in $320,000 to the First National Bank, which will enable it to resume business at once. The Providence banks adopted, yesterday, a report recommending a liberal policy on the part of banks toward each other and customers; that each bank should request its depositors to draw checks payable through the Clearing-house, and should certify checks payable through the Clearing-house; that deposits made in banks in currency be paid out to such depositors in currency, and that deposits made in certified checks be paid in kind. The Providence banks are in a generally

6. October 2, 1873 Ellsworth American Ellsworth, ME
Article from Ellsworth American, October 2, 1873

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# A DECIDED IMPROVEMENT. NEW YORK, Sept. 29.-(Noon.) Affairs in financial circles show a most decided improvement to-day noon as compared with Saturday. There is a feeling of buoyancy. On Broad street the brokers are anxious to have the Board re-opened. They are doing considerable business this morning in filling cash orders for stocks but decline most of them to operate either to-day or to-morrow on a margin. A few houses offer to buy and sell on a twenty per cent. margin. Stocks continue to improve in price and but few offered. # JAY GOULD INTERVIEWED HE THINKS THE PANIC IS OVER AND IS ANXIOUS TO RENEW SPECULATION. Jay Gould was interviewed yesterday by a reporter to whom he gave his views on the financial situation substantially as follows: "I think the panic is over. I have every faith now in advance in prices and believe that the market will be more buoyant than for a long time past. Wall street has been cleared out of a great part of its worthless stocks and so called securities by the purifying process of the panic, and there are comparatively few stocks now quoted except those of real value." # THE SAVINGS BANKS. BOSTON Sept. 29. At the meeting of the officers of savings banks in Boston and Charlestown, held to-day, the following resolutions was passed: Resolved, that in the judgement of the meeting it is expedient and advisable that the savings banks of Boston and vicinity enforce the by-laws of their several institutions relating to the withdrawal of deposits, and until otherwise advised that the savings banks at their discretion pay drafts for small amounts only.

7. October 3, 1873 St. Johnsbury Caledonian Saint Johnsbury, VT
Article from St. Johnsbury Caledonian, October 3, 1873

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# Suspension of the Boston Banks. BOSTON, Sept. 27. - A meeting of the presidents of the several Boston banks was held at the clearing house at 11 o'clock, this forenoon, when the following resolutions were adopted by a unanimous vote: Whereas, the banks in all the large cities in the United States have deemed it prudent and expedient to suspend currency payments for large amounts; therefore, Resolved, That the Boston banks as a precautionary measure for themselves and the mercantile community, and to prevent the constant drain of currency from them, do from this date and until further action adopt the same measure. Resolved. That a committee of five be appointed by the chair who shall have the power to issue loan certificates to the amount of ten million dollars upon substantially the same basis as issued by the banks in New York.

8. October 3, 1873 Burlington Weekly Free Press Burlington, VT
Article from Burlington Weekly Free Press, October 3, 1873

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The Action of the Banks. The New York banks, in order to prevent further drain of greenbacks, and new lock-ups of currency, already in too scanty supply, found it necessary to refuse payments of large checks and drafts, while still holding themselves prepared to cash small checks, drawn in the ordinary course of business. Similar action at once became necessary in other monetary centres. Thus the Boston banks found that New Yorkers were picking up Boston checks, and that large sums of greenbacks, were being sent from Boston to New York. They at once held a meeting for concerted action and adopted the same measure of partial saspension. The same causes led to the same precautionary measure] on the part of the banks in Philadelphia, Baltimore, Chicago, Cineinnati, Indianapolis, and other large cities. Probably a majority of the banks of the principal cities of the Union have by this time followed the example of New York. The country banks are not in equal danger of drains of currency, and probably do not in many cases find it necessary to give formalinotice of similar precautions. Yet their attitude, in the nature of things, must be substantially the same. While all goes on quietly and on the usual course of business, they will make no difference in their mode of doing business; but they would unquestionably meet any concerted or unusual demand for currency, by a refusal to pay greenbacks and a tender of some other form of payment, as certified checks, or drafts. Our Burlington banks are sound and strong ; and as long as our business men and community generally keep their heads, and make no unnecessary or unusual demands. they will unquestionably keep right on in the ever. tenor of their way, responding as usual to all ordinary demands. While the banks tbus do their duty, it is for the community to remember that a duty also rests with them. No one should hoard greenbacks, or needlessly withdraw them from circulation. Let every one that has cash use what he needs, and thus keep it moving; and deposit what he does not need in the banks, to help keep up their supply of currency. With such wise action, there need not be, and we suppose there will not be, any disturbance of the usual course of business among us.

9. November 5, 1873 Knoxville Weekly Chronicle Knoxville, TN
Article from Knoxville Weekly Chronicle, November 5, 1873

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# HOW THE COUNTRY STANDS THE CRASH. Items About Finance, Trade and Workshops, The Evening Post of the 28th says of the situation in New York: Whatever change there is in the general situation seems to be for the better. It is certain that the banks are improving, the gain in legal tender notes, according to this morning's report to the Clearing House, having been over one million dollars. In a few days the pooling of legal tenders by the banks will be discontinued, and a very large gain, will then, it is thought, be apparent. The Times says: In regard to the November dividends upon railroad bonds and stocks, we have reason to suppose that the defaulters will be less numerous than apprehended a fortnight ago, owing to the improvement in the bank movement and supply of currency. Earnest efforts are being made to provide the interests of several railroad loans of comparatively recent creation, which seems to be imperiled by the suspension of the bankers of the roads in September. New York funds are reported more plenty at Boston, and the banks of both cities will no doubt resume currency payment in full at the same time. Indeed at Boston the banks claim that they have already resumed in full. In Philadelphia the payments of currency are also nearly up to the demand. Nearly all whose necessities require currency get it on demand. A Washington dispatch of the 28th says: Representative Kelly, of Philadelphia, arrived here to-day, and this afternoon had quite an interview with the President on the condition of National finances. His well known views in favor of a convertible bond by which the forty-four millions of legal tenders can be issued, found no little favor with the President, who, recent other facts indicate, is much more in accord with Judge Kelly's inflation policy than the latter had expected. Serious results of the panic are felt along the Hudson. The extensive brick yards near Poughkeepsie have all stopped, and employing carpenters and manufacturers are working with half the usual force. The extensive paint works of Gardner & Co., at Little Falls, Cohese, Rochester, Pleasant Valley, Newberg, and Haverstraw stopped Saturday, and 10,000 men are out of employment. The firms paid $500,000 a month to employees. Factories in other places have either stopped or reduced time and wages.