Central National Bank (New York, NY)

View Charter #376 on SPMC View balance sheet

Episode Information

Episode UID
37600935
Episode Type
Suspension → Closure
Bank Type
national
Bank ID
3760 national
Charter Number
376
Start Date
November 23, 1877
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
4226ee916e25df02

Response Measures

None

Description

Contemporary report calls the bank suspended and a failure; no clear article documents a reopening or receiver appointment.

Events (3)
1. April 11, 1864 Chartered
Source
historical_nic
2. November 23, 1877 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Bank described as weak with few outside business connections and limited deposits leading to suspension.
Newspaper Excerpt
The announcement was made early in the day that the Central National had suspended.
Source
newspapers
3. March 12, 1904 Voluntary Liquidation
Source
historical_nic

Newspaper Articles (3)
1. November 24, 1877 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, November 24, 1877

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Article Text

Business Indications Last Week ---A Warning to English Financiers. The Produco Markets Unsettled and Irregular---Hogs Lower--Provisions Active and Easier. Wheat Weak. but Closed Firmer--Corn Strong for November---Novement at and Towards the Scaboard. FINANCIAL. The announcement was made early in the day that the Central National had enspended. The bank was nemail ene, with few business connecHons out-ide the city. It has not been in operation long enough to work up a large line of deposits, and whatever loases result from Its failure will be small. The officers of the bank claim that the depositors will be paid In full. Little exciteinent was occasioned by the suspension. as the Interests affected are narrow. and the business public had for some time been aware that the bank was weak. The situation generally in financial circles was quiet. The demand for accommodations was not pressing. Rates of discount were 84410 per cent at the banks to regular customers; on the street, call loans are UQS por cent. Orders from the Interior for currency were light. New York exchange was sold between banks at 75c78$1.00 per $1,000 discount. The clearings were 51. 100.000. " CONSIDERABLE DANGER AHEAD." The London. Times raises a cry of warning about the condition of the Bank of England. The Bank of France is resorting to financial tactics superior to those of the Bank of England. While the latter has raised its rate to 6 percent. the Bank of France keeps 11. nominal rate at 2 per cent. and transacts agood deal of business nt still lower rates. The consequence 14, that English borrowers go to the Bank of France with their discounts, and the lator institution is gaining a much better control of the loan market than the Bank of England. The French command of the available gold 14 further increased by large sales In London of stocks from Parts, This state of affairs makes the porttion of the Bank of England very difficult. That institution bas been trymg to raise the market rate of discount by borrowing on consols; but this weak maneurre has had no effect in consequence of the abundant supply of funds from the Bank of France. he Trace looks forward to n drain of gold to America to pay for corn and cotton, as it does not In Here shipments of bonds and other securities to America can be made in suilicient quantity. The prospect leads It to PAY with unusual emphaels: There Is, in a word, still considerable danger abran, which the continued care of the home money-market should not blind us to, and, whatever hardship it 14 to the Bank of England to lie out of the market CA it now doc. there seems very little probability that it can revert to lower rates for some time to come. BUSINESS INDICATIONS or LAST WEEK. NEW YORK, Nov. 23.-The Public says Contress 1s n curre. But for general alarm In business cir. cles, and the fact that bills are pending which may disturb all values and affect all contracts and calculations for future, It le harily possible that for the last two weeks transactions. with large crops, peace here. and war In Europe, should have cen less than those of the week following the Presidential election. There has been no such decline In prices since November, 1876, as to necount for any Increase In the exchanges. When we consider that Congress may remain in ression until next June or July, and that there will be constant danger of mischievous legislation at least, unless the President succeeds in showing that his veto will surely suffice to arrest every assult upon the public credit, the prospect to not very charming. Lost week's clearings, compared with same week of n year ago, show gains as follows: New York. 8-10 per cent: lloston, 7-10; Baltimore, 8; Milwaukee. 10: Louisville, 13 6-10. Lurges are 04 follows: Philadelphia, 113-10; Chicago, : 5-10: Cincinnati, 0 11-10: St. Louis, 10 2-10; New Orlean", 5.6-10: Pittsburg, 0-10, A CORNECTION. The World, of New York, in correcting a niletake made by the London Economist about the currency of this country, makes an Important omission In Its turn. The Economist said: New circulation under the law 1874 requires the deposit of 80 per cent of the amount In legal-tenders -greenbacks-at the Treasury. The Worldways: The facts are. and London was believed to know them. that National-Hank notes are secured entirely by deposit of United States bonds. and issued to no greater extent than DO per cent of the market value of the bunds. The Inct 1a that notes are issued to the extent of 1.0 per cent of the market value of the bonds only, If that does not exceed 00 per cent of the par value, 118 will be FROM by reference to See. 5. 171 of the National-Bunking act. In the same trano of the Economist It to said that the present silver coins of the United States are legal-tender for 820. They are legal-tender for only $5. THE STOCK MARKET. The stock market was reported by the New York Times of Wednesday In be dall, the trading being almost exclusively contined to the clique overators. The regular commission-housew complain of an utter dearth of business, and hope for no change for the better until stocks become more which distributed. The fact that large blocks of stock are held In few hands places the market in a critical c ndition. and deters outsiders from mak. Ing speculative ventures, THE STUGULE FOR GOLD. The Paris correspondent of the London Times telegraphs that the National Bank of Holland has raised the price of its stock of Napoleons (20 francs) from 1,057% floring to 1,0%0 forins n thousand. The object is to check the export of gold coin to Belgium and France. its stock having been reduced in three weeks by nearly 000. 000

2. October 25, 1878 Essex County Herald Island Pond, Guildhall, VT
Article from Essex County Herald, October 25, 1878

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Article Text

On the failure of Jay Cooke & Co., a general feeling of distrust was engendered, and the consequence was the utter failure of many of the Nat onal Banks, and the total suspension of all the National Banks in the city of New York. Now this was not suspension of specie payments, but was a suspension of payments in legal tender Lotes or greenbacks. The promises of the government in the form of greenbacks rose to a premium of four per cent. above the value of National Bank notes, and who can tell the extent of the disaster to the whole country if we had been doing business upon a spe ie basis, as it is called? The ruin would have been general, but as it was, everybody knew that there was precisely the same amount of paper money in the country af'er as before the panic, and consequently it was of short duration, and there was comparative-ly very little derangement in the movements of the products of the country. If the banks could not pay in greenbacks when there was in the country more in amount of legal tenders tean the entire national bank circulation, how can it be expected hat they can maintain coin payments? The fact is, his talk about specie payments is simply absurd, whether uttered by Mr. Greeley or the Solons of Congress. Mr. Greeley's saying that the "way to resumption was to resume," is not a whit more absurd than the more elaborate proposition pending in Congress. To maintain coin payments in this count.y, commercial as it is, is simply impossible unti the Almighty has changed the character and habits of the people-until, as a nation and as individuals, we become a frugal and economical people, sp nding, as a whole, less than our incomes; and until our national, state, railroad and commercial debt abroad is paid or largely reduced, we cannot be secure from the effects of the vicissitudes that creditor nations are liable to, and consequently, if our banks are on a coin basis, we are liabl at all times to a foreign drain, which would compel suspension, Allowing the national ba ks to issue any currency is an unmitigated evil, and is the real obstacle to sound, wise a d wholesome legislation, and and they ought to be divested of that power as speedily as it can be done without disturbing values. This real or fanced -interests are antagonistic to wholesome financial legislation. Capital is timid and selfish, and at the same time is influential, and it has been said (by Senator Sprague) that nothing is meaner than one million of dollars except two millions. The circulation enjoyed by the banks is a valuable privilege, ard to protect it they will overlook every consideration of public good. The evils of such special favors do not end with the banks, for to secure and perpetuate favorable legislation for themselves hey must not oppose legislation for the benefi of other interests: so, legislation becomes a matter of special favor to various interests, and not for the general good. Therefore, the sooner Congress is relieved of this insidious and baneful influence the better. We have at this session of Congress ample evidence of the baneful work of men blinded by the supposed interests, r led by those who have se fish interests to uphold. The men outside of Congress who have tendered their advice, and whose suggestions will probably be followed, have intere ts in national banks, and wish to be protected in the privileges they now enjoy; and the mistake that many congressnen make, no doubt honestly, is in treating the interests of the banks as the public interests, while, in fact, the public has no interest in them other than to divest them, as soon as practicable, of the power or privilege of issuing money. But giving to congressmen full credit for honesty and the best intentions, it is, after all, pitiable to see how little comprehension they bring to the consideration of financial questions. They seem to be trying how not to do it. They appear to be in a muddle, or else they are determined to keep matters in a muddle, and we really cannot make up our mind which. It is hard to believe that they are so much at a loss as they appear to be, and yet. t is equally past belief that they desire to do wrong on questions of finance, for upon questions outside of t eir duties as congressmen, they are certainly equal to the average of business men in ability and honesty. We have come to the conclusion that in this matter of finance their appare..t want of foresight comes from the fact that in all uch matters they yield their convictions to the vews of supposed experts, such as the officers, stockholders and attorneys of the national banks in their several districts. Now the banks have a valuable privilege to maintain and protect, every one of them receiving an annual bonus from government of more than 4 per cent. on their entire capital, over and above all national taxation, for furnishing a circulating medium for the country, which is printed and renewed at the expense of government, and which is no better than greenback, and amounting in the aggregate to an annual net bonus to the stockholders of the national banks of over $15,000,000. At the same time government is obliged to maintain a more complicated and expensive system than would be required if the government is-sued the entire currency of the nation. Sensible and honest men out of Congress ask why this is done, when the nation so much needs the $15,000,000 annually to pay current expenses? Of ou senators and representatives, each proposes a different remedy for financial evils and an empty treasury. One wants more "greenbacks;" another national bank notes; another demands specie payments on a day to be fixed by Congress; an-

3. September 8, 1881 Daily Globe Saint Paul, MN
Article from Daily Globe, September 8, 1881

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Article Text

ALL AROUND THE GLOBE. The New York produce and cotton exchange, clearing house, and all banks will be closed to-day. The mayors of New York and Brooklyn have issued proclamations calling on all to close their places of business, and trade will be suspended in both cities. Robert Steep, of Manville, Kan., nine miles west of there, while crossing the railroad track in a wagon, was killed by railroad train No. 3. Alex. Grey, of Allegheny City, one of the wardens of the western penitentiary, received serious injuries on the Pennsylvania railroad, at Seaman Place, yesterday, dying several hours afterwards.