6689. Bank of Louisiana (New Orleans, LA)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
October 15, 1857
Location
New Orleans, Louisiana (29.955, -90.075)

Metadata

Model
gpt-5-mini
Short Digest
dc3e6e6730079be3

Response Measures

None

Description

Articles (Oct 1857) describe a run during the nationwide panic; the Bank of Louisiana stood the run and promptly complied with every demand. There is no evidence the bank suspended or closed—it met withdrawals. Dates inferred from newspaper reports (Oct 15, 1857).

Events (1)
1. October 15, 1857 Run
Cause
Macro News
Cause Details
Panic triggered by widespread suspensions and financial crisis originating in New York (general 1857 financial panic); local contagion and alarm produced heavy withdrawals.
Measures
Paid out deposits promptly; complied with every demand until usual closing hour; received approved sterling exchange for discounted paper (per subsequent notice).
Newspaper Excerpt
the following Banks stood the run and promptly complied with every demand until the usual hour of closing, ... the Bank of Louisiana
Source
newspapers

Newspaper Articles (3)
1. October 16, 1857 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, October 16, 1857

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Article Text

New Orleans Money Market. CRESCENT OFFICE, No. 70 Camp street, Thursday Evening, Oct. 15, 1857. The Infernal panic which was started yesterday in our mids without any just cause, without reason, without a shadow ( foundation, reached and attained its culminating point to-day Whatever the consequences may be, we have the sincere gratit cation of announcing that the following Banks stood the ru and promptly complied with every demand until the usual her of closing, say Citizens' Bank, the Canal Bank, the Bank Louisiana, the Louisiana State Bank, the Southern Bank, the Bank of James Robb. The NewOrleans Savings Institution, street, was dense crowded at an early hour. It met all obligations according contract, and by 12 o'clock there was not a person present. Th was cheering. The Mechanics' and Traders' Bank opened, as went on in its regular business, with the exception of redeemin its circulation. So did the Union. The Bank of New Orlea was enjoined at the suit of one of its Directors. This is singnir very singular, and shows a want of nerve and sagacity in management. We desire to hear no more of such finances. a Bank's own Directors have no faith in its management, th surely it is time to close. There has been entirely too mu haste in this movement. At a quarter past 2 o'clock yesterd the Bank closed its doors. A short time afterwards it was p tested at the request of one of its Directors on a note of five hu dred dollars. In the name of God, is this the kind of harmo that ought to prevail among twelve managers of a Bank WI is the public to understand from it? Fortunately for the go of our commercial community this spirit does not prevail amo the majority of our Bank Directors. If it did, we might 1 adien to the prosperity of our city. We learn that the Mechanics' and Traders' Bank and t Union Bank will go on as usual with their business. The Pro ident of the Union Bank is absent. If, however, some for R creditors will push matters to extremes, jeopardizing t interests of the whole, then on them be the consequence. T Banks in question will recover, if allowed to proceed. The e t culation of the two together does not reach $900,000, and t porte fewilles are considered good. To suppose that the occurrences of the past two days . et tend to destroy confidence in the future is not warranted. y X consider the crisis is now past ; that the worst has been realize n and although we may expect a tight money market for son days longer, yet the decided action of the New York Banks 1 evil or for good, has tended to relieve the general anxiety, a d the telegraphic advices, received to-day, if they are to credited, give us to understand that an improvement has alrea taken place in New York. All the Banks in that city have 1 suspended. We learn from Mobile that the Banks in that et have BO thought of suspending. This augurs well, but it wor of have been highly gratifying to us to have had it to state that re our own Banks had manfully stood up to the pressure. as There was also a run on the Bank of Commerce, of which t sa patriarchal Jacob Barker is chief manager. It met the r on fearlessly, and paid with the same promptitude as the Bank e Louisiana. There were no other important movements duri the day. er Of course there is not much to be said of the paper mark st There were some shaves, the greatest of which was a $50 Ba of Louisiana note ing sold to a broker on Canal street at $ 50. and a $5 note of the Southern Bank of Alabama being 80 for $3. We aliude to these merely to show what a pauie will i There was nothing done in exchange. The telegraph advis of sales of sterling in New York this morning at 105, but this on a reduced standard of currency or value. It will be some ti of W before we have any similar quotation to note in this mark CWe, however. confidently believe we shall get to work again two or three days, unless our moneyed institutions get into ad snarl among themselves, which we fervently hope they v avoid. erThe following is the memorial of the Banks of the city Philadelphia to the Legislature of At a meeting of the Board of Presidents of the Banks of city of Philadelphia, held on the 3d day of October, 1857, in following preamble and resolutions were unanimously adopt and directed to be forwarded to the Honorable the Senate a the House of Representatives of Pennsylvania. Whereas, The banks of this city, in consequence of the effe of the sudden and universal severity of the financial crisis wh has overtaken the country, have been reluctantly compelled suspend the payment of specie for the notes and obligatio 18notwithstanding every effort has been made by them to av such necessity and whereas, the mercautile, manufacturi as agricultural and all other classes of our citizens are greatly e 17 barrassed by the existing condition of things, towards whi under existing circumstances, it is not in the power of the bar Pto afford such relief as the exigencies of the community requi in consequence of heir laboring under the forfeitures and per les ties of the act of 1850 and other acts and, whereas, it is esdesire of the banks to resume the payment of specie at esearliest practical period, and to do what they can towards storing the currency to asound and healthy condition. and in a meantime assist the business portion of the community. wh all objects cannot be carried out unless the Legislative forfeitu and penalties are temporarily suspended. Therefore, Resolved, That in order to enable the banks of this city, H, of this Commonwealth, to resume the payment of specie at ion earliest practicable period, and in the meantime render such sistance as may be within the power of the banks to the mere iz: tile and business community, it is essential that the penalties ow forfeitures imposed by the act of 1850, and other acts be 1 porarily suspended. are Resolved. That in the event of the failure of the banks to tain from the Legislature relief from the forfeitures and per ties under which they at present labor, their remains no alter tive for them but that of going into liquidation, a measnre wh they are most desirous to avoid, on account of its disastrous LE fluence on the community and the banks. ess Signed by order of the Board of Presidents. J. B. MITCHELL, Chairma mp 1y JOHN JORDAN, JR., Secretary. Philadelphia, Oct. 3, 1857. C. Some days since it was reported that the banking house of 15 E. Culver, Louisville, had suspended payment. It appe however, before the suspension, the following guarantee made for the benefit of depositors. Y. The guaranty which we publish below confirms the er om confidence existing on the part of the depositors with our fell citizen, William E. Colver. We have heard of no apprehen of a run upon this bank but this guaranty, procured in a 8 time by a friend of Mr. Culver, makes assurance doubly sur RT LOUISVILLE, October 1, 185 ing We, the undersigned, agree to guaranty the depositor in William E. Culver, in the payment in full of their dema y against said Culver, on account of money deposited with hir We have entire confidence in his ability to meet all dema REAMES THOMPSON, AMES GUTHRIE,

2. October 20, 1857 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, October 20, 1857

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Article Text

Dew Orleans Daily Grescent. THE COMMERCIAL DEPARTMENT. Hew Orleans Money Market. CHESCENT OFFICE, No. 70 Camp street. Monday Evening, Oct. 19, 1857. The week commences very quietly. Some few transactions in cotton have taken place, but there is no change in the general position of the money market from Saturday. The difficulties in negotiating large sums of exchange are just as great as ever, and cannot be obviated until we are in receipt of coin, or a share of that which was drawn from the Banks last week is returned to them. The Canal Bank is now prepared to draw sight and short sight exchange on New York, and will take sterling exchange in pay. ment for any liabilities due it. Daylight is again dawning on us. We shall get to work briskly in a short time, if a few hundred thousand dollars incoin received. The Bank of Louisiana gives notice that it will receive ap. proved sterling exhange in payment of discounted paper by the Bank. That is, if the house of A B has a note or acceptance under discount, failing due in the Bank, it will take approved sterling exchange for it. This is a broad qualification, as the word approved can be closely or broadly construed. Now, we suppose factors can sell a few thousand bales of cotton, and the arrangement be a benefit for perhaps thirty six hours. As it will take only about $3,000,000 of exchange to cover the entire amount of discounted paper, maturing within the next 90 days, the Bank may have falling due on Tuesday, (to-morrow) Wednesday, the next day, and Thursday, the next regular discount day, say from $150,000@$200,000 in discounted paper. How much of this may be cotton factors acceptances, have not the means of ascertaining. Sterling exchange will, however, be received for it, provided the factors can effect sales of cotton take the bills and endorse them, provided, we presume, they keep an account in the Bank. This, however, would be to the factors no more than a return to the mode of selling cotton in vogne twenty to thirty years ago-that was, selling cotton direct for exchange. This will prove a very decided facility to a large class of buyers, provided the Bank considers them of an approved character. But this question of relief, partial only, may be of some service, though rather tardy. We can only say to the directory of the Bank that the question of relief to this community ought to have been considered on Monday, 12th inst., and carried through on last Wednesday. The President pro tem. of theBank of Louisiana and the majority of the Directory have or have not much to answer for in the public estimation. Which Bank it was that first discredited the notes of the three free Banks on Wednesday last will have to bear the greatest censure. The Bank of Loui siana was in line on that morning two hundred and thirty thousand dollars. This sum would have saved the commotion and panic which we have passed. It is idle to suppose that the free Banks were any less solvent on the above day than they were at d any other time within the last twelve months. The paper market is unsettled. Five per cent. per month continues to be offered for money. In fact, it is useless to talk of negotiating paper on the street. There will be no discounts made to-morrow by the Banks, and none this week unless the Directory of the Bank of Louisiana should repent on Thursday, and then it might do a little. The Canal may do a few thousands on Wednesday, but it is very doubtful. We can only add that our mercantile community cannot expect any aid of consequence from the Banks for some time, only in the way of renewals. This will do great service. Some share of the public seem to rely greatly on the course the Bank of Louisiana may pursue. We may as well remove the impression at once, and say, that isolated as the Bank is, being strong. very strong in its position, it must keep EO. It cannot, in the present state of affairs, render only very limited service. The other old chartered Banks cannot do anything, and it is idle, very idle, for people to think that the Bank of Louisiana can render them any essential service. The day for its good and benefit in this crisis is passed. It ought to have acted in concert with the other old Banks before the panic. Now it is too late to be anything more than partial service, and if we mistake not, it will take care of itself, and that with a few discounts and exchange operations, are all that can be expected at this time. We shall return to this subject again. An explanation is required from some quarter. Local causes have had much to do with the recent panic-more than the public are aware of. Very little done in exchange to-day. Some sales of sight on New York were made at par, ½ and 1 per cent. discount, and some small transactions in sterling at rates from 90@95. We heard of no transactions in francs, and the day in general closes very heavy. The following is the result of a meeting of Bank Presidents in New York on Monday last. It appears, however, that two days afterwards most of the Banks of the city suspended payment. It will be well enough for all parties to wait & day or two longer to understand the New York suspension. It is hardly possible that men of information (Directors of Banks) should pass so strong resolutions as the following, and within forty hours Safterwards the Banks represented suspend specie payments: as At a meeting of the bank officers, held this day, at the Clear17 ing House, Thomas Tileston was appointed Chairman, and James Gallatin, Secretary, when, on motion, the following resolutions were adopted Whereas, There is no demand for specie upon the banks of les this city for exportation, and can be none at present but, on the contrary with the present low rate of exchange, affording a esprofit of from to 10 per cent. on its importation, there must be a speedy influx of it from Europe-for whether anybody here a can draw for it or not, the inevitable laws of trade must be all eyedob-and specie will come to the point of greatest demand. And where as, All demands for specie upon the banks of this city from the interior, 80 far as they could arise from natural causes, have already been met H, And whereas, The exchanges with every-part of the country on are in favor of New York, creating a current of specie toward it for the payment of debts and the purchase of goods iz: And whereas, we are in the semi monthly receipt of large ow accessions debts: of gold from California, sent here for the payment of are And whereas, The United States Treasury is rapidly disbursing coin in the public expenditure, and for the redemption of the public debt: And whereas, In this state of things every natural and healthy tendency is to accumulate specie in the banks, and to LE enable them to diffuse it throughout the country, as the basis of credits by which the abundant crops rovidence has given, more mp bountiful than ever, may be brought to market, confidence may 1y revive, the circulation of commodities be resumed, the internal exchanges restored, the wheels of industry be set in motion, and employment once more be given to labor NO er. And whereas, In the jndgment of this meeting, there exists at the present time no obstacte whatever to the accomplishment f of objects 80 desirable, unless it be in an unfounded and unnecessary alarm which keeps specie from its natural uses, and from RT performing its appropriate functions ing Therefore, Resolved, That the banks of the city of New York in are determined, at all hazards and under all circumstances, to perform their duty to the country, and all its great interests, in the maintenance of all specie payments, and that all classes of the nation. community should sustain them in carrying out this determiResolved, That in the judgment of this meeting, even for this of object, no further contraction of loans is necessary, nor will there exist any obstacle to such an expansion of them, as will afford the necessary aid to bring forward the crops, and alleviate the present commercial distress, unless it shall be created by the demands of a causeless alarm. and TILESTON, Chairman. ive JAMES GALLATIN, Secretary. Monday, Oct. 12, 1857. ST and The following, from the New York Express, applies very well to a house in this city which performed the same operation last

3. September 1, 1858 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, September 1, 1858

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60 days best bills, per cent discount, and commercial, discount, with loans of money being made at the rate of month. ner telegraph hourly brought accounts of the intensity and of the panic in distant cities. Our absent citizens rein numbers, giving dubious and doleful accounts of the financial condition of the country: Cotton arrived but was almost unsaleable, so much SO that factors had for foreign exchange, which they passed to the backs of their obligations. Parties who had been pr d+ denouncing the banks for their incapability of pure' 488change or extending discounts became still more c' amornouncing in unmeasured terms the course pursur d by the which course afterward proved to have beer the salva. our city. Stocks and bonds were almost unsaleable receded to 74 and 75 Bank of Louis Jana stock was 115@120. 13th October, we wrote as follo WS: "There is very be said about the money market this evening a large our community, instead of at sending to its own immeaffairs, are watching the tel sgraphic wires. This is unwe said three weeks "ince that 27 out of the 54 banks of New York, would suspend, and the advices this state 17 had suspended. This was not unexpected, and useless for parties to endeavor to create the im that these suspensions were not expected. We have along that we should receive the most unfavorable acor rather that bank suspensions and failures In Northern night ba considered a fixed fact." minor banks in New York began to close their doors, as their vaults on the 11th of the month, followed on the some of the larger ones. On the 13th 8 general run on all the banks, and Wall street was an excited which resulted in R general suspension of coin paywith the exception of one bank-the Chemical. Thus stood bankrupted, what else could have been expected followed the previous wild course and mismanagement of in expanding discounts to the extent of one hundred venty-two millions of dollars, one specie basis of the trifling of twelve millions of dollars, and then foreing curtailreduction to an amount exceeding twenty-tv millions in the short period of eight weeks, when the produce country could not be used. he meantime, say about the 10th of October, there had slent withdrawal of deposits from some of our banks, of their circulation being presented. This was folwith considerable briskness on the 12th and 13th. On of the 14th, intelligence was received here of the suspension of the New York Banks. And on the same some of our free banks could not liquidate their balwith the old chartered banks, which led to a reluctant rereceive the issues of three. The chartered banks were with a run, which had already commenced on the Bank, the Bank of NewOrleans and the Mechanics' and Bank, which led to a close of the doors of these instiuntil the following day. The closing of the doors of was forced on then by the action of depositors the bill holders at large did not take the alarm till the day. On the evening of the 14th, the run on the Citicommenced, which was continued the following day; day, the 15th, the run commenced on all the banks, Southern Bank, Louisiana State Bank, Bank of Louisiana, Bank and Bank of James Robb. On the Citizens' Bank the peared of the wildest kind, and we might say the poputhose who had a dollar on deposit, or held a note, were The brunt of the run was on this Bank, from what not to this day been learned. Its great popularity, its management, its liberality to the public the great which had attended its course the high value of $160; its connection with the State, through which over of dollars in bonds were to be liquidated its nuquessolvency-all, all were considered as naught, and a and unparalleled run commenced on the 14th of Octocontinued during the 15th, up to the close of which one million of dollars were paid out. The annals of do not contain another such instance of unprovoked and for assault, and one which was met with 80 much and alacrity. Though a temporary suspension to depositors followed, it must not be forgotten that alone was the panic against this bank mainly about. The same remark will apply to the three free which were forced temporarily to suspend. As to the dewe have yet to learn of a solitary indivi Jual who lost a is no doubt but the panic received its chief impetus discrediting of the notes of the three free banks on the was deemed A measure of prudence and safety to the themselves, for it was manifest that they had HS much could do to protect themselves and carry out their duties depositors and it was not known at what hour the burst on our ci y, Coupled with the refusal of the the accounts of the stoppage of the banks of New which came to hand the same hour. So much was said regarding the compulsory action of the old banks, to the course pursued towards the free banks S to, that it is not out of place to remark that some of been in arrears for a week or ten days previous to the a October. D close of the 15th, it was pretty well ascertained that f fear had done its worst. On the evening of that day, in our monetary column, as follows tl panic which started yesterday in our midst, with0 just cause, without reason, without shadow of found. and attained its colminating point to-day. Whatc consequences may be. we have the sincere gratification 3 uncing that the following banks stood the run and e complied with every demand until the usual hour of Citizens' Bank, Canal Bank, Bank of Louisiana, Lou1 Bank, Southern Bank. and Bank of James Robb. 1 Orleans Saving Institution, Canal street, was densely 5. at an early hour. It met all obligations according to and by 12 o'clock there was not a person present. This a The Mechanics' and raders Bank opened, and regular business, with the exception of redeeming So did the Union. The Bank of New Orleans in at the suit of one of its Directors. This is singular. e that the occurrences of the past two days will tend P confidence in the future, is not warranted. We concrisis is now past that the worst has been realized. we may expect tight money market for some di yet the decided action of the New York banks for good, has tended to relieve the general anxiety, and cadvices, received to-day, if they are to be credit to understand that an improvement has already in New York. We learn from Mobile that the banks have no thought of suspending. This augurs well, S have been highly gratifying to us to have had it to all our own banks had manfully stood up to the presT time affairs commenced to improve, confidence be and we might say, reason resumed its empire with e Individuals who appeared to have been bereft of it. di however, no paper nor money market. Some few ta were entered into, towards the close of the month, be aging from 2½ per cent. per month. Cotton came and the prospects for sugar were flattering. Under a J in cotton, factors did not offer the receipts freely, W to sell in large lots at which, thirty days be. D September,) commanded 14%@15c. Exchange was 01 demand only in small sums, large transactions only qt in the way of barter. Sight drafts on New York la made conditionally, that is, payable in the currency on they sold at the reduced rate of 314@ and 5 per CO Between the 20th and 30th of the month, eight