6722. City Bank (New Orleans, LA)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
May 13, 1837
Location
New Orleans, Louisiana (29.955, -90.075)

Metadata

Model
gpt-5-mini
Short Digest
93e0665ce1598939

Response Measures

None

Description

Articles report a heavy run and joint suspension of specie payments in New Orleans (including City Bank) on/around May 13, 1837, followed by later coordinated plans among New Orleans banks (June–Dec 1838) to resume specie payments the first Monday in January (interpreted as Jan 7, 1839). The evidence supports a run leading to suspension and later resumption. 'City Bank' name does not indicate charter type in texts, so bank_type set to unknown.

Events (4)
1. May 13, 1837 Run
Cause Details
General panic accompanying suspension of specie payments by multiple New Orleans banks; not attributed to a discrete rumor or misinformation in the text.
Measures
Banks refused to cash notes over $10; suspended specie payments; tellers refused large bills.
Newspaper Excerpt
On the opening of the Banks yesterday morning, a tremenduous run was made upon... Persons were seen running to the Banks with their hands full of silver.
Source
newspapers
2. May 13, 1837 Suspension
Cause Details
Collective decision by bank presidents to suspend specie payments amid broader financial crisis and runs across multiple New Orleans banks.
Newspaper Excerpt
The Presidents of the Bank of Louisiana, City Bank, Mechanics' and Traders', Carrollton, Atchafalaya... came to the determination, and accordingly gave notice ... that they should temporarily suspend the payment of specie for their notes.
Source
newspapers
3. June 26, 1838 Other
Newspaper Excerpt
Be it therefore resolved, That in the opinion of the Board of Presidents of the Banks of New Orleans, the first Monday in January next should be fixed on as the time of resumption by said banks ... provided the U. S. Bank of Pennsylvania ... will furnish a general currency ... S. J. Peters, President of the City Bank ... were appointed the committee. (June 26, 1838).
Source
newspapers
4. January 7, 1839 Other
Newspaper Excerpt
Be it therefore resolved, That in the opinion of the Board of Presidents of the Banks of New Orleans, the first Monday in January next should be fixed on as the time of re-sumption by said banks ... S. J. Peters, President of the City Bank ... (resolution adopted June 26, 1838). Also: True American (July 7, 1838) reproduces the same resolutions. Dec. 25, 1838 article notes banks' intent to pay specie after the first Monday in January and that City Bank 'will pay silver for these notes after the first Monday in January.'
Source
newspapers

Newspaper Articles (5)
1. May 22, 1837 Morning Herald New York, NY
Article from Morning Herald, May 22, 1837

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Article Text

By the Express Mail. Correspondence of the Herald] New ORLEANS, May 13, 1837-12M. The die is cast. Six of our banks suspended last evening- Atchayalaya, the Orleans, the Carrol- the the the Mechanics' and Traders', and The rest will follow today or on can save them under hearen. Louisiana. ton, Nothing City, Forstall, Monday. the the of the French banks, admitted last evening and while he did so, his lip at the tyrannical course of the necessity, leader anger quivered government. with The of French protested bills from and Paris, will place these return Havre daily four losses expected Creole will far in the back ground. Their The pet banks will bank hours are closed. monsters be immense. before certainly They would declare have tothe first batch, but for their joined day, with predict position that with the the government. I venture to whole of the government deposites throughout the country will be unavailable in coin in less than two months. Thegovernment, by suffering the state banks to has been caught in a trap. will treacherous, and will glory in suspend, prove The and it. pet banks They what have the funds in their hands, Some think that the care they? government Kinderhooker the whole knew how would go, and determined that to should be lost, to gain his surplus things and poist-that then propose is make all the state banks unpopular, fund a specie currency, to precede his great safety measure. There is no telling the depth of this man's mancuvering, or his ignorance. He is either a alone consummate knave or a very ignoramus. Time will show which. I am inclined to the first alternative. We bear things philosophically here. As yet no of public opposition are shown to the There will probably be none, as measure. manifestations exchanged the them small for holders of notes have long since Our specie, under apprehensions of this movement. population here is not made up of the refuse of England, Ireland and Germany, as in New York-and hence our quiet. We daily and hourly look for the news of your bankers having stopped. What can save them? The United States' Bank will be compelled to follow suit, if information be correct. Their agents here, the Merchants' my Bank, are only waiting for orders from Philadelphia. well versed in these matters, has just told has made an estimate of government A gentleman me he the the loaned out in the various states by pet the former fictitious values of and loss to the goverment of banks moneys that the on will be things, certain Add this to the public made the suspension, and the government unavailable twelve millions. by for its funds expendiwill be compelled to borrow money tures November next. Is there any in the that the privy council has report before ordered truth the it? Bank of England to suspend if necessity require Prices of produce in statu quo. Just heard-as the mail is in-that all the Mobile banks have suspended. So we go. NEW ORLEANS, May 14.-Suspension of Specie The long anticipated climax of our caPayments. lamities broke upon our city yesterday morning. Me- The Presidents of the Bank of Louisiana, City Bank, chanics' and Traders'; Carrollton, Atchafalaya, and Bank of Orleans, held a meeting on Friday evening came to the determination, and accordingly gave and noticethrough some of the journals of the city, that they should temporarily suspend the payment of spefor their notes. On the opening of the Banks yescie morning, a tremenduous run was made upon Smaller notes were some of them, but all notes over terday day, all of by them. cashed during $10 were the refused. pervaded all classes of our comPersons were seen running to with their hands munity. A general dismay full and of from silver.- the sent large billsaccompanied with home their silver: those were to Others, to Banks, bring and again, returning with the tellers. obliged boxes return finding no favor believe that the motives to this measure, were any of we suppose that they had one for the interests of that selfish-did the Could basks empty, we community thing which but for actuated spark whom purely so much solicitude- any just that their course can ground feeling they manifest for believing there have which a ten- for to dissipate, in the least, t at pressure dency last two months has been preying upon the vel: the vitals of our commercial community and destroying be between man and man-could we to realize all this, we would be among But we think different. brought confidence uphold them. They have and the now first to been playing an iniquitous game, forsooth, with the plea that are restore that confidence, the so of former system of favorit.sm in voring which come all along out, their to about. they destruction has been endeawe have seen no reason for a of There h is been no run upon the instrumental As yet payments. bringing suspension of what might have been made in country traders have portion of the money they get This they have done now, produce times. banks away specie a but large The in specie. up always the for best carried their and would de in the most prosperous times. We rejoice in one thing, however, and that is the banks will hereafter be compelled to " show their hands. The next legislature will doubtless pass such laws as will compel the directors to let the peoplekkow in what manner the affairs of the different to institutions are conducted, and net allow them continue their dark underhanded schemes. We rejoice, also, that things cannot become worse. Picayune. We understand that the Gas Light bank and Merchants, Dr and they alone, continued 10 pay specie yesterday until the closing of their doors at the reguhour. All right in these institutions so far, and we lar trust this state of things will continue. SCENE IN A BANK.- An Irishman entered one bill- of banks yesterday, and throwing down a $5 our Will you be kind enough, Misther, just to give me the spacie for that same bit of a bill? No, sir. "What! can't you be aftherpaying such a small sum as " that, We have at all, suspended at all?" paying specie altogether! Suspended, h ve you? And is this the institu that cannot pay an honest man five doltien, that sure, you have had a man parading about with loaded lars, musket, all the long winter through, to keep thieves? If you had a pig, or any thing valuable but off protect, 'twould all have been right enough; Och! such to a poor, miserable concern as this 18, sure. botheration to you, and the like of you!"--Ibid. there 80 much liquor drank Orleans Never was in of day as yesterday, and all on account men the in the one suspension of the banka Sober steady

2. June 27, 1838 Morning Herald New York, NY
Article from Morning Herald, June 27, 1838

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Article Text

# MONEY MARKET. Tuesday, June 26.-6, P. M. The fate of the sub-treasury bill will no doubt be ascertained this week, and the anxiety with regard to it will cease to have its baneful effect on the market; but the defeat (if it should be so,) of this bill is but a small step towards affording any effec-tual relief to commercial affairs; for in fact, the sub-treasury bill has been in operation over a year already. The scanty means of the beggarly government have been deposited with the officers of the customs, postmasters and disbursing agents, and the President, by the laws now in force, has the control of the public funds, and, until a resumption of specie payments, can withko'd it from the banks. This scheme is therefore only the official recognition of what has been practised in effect ever since the suspension. The defeat or loss of this bill ther, will in itself have no effect on the money market, unless it can be followed up by a repeal of the obnoxious features of the new treasury circular, and some measure of permanent relief in the shape of a national bank, or other means of regulating exchanges, become a law. In this view of the case, the bank convention of New Orleans have passed the following resolu-tions-the result corresponds with the opinions we have here-tofore given from private sources in that quarter. Ist. Be it therefore resolved, That in the opinion of the Board of Presidents of the Banks of New Orleans, the first Monday in January next should be fixed on as the time of re-sumption by said banks, provided that the U. S. Bank of Pennsylvania, through its agency in this city, will furnish a general currency until the establishment of a national bank, or until such other remedial measures be adopted or sustained by the government in relation to the currency, as will insure the country and the banks against the deplorable consequences of a second suspension of specie payments by the government and the banks. 2d. Be it further resolved, That a committee of three be ap-pointed to correspond with the President of the U. States Bank of Pennsylvania on this subject, said committee to report to the board the result as soon as practicable. 30. Be it further resolved, That these resolutions be sub-mitted to the Directors of all the Banks in this city, for their consideration and concurrence. S. J. Peters, President of the City Bank; Benjamin Story, President of the Bank of Louisiana; H. Lavergne, Pr. sident of the Consolidated Association, were appoisted the committtee. G. B. MILLIGAN, Chairman of the Board of Presidents. CHARLES BRIGGS, Secretary. The Bank of America has declared a semi annual divider of five per cent, payable on the 6th of July. The business at he board today has been animated, and prices have again improved in corsequence of the rumors from Washington being adverse to the passage of the pending Sub Treasury bill. United States Bank closed at an advance of per cent; Delaware and Hudson rose I per cent; Ohio Trust per cent; the railroads also closed at an advance of from a per cent.

3. July 7, 1838 The Native American Washington, DC
Article from The Native American, July 7, 1838

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From the New Orleans True American. It is with no ordinary feelings of satisfaction that our fellow citizens read yesterday, an extra, which we republish below, of the proceedings of the meeting of the Presidents of the Banks. be that the first Monday in January has been fixed for the of next, It will seen, upon resumption renewed specie payments. This step will inspire confidence in our banks, which already stand high in the commercial world. Although the banks have resolved to resume, yet they acknowledge their inability so to do, permanently, without the aid and assistance of the United States Bank of Pennsylvania. From which a committee has been appointed to soof currency. can show the licit more institution. a medium clearly general absolute necessity of Nothing Presidents of a National Bank. Indeed, the Board alive to this fact, recomestablishment of an the and the to are mend ensure fully the country and such banks indirectly institution, against the deplorable consequences of a second suspension of specie payments, by the Government and the banks. NEW ORLEANS, June 16, 1838. At a meeting of the Presidents of the Banks of New Orleans, held this day at the Union Bank, the following preamble and resolutions were adopted: Whereas, in the opinion of the Board of PresiBanks of New Orleans, the recent in the of the to the of the country, prodents change tion of the currency policy Government and the in relaat an early period, by the banks of the cities of the consequence the of thereof; bable resumption, principal resumption North, specie in payments by the banks of Louisiana will be rendered practiwhereas it is also their opinion, that their be the should in cable; resuming and guided by payments condition in specie, of the the country banks generally, and by that of the South Western section of the United States in particular; and that in their endeavors to attain an object so desirable, they should carefully avoid causing unnecessary embarrassments by precipitate action, keeping steadily in view, that the interests of the community, as well as the safety of the banks, require that such resumption of specie payments should be permanent: 1. Be it therefore Resolved, That in the opinion of the Board of Presidents of the Banks of New Orleans, the first Monday in January next should be fixed on as the time of general resumption by said banks, provided the United States Bank of Pennsylvania, through its agency in this city, will furnish a general currency, until the establishment of a National Bank, or until such other remedial measures be adopted or sustained by the Government in relation to the currency as will ensure the country and the banks against the deplorable consequences of a second suspension of specie payments by the Government and the banks. 2. Be it be further resolved, That a committee of three be appointed to correspond with the President of the Bank of the United States of Pennsylvania on this subject: said committee to report to this Board the result as soon as practicable. 3. Be it further resolved, That these resolutions be submitted to the directions of all the banks of this city for their consideration and concurrence. S. J. PETERS, President of the City Bank, BENJAMIN STORY, " Bank of Louisiana, " H. LAVERGNE, Consolidated Ass'n., were appointed the committee. G.B. MILLIGAN, Chairman of the Board of Presidents. CHARLES BRIGGS, Secretary.

4. December 25, 1838 True American New Orleans, LA
Article from True American, December 25, 1838

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The 1st and 3rd Municipalities. We copy the following from the 'Bee' of yesterday: 'It is not then a matter of simple justice, honor, and good faith, that the banks should now come to the relief of the first and third muncipalities, the credit of which is endangered. The City Bank has already de clared its intension to pav in specie the bonds of the second municipality after the first and third are rejected with distrust and di-dain. The refusal of he banks to redeem these issues will inevitably injure their credit, and render them the object of the most infamous speculations," From May 1836 the Bee has industriously tried toin jure the credit of the suspended banks, and has without scruple repeated again and again, that they were unable to resume their specie payments: yet now within a few hours of their entire resumption it makes a positive, and rightful claim upon them to do for the first and d municipalities that which those corporations should, and could have done for themselves. Why is it the small notes of the 2nd municipality. are now, have always been, equal to cash! Simply because the council has prudently issued their bonds to cover the am ount in circulation, which being purchased by the city Bank that institution will pay silver for these notes after the first Monday in January! And why is it that the issue of the 1st and 3rd are so greatly depreciated? Purely because their councils have neglected to use the same precautions. On whom then should the blame laced? Certainty not upon the banks, but upen the negligent councils of those two sections of our city. The Bee proctatins that their yearly incomes is amply adequate to the liquidation of all just demands upon them' yet utters ono word in rebuke of their neglect, but calls upon the banks to pay their debts for them. This is both ungenerous and nnjust. The public censure should be visited on those who have neglected their duty, and the appeal of the Bee cames with ill grace indeed after all the abuse and vituperation It has heaped upon every one ofour monied institution. CANADA - we supposed the highly flourished ac. counts of the taking of Malden, by the Patriots, proves miserable humbug. It appears by letters fr m Detroit, that on the evening of the 3d inst. some two hum dred men passed over to the Canada shore from the latter city, burning some buildings, and took posses. sion of the barrack guarded by about 60 men But on the following day the regulars, and militia made short work with them as appears from the following extract of a letter dated on the 5th inst. Wedneeday Noon. The tragedy or force is nearly ended. Upon the upproach of the regulars the patriota ispersed-H* any as could. taking boat for "Hog Island," American ground; about 10 of them are now in gaol to await their trial here. The Erie as I before ment oned "as at hand and secured them; one poor fellow was badly wounded by A grapeshot, and his arm since ampurated. Towards evening the troops returned, leaving sufficient to pursue those who had taken to the woods.-A number of prisones are in the hands of the royalists. and weshall soon hear of their trial. 3P.M. have just conversed with a gentleman who bore despatches from Gen. Brady to the officer in command on the opposite hore vesierday evening, and in consequence of the ice remained until this mornin He informs 12 patriots were killed in all, and some 8 or 10 ro alisis, hesides A number wounded. Surgeons were in attendance from this side. They had n number of prisoners. Two of them were immediately ahet by the "Black Prince'' who had the command, and all would have shared the saine fate had not his superior arrived in time to check the carnage Allwas quiet and nothing like excitement on this side was visible. I presume many of those who have taken to the woods will find their way back to the American shore; h fore this many doubtless have succeeded. We have had a gentle full of snow last night, which will be to their disadvantage. 6 o'clock. P. M. Nothing of interest since poor. They have had a trial on the other side, and A number were to he, and are before this, executed. No further attempts I presuine will be made from this side for the present.

5. March 17, 1842 The New York Herald New York, NY
Article from The New York Herald, March 17, 1842

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The Bank of Louisiana refused to call her stockholders to vote upon the Reform Bank Law. The City and Commercial have decided against accepting by a large majority,-say three to one,-and the Gas, unanimously; taking the ground that it had not violated the amnesty law of 1939, either by acts of commission or emission. The Lower House of the Louisiana Legislature have amended the resumption bill, by fixing the first of December instead of October, for a return to speice ments. The Benate will, however, probably not recede. The following is a return of the City Bank of New Orleans, on the 1st March, as compared with the return of Octo ber, 1839, when the second suspension took place.