6742. Freedman's Saving & Trust Company (new Orleans Branch) (New Orleans, LA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
federal
Start Date
July 1, 1874
Location
New Orleans, Louisiana (29.955, -90.075)

Metadata

Model
gpt-5-mini
Short Digest
baa784fdac0c0543

Response Measures

None

Description

Articles (Jul 2 and Jul 8, 1874) report the New Orleans branch suspended payments by order of trustees in Washington and the trustees/board voting to place affairs in hands of commissioners to wind up the bank. No run is described; suspension appears to lead to permanent closure/receivership.

Events (2)

1. July 1, 1874 Suspension
Cause
Voluntary Liquidation
Cause Details
Branch suspended under orders of trustees in Washington; deposits sent to mother institution and branch managers only responsible for administration; trustees ceased business operations following legal opinion.
Newspaper Excerpt
the branch of the Freedman's Savings and Trust Company in this city has suspended payments, under orders from the trustees at Washington
Source
newspapers
2. July 8, 1874 Receivership
Newspaper Excerpt
nine to four directors voted to close up its affairs, by placing them in the hands of Robert Purvis ... and R. Leipold; it will take two years to wind up the bank entirely.
Source
newspapers

Newspaper Articles (2)

Article from New Orleans Republican, July 2, 1874

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Article Text

NEW ORLEANS CLEARING HOUSE. Balances Clearings. $180,995 03 $749,927 14 June 27 146,896 09 741,351 93 June 29 157,502 69 925.446 14 June 30 99,649 71 958,777 23 July 1 $585,043 52 $3,575,502 44 Thus far this week 498,229 09 3,799,702 16 Same time last week 701,270 68 5,227,628 91 Total last week 654,005 61 4,923,671 03 Total week before We notice that the New Orleans Gaslight Company has declared a dividend of six per cent from the profits of the past six months, payable on and after the thirteenth instant, and the Carrollton Railroad Company four per cent, payable on and after the twentieth instant. We also notice that propesals for sale to the city of ten wharf improvement bonds will be received by the Administrator of Finance until the elev. enth instant at twelve o'clock M. Testerday-the last day for payment of city taxes without penalties-the receipts by the Administrator of Finance amounted to $64,059 98, making the total collections upon the tax list of 1874, $1,243,280 08. We also learn that holders of matured city sixes have accepted extensions on $168,000 more ($ 440,000 issues to the Jackson. and $124,000 to the Opelousas railroads). This makes the total amount extended $352,000. The city's Fiscal Agent was engaged paying the quarterly interest, due to-day, on the city gold bearing seven per cents. The branch of the Freedman's Savings and Trust Conpany in this city has suspended payments, under orders from the trustees at Washington, where the deposits at this branch have been sent and invested, the managers of the branches being only responsible for their honest administration. The amount of deposits in this city's branch is about $225,000, belonging to 3100 depositors, which it is believed will eventually be paid; but in the meantime the creditors have no other recourse than to calmly await relief from the mother institution, which, we understand, will be as soon as thecollections enable the commissioners to make a dividend of 20 P cent. The failure appears to have had no influence whatever in exciting any dirtrust of our local savings banks, in which the depositers have unabated confidence. Gold opened at 110%@ill%, against 110 3/2 at New York, and after a fair business closed with a good demand at 110%@1111, against 110% in that maket. The sales summed up $52,000, embracing $5010 at 110½; $3500 and $3500 at 110%; $30,000 at 110%, and $3000, $3000 and $4000 at 111. No sales of silver were reported. American half dollars are still quoted at 105@106, and Mexican dollirs at 110%, or at par with gold at New York. Under the course of gold at New York sterling exchange fell off about 3-10 # cent. The sales were confined to £12,000, comprising £4000 bill of lading at $5 38½: £2000 Al clear at $5 39%; £5000 bank at -, and £1000 do sight at $5 48. Fancs were scarce, but the demand being moderate the market ruled lower in sympathy with gold at New York. The only sales reported were 50,000 first class at -, and 100,000 private bankers' at 4.65. In German marks we noticed a sale of 20,000 atAt the close sterling bills were quoted at $5 nas 38½ for bill of lading and Al clear and $5 R@- for bank, and france at 4.67½ for private, and entirely nominal for bank. The offerings of domestic exchange were lim ited, and, with a moderate demand rates were without quotable variation. The sales of New York sight covered $150,000, embracing $10,000 and $25,000 commercial at 9-32 ₱ cent premium; $25000 and $70,000 bank at 5-16, and $20,000 bank at 3. We also noticed a sale of $13,000 commercial on Boston at 3-16. The banks continued to check on New York at 3/8 # cent premium, and commercial sight was still quoted at 5-16. Theonly sale of stocks reported was 20 shares New Orleans Gaslight Company at $148, with dividend. The sales of bonds included $4000 city gold bearing seven per cents at 48% (of course ex-coupon). No sales of city scrip were reported City appropration certificates and Metropolitan Police warrints are quoted at about 55, and time certificatesat about 1 P cent lower, not being as easily used in the payment of taxes. Theonly sale reported in State warrants was $3000large at 33. Large are quoted nominal at 31 @33, medium at 34@38, and small at 39@40.


Article from New Orleans Republican, July 8, 1874

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Article Text

The Freedmen's Bank. The Freedman's Loan and Savings Bank of Washington has apparently come to grief. Its assets are supposed to be sufficient, if the businees of the bank were allowed to proceed, to more than cover its liabilitiee, but it is now unable, if the opinion of eminent counsel is to be relied on, either to receive or pay out a dollar. One of the last acts of Congress was to amend its charter, and in order to fully understand their position under this law the board of trustees propounded six questions to Hon. Thomas J. Durant. and he answers them in substance as follows: The bank must pay depositors who have given sixty day's notice of intention to withdraw. It may make an agreement with a depositor not to draw out, provided the latter is willing. If the bank pays fifty per cent of an ac count it can not modify such payment afterward. If the bank does any of these improper things it goes into the hands of commissioners who will take charge of all the property. The bank must invest the funds received from branches according to the law of June, 1874. Money deposited since June 23 is in the nature of a special deposit, and can not be used to pay depositors of a previous date. The effect of the opinion seems to have completely upset the policy of the trustees, for the company has done no business since, and nine to four directors voted to close up its affairs, by placing them in the hands of Robert Purvis, of Philadelphia, ex-Postmaster General Creswell and R. Leipold, the head of the independent treasury. Examiner Meigs reported some time since it could pay ninety-three cents on the dollar, but it will take two years to wind up the bank entirely. The New Orleans, New York and Memphis branches have already suspended, but how many more will be compelled to is not known.