New Orleans Clearing House - New Orleans, LA

Episode Information

Episode UID: 7448954990951
Episode Type: Suspension → Reopening
Bank Type: trust
Bank ID: 744895499 hash
Start Date: March 21, 1879
Location: New Orleans, Louisiana (29.955, -90.075)

Metadata

Model: gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest: 8424423ed28b5a5e

Response Measures

None

Description

Article treats the suspension as temporary but gives limited follow-up; additional local reports could confirm reopening.

Events (1)

1. March 21, 1879 Suspension

Cause: Local Banks
Cause Details: Suspension linked to local banking distress, notably the recent suspension of the New-Orleans Savings Institution which created excitement and liquidity needs.
Newspaper Excerpt: Bankers in this city yesterday generally regarded the suspension of the New-Orleans Clearing House as a temporary measure
Source: newspapers

Newspaper Articles (1)

1. March 21, 1879 New-York Tribune New York, NY

Article from New-York Tribune, March 21, 1879

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Article Text

COMMENTS OF NEW-YORK BANKERS. THE SUSPENSION REGARDED AS TEMPORARY, BUT THE DRAIN ON NEW-YORK BANKS DEPRECATED -DETAILS ABOUT SOME OF THE BANKS THAT HAVE SUSPENDED. Bankers in this city yesterday generally regarded the suspension of the New-Orleans Clearing House as a temporary measure, but several declared that it was an unfortunate time for such action, as the demand for money would withdraw probably not less than $2,000,000 from New-York. A well-known banker said that in order to prevent a tight money market Secretary Sherman would be compelled to come to the aid of the banks. It was claimed that there was to-day in the Sub-Treasury $15,000,000 more in legal-tenders than on January 1, and a large excess of gold. It was suggested that Secretary Sherman should begin at once to pay the April interest, and thus strengthen the banks. It was also claimed that be should pay the called bonds at all the Sub-Treasuries, which would throw upon the market about $4,500,000 and make money easy. "The Treasury Department cannot expect to continue the funding scheme with money on call at above 4 per cent," said a banker, and "If the money market is allowed to become tight, the sale of 4 per cent bonds will cease altogether, and a general panie may result. The New-Orleans banks have done precisely what was done here in 1873, and the action was wise. If such a step had not been taken, there would have been a demand for legal-tender notes, and the banks not having them, resumption would have been seriously imperilled. April 1 will be settling day with the Government for 4 per cent bonds, and the New-Orleans suspension has hurt New-York more than New-Orleans, by drawing from us $1,000,000 to-day, and probably $2,000,000 in all, in legal-tender notes. There is no fear of any disaster here unless all the New-Orleans banks should become permanently crippled. which is scarcely a probability." The president of a prominent bank in this city, in speaking of the news from New-Orleans, said : I think the cause of the temporary suspension of the banks is best explained in the following extract from a letter written from the Southern Bank of New-Orleans, on March 12: The recent suspension of the New-Orleans Savings Institution, which has deposits of about $2,000,000 distributed among about 6,000 depositors, has naturally created a great deal of excitement in this community.' The letter then goes on to state that the Southern Bank was in need of funds, and asked a bank in this city to advance a loan. This request was re-