7546. Bank of America (New Orleans, LA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
September 25, 1873
Location
New Orleans, Louisiana (29.955, -90.075)

Metadata

Model
gpt-5-mini
Short Digest
f05643f5

Response Measures

None

Description

In coordinated action on Sept. 25, 1873 the banks of New Orleans (including People's Bank) partially suspended payment of currency on demand obligations for 30 days as a protective measure after suspensions among New York banks and refusal of Western banks to accept New York checks. No run or permanent closure of People's Bank is described; the suspension was explicitly limited to 30 days, implying a reopening.

Events (1)

1. September 25, 1873 Suspension
Cause
Correspondent
Cause Details
Partial suspension of currency payments by Associated Banks of New York and refusal of Western and other banks to receive checks on New York led New Orleans banks to limit cash payments and certify larger checks to prevent drain.
Newspaper Excerpt
it was resolved to pay no check for more than $100. All larger checks are to be certified, and the arrangement to continue 30 days.
Source
newspapers

Newspaper Articles (2)

Article from New-York Tribune, September 26, 1873

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Article Text

IN LOUISIANA PARTIAL BANK SUSPENSION IN NEW-ORLEANS. NEW-ORLEANS, Sept. 25.-At a meeting this morning of all the bank presidents in the city except two, it was resolved to pay no check for more than $100. All larger cheeks are to be certified, and the arrangement to continue 30 days. This action is considered precautionary to prevent a drain. The merchants generally approve of the course the banks have taken. It is understood that a meeting of the Cotton Exchange will be called to-morrow to approve of their action. There IS nothing doing on 'Change. There is no unusual excitement about the banks. p n.-The following address was issued by the banks of this city to-day The undersigned, incorperated banks and bankers of the City of New-Orleans, desire to inform the community of The motives which actuate them in partially suspending payment of currency upon their demand obligations, owing to a partial suspension of currency payments by the Associated Banks of New-York and other Northern cities and the consequent refusal of the West ern and other banks to receive checks on New-York, as in the regular course in the settlement of collections made here for their account. It is ascertained that a very large remittance of currency hence has been made upon peremptory orders within the past five days. To such an extent indeed has this prevailed that at the same rate only a few days must elapse before our vaults and the community would be entirely depleted of the means essential to the ordinary movements of trade. At the present moment foreign exchange is unsalable in New-York, and as we derive from this source our main supply of currency, we are now thus deprived of our only means of restoring the amounts lost by shipmeats to the West and the interior. We have therefore taken this step as a means of self-protection, and for the benefit of the agricultural as well as the commercial interests, and as the only means through which the incoming crops can be moved without ruinous sacrifice in prices. The duration of this protective policy is limited to a period of 30 days, during which time we are conftdent that the daily receipts of cotton and sugar will afford us a prompt and ready relief, and compel curreney to seek this market. New-Orleans Nat'al Bank. Citizens' Bank. Bank of America. Union National Bank. New-Orleans Nat. Banking Germania National Bank. Association. Teutonia National Bank. Canal Bank. Louisiana National Bank. Mutual National Bank of Hibernian National Bank. America. Bank of Lalayette. State National Bank. People's Bank. Pike Bros. & Co., bankers. Clearing-house certificates at the rate of 75 cents on the dollar will be issued on sollaterals deposited by banks, and certified checks of the Cleaning-house will be used instead of currency.


Article from Rapides Gazette, October 4, 1873

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Article Text

The Banks of New Orleans. ADDRESS OF THE PRESIDENTS. The undersigned, incorporated banks and bankers of the city of New Orleans, desire to inform the community of the motives that actuate them in partially suspending the payment of currency upon their demand obligations. Owing to the partial suspension of currency payments by the associated banks of New York and other Northern cities, and the consequent refusal of Western and other banks to receive checks on New York, as in regular course in settlement of collections, made here for their account, it is ascertained that very large remittances hence have been made upon peremptory orders within the past five days. To such any extent, indeed, has this prevailed, that at the same rate only a few must before our would be entirely days community elapse vaults depleted and the of the means essential to the ordinary movements of trade. At the present moment, Foreign Exchange is unsalable in New York, and as we derive from this source our main supply of currency, we are now thus deprived of our only means of restoring the amounts lost by shipe ments to the West and to the interior. We have therefore taken this step, as a h means of self-protection, and for the benefit r of the agricultural as well as commercial e interests, and as the only manner through 11 which the incoming crops can be moved r without rninous sacifices in prices. The duration of this protective policy is al limited to a period of thirty days, during is which time we are confident the daily red ceipts of cotton and sugas will afford us a of prompt and ready relief, and compel eurVrency to seek this market. d CITIZENS' BANK. is UNION NATIONAL BANK. ed GERMANIA NATIONAL BANK. ry TEUTONTA NATIONAL BANK. rLOUISIANA NATIONAL BANK. nd HIBERNIA NATIONAL BANK. isBANK OF LAFAYETTE. esSTATE NATIONAL BANK. le NEW ORLEANS NATIONAL BANK. atBANK OF AMERICA. ey he N.O. NATIONAL BANKING ASSOCIATION for CANAL BANK. MUTUAL NATIONAL BANK. PEOPLE'S BANK. of PIKE, BROTHERS & Co., Bankers. all tes At a meeting of the Associated Banks the held this days, itawas. try Resolved, That all deposits made hereaf ter shall be paid its kind, and that againa previous deposits no check exceeding twen ion (25) dollars will be paid in curren the to any one depositor on the same day. LOWIS SCHNEIDER, inGEO JONAS, and PAT. IRWIN, ons Trustees. mClearing House, September 25, 187 nes