7550. Bank of Commerce (New Orleans, LA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
May 17, 1867
Location
New Orleans, Louisiana (29.955, -90.075)

Metadata

Model
gpt-5-mini
Short Digest
7c8a5c26

Response Measures

None

Description

Contemporary reports (May 1867) state the Bank of Commerce (Jacob Barker's concern) 'suspended payment' and subsequently went into bankruptcy/assignment; no article describes a depositor run prior to suspension. Cause of suspension is described as protested exchange/checks drawn on the First National Bank (correspondent-related). Bankruptcy/assignee proceedings and criminal charges against Barker followed, indicating permanent closure.

Events (2)
1. May 17, 1867 Suspension
Cause
Correspondent
Cause Details
Suspension attributed to protested exchange/returned checks drawn by the First National Bank and related exchange transactions; managers concluded to suspend when exchange was protested or expected to prove valueless (per contemporary reporting).
Newspaper Excerpt
The Bank of Commerce, of New Orleans, the late Jacob Barker's concern, suspended payment yesterday.
Source
newspapers
2. June 12, 1867 Receivership
Newspaper Excerpt
Mr. Barker has since turned over all his property to his creditors ... Mr. Barker has signified his intention not to engage in business again ... an affidavit ... charging him with embezzlement and fraud ... released under bond of $10,000. S. A. Mansfield ... gave the required security. Mr. Barker has turned over all his property to his creditors, amounting to some $300,000. His liabilities are estimated at between four and five hundred thousand dollars. Mr. Barker has signified his intention not to engage in business again, giving as a reason his age and infirmity. (South-Western, Jun 12, 1867).
Source
newspapers

Newspaper Articles (7)
1. May 18, 1867 The New York Herald New York, NY
Article from The New York Herald, May 18, 1867

Click image to open full size in new tab

Article Text

to await the action of the grand jury. Healy announced retterated pus 'Hosung on you PID on suip CARD JO Aenour our 1801 Joque eq "" and received peq on use) orom JOI partics or supero In the Court of Oyer and Terminer, yesterday, An'eerSep pueces eus " JO 'oqek Auout etable sq S wouders JO upon our Sujance at - use Jerse 'ejn JOJ SIATE our 04 procedues U.S.A. pressive address from Judge Miller, in which he dwelt Alpeep jo JOSuep Brown em uodn Jorobby 10 Provalest Area . 'uessed our uodn suodvem emily sith our jo Aup puv purch on SUM . SEM THOAO 18.1g OUL Superm 9000 race for $500, one mile, over three hurdles, between 15 8,4108pim - pus un DOWS puoces equ %ore " throe 4q UOM good 'spio read throo JOJ $5000 jo essnd . JOJ SUM UOM Plants Colonet miller . JOJ usep . OUL pus Court Holdway '%19:1 u) SUM pue quarter . pus = jo usep . BUM GOBS Paius won by Mr. Morris' Twinkle beating the favorite, end The 2:21% B) supplies OM3 4q 100dxy UOM SUM 'ysup refund . pus Injo . 'sesseq between JOJ by Colonel McDaniel's Eclipse beating Snedeker's Slasher $100 The General Transatlantic Company's steamship Ville de Paris, Captain Surment, will leave pier No. 60 North Broath 100 calling JOJ Aup-01 " JOAN to own and on 18, crop THE aoy appear OUR I'll The Inman line steamship City of New York, Captain North SP 2016 most sup-or " 18 1100 11145 Rosterl JOJ spear our pus unotsucend JOJ JOAN " "V wes 19vd-jjeq 18 "WO Post eys 10 cholo 1114A The National Steam Navigation Company's steamship Erin, Captain Hall, will leave pier No. 47 North river at I 03 10 Suijeo Transport JOJ Awp-01 uoou org The Anchor line steamship Caledonia, Captain MacAup-or uoou TO JOAN 20:N0 setd more 1198 IIIM *pisuop on 18 'MONSVID pus JOJ land mails and passengera. The Hamburg American Packet Company's steamer 18 нолодон most The IIIM Captain 12 M. to-day for Southampton and Hamburg. The eye TO 05010 111AM continue our puu Britely GROUP Joj mails Post Office at half-past ten A. M. -und useq lass 'Tenus Bung distribute eug our 'oull squepmont " u) wed child euros Joj Suiu New York and New Orleans, will take her departure at SucH 10J 'JOA(2 North 81 pier 'Rep-or W 'd Kong, China, calling at Rio Janeiro, Mauritius and Sinsquop ou 11144 peeds pus JOH Reduced make her a popular vessel in the Chinese waters. The popular steamship George Washington, Captain 'K 'd chroo 18 JOAL North 6 No. Jejd THAT Gaser OF MON JOJ 'ough 8,00 r Common 'H "H u: 'Aup-os direct. The sidowheel steamship San Jacinto, Captain Atkins, Avp-02 * 'd shree 18 JOAJJ North 13 No. pler ITIAN for Savannah, in Messrs. Garrison & Allen's line. Until further notice the departures for Savannah will be in ra100 'Asp Jourth ÁJOAO I LOSSOA . Juin8 including Sunday. 1100 THM "oull jo discurses eug The JOJ Aup-or и a 1hroo TO river 180.4 " No. ple more stormer on 4114 used legs TO connetting Charlester, Dictator for the Florida ports. may pesolo pus UPP SUM market ROOD The %181 TO PIOD ******** av 18 The merchandise markets yesterday generally were -o.rd THE pus extire aroun Applicant euros unous 'LAVOY pus Hap and conp articles advanced materially. Ceffee was quiet 42neq: Jejese opens . SUM Code u.sg AJGA 10q put HPP popus moy TO Medical -doosp pas now - '001 . og period secred opens . SUM Per - arem pro used "Sur pus allow DJOM pust you Joeg Jojes steady. Freights continued dull. Whiskey advanced, per ejotts 0.10 AM 20J018 IVAN puvemop Hej . que U.S.A. Perioded stools Illume our jo MOJA up 'Jewing . Avoy penumos ЮОМ 'J0J 14800s e.com SAOHNVTIEOSIE Our advices from South America, per Atlantic cable, -ow seq jo Prosiders 'sedo'I ere -josd 'JUA Suppued om a 10 Jego our code "IN ano 4200.143 our 4q peroj of LOAND us eouo TO understand 1114 pus perdoad on - sepresent 07 American usnog our jo JO should pegrusts 106 " sou GAVY and Joy pus Journj useq puq There our jo cousideoos between the contending armies. ****** jo and our 10 ano moy I and Vera Cruz are published in to-day's HERALD. The 'sjunecos [w] = do Sujos me SEM quot jo 02018 effile 10 JOANJ u) e.Buvqo marked ou UTIM mq jo Coroj . THE "IN General Suppleme Ajuo pus our a STAM 'nour pursnoqs the arrival of heavy artillery to commence the attack. 203 uodn pexy essp eqs SUM jo 2005 The or bombardment. Sisal was captured by the liberals on -sod ay Lougs pus "In 2914 our jo Sujurous eqs - Suppoedre hours UNneqs 412 eqs uo understand attack from an imporial fleet. Aun jo 411 our no persp mosj sein GAWY OM The newly appointed Governor and Commander-inChief, Colonel Sir Frederick E. Chapman, K. C. B., R. R a H mosy Helliton see peq a -uns R H H 203 1101 Speets uns MOJOS boat Minstrel left for Nassau and Jamaica. The French gunboat Diligante, Captain Revault, from Havana bound to France, was in Hamilton harbor. Affairs in New Orleans wear a decidedly volcanic asour 4q pendops services equal snq :sood us probably IIIM authorities American un8 . pas action JOJ receipts an Idex are sdoors our esg uedo of Apeer AND equip jo quosj up a #) reoq These precautions, together with General Mower's threat ou 111AM pus a THE qour our 100 cheque 03 -nq.ns our jo spujes our NO гоеде subjury . DATE squop lent portion of the population. Hon. George Bancroft, the historian, was yesterday us Berlin 10 our 4q applicate -us OM used esoqa Indiana jo 'squire Governor jo *** saep MOJ . peounou DAVY 01 reported 81 Canal our up break shopting V V jo 150 AM district Lous . ocourred -0J eq: exem 01 required eq IIIM earn 9,300M suped The captain of a ferry boat was arrested at Norfolk on RIghts HAID our THE charge 1001 1544 our [seiper 0114 em mosy имом 001020 . Sunsefe us THE cabin of his boat. The Bank of Commerce, of New Orleans, the late Jacob Barker's concern, suspended payment yesterday. Contral Tort MEN em jo 19211 our 03 se The eq 08 # 'erej JOJ selve P108 charge 01 Company Relition 1xeu TO Court guardians our 0.10jeq pensue reem The Fernando Wood Leases-A Legal Muddle. The legal hubbub over the Fernando Wood Nassau street leases was further increased yesterday by the restoration by Judge Barnard of the Pullman injunction, which was set aside

2. May 22, 1867 The South-Western Shreveport, LA
Article from The South-Western, May 22, 1867

Click image to open full size in new tab

Article Text

CARD. SHREVEPORT, LA., May 20, 1867. Messrs. Editors South-Western : Gentlemen-As many reports are and will, doubtless, be in circulation regarding financial affairs in New Orleans, having their origin in the suspension of the City Bank, the First National Bank and the Bank of Commerce, causing distrust in financial circles, I would state, as agent for the well-known and popular house of JOHN PHELPS & CO., that they are not in any way involved with these parties or others, and that I am amply prepared to make liberal CASH advances upon any amount of shipments of cotton or other produce to this house. I am also prepared to make liberal CASH advances on all cotton consigned to me for sale. D. B. MARTIN, Cotton Factor and Agent. my22 It

3. May 22, 1867 The New York Herald New York, NY
Article from The New York Herald, May 22, 1867

Click image to open full size in new tab

Article Text

THE COMMERCIAL CONDITION OF THE SOUTH. TO THE EDITOR OF THE HERALD. The failure of the First National Bank and the Bank of Commerce at New Orleans, following close upon the suspension of several large firms in the seaboard cities, are circumstances calculated to alarm the public as to the stability of commercial firms in the late rebel States, whose interests are more or less wrapped up with those of Northern and European houses. For many months much anxiety has been felt as to the financial and commercial interests of the South, and many have prophesied a general crash; but there is still hope that it may be averted. The collapse of the rebellion found commercial affairs in a chaotic state and many millions of Northern debts still standing against Southern merchants. The promptness with which most of these merchants came forward and met their obligations contracted before the rebellion gave new assurances to our importers of their honorable intentions, and consequently their old customers' orders were filled on long credit. Many new firms who had not been in the Southern market, anxious to compete with the old establishments, made large consignments on time to Southern cities. The Southern dealers, trusting their ability to meet their obligations, launched out into what they considered safe speculations. To do a strictly cash business ID the impoverished condition of the country was impossible; so the course generally pursued was to advance provisions and money to planters, taking a lien upon the crop as security for their indebtedness. Had the cotton and other staples yielded well in 1865-6-7, this system of mutual benefit would have worked admirably-the producer could have paid his hands, refended the money advanced by the Southern merchant, and had a respectable margin on which to work another year; the large amount due the importers would have been collected, and the South would have received a healthy start. The failure of the crops, however, has disarranged the entire commercial system of the Cotton States; the crop barely paid the expenses of labor employed to produce it, and, under an order from the Freedmen's Bureau, the freedmen had a first hen upon it; nearly the entire crop was swept away by them, and the planter and his creditor are the sufferers, Willing as the Southern merchant may be to pay his debts, be finds it impossible to meet his obligations to the importer, and hence a crash is imminent. As an evidence of the difficulties under which all commercial firms suffer, the fact may be instanced that one importing firm in this city have over $2,000,000 outstanding debts in the South that could be collected had the cotton crop of the past two years proved a bountiful one. A representative of the firm made a tour of the South, and succeeded in collecting but a few thousand dollars. Since the war closed over $5,000,000 have been invested in the planting interests of Mississippi, Louisiana and Alabama by the firm represented by General F. J. Herron, and it is to be presumed that but little has been realized on the amount invested. This is but a tithe of the Northern capital that has gone South to develop the country, and which as yet has not Kiven a return. It now becomes a serious matter of consideration as to what the results will be should the Northern importer force the payment of past obligations immediately. A commercial panic cannot be long staved off, and when it comes it is not the South alone that will feel the shock. It must extend North to those firms that are identified with the South. ern trade, many of which will, in all probability, be carried down with the crash. Tuere seems to be but one solution of the difficulty that presents itself. and that is for Northern importers to pause in enforcing their claims upon their debtors untir the return of another good crop, when it is safe to presume that all parties, by careful economy and caution, will be able to meet their obligations and a more healthy system be infused into the commercial oircles of the cotIMPORTER. ton producing States.

4. May 24, 1867 The New York Herald New York, NY
Article from The New York Herald, May 24, 1867

Click image to open full size in new tab

Article Text

received announcing the protest of exchange remitted to cover bills drawn by this bank. which. together with other disappointments renders is impossible for me in the present state of the money market to raise a suffl. ciency to meet my engagements punctually. I have unincumbered real estate in this city yielding an annual rout of $15,000, which will be, so far as may become ne cessary, appropriated to the payment of the JACOB BARKER. debts of this bank. On this failure the New Orieans Times of the 18th instant says:To-day the doors of the Bank of Commerce, a private bank, suspended or failed in meeting obligations, ow ng, it is said, to exchange transactions with the First Na. tional Bank, it being the holder of sundry checks drawn by the First National on the North. which were protested yesterday for non-payment As the checks in question have not been returned, but will be in due course of mail, the managers of the bank concluded to suspend. A card in the evening paper from Mr. Barker only partially explains the cause of the suspension. What exchange was protested yesterday in New York or Boston? Was it composed of checks drawn by the First National Bank. which were remitted by the Bank of Commerce, or what exchange has been protested 1 Has it not had time to be returned? Or have the bills of the Bank of Commerce been returned? Whether the suspension is not promature, and in anticipation of the exchange alluded to being valueless, those interested must wait a few days. The Bank of Commerce had no circulation, and the number of depositors is limited. The suspension, whether large or small in the aggregate, has added to the feeling of excitement and commotion.

5. June 12, 1867 The South-Western Shreveport, LA
Article from The South-Western, June 12, 1867

Click image to open full size in new tab

Article Text

# ARREST OF JACOB BARKER, Esq. An affidavit was made before Recorder Ahern, yesterday, against the above named gentleman, by Mr. Patrick Cummings, a member of the Board of Assistant Aldermen, charging him with embezzlement and fraud. Mr. Cummings had deposited in the Bank of Commerce, of which Mr. Barker is President, the sum of $9000, which, since the suspension of the bank, he has been unable to collect either the whole or in part. He consequently preferred the above charge, and Mr. Barker appeared before the Recorder last evening, who, after reading the affidavit, fixed the case for investigation for the 6th of June, and released the accused under a bond of $10,000. S. A. Mansfield, Esq., we are informed, gave the required security. [Crescent. Mr. Barker has since turned over all his property to his creditors, amounting to some $300,000. His liabilities are estimated at between four and five hundred thousand dollars. Mr. Barker has signified his intention not to engage in business again, giving as a reason his age and infirmity.

6. June 7, 1868 New Orleans Republican New Orleans, LA
Article from New Orleans Republican, June 7, 1868

Click image to open full size in new tab

Article Text

# THE CITY MONEY. When General Butler arrived at New Orleans the city was flooded with irresponsible shinplasters and Confederate currency, the circulation of which he prohibited. City notes were substituted, and the Bank of Commerce was authorized to issue bank notes and small currency. The bank, at the solicitation of Mayor Hoyt, aided in preserving the market price of city notes by receiving them at one per cent and selling them at one-half of one per cent, without any charge to the city, although frequently in advance from sixty to one hundred thousand dollars, taking their bonds at par to the amonnt of $66,000. The bonds being issued by military authority, the money dealers objected to them, and in consequence Mayor Hoyt loaned Mr. Barker $25,000 on the security of $28,000 of the bonds. The credit of the city notes continued to be sustained until there was a new administration of the city affairs, which called on Mr. Barker to take up the $25,000 loan, in consequence of which he discontinued the receipt of city money. Depreciation followed, and the bank discontinued the issue of its notes and immediately redeemed at par all notes it had issued. It was the habit of the bank to furnish to applicants small bills of exchange on the Belfast banking company, Belfast, which were almost daily remitted to their poor friends in Ireland. All of these were punctually paid, leaving a balance of near $7000, which was paid over to the assignee of Mr. Barker in bankruptcy immediately after calamitous times had caused the bank to suspend payment. On the happening of that event Mr. Barker commenced paying the small depositors, intending to reserve his large estate for the other creditors. They were not satisfied with this course, and some of them forced him into bankruptcy, which is causing a great sacrifice of his estate and deprives him of all control thereof. His first effort was to have his estate settled by trustees, to be appointed under the forty-third section of the bankrupt law, to effect which he could not obtain the assent of a sufficient number of creditors. He then petitioned the court to have his real estate sold for claims on the bank, in which he only partially succeeded.

7. January 5, 1869 The New Orleans Crescent New Orleans, LA
Article from The New Orleans Crescent, January 5, 1869

Click image to open full size in new tab

Article Text

CITY HALL, NEW ORLEANS, December 30, 1868. The board met pursuant to adjournment. Present—President Markey, and Messrs. Boguille, Brady, Kaiser, Pessou and Shields-5. On motion the minutes of the session of Dec. 26th inst., were amended by inserting at the proper place the amendment of Sec. 23 of the license ordinance as follows: Strike out "$250" and insert "$100." REPORTS. The finance committee submitted the following report: FINANCE COMMITTEE ROOM, No. 23 City Hall, New Orleans, Dec. 29, 1868. To the Honorable the President and Members of the Board of Aldermen: Gentlemen—Your committee beg leave to report as follows: On the resolution authorizing the controller to warrant on the treasurer in favor of John F. Rust for the sum of $500 in United States currency in reimbursement of a similar amount deposited by him at the time of the adjudication of the contracts for digging certain canals, favorably. The amount deposited by Mr. Rust at the time of the purchase of his contract consisted in a check of $500 on the Bank of Commerce, which was good at the time it was drawn and for some time afterwards, but when Jacob Barker failed and the Bank of Commerce suspended payment and went into bankruptcy, the check kept into the controller's office, as security became worthless. In the opinion of the committee the city is responsible to Mr. Rust for the amount of the check in U. S. currency, its loss being due entirely to the culpable neglect of D. E. Mandell, the then controller, who could have presented it in time for payment and yet failed so to do. Touching the adjudication of the revenues of the various public markets for the year 1869, and the currency in which the notes given by the lessees should be paid, your committee find that although these notes are negotiable and payable in United States treasury notes, yet the bidders for the markets seem to have been under the impression that they were payable in city money. In order to avoid litigation and put this question beyond all cavil, your committee would respectfully recommend the adoption of the following resolutions. Respectfully submitted, JOHN A. O'BRIEN, Chairman Finance Committee. TH. R. BRADY. O. POYNOT. VICTOR PRADOS.