Bank of New Orleans - 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: cc8c3c35

Response Measures

Full suspension

Description

Newspaper accounts from May 1837 report a heavy run and immediate suspension of specie payments by New Orleans banks including the Bank of (New) Orleans. By mid-1838 the Board of Presidents of the Banks of New Orleans resolved to resume specie payments on the first Monday in January next, indicating plans to reopen. I therefore classify this as a run that led to suspension with intended reopening. OCR errors in articles corrected (e.g., 'Bank of Orleans' used interchangeably with 'Bank of New Orleans').

Events (3)

1. May 13, 1837 Suspension

Cause: Macro News
Cause Details: Collective decision by several New Orleans banks to suspend specie payments amid the 1837 panic and heavy withdrawals/run; suspension seen as a response to widespread crisis rather than a single bank insolvency.
Newspaper Excerpt: The Presidents of the Bank of Louisiana, City Bank, Mechanics' and Traders'; Carrollton, Atchafalaya, and Bank of Orleans ... came to the determination ... that they should temporarily suspend the payment of specie for their notes.
Source: newspapers

2. May 14, 1837 Run

Cause: Macro News
Cause Details: Panic associated with the wider financial crisis of 1837 and the banks' suspension decisions; large-scale loss of confidence (national/statewide crisis).
Measures: Large withdrawals; banks refused notes over $10 and thereafter suspended specie payments.
Newspaper Excerpt: On the opening of the Banks yesterday morning, a tremenduous run was made upon them ... Persons were seen running to the Banks with their hands full and from their silver.
Source: newspapers

3. June 16, 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 ... a committee of three be appointed to correspond with the President of the U. States Bank of Pennsylvania ... to furnish a general currency ... until the establishment of a National Bank ... . (resolutions to resume specie payments).
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. August 17, 1837 Morning Herald New York, NY

Article from Morning Herald, August 17, 1837

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Article Text

442,876 1,050,533 78,000 44,650 Citizens' Bank, 200,684 757,213 78,003 89,890 Consolidated Bank, 50,841 702,970 558,964 514,727 Louisiana Bank, These estimates are brought up to August the 5th. It would appear that the first two are amply able to pay specie. They dose now on their circulation. Why not on their deposites Particularly as they aver that they have made arrangements with depositors to refund in the same kind of money paid in:The Citizens' Bank avows that it is not bound to pay more than $145.000 in specie. And yet Mr. Forstall has not the moral courage to come forward in the midst of a host of fifteen banks, and declare that he will pay all legal demands against the institution in specie. His very declaration of such intention would carry with him the sound banks of the city, and prostrate the bad ones. The people of New Orleans should certainly look to Mr. F. as a financier fully able to set the good example of rectitude and honesty. Unfortunately he belongs to what is called the French interest, and his influence is thus impaired. He could do much more if he were more liberal in his views. With him the question is Casar aut nihil. From the expose of the Citizens' Bank, it appears that the suspended domestic exchange debt is $258,700, of which about $195,000 are secured by real estate securities. If she comes off with no greater loss than this on her cotton operations she will be fortunate. But what is a little singular, we find $3,047,995 of discounts all maturing within 60 days from the 1st of August.To what class of dealers were these favors extended How much will be paid when they become due? The answer is plain to those acquainted with the business of New Orleans and the character of those friendly to this bank. The greatest portion of discounts were made to the French cotton dealers, or those exporting to Havre, and to a few speculators in the sugar trade. Their notes will be renewed on paying 15 per cent.But will there be no losses on these discounts? The 1st of Jannary next will tell. Again-her stock loans amount to $1,487,747. The extent to which this description of financiering is carried in New Orleans, can only be understood by a resident. Nearly all the money raised in this way went into cotton. Great losses of course will follow. The affair of the Lizardi loan,s much bruited about, appears to stand thus: $824,159 Due by F. de Lizardi & Co. Due to Lizardi Herm. 580,311 Balance, $243,848 Mr. Forstall is in a better position than same of his neighbors. He only wants moral courage and more liberal views to put him at the head of the Canal street financiers. But he must throw aside his foolish notion that the Americans will tamely submit to French dictation. From the statement of the ConsoildatedAssociation it seems that there is due this bank, from sundry European houses, the following am ounts: $64,277 Baring, Brothers & Co. London, 39,880 F. de Lizardi & Co., London. 4,865 Thos. Wilson & Co. London, Lizardi Hermanos, Paris, 3,213 8112,235 How is this? What a pity 'tis that banks could not be more explicit in their details. Their mystification only makes against themselves. These houses were large dealers with this Consolidated Association of Planters. It would form a curious exhibit, to see the amounts of their accounts current. We should then have a key to the late cotton speculations. It would unlock a door that leads to a scene of the most daring, dashing, and reckless enterprise. This institution owes the Union Bank in this city $28,908. The estimated loss on exchange notes, bills, &c., by the Bank of Lousiana and her five branches, since March last, is $100,000. It remains for the next legislature to probe the New OrJeans banks. Out of the sixteen now in existence, probably eight may stand the test. They are all in a curious condition. Party spirit prevails to a great extent among them. Twelve American banks generally combine against the four French institutions. The French move in a body; and though they are in the minority. they distract, most terribly, the monetary movements of their adversaries, because the latter do every thing, even among themselves, with a bitter and separate jealousy.We shall in a day or two show how fruitful the management ot the New Orleans Banks was in producing the late crisis. Being the centre of the cotton operation, they were the great levers which moved the whole mass. There has been a decrease in our canal tolls, for the first week of August, compared with the last week of July. Week ending August 1, $36,603 Week ending August 7, 27,564 $9,139 What's the matter? The interior, we fear, is beginning to experience the decline in trade. Stocks are a little firmer today. Specie comes in from the country very slowly. Some begin to thing that the channels of supply are drying up. Sales at the Stock Exchange.

3. June 27, 1838 Morning Herald New York, NY

Article from Morning Herald, June 27, 1838

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# 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.

4. 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.

5. November 10, 1856 New Orleans Daily Crescent New Orleans, LA

Article from New Orleans Daily Crescent, November 10, 1856

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THE BANKING SYSTEM OF LOUISIANA. The Bank of Louisana.-No. 3. On the fourth of March, 1837, although there was no telegraph to give the intelligence in an hour from Maine to Texas, the banking house of the Josephs in New York, failed. On the same day in this city', several heavy commercial firms suspended payment, which was followed through that month and April by every class and kind of merchants, traders, dealers, land speculators, shin-plaster manufacturers, until the month of May, when the banks one and all (excepting the Merchants' Bank here in this city, and the Bank of Mobile) through the union suspended payments in "specie." Now, was this not a splendid conglomeration of events? The Bank of Louisiana went with the mass, all duly, legally, and it is supposed honorably protested. There was not a bank in the city in 1837, that could pay its circulation in specie, let alone its deposits, excepting the Merchants' Bank, but that suspended in 1842. to balance accounts it is supposed. In the month of May, 1837, thirteen years after the organization of the Bank of Louisiana, it was found to be in the following condition, that is, about the time it suspended payment.