7562. Bank of New Orleans (New Orleans, LA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
March 15, 1879
Location
New Orleans, Louisiana (29.955, -90.075)

Metadata

Model
gpt-5-mini
Short Digest
45e2aef8

Response Measures

None

Description

Newspaper accounts (March 1879) describe a temporary general suspension of New Orleans banks and specifically indicate the Bank of New Orleans 'failure' and insolvency due to poor condition (bad bonds taken as collateral). No explicit depositor run is described; the bank is described as a failure/insolvent and expected to go into liquidation, so this is classified as a suspension followed by permanent closure. Dates are approximate based on article publication (mid-March 1879).

Events (2)
1. March 15, 1879 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Banks (including Bank of New Orleans) suspended amid insolvency concerns stemming from large holdings of fallen state and city bonds taken as collateral and poor condition of capital and assets.
Newspaper Excerpt
The flurry of a few days ago caused by the temporary suspension of the New Orleans banks has subsided.
Source
newspapers
2. March 25, 1879 Other
Newspaper Excerpt
The recent failure at New Orleans of the Bank of New Orleans turns out to be a bad one from all accounts. ... Both of the institutions named, it is said, should long since have gone into liquidation, as their affairs have not been in condition to attract the confidence of the public.
Source
newspapers

Newspaper Articles (2)
1. March 24, 1879 Public Ledger Memphis, TN
Article from Public Ledger, March 24, 1879

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Article Text

COMMERCIAL. PUBLIC LEDGER OFFICE, MEMPHIS, March 21, 1879. 1 The recent marked advance in cotton has imparted vigor and activity in all branches of business. Financial circles is made to feel its share of the improvement by an increased demand for exchange, a more cheerful tone to business generally, and an increase in the volume of currency. The latter is in ample supply, with little chance for its lucrative investment. It is estimated that nearly $2,000,000 are now lying idle in the vaults of our city banks and insurance companies. Solvent borrowers are scarce, and money can be readily obtained on prime mercantile paper or good collaterals at from 6 to 10 per cent. interest. The flurry of a few days ago caused by the temporary suspension of the New Orleans banks has subsided. The amount of cash on deposit to the credit of our banks in that city, and which is in jeopardy, will not exceed $20,000. It is believed all of the banks will resume again before the close of the present week, except perhaps the Bank of New Orleans and the Mechanics and Traders. Exchange is unaltered, banks buying bills on New York and Boston, without grace, at 1c, or $2.50 per $1000; for sight on Boston and vicinity $3.75 per thousand. Bills on New Orleans are taken at to discount. Checks on New Orleans are sold by the banks at par. The present quotable value of leading local securities are as follows: Memphis gas bonds, ex-April coupons, 91; gas stock, 821; county warrants, 82@88; Hernando Insurance stock, 117; Union and Planters' Bank stock, 105; Bluff City Insurance stock, 711; Bank of Tennessee notes, new issue, 35@41; Mississippi and Tennessee first mortgage eight per cents, 116, and second ditto, 90; Phoenix Insurance stock, 50; Memphis General Fire and Marine Insurance stock, 65.

2. March 25, 1879 Public Ledger Memphis, TN
Article from Public Ledger, March 25, 1879

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Article Text

COMMERCIAL. PUBLIC LEDGER OFFICE, MEMPHIS, March 25, 1879. The recent failure at New Orleans of the Bank of New Orleans turns out to be a bad one from all accounts. The capital stock was $334,000, and shares were offering freely at the low rate of $1 each, without takers. The Mechanics and Traders Bank had a capital of $300,000. This is thought to be in equally bad condition. The banks held largely of State and city bonds, the same having fallen to their possession from persons who put them up as callaterals for loans. Their recent marked decline had its effect, the banks being unable to realize upon the secrities in their bonds. Both of the institutions named, it is said, should long since have gone into liquidation,as their affairs have not been in condition to attract the confidence of the public. The general suspension of theremaining banks at NewOrleans was merely a precaution to prevent unnecessary ruins and not an act of insolvency. Within two days of last week after the suspension about $2,000,000 in currency was shipped from New York to New Orleans. This included nearly all held by the banks in that city, and it is expected that at the Saturday's weekly statement the reserve of the banks would be reduced to nearly the legal 25 per cent. of total liabilities. The total liabilities of all the New Orleans banks on the 15th of March was set down at $14,303,000, of which $13,879,000 was due depositors. The cash assets at the same time was $11,028,000, of which over $7,000,000 was in currency and sight exchange. In addition the banks held $9,620,000 in loan and discount paper. This condition is regarded as very favorable, and shows that there is no cause for a panic or an uneasy feeling. Our local money market is in a very easy coudition, currency being abundant, and the mercantile demand for money light. Discount rates are the same as heretofore, viz.: 6@10 per cent., according to the character of the paper tendered, or collaterals offered. Exchange indicates no disposition to vary, nor is it likely to while cotton shipments continue SO active. The banks are buying bills on New York and Boston, without grace, at 1c, or $2.50 per $1000; for sight on Boston and vicinity $3.75 per thousand. Bills on New Orleans are taken at tc discount. Checks on New Orleans are sold by the banks at par. The present quotable value of leading local securities are as follows: Memphis ga.8 bonds, ex-April coupons, 91; gas stock, 90; county warrants, 82@88; Hernando Insurance stock, 117; Union and Planters' Bank stock, 105; Bluff City Insurance stock, 711; Bank of Ternessee notes, new issue, 35@41; Mississippi and Tennessee first mortgage eight per cents, 116, and second ditto, 90; Phœnix Insurance stock, 50; Memphis General Fire and Marine Insurance stock, 65. Sales of gas stock have been made within the past few days at 86c, and holders are generally firm at 90c. The price of silver bullion fell in London last Friday to 48Id per ounce. In New Orleans the mint is paying $1.08 per ounce for bullion in lots under 10,000 ounces; also 831@84c for Mexican and 90@95c for trade dollars. An arrangement has been effected whereby it is expected that silver for the New Orleans mint will henceforth be mainly supplied from the mines of Mexico.