7568. Bank of Orleans (New Orleans, LA)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: July 13, 1841
Location: New Orleans, Louisiana (29.955, -90.075)

Metadata

Model: gpt-5-mini
Short Digest: fe416a28

Response Measures

Full suspension, Books examined

Other: Final event: liquidation/receivership under named liquidators (W.C.C. Claiborne et al.)

Description

Contemporary reports (July 1841) describe the cashier's resignation, disputed specie statement, refusal to allow examiners access, a run and the bank closing its doors. By mid-1842 the Bank of Orleans is reported to be in active liquidation. Cause stems from adverse bank-specific information (suspected fraud/absconding and weak specie position). Dates are taken from article text (run/closure July 13–14, 1841; liquidation reported July 29, 1842).

Events (4)

1. July 13, 1841 Run

Cause: Bank Specific Adverse Info
Cause Details: Published contradictory statements of specie (one dollar per twenty vs. $109,000), cashier resigned, refusal to allow examining committee access; rumors of cashier/president absconding with funds triggered panic.
Measures: Closed doors/refused redemption; refused access to books to investigators
Newspaper Excerpt: the bank investigating committee...were refused access to the books of the bank, which alarmed the public and the holders of the notes made a run upon the bank yesterday, demanding specie or other paper for their notes. The doors of the bank were closed
Source: newspapers

2. July 13, 1841 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Bank closed after run following revelations of weak specie reserves, disputed published statement, and alleged absconding of officials. Refusal to permit examining committee heightened alarm.
Newspaper Excerpt: The doors of the bank were closed and the public set at defiance.
Source: newspapers

3. July 29, 1842 Other

Newspaper Excerpt: The Bank of Orleans at New Orleans, has gone into active liquidation under W. C.C. Claiborne, M. Caruthers and J. B. Hullen. Rumors ... between two bank Presidents.
Source: newspapers

4. August 15, 1842 Other

Newspaper Excerpt: A detailed statement of the assets of the Bank of Orleans has been published...Asssets as they appeared on the books of the Bank the day it was closed...These assets ... circulation now outstanding is $206,324.
Source: newspapers

Newspaper Articles (9)

1. July 24, 1841 Lexington Union Lexington, MS

Article from Lexington Union, July 24, 1841

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Article Text

Anti-Bond, County Ticket For State Senate, BENJAMIN GRIFFIN For the House of Representatives, OTHO W. BEALL HENRY FIELD BANK EXPLOSION. We call the attention of our readers to an article from the Vicksburg Sentinel, Extra, of the 17th inst. It contains some starting developments in relation to the New Orleans Banks, The Bank of Orleans has exploded The Cashier resigned a few days since, and published a statement of the condition of the bank, showing that it had 10 its vaulte, but one dollar in specie, for every twenty of its circulation. On the following day, the bank published a counter report showing that it had a greater amount of specie, but refused to let the bank in. vestigating committee examine into the affairs. This caused a run on the bank, and it closed doors. It is doubtless irre. univerably insolvent; and the other banks of the city, are most probably in a condition scarcely less enviable. Those who hold the notes of these thieving shops may look out for a desolating squall.

2. July 24, 1841 Lexington Union Lexington, MS

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[Correspondence of the Seutinel.] NEW ORLEANS, July 14, 1841. Dear Sir: - The catastrophe which you long since predicted has taken place. The swindling Banks of this city have legan to explode. A few days since the Cashier of the Bank of Orleans resigned, and in the pub. lished statement of the situation of the Banks the "Orleans" showed about one collar in specie for twenty in circulation; this, however, was altered in the bank statement on the following day by increasing the amount of specie in the statement to 109,000 IC place of 24,000. This excited suspicion that all was not right, and the bank investigating committoe considered it their duty to examine into the affair, They were refused ACCess to the books of the bank, which armed the public and the holders of the notes made a run upon the bank yesterday, demanding specie or other paper for their notes. The doors of the bank were closed and the public set at defiance. Rumor says the immaculate financier L. Hodge, has absconded with a large mount of the funds of the Bank of Or. leans. The notes of this bank underwent a rious depreciation yesterday, and before end of the end of the week will doubtless let 50 per cent discount-this is only cumencement of a series of explosions at will take place in the rotten shaving OPA here, look out for Sam Peters' City ank next. Sam has gone to the North and they will not have the benefit of his anciering talent to keep them afloat. The Carrollton, Improvement, Mechan& Traders, will next go by the board. The Bank of Orleans had a very large circulation.

3. July 27, 1841 Southern Argus Columbus, MS

Article from Southern Argus, July 27, 1841

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From the Vicksburg Sentinel, July 17. THE BANK EXPLOSIONS IN NEW OR. LEANS JUST COMMENCED.--We learn from our New Orleans Correspondent by the Baton Rogue, which left New Orleans on Wednesday last, that the Bank of Orleans as we predicted caved in the 13th inst. By the published statement of the conO dition of the banks, it appeared that this t concern had only about one dollar in spe. e cie for every 20 in circulation; but to break the face of this weakness there was a pubo made in one of the city papers af. is that the cash is lication terwards. stating of the the Orleans was enormously stated in e report and that it had $109,000 instead k of $24,000. it Suspicion was immediately aroused and nthe Bank investigating committee went to vn examine into the affair, but they were den. nied access to the Banks, which alarmed are oz the ou made a desperate run on the Bank on er13th, demanding specie or other paper for anthe notes. It was not quite convenient, it however, for the bank to make the exing change, and she closed her door in the ed face of her clamorous creditors, and set sed them at defiance. ors Hullan the cashier had previously rea 3. signed and it is now said that the immac see ulate W. L. Hodge, the president has ab aws sconded with a large amount of the fund eak of the Bank.--'We learn that the noteshad heir already undergone serious depreciation how and at the present writing they are proba tain bly at 50 per cent discount. This is onl the beginning of the end. had We again warn our planters to loo n in out, and not to blame us if they are le ain. with worthle.s trash for their labor-itySam. Peters' thieving shop will' go nex then the Carrollton, Improvement, E: ese change' Mechanics & Traders, and pr qual. bably Canal and Commercial, as well the Gas Bank. It is difficult to say when e in devil will leave off. de. Immense amounts of this bank paper child have already been sent up the river, that New Orleans thieves, to be exchang nship for Western money or produce. to warn the planters and others to be using their guard. of the [Cerrespondence of the Sentinel.] gives NEW ORLEANS, July 14, 184I. harg. DEAR SIR:-The catastrophe wh he lit. you long since predicted has taken pla perThe swindling Banks of this city have on, gan to explode. torial. A few days since the Cashier of ntil it Bank of Orleans resigned, and in the ose to lished statement of the situation of en the Banks the "Orleans" showed about ders of dollar in specie to ever twenty of circ door. tion; this, however, was altered in ormed, bank statement on the following day nd the increasing the amount of specie in resisstatement to 100,000 in place of 24,00 to say This excited suspicion that all was er, for right,a thelbank investigating comm ess, considered it their duty to examine al hand the affair. They were refused acces lain (a the books of the bank, which alarmed e way,) public and the holders of the notes m n of his run upon the bank yesterday, dema t openspecie or other paper for their notes. of state The doors of the bank were closed lays afthe public set at defiance. but to be Rumor says the immaculate fina busehold W. L. Hodge, has absconded WI ught exlarge amount of the funds of the athorities of Orleans. se before The notes of this bank underw perhaps serious depreciation yesterday, and e peace the end of the week will doubtless in grave 50 per cent discount-this is only hether it commencement of a iseries of exp S r "Sovethat will take place in the rotten 9," as the shops here, look out for Sam Peter disobedibank next. Sam has gone to the s, would and they will not have the benefit : to some financiering talent to keep them afl ns-who, The Carrollton, Improvement e of Prin. chanics & Traders, will next eir royalty board. ularly imThe Bank of Orleans had a ver should be circulation. hat is one Dessision in the Case of McL

4. August 3, 1841 Democratic Standard Georgetown, OH

Article from Democratic Standard, August 3, 1841

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BANK CATASTROPHIES. Among the many Bank failures, robbe. ries, &c, that we have heard of within the few past days are the following: Correspondence of the Vicksburg Sentinel. NEW ORLEANS, July 14, 1841. DEAR Sir:-The catastrophe which you long since predicted has taken place. The swindling Banks of this city have began to explode. A few days since the Cashier of the Bank of Orleans resigned, and in the published statement of the situation of the Bank, the "Orleans" showed about one dollar in specie for twenty five of circulation; this, however, was altered in the Bank statement on the following day by increasing the amount of specie in the statement to 109,000, in the place of 24,000. This excited suspicion that all was not right, and the bank investigating committee considered it their duty to examine into the affair. They were refused access 10 the books of the Bank, which alarmed the public and the holders of the notes made a run upon the bank yesterdey, demanding specie or other paper for their notes. The doors of the bank were closed and the public set at defiance. Rumor says the immaculate financier, W. L. Hodge, has absconded with a large amount of the funds of the Bank of Orleans. The notes of this bank underwent a serious depreciation yesterday, and before the end of the week will doubtless be at 50 per cent. discount-this is only the commencement of a series of explosions that will take place in the rotten shaving shops here. Look out for Sam. Paters' City Bank next. Sam. has gone to the north, and they will not have the benefit of his financiering talent to keep them afloat. The Carrollton, Improvement, Mechanics and Traders, will next go to the board. The Bank of O:leans had a very large circulation. The Jacksonville Branch of the State Bank of Illinois was robbed on the night of the 11th ult. of $90,000, and the books and papers of the Bank destroyed. Town, the Teller of the Bank, has since confessed that he committed the robbery, and all the money but about $2,300 has been recovered. So says our latest news.

5. August 7, 1841 Lexington Union Lexington, MS

Article from Lexington Union, August 7, 1841

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DANK OF ORLEANS.-We have noticed in several exchange papers, a statement of the condition of this institution contradictory to that we copied from an extra of the Vicksburg Sentinel, stating that it had not more than one dollar in specie for every twenty of its circulation. It is possible as alledged, that the correspondent of the Sentinel was led into an error in this particular, by a mistake in the report of the bank examining committee but no one who knows augh of the history of the Lousiana banks, can reasonably doubt that this, with many others, will ere long explede, producing, in this State, effects scarcely less disastrous than those produced by the explosion of our own banks. It is said that all the banks in the city, with perhapse one exception, being alarmed, lest the developements in relation to this institution, should produce a run on them, are endeavoring to bolster it up for a time, until they can get a deeper hold on the unwary producers of the country. The only effect, such a course, on the part of the other banks, can have, is to put off the evil day a little longer, which will ultimately come with increased disasters. If this concern be dependant on the other banks, it leans upon a broken staff, and he acts prudently, who that refuses to become its creditor by receiving its deceptive promises. We learn that the banks were to have held a meeting a few days since, for the purpose no doubt, of concocting some plan to reinstate themselves in the confidence of the people, that they may flood the states of Lousiana and Mississippi, with their issues in exchange for the present crop, the proceeds of which they will fob, and leave their issues dead upon the hands of the people. RESIGNATION.-The Natchez Free

6. March 5, 1842 Richmond Enquirer Richmond, VA

Article from Richmond Enquirer, March 5, 1842

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THE NEW ORLEANS BANKS.-There - is a good deal %'excitement in the streets to-day against the four discredited banks, and of course a general run upon them been the consequence. The Exchange Bank, finding that her fires were all -ing sent in for redemption, has refused to give any thing in exchange for her notes, of whatever denominaLon. The Atchafalaya Bank gives current bank notes in exchange for her own. The Bank of Orleans and Improvement Bank generally give current notes in redemption. [N: Orieans Advertiser, Feb. 24. The panic is on the increase. The note-holders have taken alarm, and considerable sacrifices have already been submitted to, on the circulation of the four banks noticed in our last paper as having been discredited by the others. We confess our utter inability to predict the result of the crisis. If there was any spice of misanthropy at the bottom of the late movements in relation to the currency, it at least has no oceasion to feel satisfied at the extent of the mischief before us. There has been no violence, and we have every reason to hope that there will be none.-Bre. BALTIMORE BANKS.-The Baltimore Bapks, in conreation, have adopted resolutions to the effect that they will be ready to resume specie payments on the 1st of August; or that they will be able to resume in sixty days, if the Legislature will allow an issue by them of SI and 82 bills, to the amount of 5 per cent. of their capital. A communication setting forth this, was sent to the Legislature. FROM HARRISBURG.-The action of the Senate Monday upon the Resumption bill, sent it back to the House. Tuesday the House adhered to its position, and voted down a motion for a committee of conference-it was supposed to let the Senate make the movement, that the complexion of the Senate's committee might be ascertained (Last night's mail states, that a Committee of Conference has been appointed. The result uncertain.)

7. July 29, 1842 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, July 29, 1842

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Specie continues to accumulate, and we notice no change in rates. The only demand is for New-Orleans. One of our Banks shipped $10,000 a few days since, and private houses are sending considerable amounts. We quote American Gold, old 6 prem Spanish Dollars 3 a it prem Carolus Dollars 3 a 6 prem Mexican Dollars : 5 prem Five Franc Pieces 93 a 94 cents Doubloons $16.00 a 16 25 Doubloons, Patriot 15.60 a 15.65 4 84 a 4 86 Sovereigns 4 83 a 4 85 Light Sovereigns 5-a 5 05 Heavy Guineas A heavy Sovereig weighs 5 dwt gr. There is an abundant supply of Treasury Notes at par and 1 discount. A letter from Amsterdam, of 28th June, published in Le Commerce of the 7th inst. says Great sensation has been excited on Change to-day by a notice given by the house of Hope & Co., which announces that the coupons of the American stock which be. come due on the 1st of July will not be paid. because the house has received nothing to make this payment. On this point there is not much 10 say, because it was foreseen that the funds for payment of the coupons would not arrive. But what is openly blamed. and will probably be the founda. tiou of an action against Hope & Co is, that their bankers having been furnished by the Bank of the United States with a quantity of effects (valeurs) as security for the tenders, have thought themselves authorised to part with a portion of these securities in exchange for others. As chance would have it. though the nominal value has remained the same, it turns out that Messrs. Hope & Co. have parted with the most valuable, in exchange for such as have hardly any value at all. We need not say that the holders are furious. The Tolls ON the Canals of this State received to the 22d $711,334 inst. amount to 847,392 Same time 1841 $136,058 Difference in favor of 1341 The Newark City Council having passed a Resolution that the Morris Canal Co. be required to repair the bridges over the Canal, or upon failure the Street Commissioners be authorized to fill it up ot those points, a correspondent of the Newark Advertiser enters his protest and says that there are no funds with which to make these repairs; that the property is in the hands of Receivers for the purpose of liquidation, and that the Canal which the Council thus prepose to destroy is the only property left to pay the creditof the concern, whose claims amount to $9,000,000, in the following order of title $850,000 Due to the Dutch 2,000,000 State of Indiana about 800,000 State of Michigan about 1,300,000 British bond-holders about 4.600.00 Stock-holders $7,950,000 Total besides numerous domestic creditors. The correspondent calculates that the Newarkers would by such a course not only commit a gross imposition open the creditors, but also bite off their own noses. The gross receipts on the Eastern Railroad from 1st Jan. $116,498 to 30th June were 116,947 Same time 1841 The road from Boston to the Partsmouth deput has cost $2,734,693. The precise operation of banking in Cincinnati from April to Jane is thus stated Means paid out. Means reduced $161,951 Discounts For Depos. reduced $34,648 16,190 14,284 Bk. Balances paid Bank Notes 661 Circulation increased. 28,367 Bank Credits $79,205 Total Total Reduction 189,327 It will be seen that in the last two months, there has been a continual reduction of the business of the Cincinnati Banks, and in fact, it now is merely nominal. The $.8.367 increased circulation is the difference between the increased circulation of the Life and Trust Company, and the diminished circulation of the other Banks. None of the Life and Trust notes are seen in circulation there. 327,593 The amount of circulation in the aggregate is 943,000 Deposits 233,900 Specie 392,494 Bank Notes 3024,220 Discount The largest circulation in the State is the Bank of Wooster, $200,278, the largest amount of specie, the Bank of Norwich. $131,366. Exchanges at Mobile have been getting worse daily.Sight checks on New York, and specie, have gradually advanced from 45 per cent (the rates last quoted) to 58 a 60 per cent premium. Checks on New York at five days sight have been sold at 56, and sight checks for small amounts have commanded as high as 60 per cent prem. There are butfew drawers, and transactions are very limited. The demand for speeie for the New Orleans trade has not diminished. It has been sold as high as 62, though the current rate is 60. Sight checks on New York 55 a 58 per cent prem; and specie 58 a 62, and scarce. Under the head of Astounding Developements" the Augusta Chronicle says that a rumor is current that a system of fraud on the part of some of the Darien fianciers, in connection with the Bank of Darien, will be soon disclosed which will far exceed in extent and enormity any thing of the kind that has transpired in Georgia. The Bank of Orleans at New Orleans, has gone into active liquidation under W. C.C. Claiborne, M. Caruthers and J. B. Hullen. Rumors were afleat than an affair of honor was about to com off between two bank Presidents.

8. August 15, 1842 The New York Herald New York, NY

Article from The New York Herald, August 15, 1842

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$1,086,247 Total decrease, This table gives pretty accurately the progress of dis. credit. The aggregate circulation outstanding has decreased from June 1st, to July 30, as appears by this table, 1,086,247 or 33 per cent, yet the discount on the bills has increased to the same extent. This simple fact speaks volumes for the wretched condition of thefassets of the banks, there being but little or no demand for the bills to pay bank debts, even at 50 per cent discount. If the bank debtors will not or cannot avail themselves of such an advan tage, how can the banks expect to collect those assets in a specie currency ? A detailed statement of the assets of the Bank of Orleans has been published, the results of which are as follows ;Asssets as they appeared on the books of the Bank the day it was closed, amount tosay, $928,014 18 And that the liabilities on the same date were 294,077 S8 $633,936 30 Leaving a nominal surplus of dollars, Since closing the institution, $48,960 86 has been collected on the bills of the bank, which reduces the liabilities correspondingly, bringing them down to 245,117 2-100 dollars, and there is a further sum of $6,659 32 for payments made in current funds, for the credit of the liquidation account. Theseassets of $928,014 consist of 605,822 bills and notes, one half past due, 44,000 Gas and Carrollton Bank stocks, $100,000 real estate, $2,260 specie, and the balance sundry items. The circulation now outstanding is $206,324.This bank is in as good condition as perhaps most of those suspended, all of which will go into liquidation before December, leaving only the Bank of Louisiana and the Gas Bank. The business of New Orleans must, therefore, be done almost exclusively in specie. She cannot, as other cities have done before, derive a circulation from the banks of surrounding States, because there are none whose standing will not be destroyed by the specie movement of the crops at New Orleans. The demand for specie for that quarter will, therefore, probably be great, when the new erops shall have come fairly forward. The start once given, and the whole machinery of trade will again be in motion on a firm basis, without a National Bank, and in spite of those theoretical gentlemen who are determined to have no property but that which may be granted through the all-powerful edicts of a board of directors presiding over a great National borowing machine called a National bank, "great regulator," "supplyer of a uniform currency," or any other cant name signifying anything but the real functions of the concern, which is to borrow the labor, the wealth and the proceeds of the industry of the working classes, and lend to "gentlemen of high standing," politicians and financiers, in whose opinion national prosperity consists in supporting the few at the expense of the many.

9. August 19, 1842 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, August 19, 1842

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MONEY MARKET. sales at the stock Exchange, Aug. 18. 17 150 do bS0d 51A 25 Farmers' Loan $30d 51 100 25 do 25 Planters' Bk Ten 511 50 do cash 11 50 Harlem 514 50 do b80d 511 50 Long Island R bood 514 50 do SECOND BOARD. $60.51 109 shares Long Island Commercial and Money Matters. THURSDAY M. The sales to-day at the Stock Board were almost exclusively of Long Island, which left off at 511, a decline of i per cent. Harlem sold at 141, also a slight decline. For Delaware and Hudson 87 was offered; 87} asked; Mobawk 37 offered, 371 asked; Delaware is looking up. We understand that a large portion of Mr. Watt's purchases were legal, the sellers having the stock on hand at the time of selling, and that Chancery proceedings have been or will be commenced to compel the performance of his engagements. One parcel of 1000 shares bought by him at 30 in the street is in this situation. It is supposed that at least 6,000 shares were thus bought legally and for which Mr. Watt is liable. The demand for State stocks was fair to-day and the rates firm. Ohio is recovering slowly from the partial panic produced by the anticipated new issue. State Sevens sold at mt a 1/2 premium. Ohio Sixes improved 2 per cent. Indiana Bonds For Government Sixes. 1844. 100 asked-1862 992 offered, 101} asked; State Sixes, 1860, 891, 90-61s. 1860, 821. 83-Fives, 1851, 801 offered-1858, 304 offered-1860, 75 off:1861, 75 offered, 80 asked; Ohio Sixes, 1850, 71, 751-1860, 75 75}; City Sevens, 1852, 3 prem offered-Fives, 1850, 80 ofl1870, 80. 82-1868, 81 asked. The transactions were as follows: 70 $1,000 do 1003 $1,500 N. Y.7-,1849 17 100A 15,060 III 6s, 1870 $2,000 do do 560d 174 $5,000 do $1,000 Ohio 6s, 1860 600 67 20 69 do $2,000 Indiana 5s $1,000 do Foreign Exchanges are quiet. Sterling 6127 per cent. Francs 5.35. Nothing new in Inland bills. Alabama is slightly better. Georgia heavy. The Manhattan Gas Light Co. has declared a dividend of Three per cent, payable on the 1st Sept. Nothing new in specie. At Rochester the Banks are beginning to discount produce paper pretty treely for the purpose of buying the new Wheat erop. Counterfeit Dimes and Mexican Dollars are very plentiful in Cincinnati. The sales at the Philadelphia Board were not large, although to a greater extent than for some days past. 95 $300 City Fives, 1864 614 $1000 Tennessee Five per cent 361 $300 Pennsylvania Fives, 187 21 6'shares U S Bank The Nashville Banner of the 8th inst. quotes exchange on New-York, Pbiladelphia and Baltimore, at 1 a 21 per cent premium. The citizens of Vigo County, Indiana, had the question submitted to them at the late election whether they were willing to receive State scrip for County dues. It was decided in the affirmative by a vote of 1964 to 37. The Sentinel says this is a good move. At Mobile the tendency of exchange has been downward, and the transactions have been light. The Bank of Mobile is checking on New-York at 56 per cent, premium, and specie is selling at 55 a 57. Some of the checks of the Montgomery Branch Bank have made their appearance, and sales have been made at 55 per cent premium. The demand continues light, and the supply of exchange, as well as specie, limited. Business of all kinds is at a stand, and never duller. The following are the rates of the suspended Bank notes at New-Orleans: Canal S5 a S7 dist, dull; Commercial 20 a 25, Consolidated 32 a 35; Citizens 41 a 44; Carrollton 20 a 25; City 25 a 87; Mechanics' and Traders' 41 a 71, demand; State 16 a 18; Union 10 a 13; Atchalafaya 80 a 35; Exchange 63 a 64; Improvement 60 a 65; Bank Orleans 70 a 72; Bank Louisiana and Gas Light, par. American Gold 11 a 21 premium; Sterling Exchange 2 a S prem. Francs 5.55 a 5.55. 60 days on New-York 2 a 3-sight 1 a 11; Treasury notes 1 2 prem.