7572. Banks in New Orleans (New Orleans, LA)

Bank Information

Episode Type
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
c71dbd8a

Response Measures

None

Description

Newspaper reports (June 1, 1837) state that the banks in New Orleans suspended specie payments on May 13, 1837 amid the nationwide monetary 'derangement' (the Panic of 1837). A later October 1837 article discusses probabilities of resumption of specie payments; it does not give a firm reopening date but indicates expectation of an early resumption. I classify this as a suspension with an eventual reopening implied by the coverage rather than a permanent closure. No discrete depositor 'run' (withdrawal crowding) or government receivership is described.

Events (2)
1. May 13, 1837 Suspension
Cause
Macro News
Cause Details
Nationwide derangement of money affairs / Panic of 1837 causing suspension of specie payments.
Newspaper Excerpt
The Banks in Mobile suspended on the 12th, and those in New Orleans on the 13th ult.
Source
newspapers
2. October 13, 1837 Other
Newspaper Excerpt
The reason that the bank certificates on Mobile are higher than those of Charleston, Savannah or New Orleans ... indicate the probability of an early resumption of specie payments.
Source
newspapers

Newspaper Articles (2)
1. June 1, 1837 Staunton Spectator, and General Advertiser Staunton, VA
Article from Staunton Spectator, and General Advertiser, June 1, 1837

Click image to open full size in new tab

Article Text

The derangement of the money affairs of this country is affecting the Canadas--Several of the banks in those provinces have suspended specie payments. The State Bank of North Carolina and its branches have suspended specie payments. The Banks in Mobile suspended on the 12th, and those in New Orleans on the 13th ult.

2. October 13, 1837 Morning Herald New York, NY
Article from Morning Herald, October 13, 1837

Click image to open full size in new tab

Article Text

The descriptions of exchange which we have quoted for today on the southern cities, are in the shape of certificates of deposites on the banks of those cities. Only of late has such a kind come freely into the market. The reason that the bank certificates on Mobile are higher than those of Charleston, Savannah or New Orleans, is that the Mobile banks are authorized to suspend specie payments for three years, the others no specified limit, but they indicate the probability of an early resumption of specie payments. Judging from these facts, it is highly probable that the issue of Treasury Notes by the government, will form a nucleus of returning confidence, around which all the solvent banks and solvent business can cluster. Confidence in one description of business is the germ and soul of confidence in all others; and thus may we see the singular phenomenon of a return to cash payments by the banks, and an increase of circulation at one and the same time.