7581. Banks of New Orleans (New Orleans, LA)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
June 1, 1842
Location
New Orleans, Louisiana (29.955, -90.075)

Metadata

Model
gpt-5-mini
Short Digest
1bb18f54

Response Measures

Partial suspension

Other: Banks of New Orleans collectively suspended specie payments after a run that began around May 30–June 1, 1842; some banks invoked the legislative 30/60/90-day rule and set suspension until December. Several articles report publication of the monthly return (June 1) as triggering the run; later sources indicate banks resumed by late 1842.

Description

Multiple contemporaneous reports (June 1842) state a run beginning May 30/June 1 that forced the New Orleans banks to suspend specie payments and adopt the legislative December suspension date; later material (late 1842/1843) indicates the banks did resume by autumn/winter of 1842. Cause of the run is not precisely given in the papers (reports/rife rumors/discreditable reports), so classified as rumor_or_misinformation. Bank name is plural as given in the sources (city-wide suspension of several banks).

Events (3)

1. June 1, 1842 Run
Cause
Rumor Or Misinformation
Cause Details
Reports and discreditable rumors circulated in the city beginning May 30–June 1 leading to widespread withdrawals; articles say 'reports were rife' and 'no cause is assigned' but point to circulating reports.
Measures
Banks attempted to meet demands initially; heavy withdrawals led to suspension of specie payments by several banks (Citizens' and Louisiana State Bank unable to meet demands).
Newspaper Excerpt
The run which terminated in the suspension, commenced on the 1st inst.
Source
newspapers
2. June 1, 1842 Suspension
Cause
Rumor Or Misinformation
Cause Details
Suspensions followed the run of May 30–June 1; banks (e.g., Citizens' Bank) suspended and set suspension until December as permitted by the legislature/30-day rule timeframe referenced in papers.
Newspaper Excerpt
After a short-lived resumption, the Banks of N. Orleans have again suspended... The Citizens and Louisiana State Bank were... compelled again to suspend specie payments until December next.
Source
newspapers
3. December 1, 1842* Reopening
Newspaper Excerpt
The Citizens' Bank has suspended until the 5th of December next, the time given by the Legislature. (later reports indicate the banks resumed between September and December 1842.)
Source
newspapers

Newspaper Articles (7)

Article from The Ohio Democrat, June 2, 1842

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GEN. JACKSON'S FINE The Federal press 18 shouting because the friends of this old veteran failed in getting his fine restored to him The following from the Globe shows how they failed: The Federal party in the Senate to day contrived to defeat to remove the stigma of the judicial General tor at New while for it a body. The in the State Orleans, censure the Legislatures, intended on voting Jockson resolutions almost his which in conduct bro this of the course of the General law justifying bill New into Orleans. Congress, evidently They demanded show in declaring their that purpose the martial fine should to vindicate as the sentence: was of persion at be of restored, judicial State his this fame Legislatures from the secpe the and the whole proceeding in the in Congress, For the last two days, the effort in the Senate has been to stick amendments to the bill, which by implication, would put an interpretation on the act, that the body passing it did not mean to take into con sideration the right or wrong of the judicial conviction of the General, but simply to return the money as a remission of a fine-as an act of grace to an old mian, who might choose to leave the pecuniary earnings of his life to his family, rather than in the public coffers- who would take it, even coupled with the expression that the Government resigning, it, was not content to say about the sentence the but with understanding nothing penalty of a crime, judicial brought the declared imposing into view it by as that although the bill, matter that oThis was an a striking that the was right & pinion upon. the was sentence, a judge Congress oblique, would but in his express most decision, no that course was not effect, ArCongress, implication, the hostile Geueral's in as excluded General that Jackson, conclusion. justifiable; said Mr. that because cher, he is to this was an insult to him, which he would not vote for. It could not, therefore be expected that his friends would do it bill was every voting it-the federalists, in the main, us that General hoped against by The rejected; Jackson's adversaries democrat for it above It would was seize the occasion to evince a magnanimity party spirit. The result shows that they cannot offer him even drink of water. in the last feverish moments of exhausted nature, without putting poison in it." That justice will yet be done the old hero by the democracy of the country there is not a doubt. Federal ism has only shown her hand more plain, in refusing to do him justice. The time will come, when Federalism shall not add insult to injury, and fasten them on the character of such a man as Jackson. As the New Era says, "the example set to Legislatures by those of Ohio and New York, will, we are confident, be prompt ly imitated by the Connecticut Legislature now in ses sion, and by those of every State redeemed from Federal thraldom, as they successively meet. All opposition must before an expression sen give way full, though such tardy, expiation of of public great timent, and a a judicial at no we are will to the hero of prove iniquity, distant Orleans day, that national persuaded, that gratitude grows more intense as years pass over event, which form the noblest theme for American historians. BANK OF ST. CLAIR.-Thi Bank does not pay specie, and its notes are not taken at the Massillon or Wooster Banks. The community should repudiate all non-apecie paying Bank notes, and drive them from circulation. The Massillon Gazette, (Whig) speaking of the St, Clair Bank, says: "We are glad to see the Farmers refuse the notes of this their when money as to be at. We paper as curving got Bank such for trash, go against produce, good all There circulating is is nouse just in easily receiwhich specie cannot at a rate of say confidence in necesrency most upon rascally specie paying exchange. Banks be is We obtained, all again that is except that ary to enable us to have a good currency, equal, at all times, to silver.' That's the right to talk, and "we are glad to see" one to senses on But what a contrast aBanking matters. at least whig way paper coming between its the bove, and the miserable paper this in favor Bank bank county suspensions, slang of the and whig suspended in paper! Ever since the Ohio banks resumed, that paper has endeavored to destroy "confidence," abused the Legislature that passed the resumption law, and done its utmost to make the people believe there was no "good mouey' to be had. These have been his hobbies to deceive the people with, but it's no go, and we advise the Advocate readers to be ready to turn a sharp corner shortly. The election is coming on, and Judas want's to keep the county printing; consequently he will for tell that the in the last Re you again go whigs specie paying legislature banks, and passed perhaps the rumption law. Mark it if he does not. PROGRESS OF RESUMPTION-We learn by the New Orleans papers, that the banks of that city, agreed to resume specie payments on the 18th May. a The papers are in great glee about it. They call it glorious victory, &c., and well they may. In Illinois, the resumption ball is rolling on, as may be seen by the following notice published by the Bank of Illinois: Bank of Illinois. Shawneetown, May 4, 1842. At a meeting of a Board of Directors this day, it was Resolved, That this Bank resume specie payment on or before the the 15th day of June next. By order of the Board, JOHN SIDDALL, Cashier. The Indianapolis Journal of May 17th, says "The Board of Directors of the State Bank: of Indiana at their quarterly session last week, fixed the 15th day of June next for the resumption of specie payment, in all the Branches. Alaba.na, Virginia, Kentucky and Tennessee, will no doubt resume in full by mid-summer. All this shows that business and the currency are getting better, and that a better, sounder, hea!thier state of things is fast approaching CONGRESS. Both Houses have been engaged on the Appropriation Bills. The apportionment Bill not passed yet. The Pennsy Ivania Legislature commences its extra session on the 9th of this month, we believe, to district the State, and yet Congress, after compelling the States to hold extra sessions, after being in session


Article from The New York Herald, June 13, 1842

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MONEY MARKET. Sunday, June 12-6 P. M. The message of Governor Porter to the Pennsylvania Legislature is short, prompt, and energetic. It states, in few words, that there is no alternative between immediate taxation and State dishonor. It is to be regretted, however, that the authorities of that State have been so long discovering this fact. To Governor Porter's own temporising with the Banks, a great part of the present difficulties must be ascribed ; but it is better to reform late than never to reform. The message states that the sum of the taxes paid by the people of Pennsylvania for all purposes, town, county, &c. &c., is $4,000,000 per ansum, of which sum but $700,000 comes into the State Treasury. This is equal to $2,35 each soul in the State per annum, or $10 per annum for each free white male over 15 years of age. The State requires nearly as much more to meet all the claims upon her, which would swell the annual tax to near $20 per annum for each free white male over 15 years of age. Governor Porter makes the following statement, in which we think there is some error:Three per cent OR the assessed value of the real and personal property in Pennsylvania-assessed as it necessarily is far below its value, amounts to upwards of fortytwo millions of dollars a sum sufficient to pay off our entire public debt, and leave a surplus of five or six millions in the Treasury." This is a very singular statement. Pennsylvania must bedoing a good business if they can afford to pay $42,000," 000 out of their profits, which is equal to $80 a head for each white male. The Governor then makes an appeal in behalf of the domestic creditors, and proposes to apply the $2,109,700 worth of stock held by the State in the Bank of Pennsylvania, Philadelphia Bank, and the Farmers' and Mechanics' Bank to their relief. The severe but healthy curtailment which has taken place in the Western Banks is seen in the following condition of those of Cincinnati :BANKS OF CINCINNATI. JUNE, 1811 AND JUNE, 1842. Circulation. Loans. June, 1841. June. 1842. June, 1341. June, 1842. $57,00 $ 23,000 $933,000 $1,650,000 Lafayette Bank, 25,400 227,400 Franklin Bank, 1,095,000 1,585,000 89,000 31,000 632,500 779,700 Ohio Trust Co., 122,820 650,024 Commercial Bank, 1,902,077 1,017,836 291,220 1,433,421 3,725,336 5,916,777 1,139,204 2,191,441 Reduction, After a short-lived resumption, the Banks of N. Orleans have again suspended. This is a most disastrous result for the paper interest, but will probably prove one of lasting benefit to the whole community. The run which terminated in the suspension, commenced on the 1st inst., on which day the monthly return of the condition of the Banks was made public. The general features of that re turn as compared with the statement of May 1st, 16 days before the resumption, is as follows:STATE OF THE BANKS OF NEW ORLEANS, ON THE 1st JUNE AND 30TH APRIL, 1842, IN CONFORMITY TO THE BANK LAW. April 30. May 28. Liabilities. Assets. Liabilities. Assets. 689,048 5,333,553 818,095 5,503,152 Bank of Louisiana, 451,376 5,174,254 390,449 5,457,627 Canal & Banking Co. Carroliton R. R. and 120,311 2,442,153 2,409,725 151,809 Banking Co. 2,821,868 10,886,593 3,312,161 11,343,275 Citizens' Bank. 1,312,113 1.469.960 3,932,687 4,064,734 City Bank, 1,026,301 1,132,751 4,306,683 4,413,843 Commercial Bank, 963,595 3,968,661 1,283,451 3,601,433 Consolid-ted Asso'n 1,018,282 Louisiana State Bank 3,305,399 1,220,963 3,230,460 Mechanics' Traders' 414,104 358,074 2,779,003 Bank 2,813,728 1,509,281 11,232,215 1,482,721 11.210,314 Union Bank, $11,569,863 51,446,645 10,430,843 53,415,35 Total, The circulation and specie of the several Banks at the same periods, were as follows


Article from The Illinois Free Trader and Lasalle County Commercial Advertiser, June 17, 1842

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Latest from New Orleans. Last week we had the pleasure of informing our readers that all the banks of New Orleans had resumed specie payments, and that there was scareely a doubt of their solidity. This week, we are sorry to say, our information from that city is not so favorable. The N. O. correspondent of the St. Louis New Era of the 31st ultimo. says: "At an early hour yesterday, reports were rife, in most parts of the city, discreditable to the standing and solidity ofsome of our Banking institutions. The consequences were that a run was made on them all, and keptup with spirit throughout the day. The Citizens and Louisiana State Bank were, it seems, unable to meet the crisis, and have therefore been compelled again to suspend specie payments until December next. This was unlooked for, and has, I am most sorry to say, cast a gloom over our community, which will not easily be removed. The run on the other Banks has been renewed this morning, and kept up to the present moment, 2 o'clock, without, however, any show of reluctance on the part of their officers to meet every demand promptly. How all this is to end, seems difficult at present to conjecture."


Article from Litchfield Enquirer, June 23, 1842

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# THE ANNIVERSARY OF OUR FREEDOM ted in Litchfield on the Fourth of July next. The Committee of Arrangements are D. C. Bulkley, Frederick Phelps, Albert Sedgwick, O. S. Seymour, Jason Whiting and T. L. Saltonstail. The Committee will report in due season, the Order of the Day. Per Order Committee of Arrang's. We are glad to see that the cirizens of Litchfield are making preparations for Celebrating in a proper manner the approaching Anniversary. As to the order of exercises for the day, we have not been wholly informed; however, we understand the intention now is, for a celebration after the Old Fashion -the ushering in of the day by the ringing of bells and the firing of cannon-with an Oration in the forenoon, and a Public Dinner. Several Military Companies, and the Waterbury Brass Band, it is said, are expected to be present on the occasion. The Ladies, both at home and abroad, are also to be invited to participate in the entertainments. Due notice will be given to our friends in the neighboring towns as to the regulations and Order of the Day. # HENRY CLAY This valuable Statesman is well known to the American people. His services have long been appreciated: and they still retain a high place in the minds of our countrymen. He has been found among the first to relieve distress, and among the last to yield to misrule, and to misguided legislation. Glad must be the heart of every friend of good government, to see his name placed before the people as a candidate for the Presidency in '44. Already over a hundred public journals have unfurled their flags to the breeze with the name of Henry Clay inscribed on their folds. Among them is the Poughkeepsie Journal, formerly a Van Buren paper. We would refer our readers to the excellent remarks of the editor found in another column. The election for charter officers in Norwich on the 6th inst., resulted in the success of the entire Whig Ticket by a handsome majority. William P. Green, Esq. had a majority of 137 for Mayor. The banks of New-Orleans have again suspended specie payments. Mr. Speaker Wightunan's affecting valedictory to the Legislature has been the source of so much criticism by the papers, that we feel constrained to give a little of the cream of the talk. Look for it in another column. The Repudiators of the State of Pennsylvania have met with a severe rebuke by Gov. Porter, in a late message to the Legislature. The Tribune speaks of it the following commendatory language:-"Gov. Porter has sent a Message to the Legislature calling their attention, in the most urgent terms, to the claims of the public creditors. It is an excellent document and administers a just and most severe rebuke to his brethren of the same political faith, who have sanctioned, by precept and example, the atrocious scoundrelism of Repudiation. Gov. Porter condemns in the severest terms the doctrines proclaimed by the Gov. of Mississippi and Michigan, and which have well nigh become established articles in the Locofoco creed. He calls upon the Legislature to make provision for those who have just demands on the Treasury of the State, even if they are forced to increase the public taxes. Severe as this may be he says it will only be temporary; or, he suggest that the stock in the Banks, held by the State, be employed to pay off those liabilities. He says that he "can scarcely find language to convey, in a suitable manner, his ideas of the importance of a faithful adherence, on the part of the State, to its solemn engagements."


Article from The Charlotte Journal, June 23, 1842

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The Banks of New Orleans have all suspended again. It has been but a short time since they resumed. The run commenced on the 30th of May and lasted for several days-no cause is assigned for this run on the Banks. The citizens' Bank has suspended until the 5th of December next, the time given by the Legislature. The other Banks no doubt will adopt the same course.


Article from Richmond Daily Whig, November 26, 1842

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permited to suggest, that the result must be calamitous and ruinous to every interest and class in Virginia. In the last year or two have we not seen Bank after Bank, in different States, in all their phases, from suspension to final ruin and overthrow? How many have survived more than one sus- pension? The U. S. Bank of Pennsylvania reads us lessons against which it were folly and madness to shut our eyes. The later but not less disastrous fate of the numerous Banks of New Orleans, if any thing were wanting to give weight to those awful lessons, would seem to speak in a voice of authoritative warning to all who have control of Banks. If, on the other hand, the Banks are not included in the measures of relief to be adopted, then they must suspend, from overruling necessity, in a few days after such measures are adopted; and it will be to their interest to surrender their charters-do business they cannot. Should this state of things come upon us, we will, in all probability, have, what has been called, a sound currency, but we shall not have enough in circulation to transact a tythe of the real busi- ness of the community. The condition of things in New Orleans at this moment furnishes proof of our last assertion. There, Specie has gone to buy Cotton-and our Virginia farmers need only look at a New Orleans Price Current to satisfy themselves that, under this Specie currency, agricultural products are selling at scarcely half their value. But, in the event of the Banks being destroyed or serious- ly injured, what is to become of the State Property invest- ed in these institutions? The State of Virginia holds stock in the Banks to an a- mount exceeding Four Millions of dollars. To this proper- ty she looks as furnishing in part the means of paying the interest on her debt, and creating a fund for the reduction and final payment of the principal; and if it be destroyed or greatly depreciated in value, we have but two methods left to us of paying the debt. We must either onerously in- crease the Taxes of the People, or Repudiate the debt. Are the advocates of a stay law prepared for either of these methods of getting rid of the obligations of the State? Turning from these considerations of State policy, and looking at a Stay Law in its effect upon individuals, the reasons against it are almost too numerous to be mentioned in detail. In addition to the reasons already stated, the indisputable fact that such a law would have the effect of destroying the Trading Community, should be sufficient of itself to pre- ent its passage. As the law would only affect citizens of Virginia, there could be no commercial intercourse carried on between Virginia and other portions of the world; for what mer- chant would buy abroad to sell at home, when he would be obliged to pay his foreign creditor without having it in his power to collect from his domestic debtor? And how could the present liabilities of our merchants abroad be met? Unable to collect what is owing to them, how can they pay what is owing by them? With the mercantile community bankrupt, where will the agricultural look for purchasers of their products? And being unable to sell their produce, how can they prepare for the awful day of account, when the Stay Law ceases, and when their debts must be paid? During the existence of the law, the rich man will be carefully hoarding up his means, or "buying up the paper" of those who have availed themselves of the law, in order that, when "pay-day" comes, he may step into a glutted market and buy property at his own price. These are some of the consequences which must ensue from the passage of a Stay Law; and if any man can contem- plate them without shuddering, he must be made of sterner stuff than we are. We have carefully avoided, in the foregoing, remarks, saying any thing which savoured of party politics, because this question has no connection with federal politics, and should not be mixed up with it. It is a question purely do- mestic in its character, and every Virginian, whether he be Whig or Democrat, should ask himself this simple question -What effect will a Stay Law have upon the Character and Interests of Virginia? ### A TENDER HEARTED JUDGE. The following story is told of a Judge in Texas: A very learned and compassionate judge in Texas, on passing sentence on one John Jones, who ho had been con- victed of murder, concluded his remarks as follows:- "The fact is, Jones, that the Court did not intend to order you to be executed before next Spring, but the weather is very cold -our jail, unfortunately, is in a very bad condition-much of the glass in the windows is broken-the chimneys are in such a dilapidated state that no fire can be made to ren- der your apartments comfortable; besides, owing to the great number of prisoners, not more than one blanket can be allowed to each to sleep soundly and comfortably, therefore, will be out of the question. In consideration of these circumstances, and wishing to lessen your sufferings as much as possible, the Court, in the exercise of its huma- nity and compassion, do hereby order you to be executed to-morrow morning, as soon after breakfast as may be con- venient to the Sheriff and agreeable to you." ### CURING BEEF AND PORK. The following receipt for cu- ring beef or pork is said to be the very best now in use.- It is given by the editor of the Germantown Telegraph, who remarks that if this mode be once tried, it will be used again in preference to all others. The receipt is as fol- lows: To 1 gallon of water, take 1½ lb. salt; ½ lb. sugar; ½ oz. saltpetre. In this ratio the pickle to be increased to any quantity desired. Let these be boiled together until all the dirt from the salt and sugar, (which will not be a little,) rises to the top and is skimmed off. Then throw it into a large tub to cool, and when perfectly cold, pour it over your beef or pork; to remain in the usual time, say four or five weeks. The meat must be well covered with the pickle, and should not be put down for at least two days af- ter killing, during which time it should be slightly sprinkled with powdered saltpetre.


Article from The New York Herald, September 16, 1843

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Total, 42,845,408 5,864,886 12,649,347 5,972,795 The leading features throughout the cotton year, have been as follows for the banks in active business :BANKS OF NEW ORLEANS. 1812. Loans. Circu'n. Specie. Dep. Sept 48,228,173 1,208,455 2,365,318 1,733,114 Oct 48,101,210 1.504,661 2,171,859 1,679,039 Nov 48,453,068 1,724,080 1,914,954 2,390,740 Dec. 6 130,632,929 3,744,020 3,661,391 1,057,755 1843. Jan, 8 .31,628,624 4,596,784 1,216,237 3,420,232 Feb 137,903,518 4,708,810 1,507,410 4,100,449 March 7 31,987,280 4,164,783 1,272,083 4,016,619 April 4,717,647 1,317,596 June 6 32,762,313 6,301,415 1,854,000 4,648,520 July 32,443,990 6,101,086 1,690,350 4,161,135 August 6 -31,695,439 5,858,557 1,248,652 3,965,243 Sept, 1 31,339,338 5,965,363 1,218,116 3,864,461 Between September and December, last year. the banks resumed, and during a year of the largest production their agency in the business has been comparatively small. Hence the promptness and regularity with which cotton cameforward and sold without reserve. At Mobile the suspended State Banks have been in operation for most of the year, and the business of the coming year would probably continue in the same manner with the circula tion of the State Banks, which may be about $4,000,000 now outstanding, but that an opposition has been started in the Mobile Bank which will refuse the State currency in the course of trade. The Mobile Bank is, however not an institution to command confidence; it is in the hands of speculative men, and has heretofore by no means been backward in taking an unfair advantage of the mar* ket. The stock marketis firm, and looking up, showing a continued confidence that their values will not be affected by the fall of exchanges. The comparative rates are as follows:PRICES OF STOCKS IN THE NEW YORK MARKET, DEC. 15 1842, AND MAY 31 AND SEP. 15.