Banks of New Orleans - New Orleans, LA

Bank Information

Episode Type: Run → Suspension → Unsure
Bank Type: state
Start Date: March 20, 1879
Location: New Orleans, Louisiana (29.955, -90.075)

Metadata

Model: gpt-5-mini
Short Digest: 355ea6d5

Response Measures

Full suspension

Other: Multiple New Orleans banks collectively suspended currency payments after a multi-day rush triggered by adverse rulings and weakness at specific local banks.

Description

Newspaper reports a sequence: failure/stop of the Southern Bank, then runs and a general rush causing banks in New Orleans to suspend currency payments on or about March 20, 1879. It is unclear from this article whether suspensions were temporary or permanent, so reopening/closure is unsure. Bank name given is collective ('Banks of New Orleans').

Events (2)

1. March 20, 1879 Run

Cause: Local Banks
Cause Details: Failure/stop of the Southern Bank and weakness at Mechanics and Traders sparked excitement and a general rush of withdrawals.
Measures: Banks suspended currency payments in self-defense.
Newspaper Excerpt: The third day, yesterday, came a general rush, and the banks suspended currency payments in selfdefense.
Source: newspapers

2. March 20, 1879 Suspension

Cause: Local Banks
Cause Details: After Southern Bank was stopped following an adverse decision and subsequent weakness at other local banks, a general rush led banks to suspend currency payments to protect themselves.
Newspaper Excerpt: the banks suspended currency payments in selfdefense.
Source: newspapers

Newspaper Articles (1)

1. March 21, 1879 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN

Article from Memphis Daily Appeal, March 21, 1879

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Article Text

FINA NCIAL. Our banks reported a quiet day in general business, a moderate amount of exchange coming in and money still In slight request. The most troublesome problem our banks have had to contend with is what to do with the heavy funds on hand, and even investments in four per cents has been resorted to, that some employment might be found for idle money. The great object of attention was the pante and suspension of currency payments by the banks of New Orleans. The general Idea among our merchants appeared to be that the difficulty originated In local circumstances and the trouble would spend itself where it began. The Southern bank WHS stopped from the city of New Orleans having gained a decision against it involving $86,000, and the Mechanics and Traders stopped the next day from weakness that the excitement caused by the Southern bank's fature was too much for. The third day, yesterday, came a general rush, and the banks suspended currency payments in selfdefense. The St. Louis Republican, of Wed says: "It was noted, something like two weel ago, that there had been some stiffening in the loa market, and this week there has been a still arther tendency that way. Yesterday, especially, there W&t a very active inquiry for call money on mark stab collaterals, and It is pretty well determine 1thr some local borrowers, who have been accommode in New York on call, have been required to pay, ⑉ direct result of which is a brisk hustling aroun here to get loans from local banks. The New York banks are evidently gathering In their resources as a conservative precaution against the first of April settlements, and the chances are that the money market will be decidedly stiffer for the next thirty days at least." In our I cal market exchange quoted: New York, 1/4 discount; all points in New England. with grace. 38 discount: New Orleans, 4 discount. and sell on all points at par. Money per ent. Shelby county scrip quoted 80@86 buying, 88 selling. Last sales were: Memphis gas stock, 80, now asking 821/2; Tennessee, new issue, 40841; Mississippi and Tennessee railway first-mortgage bonds, 115; second mortgage, 90; Memphis gas bonds, 91. ex-coupon; Hernando insurance stock, 117; Bluff City insurance, 71 50; Home insurance, 40. [BY TELEGRAPH.] PARIS, March 20.-Rentes, 114f. 71/2c. NEW ORLEANS. March 20.- Sight exchange on New York at par; sterling exchange, bankers' bills, 485. LONDON, March 20.-Consols-money, 97 1-16; Illinois Central. 83; Pennsylvania Central, 3534; Reading. 13; Erie, 2418; preferred, 44; 5-20s of 1867, 10334; 10-40s, 10834; new 5s, 10648; 41/28, 10718; 4s, 1011/4. NEW YORK, March 20.-Money market active at 407 per cent., closing sharp at 7 per cent. Prime mercantile paper, 4000 per cent. eterning exchangebankers' bills unsettled, 48614; sight exchange on New York, 489. Government bonds closed firm; coupons 1881, 10618; coupons 1867, 1021/s; coupons 1868, 1021/2; new 5s, 10414; new 41/23, 10 41/2; new 4s, 9958; 10-40s, registered, 10114; 10-40s coupons. 1018; curre ncy 6s, 1211/2 State bonds dull; Tennessee 6s, old, 83; Tennessee 6s. new, 2734; Virginia 6s, old. 32: Virginia 6s, new, 32; Missouri 6s, 10412. Railroad bonds active. Stocks were irregular in the early dealings, but during the afternoon an advance of 3180358 per cent was established, Northwestern common leading the upward movement. Erie declined in consequence of reports that the company Intended to Issue a new loan, but these being denied officially by President Jewets the stock recovered. Western Union was strong, though in the final dealings there was a reaction of 1/8/5/8 per cent. from the highest point. Coal stocks were strong. Transactions aggregated 139,000 shares. of which 18,000 were Erie. 8000 Lake Shore, 10,000 Wabash, 25,000 Northwestern common, 10,000 preferred, 15,000 St. Paul common, 13,000 Lackawanna, 6000 New Jersey Central, 6000 Michigan Central, 14,000 Western-Union, and 2000 St. Louis and San Francisco. The following were the closing quotations: Western Union Telegraph, Quicksilver, 1242; Quicksliver preferred, 35%: Pacific Mail, 1258; Mariposa, 3; Mariposa preferred,41/g: Adams express, 514; Wells & Fargo's express, 991/2; American ex press, 481/2; United States express, 471/2; New York Central, 114; Erie, 241/8; Erie preferred. 431/2: Hartem, 150; Michigan Cer tral, -; Panama. 128; Union Pacific stock. 7314; Lake Shore, 70%; Illinois Central, 8078; Cleveland and Pittsburg. 901/2; Northwestern, 3418; Northwestern preferred, 851/2; Cleveland, Columbus, Cincinnati and Indianapolis, 41; New Jersey Central, 374s; Rock Island, 1291/2; St. Paul,3844;St. Paul preferred, 821/4; Wabash, 191/8; Fort Wayne, 1051/2; Terre Haute, 234; Terre Haute preferred, 6; Chicago and Alton, 781/2; Chicago and Alton preferred, 108: Ohio and Mississippl, 101/2; Delaware, Lackawanna and Western, 46; Atlantic and Pacific telegraph, 3614, ex-div.; Missouri Pacific. 11/4; Chicago, Burlington and Quiney, 131 Hannibal