7588. Canal Bank & Trust Company (New Orleans, LA)

Bank Information

Episode Type
Run Only
Bank Type
trust company
Start Date
January 6, 1848
Location
New Orleans, Louisiana (29.955, -90.075)

Metadata

Model
gpt-5-mini
Short Digest
52997628

Response Measures

Accommodated withdrawals

Description

Multiple contemporaneous papers report a one-day run (Jan. 6–7, 1848) caused by a false report that the bank had stopped; the bank paid out specie, kept doors open late, and remained sound. The underlying trigger involved a refused check in Boston that was rectified the next day. No suspension or closure is reported.

Events (1)

1. January 6, 1848 Run
Cause
Rumor Or Misinformation
Cause Details
A false report circulated that the Canal Bank had stopped payment; alarm traced to a refused check on the Merchants' Bank of Boston which was rectified the next day.
Random Run
Yes
Random Run Snippet
false report that the Canal Bank had stopped; error later rectified
Measures
Paid out specie promptly (about $120,000), kept doors open late, reinforced paying tellers to accommodate exchanges.
Newspaper Excerpt
report that the Canal Bank had stopped payment... a perfect rush of note-holders to the Bank demanding specie... the bank not only redeemed its notes in gold and silver... At 5 o'clock the bank had exchanged specie for notes to the amount of about one hundred and twenty thousand dollars.
Source
newspapers

Newspaper Articles (5)

Article from Tri-Weekly Journal, January 15, 1848

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Article Text

BANK EXCITEMENT IN NEW ORLEANS.-We learn from the New Orleans papers of the 7th, that quite a stir was made in that city on the day previous, by a report that the Canal Bank had stopped payment. The story flew like fire on a prairie, and in less than no time there was a perfect rush of note-holders to the Bank demanding specie. The Picuyune of the 7th gives the following account of the affair: The small holders of notes commenced their demands for specie; and as soon thereafter as the officers of the bank ascertained that there was some excitement in the public mind in relation to its circulation, notices were struck up at the entrance to the effect that its doors would be kept open till dark, or later, to accommodate all persons desirous of changing their bills for specie. The hall of the bank was crowded with bill holders and spectators till near 3 o'clock, at which time the demand slackened, and, about an hour afterwards, the excitement died away. During the day the bank not only redeemed its notes in gold and silver, but the notes of all the city banks that were presented. The paying tellers were reinforced by other officers in order to despatch business, and no delay was experienced by any of the bill holders. As fast as they came they were accommodated. At o'clock the bank had exchanged specie for notes to the amount of about one hundred and twenty thousand dollars.The bank was open up to that hour, but for an hour before no demand had been made for coin. How the "run" was brought about no one knows, but at daylight in the morning it was reported at the market places that the bank had stopped. The bank had in SPECIE, on yesterday, one million eight hundred and seventy-seven thousand one hundred and seventeen dollars against one million two hundred and sixty dollars in CIRCULATION. Making an excess of specie over circulation of five hundred and ninety thousand eight hundred and fifty-seven dollars. The short business paper and exchange in the vaults of the bank amount to over three millions five hundred thousand dollars against a little over two million of deposits. So little effect had the run in weakening the bank amongst our business men, that during the day the deposits amounted to near two hundred thousand dollars more than the specie taken from its vaualts. The excitement seems to have been got up in gross error or through mischievious motives and scarcely lasted during the ordinary business hours of the day. As to the parties who exchanged their notes for coin, they had a perfect right to do so, and the bank will cheerfully redeem its circulation in the hands of those who would rather have the specie. Indeed it is better that any persons troubled with doubts as to the solvency of the bank should relieve their mind, so far as the cash can do it, at once.All we have got to say to them is that there is no need of excitement or confusion; the coin is ready for those who would prefer it to the notes of the corporation.


Article from The New York Herald, January 16, 1848

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Article Text

THE CANAL BANK.-For several hours yesterday, this institution was subjected to a pretty smart run, and doubtiess some thousands of dollars of her notes were exchanged for epecie. The panic was almost exclusively contined to persons in humble life, holders of small notes of the bank, and the alarm originated in a false and foolish report that the institution had failed. This silly rumor, in its turn, was based upon the refusal of a party in Beston, on the 23d ult, to pay a check of $5000 drawn by the bank, in conaequence of some informality. We learn, however, that the next day the error was rectified and the check paid. The Canal Bank is considered by persons familiar with financial matters as one of the strongest of the monetary establishments of the city. Her affairs are unusually prosperous, and her position as impregnable as could be desired The run resulted from ignorance or malice-perhaps both. It was, however, promptly and courageously met. the bank paying out specie just as rapidly as it was claimed, and the officers intimating their wil lingness to keep the door open all day, if necessary.New Orleans Bee. Jan. 7.


Article from New-York Daily Tribune, January 17, 1848

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The Exports have been To Great Britain- 820 bbls Meal. 41,634 bush Corn. 108,100 lbs Oil Cake. 24,090 bush Wheat, 217 tierces Beef, 22,361 gallons Whale Oil. 242 bbls Pork. 10,935 do Flour. 441,167 lbs Cheese, 336 bales cotton, 178,500 lbs Tallow 3.324 do Whalebone, 40,659 Lard, 42,545 do Hame. bales To France- bbls Ashes, 147.904 lbs Tallow, 50 Hops. 32,672 lbs Whalebone, 306 bales Cotton To Brétish North American Colonies- 475 bbls Flour. 20 do Pork, S.600 lbs Rice. 24 bbls Rye Flour. 648 bbls Meal To St. Domingo-13,165 lbs Rice, 6,149 do Codfish, bbls Mackerel, 75 bbls Flour, 802 lbs Hams. To Spanish West Indies- 1,030 gals Whale Oil, 1,803 lbs Cheese, 118,550 lbs Codfish, 13,781 lbs Hams, 1,863 1bs But. ter. 5,489 lbs Tallow, 11,200 lbs Dry Beef. To British West Indies-545 bls Pork, 1.178 bls Flour. 920 bush Corn. 4.938 lbs Butter, bush Oats. 33,954 lbs Rice, blsMeal, 2 842 lbs Lard. 7,050 lbs Cheese, 50 bis Rye Flour. Live Stock-4 Cows. 40 Oxen, 50 Sheep. To Danish West Indies-412 bls Beef, 100 bush Peas, 2.601 lbs Bread, 226 punk Meal, 205 ble Meal. 4,140 lbs Hams, 429 lbs Lard, 525 bls Flour, 60 bls Rye Flour. The amount of specie exported last week was $252,500; by the Patrick Henry to Liverpool $107,660; Washington, London, $140,000; Splendid, Havre, $5,000. The total since the 1st inst. is $996,996. The Auburn and Rochester Railroad Company have declared a jannual dividend, amount not named The Insurance Company of North America, Philadelphis, a semi- annual dividend of 6 per cent. net, payable on demand. The receipts on the Madison and Indianapolis Railroad show an enormous gain over last year For 5 $25,082 13 weeks ending Jan. 1848, they were 10,681 6 For weeks ending Dec. 31, 1846 $14,400 Excess equal to 137 per cent Under the present able management the Road promises to become one of the most valuable properties in the country. We learn from the New-Orleans papers of the 7th that on the previous day some malicious rumors were set afloat that the Canal Bank was in difficulty, which caused a run upon that institution which lasted during the entire day. The amount of coin paid out was about $120,000. The Bank was kept open after dark in order to give any one an opportunity to get the coin for his notes: but there was little or 110 call after o'clock. There were few or no deposits withdrawn. The situation of the Bank in round numbers on the morning of that day was 88 annexed $1,800,000 Specie in her vaults Northern & European Ex. all available, at least. 1,100,000 2,500.00 Shortbusiness paper, payable at maturity $5,400,000 Making & total of 1,200,000 Their circulation was 2,200,000 Their deposits The Commercial Times, in connection with the excite. ment, makesthe following statement The Canal Bank recently drew two checks for $5,000 eschon the Merchants' Bank of Boston, having smple funds maturing from day to day to meet a much larger amount. but as the Bank was not actually in funds that very day, they refused to honor the drafts. The fact was immediately communicated by Telexraph to the Agent of the Canal Bank at New-York and in fifteen minutes $80,000 were placed to the credit of the Bank at Bost n, and the chelks of course instantly paid. Now mark the difference. The Merchants' Bank of Boston drew a few days since, $10,000 on the Canal Bank here, and although this institution was not in funds, the draft was duly honored. It must be borne in mind. moreover, that these checks were presented one Cay after the re ceipt of the protest by the Canal Bank. of the two drafts in question on the Merchants' Bank of boston. Farther amounts have since been drawn, but the holders here being aware of the fact that the Canal Bank was not covered, declined presenting them for the present. Comment on such a course is unnecessary. The trans. action speaks for itself. The net passenger receipts on the Northern Rail road for the four weeks ending Dec. 25, were $8,288 02The gross freight receipts for the same period were $17,057 33. The net passenger receipts for the week endng January 1, 1848, have been $1,973 04 This is certainly very encouraging statement, consadering that December and January are among the poorest months of the year for Railroad receipts, and that the Northern Road is not yet fully opened, and especially that it has no connection with the great Roads north of it, from which it is destined to receive its chief revenue The Alabama Life Insurance and Trust Company Mobile have a declared a dividend of 4 per cent The Insurance Company 6 per cent. The Canal Railroad is now in operation from New-Haven to Plainville, 28 miles The report of the State Directors of the Camden and Amboy and Delaware and Raritan Canal Companies, istille with highly interesting commercial and traveling statistics Itshows greatly increased business The report embraces the past months, during which the Company have received the enormous sum of $1,219,717 11.The State OWDE one-fifteenth of the stock, upon which, with the other stockholders, it receives regular dividends The number of the first class passengers in the line from Philadelphia to New-York is South Awboy, was 20,883, and the amount of passage money received for them $59, 623. The number of forward deck passengers is 13,556 who paid $31,373 81. The number of first class passengers by the same line back from New-York to Phila 13,632who paid $40,993.50 Number of forward deck passengers 27,7453, who paid Number of way passengers from Philad to York 423g between N. York and Borden town. 1033: New.York, Burlington and Bristol 1733 Way passingers to New-York and Philad 5311. The whale number of way passengers being 8,751 The num ber of steamboat way passengers, between South Amboy and New York is 16,192 On the sameline road there as been carried from New. York to Philadelphia, of freight through, 24,955 tons, ewt are and lbs for whichhave been paid for freight $240.152 46. Way freight, not carried from city to city, 6,821 tons, 11 cwt, 1 qr, 23 lbs Way freight from either city, not crossing the State, 10,053 tons, S owt. 19 lbs On the branch road from Hordentown New-Branswick has been received for passages $1,371 03. On the Trenton and New. York Accommodation Line there have been received for passengers 84.91467; for transportation and merehandise $1,428 85 in the U.S. Mail Pilot Lines $219,821 04 were received for passages; The Company also received for car. rying express chest of Adams & Co. with 8 traveling agent, $2,999 97. The Company have also received from the Philadelphia and Trenton Railroad Co. for the use of care. steamboats, &c. $103,485 84. On the Canal no pasRengers were transported, and the freight amounted to 698,402 tons, 800 lbs. of which 540,200 tons were in coal and the rest merchandise. The tolls paid for the above amount. I ed to $245,520.


Article from Evansville Weekly Journal, January 20, 1848

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BANK EXCITEMENT IN NEW ORLEANS.-We learn from the New Orleans papers of the 7th, that quite a stir was made in that city on the a day previous, by a report that the Canal Bank had stopped payment. The story flew like fire on a prairie, and in less than no time there was S a perfect rush of note-holders to the Bank demanding specie. The Picuyune of the 7th gives : the following account of the affair: The small holders of notes commenced their demands for specie; and as soon thereafter as S the officers of the bank ascertained that there was some excitement in the public mind in relation to its cir dation, notices were struck I up at the entrance to the fect that its doors would be kepi open fill dark, or later, to accom.nodate all persons desirous of changing their bills for specie. The hall of the bank was crowded with bill holders and speciators till near 3 o'clock, at which time the demand slackened, and, about an hour afterwards, the excitement died away. During the day the bank not only redeemed its notes in gold and silver, but the notes of all the city banks that were presenied. The paying tellers were reinforced by other officers in order to despatch business, and no delay was experienced by any of the bill holders. As fast as they came they were accommodated. Ai 5 o'clock the bank had exchanged specie for notes to the amount of about one hundred and twenty thousand dollars.The bank was open up to that hour, but for an hour before no demand had been made for coin. How the "run" was brought about no one knows, but at daylight in the morning it was reported at the market places that the bank had stopped. The bank had in SPECIE, on yesterday, one million eight hundred and seventu-seven thousand one hundred and seventeen dollars against one million two hundred and sixty dollars in CIRCULATION. Making an excess of specie over circulation of five hundred and ninety thousand eight hundred and fijiy-seven dollars. The short business paper and exchange in the vaulis of the bank amount to over ihree millions five hundred thousand dollars against a little over two million of deposits. So li tle effect had the run in weakening the bank amongst our business men, that during the dav the deposits amounted to near two hundred thousand dollars more itian the specie iat Len from its vaualts. S The excliement seems to have been got up in gross error or through mischievious motives and scarcely lasted during the ordiaary business hours of the dav. As to the parties who ex/ changed thei notes for coin, they had a perfect right to do so, and the bank will cheerfully reI deem its circulation in the hands of toose who would rather have the specie. Indeed it is better that anv persons troubled with doubis as to the solvence of the bank should relieve their mind, SO for as the cash can do it, at once. All we have got to say to them is that there is no need oi excitement or confusion; the coin is read for those who would prefer it to the notes r of the corporation.


Article from The Examiner, January 22, 1848

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Article Text

There was a foolish run on the Canal Bank of N. O., on the 6th, we believe. The panic lasted a day. The Bank is sound.