Citizens Bank - New Orleans, LA

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: January 1, 1837*
Location: New Orleans, Louisiana (29.955, -90.075)

Metadata

Model: gpt-5-mini
Short Digest: 73739576

Response Measures

None

Description

The articles describe the Citizens' Bank (of Louisiana) having suspended in 1837 and again in 1842 and being in winding up; a new charter/recapitalization/subscription was arranged in 1853 leading to a renewed charter in 1854 and successful operation by 1857. No bank run is described in these articles — this is a suspension followed by reopening.

Events (5)

1. January 1, 1837* Suspension

Cause Details: General bank suspension during the 1837 financial crisis; article does not specify a discrete run on this bank beyond the suspension years.
Newspaper Excerpt: the Citizens' Bank which suspended in 1837 and 1842, and has since been in a state of suspension and winding up its affairs.
Source: newspapers

2. January 1, 1842* Suspension

Cause Details: Second suspension noted in 1842; described as part of prolonged winding up prior to reorganization.
Newspaper Excerpt: the Citizens' Bank which suspended in 1837 and 1842, and has since been in a state of suspension and winding up its affairs.
Source: newspapers

3. September 5, 1853 Other

Newspaper Excerpt: books of subscription for 10,000 shares cash stock of the Bank ... will be opened at the office of the Bank, corner of Royal and Custom-house, on Monday, the 5th day of September next ... By E. Rousseau, Cashier, order of the Board.
Source: newspapers

4. January 1, 1854* Reopening

Newspaper Excerpt: The charter was renewed in 1854, after fourteen year's suspension; its capital was increased and new stock issued and paid up ... in the hands of efficient managers it has become the largest and most profitable Bank in the country.
Source: newspapers

5. August 6, 1857 Other

Newspaper Excerpt: The Citizens Bank of New Orleans, on the 6th inst., declared a dividend of 9 per cent. on the earnings of the last six months; this with 6 per cent. divided in February last, makes 15 per cent. for the last year ... The net profits of the bank for the last twelve months are 28½ per cent.
Source: newspapers

Newspaper Articles (2)

1. August 10, 1853 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, August 10, 1853

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Article Text

A comparison of the receipts two years, to the 31st July, 1852 and 1853, showing the general course of trade, is 88 follows: Increase. Decrease. 1852. 1853. .... $33,924 8332,775 $869,630 Onupfreight mdse On down ditto from other States $15,013 567,848 582,866 On down freight from this 505 421 889 State 422,394 $61,429 Total 815,018 $1,837,580 $1,336,941 15,018 849,411 Decrease [Albany Register. The new Constitution of Louisiana forbids the charter of any Bank in that State, except under general laws. Al though the old Banks arethus gradually closing their con certs, the gistature has recently received the Charter of the Citizens' Bank which suspended in 1837 and 1842, and has since been in a state of suspension and winding up its affairs. By virtue of the new Act, the Bank is authorized to convert shares secured by mortgage into cash shares and the following notice has been issued by order of the Board: Catizens' Bank of Louisiana, New Orleans, July 26, 1853. - Notice is hereby given, that books of subscription for 10,000 shares cash stock of the Bank, of 8100 each will be opened at the office of the Bank, corner of Royal and Cut m-houseste on Monday, the 5th day of September next under the superintendence of the Board of Directors: and subscriptions for the whole or any part of said stock will be received during thirty days, between the hours of 10 A. M and 2 P. M., commencing on said 5th day of September and ending on Saturday, the 8th day of October next. By E ROUSSEAU, Cashier. order of the Board.

2. August 19, 1857 The Evansville Daily Journal Evansville, IN

Article from The Evansville Daily Journal, August 19, 1857

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Article Text

PROFITABLE BANKING.-The Citizens Bank of New Orleans, on the 6th inst., declared a dividend of 9 per cent. on the earnings of the last six months; this with 6 per cent. divided in February last, makes 15 per cent. for .the last year besides a balance of the profits, to go to the reserve fund and profit and loss of two hundred and eight thousand dollars. The net profits of the bank for the last twelve months are 28½ per cent. This bank was originally founded upon the Real Estate plan. Its Capital was made up of mortgages on Real Estate, and it. capital borrowed on a pledge of the mortgages in Europe, at a low rate of interest. As the mortgages were paid up, the mortgagors became the actual stockholders. The Bank failed in 1840. and was placed in the hands of trustees, who collected the mortgages. paid the European lean, and by gathering in what was available of its former loans on Bills receivable, realized therefrom an actual cash capital. The charter was renewed in 1854, after fourteen year's suspension; its capital was increased and new stock issued and paid up, and in the hands of efficient managers it has become the largest and most profitable Bank in the country. A great portion of the old stock was obtained by its holders with out any actual cost. The mortgaged estates were sold for and subject to the mortgages to the Bank, with the right to the stock in the Bank to the amount of the mortgage. As the capital was considered sunk and worthless, the right to it was deemed of no value, and in buying the estates, the purchasers gave no additional price in consideration of it. But in the course of years, the collections of old debts and the payment of original loan, began to show there would be a large surplus, and in the final closing of its affairs by the Trustees, there was found to be a handsome capital to start anew upon;which with the addition of new capital of a million has made it the largest and best bank in the Southern States, and its Stock is now worth $160 for $100 par. It has proved one of the most fortunate financial operations of the day, and its success has been attained by an adherence to the soundest principles of banking-by a most generous course to its customers, and by sustaining and fostering the commerce of its own city, as its first duty in the use of its means.