Citizens Bank - New Orleans, LA

Bank Information

Episode Type: Suspension → Reopening
Bank Type: state
Start Date: February 7, 1877
Location: New Orleans, Louisiana (29.955, -90.075)

Metadata

Model: gpt-5-mini
Short Digest: f0378f9f

Response Measures

None

Description

Article (Feb 7, 1877) refers to a prior suspension (no date given) and describes the bank as operating and having paid up capital. No run is mentioned. Cause of suspension is not specified in the text (post-war reductions in capital noted), so classified as 'other'. Reopening is inferred because the bank is described as operating and paying debts/dividends status discussed.

Events (2)

1. February 7, 1877 Reopening

Newspaper Excerpt: the Citizens' Bank has always maintained its figure -$1,500,000-upon which it is still operating. To-day the £50,000 have entirely been PAID UP.
Source: newspapers

2. * Suspension

Cause Details: Suspended previously (date not given); context implies post-war banking difficulties and capital reductions, but no explicit cause stated.
Newspaper Excerpt: has not paid dividends to its stockholders since the suspension; the directory preferred to pay its just debts rather than follow the example of other banks
Source: newspapers

Newspaper Articles (1)

1. February 7, 1877 The New Orleans Daily Democrat New Orleans, LA

Article from The New Orleans Daily Democrat, February 7, 1877

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Article Text

to $1,800,000. To-day the £50,000 have entirely been PAID UP. This is why the Citizens' Bank has not : paid dividends to its stockholders since the suspension; the directory preferred to pay its just debts rather than follow the example of other banks in declaring large dividends to maintain a fictitious credit, which led several of them into irretrievable bankruptcy. In this connection, in justice to the Citizens' Bank and its able directors, it must be said that whilst since the war all the banks of this city have reduced their capital by at least two-thirds, the Citizens' Bank has always maintained its figure -$1,500,000-upon which it is still op= erating. Before closing this MERE OUTLINE of the vieissitudes and successes of one, of New Orleans' time-honorell institutions, it is also just and proper to say a word in behalf of Mr. John G. Gaines, its worthy president. On referring to the books of the bank it is found that during a period of ten years or less of the presidency of this gentleman the bank has paid out, in dividends, sums aggregating over one million and a half ; of dollars, or, in exact figures, one hundred and two per cent PROFITS E on its capital, equal to a little over ten per cent per annum. A little over two years ago the stock was worth at most thirty dollars a share, and : eighteen months ago was sold at thirty) six dollars and a quarter. It has at this ) day increased to seventy-two dollars and a half, according to the official quotations of sales made at the Stock , Exchange. We might go into other particulars connected with the management of the bank, but as it is not the intention of this article to bestow FULLSOME PRAISE on anybody, or to attempt to improve 7 the credit of the bank, but simply to ) relate facts in which the land-owning , element of the State in particular, and the people in general, are vastly interested, we refrain from going further t into the subject. ) One item of interest may be added, however. It is the expression of Mr. 3 Gaines that with the definite establishr ment of the Wiltz and Nicholls government in this State, the lands mortgaged 3 to the bank will rise immensely in value, and that even at one-half their e estimated value in the I ) GOOD OLD TIMES, the bank will find itself in a condition second to that of none in the country. its As to the gentlemen who were ret elected directors on Monday, it is hardly necessary to say that it would be dify ficult to find an equal number of men a combining greater wealth, business qualifications and respectability. e