Louisiana Savings Bank - New Orleans, LA

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: state
Start Date: September 1, 1873*
Location: New Orleans, Louisiana (29.955, -90.075)

Metadata

Model: gpt-5-mini
Short Digest: f43a51dc

Response Measures

None

Other: Bank temporarily paid out according to Clearing House rules though it was not a member; later recapitalized by foreign investors.

Description

Articles describe the bank being heavily drawn down during the panic of 1873 (large withdrawals), then temporarily suspended payments as part of a general suspension; by Sept 28, 1873 the president expected to pay cash 'early next week', indicating reopening. Cause of withdrawals is the 1873 panic (macro/systemic).

Events (3)

1. September 1, 1873* Run

Cause: Macro News
Cause Details: Large withdrawals during the nationwide panic of 1873; deposits fell from over $1.5M to about one-tenth
Measures: Paid according to Clearing House rules; management maintained position and later rebuilt deposits
Newspaper Excerpt: the panic last fall ... The deposits, which aggregated more than a million and a half, were drawn down to within one-tenth of that amount
Source: newspapers

2. September 28, 1873 Suspension

Cause: Macro News
Cause Details: Temporary suspension of payments occurred as part of a broader wave of bank suspensions during the panic; bank later prepared to resume cash payments
Newspaper Excerpt: President Palmer ... expects to be in a condition to pay cash early next week. This attempt will, if successful, add greatly to the well deserved popularity of that staunch institution.
Source: newspapers

3. October 1, 1873* Reopening

Newspaper Excerpt: President Palmer ... expects to be in a condition to pay cash early next week.
Source: newspapers

Newspaper Articles (2)

1. September 28, 1873 New Orleans Republican New Orleans, LA

Article from New Orleans Republican, September 28, 1873

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Article Text

tion," and each party may appreciate the other more justly in the contest which are to come. FINANCIAL ITEMS The Southern Bank and the Mechanics and Traders' Bank have refused to join the others in the temporary suspension of payments. We believe the Metropolitan Loan and Savings Bank also pays its customers. These exceptions to the gen. eral rule are too unimportant, however. to have any perceptible effect upon the business community, as their line of de. posits do not sum up in the aggregate an amount sufficient to seriously disturb the money market. The Freedmen's Savings Bank requires sixty days' notice from its depositors, but had up to the close of business yesterday. received only abouta dozen notices. It is probable that before the expiration of the stipulated time nobody will be much in want of ready money. Mr. Sturtevant. the manager. yesterday showed us a dis. patch from the New York branch, an. nouncing that institution as being all right. the crisis passed, and not a bond sacrificed. President Palmer. of the Louisiana Savings Bank, expects to be in a condition to pay cash early nex: week. This attempt will. if successful, add greatly to the well deserved popularity of that staunch institution. A calm survey of the whole situation satisfies us that if the people will pause a day or so for breath. the present trouble, which is more apparent than real. will pass away. Credit is good everywhere, only cash is a little searce.

2. June 28, 1874 New Orleans Republican New Orleans, LA

Article from New Orleans Republican, June 28, 1874

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Article Text

The Louisiana Savings Bank. We congratulate the stockholders of this young and prosperous institution upon the occasion of the announcement that the capital stock has been increased to half a million of dollars. This is an addition of $350,000, which is thus added to the bank. ing facilities of this city. The whole of it comes from England, through the person al influence, as we learn, of Mr. E. C. Palmer, the president. This bank, like all othere, felt very sensibly the effects of the panic last fall, which occurred soon after Mr. Palmer's acceptance of the post of head of the establishment. The deposits, which aggregated more than a million and a half, were drawn down to within one-tenth of that amount, but everything was promptly paid according to the rules established by the Clearing House, of which, however, this bank was not a member. About the time the deposits were nearly all withdrawn, the enemies of the bank loudly proclaimed that it was about to succumb, and even some of its best friends were apprehensive of disaster. But the able management kept it well up in the wind; the tide of fortune turned and its deposits soon began to increase rapidly. It is now used by some of the shrewdest business men of the city for keeping their. balances. and we believe it fully deserves their confidence.