7667. Louisiana State Bank (New Orleans, LA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
April 15, 1837
Location
New Orleans, Louisiana (29.955, -90.075)

Metadata

Model
gpt-5-mini
Short Digest
67308b4b

Response Measures

None

Description

Articles from 1837 report general banking distress and that the Louisiana State Bank had earlier suspended specie payments as part of the wider crisis; by mid-July 1837 the bank's directors resolved to partially resume specie payments (meeting of July 15). No bank run is described in these articles — this is a suspension followed by reopening (partial resumption).

Events (2)
1. April 15, 1837 Suspension
Cause
Macro News
Cause Details
Part of the wider banking distress and loss of confidence during the Panic of 1837 leading banks to suspend specie payments.
Newspaper Excerpt
All is yet dark and cloudy. No further rumors of failures have assailed our ears... The Louisiana State Bank has published sundry resolutions... The presidents of the City Banks met this evening in conclave, for the purpose of devising some means of relief.
Source
newspapers
2. July 15, 1837 Reopening
Newspaper Excerpt
The Board of Directors of the Louisiana State Bank, have resolved in their meeting of the 15th instant, to pay in specie the following notes: $5, $10, $20 and $50 ... on notes of $100 to pay $50 in specie ... on notes of $500, $100 in specie, and on notes of $1000, $200 in specie . . . one of the suspended banks is about to resume specie payments forthwith (New Orleans Commercial Bulletin, July 17).
Source
newspapers

Newspaper Articles (3)
1. April 15, 1837 True American New Orleans, LA
Article from True American, April 15, 1837

Click image to open full size in new tab

Article Text

MONEY MARKET-CITY INTELLIGENCE. Friday, 1837. Another heavy day has gone by. Nothing cheering offers in the commercial horizon. All is yet dark and cloudy. No further rumors of failures have assailed our ears. and all has passed off with the usual dali monotony incident upon destroyed confidence and ruined credit. The Louisiana State Bank has published sundry resolutions, the sum and substance of which are, that she will do just as she pleases with those indebted to her. No hint occurs that solvent men, offering undoubted security in thrice the amount, can get accommodations. Indeed, such prospects meet the eye in no quarter whatever. Every door is closed aguinst the middle dealers, regardless of his ability to pay. The management of our banks should be thoroughly inves. tigated by the next legislature, their conduct probed to the bottom, and the doings of those entrusted with their direction laid before the public. We shall then know WHO seized upon the power of these institutions to further the interests of n edious monopoly, and WHO opposed their unholy combinations. The idea is a false one and highly injurious to the interests of the public that banks cannot do wrong, that their doings should be eternally concealed behind the veil of secrecy. Their acts should be canvassed by the public freely and openly, and they would seldom deviate from the right path. The presidents of the City Banks met this evening in conclave, for the purpose of devising some means of relief. It was proposed to issue Post Notes after the manner of Exchequer Bills, payable a year hence. We did not learn where they wore to be paid, or what amount was to be issued. A committee was appointed to report. The result we shall give to-morrow. Great doubts exist on our minds as to the advantage that can result to the community from this course. It will afford relief to the Banks themselves, but in what degree the public will be bene fitted, time will show. P.S. 11 P. M.-We have just heard that the meeting of the Presidents was adjourned till to-morrow morning 9 o'clock. In Cotton, nothing doing. A transaction was talked of during the day, comprising 1100 bales; but it was not closed.The exports this day amounted to 1363 bales, of which 1833 went to Liverpool, and 10 to New York. Regular produce transactions are scarcely worth recording. The following came to our notice after diligent enquiry: 500 bbls Flour $7; 100 bbls Whiskey 34c; 120 bags Coffee 111g; 50 bbls Mess Pork $10; 25 do prime $15!; 800 bbls Co 11 58c; 25 tierces Rice 3|c; Nearly all that is doing in produce is for immediate consumption and for cash.

2. July 26, 1837 Cheraw Gazette Cheraw, SC
Article from Cheraw Gazette, July 26, 1837

Click image to open full size in new tab

Article Text

Burden's New Steam Boat.-This newly invented model was launched at Troy on the 12th instant. The Troy Budget says that she is 250 feet long, I erfectly tlat on the bot10m, and exceedingly narrow. Her cabins are all above water. She drew thirteen inches, which by her engines, will probably be increased to two and a half feet. M.: Burden intends to runher to New York in six hours. The New York Daily Express of the 24th, says-" Within a few days past, a number of merchants from the South and West, have arrived here to purchase dry goods, and some large D.IIS have been made. The conditions of which have been, that the bills shall be made payable in this city, and at maturity, the purchaser to loose all the difference in exchange by placing funds here. At this time the loss is very great. Most of the remittances from the South and West are 111 United States Bank notes, which are ten and twelve per cent. premium there, and one per cent. less here. We are happy to learn through a gentleman who has just returned from the Roanoke that the bridge over that river is expected to be comp eted in three weeks from this time. [Potsmou h (Va.) Times. Two immense Russian merchant ships, the barthen of each being nearly one thousand tons, entered the harsour of Bakimore on Tuesday from Bremen. They have on board about forty thousand bushe's of wheat, and from twelve to fifteen thousand bushels of rye, besides seven hundred and furly passengers. [Ibid. D.J. M'CORD, Esq. has been elected President of the Brach of the Bank of the State, at Columbia. The Steamer Crusader from Cincinnafi, lately burst her boiler above New Orleans, siting one man, and scalding eleven. RESUMPTION OF SPECIE PAYMENTS IN NEW ORLEANS.-The following is from the New Orleans Commercial Bulletin Office of July 17th: The Board of Directors of the Louisiana State Bank, have resolved in their meeting of the 15th instant, to pay in specie the following notes: $10 00 $5 00 50 00 20 00 and 0.1 the notes of $100, 850 in specie do do 500, 100 do do do 1000, 200 do By the above it will be seen that one of the suspended banks is about to resume specie payments forthwith, and we congratulate the directors on the bold step they have taken, as it will f rther tend to reduce the waning premi mon the metalic currency. Although this is the first regular announcement of resamption, it is not by any means the only instance of a Bank paying gold and silver since the stoppage, as several of our monied institations have been partially doing so within the last few days. Our traders may now expect within a short time, to see the metalic at its value, of whice it the medium decline proper has well experienced for the independant supply amongst continourselves, owing as to ually flowing in from abroad, as to the facilities in the way of small buying and selling, likely to accrue from the manicipial issues, and the want of which indeed tended materially to enhance the value of coinage. Charlestonand Hamburg Rail Road-Cin. cinnati and Charleston Rail Road.-We ex. tract the following paragraph from the semiannual report of the S.C. Canal and Rail Road Company, which explains itself:

3. July 31, 1837 Lynchburg Virginian Lynchburg, VA
Article from Lynchburg Virginian, July 31, 1837

Click image to open full size in new tab

Article Text

Partial Resumption.- - The New Orleans Bulletin of the 18th inst. announces that the Louisiana, State Bank has resolved to pay in specie notes of the denomination of 5, 10, 20 and 50 dollars-on notes of $100 to pay 50 in specie : on notes of -500, 100 in specie, and on notes of 1000, 200 in specie. The Bulletin accompanies this annunciation with the remark that specie had rapidly declined in value in that place, the consequence of a supply continually flowing in from abroad, and the decrease of the demand for foreign exportation. The last named, and doubtless the efficient cause of this improved state of things, the Bulletin says, ismainly attribubuted to the exertions of Mr. Biddle, who has been forwarding cotton to an immense amount to meet the engagements of the United States Bank in Europe, thereby supporting the credit of that institution, and retaining the specie in the country." That paper adds "The power and ability displayed by this able financier, in steering through the difficulties of latter times, must command for him the admiration even of his inveterate opponents." We do not doubt that Mr. Biddle" enemies admire, even while they vilify and abuse him. They cannot do otherwise.