7680. Mechanics & Traders Bank (New Orleans, LA)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
state
Start Date
October 14, 1857
Location
New Orleans, Louisiana (29.955, -90.075)

Metadata

Model
gpt-5-mini
Short Digest
fee862a8

Response Measures

Accommodated withdrawals, Full suspension

Description

Newspaper accounts from Oct 14–16, 1857 describe a run on the Mechanics & Traders' Bank triggered by telegraphed news of New York bank suspensions and local contagion; the bank closed/ suspended Oct 14–15 but resumed specie payments and active operations later (reported resumed by late November 1857). OCR errors corrected in dates and minor punctuation.

Events (3)
1. October 14, 1857 Run
Cause
Macro News
Cause Details
Telegraphic advices that New York banks had resolved on a general suspension and related contagion reports triggered local panic and runs on several New Orleans banks including Mechanics & Traders.
Measures
Paid out to demands during the day, then closed doors about half past 2 P.M.; redeemed small issues next day.
Newspaper Excerpt
Between 12 and 1 o'clock a run commenced on the Union Bank...all those having a few dollars of the Mechanics' and Traders' Bank also presented them for payment.
Source
newspapers
2. October 14, 1857 Suspension
Cause
Macro News
Cause Details
Temporary suspension/closing of doors followed the run and contagion from telegraphed suspensions elsewhere (New York). Described as a brief forced closing by depositors' action rather than an immediate insolvency determination by management alone.
Newspaper Excerpt
The Mechanics' and Traders closed about half past 2.
Source
newspapers
3. November 24, 1857 Reopening
Newspaper Excerpt
At New-Orleans the Money market is quiet and the banks are discounting no new paper. The Mechanics' and Traders' Bank had resumed active operations.
Source
newspapers

Newspaper Articles (12)
1. October 15, 1857 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, October 15, 1857

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Article Text

THE COMMERCIAL DEPARTMENT. Hebo Orleans Money Market. CRESCENT OFFICE, No. 70 street, Wednesday Evening, Oct. 14, 1857.5 The events of to-day in financial circles illustrate the great power of confdence-shake that or Impair its structure and the entire commercial fabric falls through. Although there has been a great want of confidence existing to-day, yet it does not indicate that our community is bankrupted. At an early hour in the day the telegraph brought advices that the Banks in the city of New York had resolved on a general suspension. This, however, was expected, and would have been the signal that all anxiety regarding that city was removed. Subsequent to the receipt of this intelligence, it was intimated that some of the free Banks, in their exchanges this morning, could not make their balances good. This was followed by a report that a majority of the old Banks declined the notes of three of the free Banks. Of course, as soon as this was made known, the public naturally became excited, and reasoned thus, if the Banks cannot confide in each other. then the involuntary creditors cannot be expected to retain confidence." Between 12 and 1 o'clock a run commenced on the Union Bank, aggravated no doubt, by a telegraphic dispatch, that the Union Bank of Augusta, Ga., had suspended. as well as the Union Bank of New York. Holders of bills did not stop, it appears, to Inquire what Union Bank, whether of New York or Louisiana, and immediately started for Canal street, the location of our Union Bank. It required very little to extend the rush, and all those having R few dollars of the Mechanics' and Traders' Bank also presented them for payment. The feeling began to spread, and extended to the Bank of New Orleans, which immediately closed doors, say about balf-past 2P. M. In the meantime, the Union paid out to its last dollar. The Mechanics' and Traders closed about half past 2. The Southern Bank did not appear to have many calls, the public, perhaps, being aware that it was all prepared. It closed at the usual hour. The Citizens' Bank, from its very large and extensive business, its great popularity seemed to be the general target. Towards 3 o'clock A decided run appeared to be determined on, and people began to congregate, some with checks for the ordinary business of the day, some with a few notes, among them people who are easily alarmed, but the majority of the crowd outside was composed of people who merely were attracted by a run on a Bank, many of which had intrinsically no more interest in the Bank, or the credit of our city, than the man in the moon. The promptness and alacrity with which all calls were met diminished the excitement, and after 5 o'clock the Bank closed, its doors having been kept open to that hour to accommodate the public. The Canal Bank was also open till & late hour, but no calls were made. When we reflect on what we have witnessed to-day, we are astonished what little substance; or we might say, from what a shadow astounding events arise, and create a panic. It was hoped when the advices were received to-day of the intended suspension of the Banks of the city of New York," we might consider that the tenters on which our community have apparently been feeling for three weeks were ended and knowing that the worst was actually about being realized, it was hoped we might calmly reflect on our position, and at least devise measures to move onward. But might as well undertake to turn the current of the Mississippi river towards the Rocky Mountains, as to check a panie when it gets fairly started. We are not advised what course the discarded Banks will pursue to-morrow. As the troubles are only temporary, it is presumed they will open as usual, and pay their obligations as they can. A general suspension of the Banks we do not anticipate, and, we believe, that some of our Banks cannot be broken, let the worst come to the worst. We learn that last the Secretary of the Treasury has ordered $200,000 of gold here in the Mint, to be used in the purchase of silver coin and bullion, which, we suppose, if not already transferred, will be to-morrow. We hope that discretionary instructions as to the amount[will be issued, increasing a fund for specie investments to at least one million of dollars. There is nothing to be said this evening in exchange. But among the reports to-day was one saying that R large amount of gold was brought from Havana by the Granada, to be invested in sterling exchange. Whether it is 50 or not, we could not ascertain. There was no paper market to-day. An up-town Bank, we learn, discounted nearly $100,000, which was freely accepted, we presume, by the discountees. The Bank of New Orleans will be opened to-morrow and transact business as usual. We believe that in the course of fifteen or twenty days, matters will be arranged so that it will continue. The discrediting of its notes, as well as the notes of the other free Bauks, cannot be regarded as of ulterior injury. The press has come 80 sudden that it strikes every individual with fright. There are no causes for real alarm. The circulation is amply secured, and the porte feuille of the Bank, $2,000,000, is considered as good as any other. If, however, our citizens think that the country is ruined by this unexpected and uncalled for panic, it is useless for us to dilate on their misconceptions. The position of the Bank of New Orleans on Saturday was as follows Assets. Liabilities. Specie $700,955 Circulation $363,040 501,118 Bills receivable 1,951,793 Deposits 146,394 83,862 Exchange Due distant Banks For security of the circulation, there is lodged in the hands of the Auditor of the State, city and State bonds to the amount of $821,0.0. The New York Courier and Enquirer, of the 7th inst., says : FINANCIAL-The cheering aspect of affairs, which was ap parent in the early part of Monday, was not sustained during the day, in consequence of its leaking out that the bank state. ment would show 8 further decrease of loans instead of an increase, as promised. And the publication of the weekly statement during the week of $1,855,934 in loans, and 8 decrease of $1,926,682 in specie, coupled with the declaration of the Journal of Commerce, that many depositors have drawn out the coin and hoarded it, made yesterday a day of senseless panic as has ever been witnessed in this or any other country. Every sane and reasonable man knows, that in reality, there is no earthly cause for the existing state of things, except a foolish and wicked panic utterly destructive to confidence and this panic is daily increased by some senseless newspaper paragraph. When the public discovered that the banks were still curtailing instead of extending their discounts, as we promised, the feeling became general, that what was threatened by the Herald on Saturday was official, instead of being the senseless ravings of one who never publishes the same opinions in regard to our banking institutions two days in succession. They apply to this latitude at this time with great force, for it Unidual

2. October 16, 1857 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, October 16, 1857

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New Orleans Money Market. CRESCENT OFFICE, No. 70 Camp street, Thursday Evening, Oct. 15, 1857. The Infernal panic which was started yesterday in our mids without any just cause, without reason, without a shadow ( foundation, reached and attained its culminating point to-day Whatever the consequences may be, we have the sincere gratit cation of announcing that the following Banks stood the ru and promptly complied with every demand until the usual her of closing, say Citizens' Bank, the Canal Bank, the Bank Louisiana, the Louisiana State Bank, the Southern Bank, the Bank of James Robb. The NewOrleans Savings Institution, street, was dense crowded at an early hour. It met all obligations according contract, and by 12 o'clock there was not a person present. Th was cheering. The Mechanics' and Traders' Bank opened, as went on in its regular business, with the exception of redeemin its circulation. So did the Union. The Bank of New Orlea was enjoined at the suit of one of its Directors. This is singnir very singular, and shows a want of nerve and sagacity in management. We desire to hear no more of such finances. a Bank's own Directors have no faith in its management, th surely it is time to close. There has been entirely too mu haste in this movement. At a quarter past 2 o'clock yesterd the Bank closed its doors. A short time afterwards it was p tested at the request of one of its Directors on a note of five hu dred dollars. In the name of God, is this the kind of harmo that ought to prevail among twelve managers of a Bank WI is the public to understand from it? Fortunately for the go of our commercial community this spirit does not prevail amo the majority of our Bank Directors. If it did, we might 1 adien to the prosperity of our city. We learn that the Mechanics' and Traders' Bank and t Union Bank will go on as usual with their business. The Pro ident of the Union Bank is absent. If, however, some for R creditors will push matters to extremes, jeopardizing t interests of the whole, then on them be the consequence. T Banks in question will recover, if allowed to proceed. The e t culation of the two together does not reach $900,000, and t porte fewilles are considered good. To suppose that the occurrences of the past two days . et tend to destroy confidence in the future is not warranted. y X consider the crisis is now past ; that the worst has been realize n and although we may expect a tight money market for son days longer, yet the decided action of the New York Banks 1 evil or for good, has tended to relieve the general anxiety, a d the telegraphic advices, received to-day, if they are to credited, give us to understand that an improvement has alrea taken place in New York. All the Banks in that city have 1 suspended. We learn from Mobile that the Banks in that et have BO thought of suspending. This augurs well, but it wor of have been highly gratifying to us to have had it to state that re our own Banks had manfully stood up to the pressure. as There was also a run on the Bank of Commerce, of which t sa patriarchal Jacob Barker is chief manager. It met the r on fearlessly, and paid with the same promptitude as the Bank e Louisiana. There were no other important movements duri the day. er Of course there is not much to be said of the paper mark st There were some shaves, the greatest of which was a $50 Ba of Louisiana note ing sold to a broker on Canal street at $ 50. and a $5 note of the Southern Bank of Alabama being 80 for $3. We aliude to these merely to show what a pauie will i There was nothing done in exchange. The telegraph advis of sales of sterling in New York this morning at 105, but this on a reduced standard of currency or value. It will be some ti of W before we have any similar quotation to note in this mark CWe, however. confidently believe we shall get to work again two or three days, unless our moneyed institutions get into ad snarl among themselves, which we fervently hope they v avoid. erThe following is the memorial of the Banks of the city Philadelphia to the Legislature of At a meeting of the Board of Presidents of the Banks of city of Philadelphia, held on the 3d day of October, 1857, in following preamble and resolutions were unanimously adopt and directed to be forwarded to the Honorable the Senate a the House of Representatives of Pennsylvania. Whereas, The banks of this city, in consequence of the effe of the sudden and universal severity of the financial crisis wh has overtaken the country, have been reluctantly compelled suspend the payment of specie for the notes and obligatio 18notwithstanding every effort has been made by them to av such necessity and whereas, the mercautile, manufacturi as agricultural and all other classes of our citizens are greatly e 17 barrassed by the existing condition of things, towards whi under existing circumstances, it is not in the power of the bar Pto afford such relief as the exigencies of the community requi in consequence of heir laboring under the forfeitures and per les ties of the act of 1850 and other acts and, whereas, it is esdesire of the banks to resume the payment of specie at esearliest practical period, and to do what they can towards storing the currency to asound and healthy condition. and in a meantime assist the business portion of the community. wh all objects cannot be carried out unless the Legislative forfeitu and penalties are temporarily suspended. Therefore, Resolved, That in order to enable the banks of this city, H, of this Commonwealth, to resume the payment of specie at ion earliest practicable period, and in the meantime render such sistance as may be within the power of the banks to the mere iz: tile and business community, it is essential that the penalties ow forfeitures imposed by the act of 1850, and other acts be 1 porarily suspended. are Resolved. That in the event of the failure of the banks to tain from the Legislature relief from the forfeitures and per ties under which they at present labor, their remains no alter tive for them but that of going into liquidation, a measnre wh they are most desirous to avoid, on account of its disastrous LE fluence on the community and the banks. ess Signed by order of the Board of Presidents. J. B. MITCHELL, Chairma mp 1y JOHN JORDAN, JR., Secretary. Philadelphia, Oct. 3, 1857. C. Some days since it was reported that the banking house of 15 E. Culver, Louisville, had suspended payment. It appe however, before the suspension, the following guarantee made for the benefit of depositors. Y. The guaranty which we publish below confirms the er om confidence existing on the part of the depositors with our fell citizen, William E. Colver. We have heard of no apprehen of a run upon this bank but this guaranty, procured in a 8 time by a friend of Mr. Culver, makes assurance doubly sur RT LOUISVILLE, October 1, 185 ing We, the undersigned, agree to guaranty the depositor in William E. Culver, in the payment in full of their dema y against said Culver, on account of money deposited with hir We have entire confidence in his ability to meet all dema REAMES THOMPSON, AMES GUTHRIE,

3. October 17, 1857 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, October 17, 1857

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NEW ORLEANS, Oct. 14.-The crisis reached its height to-day and a portion of the banks resolved to suspend. their names are the following:Union Bank, Bank of New Orleans, and the Mechanics' and Traders' Bank. The following banks continued to pay specie all day:-The Canal Bank, State Bank, Bank of Louisiana, Citizens' Bank, and Bank of James Robb. The last named, and also the Citizens' kept open till dark, meeting all demands as fast as presented. The panic has now quite subsided and there is little doubt but that the banks which paid specie throughout the day will be able to continue doing so.

4. October 17, 1857 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, October 17, 1857

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NFW ORLEANS BANKS. NEW ORLEANS, Oct. 16.-The Bank of New Orleans, the Union Bank and the Mechanics' and Traders' Bank have suspended. Cotton 91/2810 ets.

5. October 17, 1857 The Washington Union Washington, DC
Article from The Washington Union, October 17, 1857

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Adolfo Oltague and brother, of Peru. Sefior A. Richon, consul of Belgium at Lima, partner in the house of Montane & Co., Puris, from Peru for New York. J. A. Thune, for New York; Sr. Escurda, for New York; S. de la Cova, infant and nurse, for Havana; Dr. Corpancho, for Havana; Santiago Olivia, for Havana; C. de Lasola, for Havana; Charles Taylor, for New York; J. McCarthy, for New York; F. M. B. Smith, for New York; William Graffus, for New York; Captain Walter, G. Dyer, for New York; J. Sellamer, for New York George Ganie, for New Orleans. STEERAGE. Otis Barlow, New York; Jas. O. Neil, do.; E. Flinader, Havana; M. Bertand, New Orleans; Frank Carpenter, W. Hemmel, Wm. Plasso, Mr. Olfur, A. Amm, C. W Griffeths, T. J. Morris, Wm. Osborn, F. Griffith, Thos. Maloney-32. LATER FROM CARSON VALLEY. The Sacramento Union has the following telegraphic despatch from Placerville, dated September 7th: Mr. Murdock has just arrived from Carson Valley, who brings important news. Messrs. Williams and McMarland left our city on Thursday last for Carson Valley. They put up at Silver Creek. Williams left Silver Creek at one o' clock on Saturday afternoon, and Mr. McMarland left about an hour later, intending to overtake Williams. [The despatch then relates the particulars of finding the body of McMarland, and the consequent certainty of the death of Williams, and the belief that the murder was committed by the Washoe Indians.] Great excitement exists here, as Williams and McMarland are well known and highlyesteemed citizens. STILL LATER. Smith, of Lake Valley, sends word that the Indians who committed the murders are in the vicinity of Silver Creek and the South Fork. The arrow with which McMarland was killed has been sent us. There is no doubt that it belonged to a Washoe. Sheriff Carson is now summoning a posse of 25 men, well armed, who are to leave within one hour for the scene of the murder, under the command of Deputies Turnman and Wallace. This makes the number who have been massacred within weeks twenty-four-the last within fifty miles of our city. The leading wagon of thirteen is just passing our office. DEATH OF JUDGE MURRAY. The San Francisco Herald of the 21st ultimo says With deep and heartfelt regret we have to announce this morning the death of the Hon. Hugh C. Murray, late chief justice of the supreme court of California. This melancholy event occurred on yesterday morning, before 1 o'clock, a. m. Though not unexpected, it has created an intense feeling in this community, and, doubtless, throughout the State. Judge Murray was about thirtythree or thirty-four years of age at the time of his decease. He arrived in California in the year 1849 or 1850, and soon, by the force of his talents, attracted attention. Almost his whole life in California was connected with official position. His first service was as a member of the municipal council of this city. From that place he was transferred to the bench of the superior court of San Francisco, which he occupied as presiding officer for a year or more. He was then elected to the bench of the supreme court, and subsequently, until his death, retained his place upon it. He has been chief justice for several years. FROM OREGON. At last dates the constitutional convention was in session in Oregon. We have reports of its proceedings from the 17th to the 29th of August, inclusive. The question of slavery will not occupy much of the attention of the convention, for the reason that, at the democratic territorial convention held previous to the submission of the question of the formation of a constitution, it was " Resolved, That as the people of Oregon called upon to elect delegates to a constitutional convention, and to pass upon the question of slavery in Oregon before the democratic party shall again be assembled, therefore, in the nomination and election of candidates to said convention, we will not discriminate between democrats who are in favor of or opposed to slavery in the future State of Oregon, because we hold that the delegates should not predetermine that question in the formation of the constitution, but should submit the same in a separate clause, to be voted upon directly by the people." The Financial Crisis. BOSTON, Oct. 16.-The meeting of the bank directors and leading merchants discussed the policy of the extension of money facilities. William and Nathan Appleton advocated the policy of increasing the loans thirteen millions of dollars. The bank officers expressed an earnest desire for the relief of the business community. The meeting then adjourned until to-morrow. BRIDGEPORT, (Conn.,) Oct. 16.-All the banksh have suspended. NEW ORLEANS, Oct. 15.-The Union and the Mechanics' and Traders' banks, and the Bank of New Orleans, suspended yesterday. Sales of cotton at 91 a 10 cents. NEW ORLEANS, Oct. 16.-There has been a run to-day on all the banks except the Southern, and all demands have been promptly met, except in the case of the Citizens' Bank, which pays specie for its notes, but refuses to pay its depositors. The other banks are expected to follow suit. The excitement has now subsided, and no failures reported. Nothing is doing in exchange, and business is paralyzed. Sr. LOUIS, Oct. 16.-There has been a heavy run on the Bank of the State of Missouri. The ability of the banks to hold out is doubted by some. Sr. LOUIS, Oct. 16.-The reported suspension of Doan. King, & Co., and Collins, Kirby, & Co., is authoritatively contradicted. They are regarded as the most solvent and responsible houses here. NASHVILLE, Oct. 16.-The Bank of Tennessee has suspended. The legislature is considering a bill for legalizing the suspension. NORFOLK, Oct. 16.-The banks here suspended specie payments this morning. Later from Havana. NEW YORK, Oct. 16.-The steamer Daniel Webster, from-New Orleans via Havana, has arrived. The Cuban news is unimportant. Railroad Disaster SYRACUSE, Oct. 16.-The mail train on the Central Railroad was thrown off the track west of this city last night in consequence of a piece of the road being washed away The whole train consisting of the

6. October 28, 1857 The Evansville Daily Journal Evansville, IN
Article from The Evansville Daily Journal, October 28, 1857

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The excitement occasioned by the recent suspension in New Orleans of the Mechanics' and Traders' Bank, the Union Bank, and the Bank of New Orleans is said to have been a panic of the wildest kind. A certain class of individuals speculated largely upon the prevailing fright. One man, with $120 in silver purchased $380 in notes. Another bought $90 with $38 in specie, and another bought a check on Robb the banker for $37 with $3 cash. These are but a few of many instances, but they are sufficient to give an idea of the speculations carried on. The people descended like an avalanche upon the Citizen's Bank, fighting and shouting like madmen. The police had to fight their way through the crowd, and. it was only by the greatest exertions that they succeeded in clearing the Bank. Anxiety, fright, and the wildest despair, were visible in the faces of the people. During the greater part of the day, the whole vicinity was so densely crowded that no vehicles could get by. The Bank closed at three o'clock, having paid out some $1,500,000. TOBACCO DUTIES IN ENGLAND AND FRANCE.-By official documents published by the French Government, it appears that the tobacco revenues for the first six months of 1857 were nearly $17, 000, 000. During the same period, the British Government derived a revenue from the same article of $12,188, 040. If the importations of tobacco into both countries should continue to be the same for the remainder of the year the aggregate amount of revenue derived from tobacco, almost wholly of American growth, by the Governments of Great Britain and France, would reach, for the year 1857, the sum of $58,376,080; or for France $34,000,000 and for Great Britain $24,376,080.

7. November 2, 1857 The New York Herald New York, NY
Article from The New York Herald, November 2, 1857

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Enquirer, contains the following provisions relative to the banks, so called, in which the State deposits are made:"If either of said banks shall at any time refuse to redeem its bills or notes in gold or silver coin, no further deposits of public money shall be made therein, but such deposits shall be made in the other two or one of them, if they or either continue to redeem their bills or notes in specie; and if neither so continue, or if the treasurer shall at any time have a good cause to believe that injury will be sustained by the State from having its money deposited in the said bank, or any of them, he shall make a written communication to the Governor on the subject, and thereafter shall keepthe public money in such specie paying bank or such other place as the Governor may direct until further provision be made by law. The Examiner says that the Governor has directed the funds to be lodged, as received, as a "special deposit" in he banks of Richmond, with this exception, that notes deposited with either bank, payable by itself or any of ts branches, go in as a general deposit, and will be pay able by that bank in specie. The Bank of Virginia, at Fredericksburg, and the Farmers' Bank of Virginia, at Fredericksburg, continue to pay, and entertain no thought of suspension. NORTH CAROLINA BONDS. Information has been telegraphed to New York, by the State Treasurer of North Carolina, says the Petersburg Intelligencer, that the State bonds falling due on the 1st of January next will be paid on demand, in Raleigh, in the - case care. The Courier thinks bondholders will not VA be apt to avan " chemselves of the offer, for the reason that. at present, it costs from 6 to 10 per cent to tonvert North Cartolina funds into New York specie funds, and this is a loss o which few bondholders will submit, especially when these coupons are made payable in New York, according to the tenor of the securities. In answer to the above the Raleigh Register Bays:-The language of the above paragraph is calculated to give rise to misapprehension. The Trensurer of this State a few days since, gave notice of his willingness to anticipate the payments due the 1st of January, by making payments now, in Raleigh, in the currency of the State. There WILB no sort of intention to alter the obligation of making pay. ments in New York, but the Treasurer left it optional with the bondholders to be paid in State or Cape Fear Bank money now. or in New York funds the 1st of January. As the New York banks have suspended specie payment, there will not be such a per centage now in that city against North Carolina circulation. THE NEW ORLEANS MONEY MARKET. [From the New Orleans Delta, Oct. 25.] The change to-day in commercial and financial circles, though not attended with anything of a real important nature. nevertheless gave indications of an increase in confidence which has been so terribly abused during the past ten days. The weekly statement of the banks as made to the Board of Currency this morning, shows a very great improvement over last week. In fact, considering what we have undergone, it is a real subject of congratulation that our banks present so favorable an exhibit, particularly the Bank of Louisiana and the Canal Bank, against which the shafts of malice, envy and disappointment have been pointed. The Southern Bank also presents a formidable array of the stoff. The Bank of New Orleans is in line, and the Citizens' is coming on famously. The statement exhibits the following variations for the week $309,870 A decrease in circulation of 171,161 A decrease in deposits 380,184 An increase in exchange of 844,282 A decrease in loans of 116,998 A decrease in distant balances 204,599 An increase in specie of Exchange moved to-day, though at low figures. The State Bank was drawing sight on New York at 1 per cent discount. and the Canal Bank five days sight at 1% per cent. discount Sterling was sold at 93 a 95. Street sight on New York at 4 per cent discount. There were very few calls for specie on the banks. The Bank of James Robb, particularly, was not called on for any more than usual. It is prepared to meet all its circulation and satisfy its depositors. All that is required now is that people will leave off talking and go to work. Everything willcome out straight. It is no use to think the banks are going to suspend-and that idea may as well be abadoned at once. The Union Bank is in line, and the Mechanics and Traders' also; they will both be running next week. Work 1 work mer. chants-all is right. OPINION OF AN OLD FINANCIER. [From the New Orleans Delta, Oct. 23.] Attorney General Moise may promise the banks an easy time, in case they volunteer to play second fiddle to the New York banks and suspend, if be sees fit to do 80: gentiemen of the State Senate may back the idea, and Gov. Wicklife may endorse it: but, nevertheless, we can see no temporary advantage to be gained by a voluntary surrender and general suspension, which would compensate for our permanent loss of reputation as a great commercial metropolis, and the implied acknowledgement tothe world that we were financially subordinate to, and dependent upon, New York; that when the latter, our superior, had failed, it was idle and impertinent in us to think of stand ing: that when the river was dry, it was A preposterous idea in the brook which flowed into it to think of preserving a brimming channel. But amid the chaos of opinion and "theory in regard to the crisis, it is refreshing and edifying to encounter the views of an experienced and practical Anancier-one who like the veteran Jacob Barker, has faced many a panic, lived through many a storm, and recovered from many a shipwreck. We regard his views as eminently worthy of consideration. and take pleasure in briefly condensing the substance of them as uttered in an unsolicited and conver sational way Mr. Jacob Barker considers the present financial de range ment a perfect godsend to the banks, factors and cotton growers: but for which such facilities would have been wanted as would have induced an early shipment of the whole cotton crop. The present unequalled money pressure in all parts of Europe, independent of all in fiuence from this side of the Atlantic, would have render eG sales out of the question, and it would have been macri ficed B1 or below sixpence sterling per pound, causing such an amount of exchange to be returned under protest as would have ruined the banks, the factors and planters. As it is the cotton cannot go forward faster than required for consumption, which must proceed on a limited scale, or R revolution would be the immediate result. Hence, a shilling sterling per pound may not only be anticipated but obtained, if the planters will be true to themselves and to each other; a price which will reinstate the banks. and all others concerned. with a metallic currency-which the people of the United States determined to meintain,

8. November 24, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, November 24, 1857

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Total $16,748,115 $6,541,748 $4,728,824 $9,144,822 As compared with the report of the previous week, the results are as follows: $631,255 Decrease in Short Loans 876,020 Increase in Specie 422,215 Decrease in Circulation 705,497 Increase in Deposits 261,398 Increase in Exchange 30,369 Increase in amount due distant Banks 675,128 Increase in Deposits proper At New-Orleans the Money market is quiet and the banks are discounting no rew paper. The tendency is to improvement. The Mechanics' and Traders' Bank had resumed active operations. At Baltimore the market is easy and the banks discount all good paper offered. class paper is 14@1} cent P month. At Cincinnati there is no change to note; money in the street is 2 P cent P month on acceptable security. Exchange on New-York 2 cent prem. At St. Louis the market is working easier. The Governor of Missouri has signed the Railroad and Interest bills. The Money market at Chicago is as before noticed. Exchange on York, 41@51 cent prem. In relation to the rumors in regard to Mr. Samuel Lawrence. alluded to in our Boston correspondent's letter, published yesterday, The Worcester Transcript says: " Painful rumors reached this city yesterday moraing from Boston, with reference to one of the largest mercantile houses in the city. It was reported that the senior member of & commission house which had the agency of several manufacturing companies, and was authorized to use the names of three corporations on promissory notes, had used the paper of one of them, with the indorsement of the firm, for his own private speculations. The amount of the defalcation was reported from $300,000 to $500,000. The effect of the rumor on State street was to create a panic in the money market, and to make it almost impossible to negotiate any paper whatever. We learn that the person above referred to is Samuel Lawrence, esq., of the firm of Lawrence, Stone & Co. He is said to have used the acceptances of the Bay State, Middlesex, and Pemberton Mills, of which he was Treasurer, to pay the debts of the firm of which he was the senior member. " Since the above was written, we learn that the Hon. George H. Kuhn has been appointed Treasurer of the Bay State Mills, in place of Samuel Lawrence, esq., resigned. The affairs of the Company are in procers of investigation. A report is expected at an early day. The high estimation in which Mr. Lawrence has always been held by the mercantile community, leads a great many to hope that it will yet appear that he had ample authority to use the names of the firms of which he was agent." The Lowell Courier of the 21st lays, in regard to the rumored misuse of funds: It gives us pleasure to state that an unqualified denial of the truth of those reports has been made from a sourc, possessing undoubted means of information, and on which, we suppose, we may implicitly rely." Mesus. George B. Upton and Charles P. Huntington have been elected Trustees of the estates of Chas. H. Mills & Co. Messrs. Wm. Mason & Co. of Taunton, and Whittenten, Mills & Co, which are connected ed in business with the firm of C. H. Mills & Co., have gone into Chancery. The shipments by lake from Chicago, last season and this, to Nov. 14, compare as follows: Benk

9. November 27, 1857 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, November 27, 1857

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STILL BRIGHTENING.- - The times are every day growing brighter, confidence is becoming more general and every department of business Veeting round into its usual channel of thrift. In proof of this, it gives us pleasure to mention as one item, that the Union Bank resurred specie payments yesterday in full. the Bank of New Orleans IN no longer in the hands of the receiver and has resumed active operations in full. the Mechanics and raders. having done 80 last week. Thus are all our banks on their lega again, standing as erect as ever: and New Orleans has the bonor of being the only large city in the United States that has no suspended banks. A proud position, truly.1) Bulletin, 18th

10. December 4, 1857 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, December 4, 1857

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THE COMMERCIAL DEPARTMENT. Hew Orleans Money Market. CRESCENT OFFICE. No. 70 Camp. street, 1931 '£ "DOC Eventure I The markets in some respects were quiet, in others they were dull. Cutton, exchange and freights were inactive. Money was in fair request, without any large offerings of paper. The Bank en of Louisiana discounted moderately to-day. The four old banks and the Southern Bank are very finsh-largely, very largely above the rule. or course it cannot be expected that the other three free banks can operate with much freedom. The Bank of 01 Suppunoosip puw e. up Sujop #: good reming a moderate extent. We notice that the Board of Currency, in its published statement, remark that no official notice has been received at the office of the Board from the Union and the Mechanics' and Traders' Bank, that they have resumed specie payments. This Aus BY Intended si # 'jon pas as Aluo of disrespect to the Board. Every one knows, however, that the two banks have resumed, Now, then, we will put another question, when these two banks and the Bank of New Orleans suspended coin payments for a short time, did they give immediate or any notice to the Board of Control that they had suspended The sooner the late suspension is buried in oblivion the better. It cannot, in fact, be called a real suspension, be cause from the second day following the 14th of October, the banks redeemed their small issues. em of notice exts 04 rueq Aue Supplier etatute Aue st there JI 11 easy 01 paid aq planes 9M spuedsns # ueqa proved 'jno petujod Messrs. Palfrey & Co. hold their regular sale of stocks, bonds and scrip on Saturday at the Arcade. Bargains are always to be had by attending those sales. Stocks and bonds are improving rapidly. We note the sales %8 JO еливарь 10 Bank Canal sereque 001 JO Aup-o1 over last sale; 87 shares Citizens' Bank at 150, and some movement in bonds. not yet made known. In New York on the 25th there was another sale of Louisiana State bonds at 81-a further vance over the previous sales. The Exchange market te-day had a drooping appearance. sxueq em "sunoosip % 18 P[0s SUM 101 *N no selling checks at 1 per cent. discount, though one bank was 18 мир 01 100 deelire B 01 " "moostp % Super all. We can only quote yesterday's figures as a guide, with the qualification that buyers insist on lower rates. Five days 9@s 14818 shap 09 ques red $ 18 YOTA MON no 14818 per cent. discount. Sterling with shipping documents at 101@ *FOI@EOI "ШЯ class 1201 The advices by the America are looked on with more distrust -up ehe the percedxe SWM 41 '01 seceed of Summ are 0M use telligence would have been that :he house of Peabody & Co. had been compelled to succumb but instead of that we learn that -pe 01 peetion used . up SEM Busined jo Bund em request I bank eq1 JI *Aeuou jo junome [arge . $ BOUSA isnm 4I "ysay AIGA useq have isnm # DIUBS our up sasnoq not, however, be overlooked that the Bank of England notes are II" The M 10 fuemAnd IT repues resel . 10m those who have doubts about the America's advices to wait the arrival of the correspondence. The Bears are becoming restive, jo emog 18.10M 120A the 30 Rajq1 AJOA0 perform pus Terter- 10 Sup 01 198129 RBM uns em 1941 umps Alpreg IIIAN meys day, and more beautiful or cheering weather never dawned on the universe. We expected a war against cotton in England for sp 110g "-" year. eq: JO close eq: thout Josemp amos accounts jo America easy Asus PM course JO pus 'rensn as destructive and adverse to American interests. Cotton, of course reduce you 11144 The European intelligence, particulary that respecting affairs -snill personal 8 81 teleraphy, 4q come easy 01 reported st which tration of the folly of expansion of paper issues respecting eq: " 10 crund B Jo course the Sujmp Aeuour Suoms November. THE eqf jo accounts received OM them were many remarks that the action of the Queen's Council, in relieving the Bank of England or suspending, had given instantaneous alleviation. If such was the fact, the relief was America 241 sq accounts om J! 'sp 1941-порв.тр short $104 B 10 Aue JO SR pepreder eq 01 BIV Intern reem BUO Failures and suspensions appear to be the order of the day for the week between the 14th and 21st, in face of the concessions granted to the Bank to expand its issues. This confirms that uno 1847 "sjued eq1 Support pus previous pemisss 9M pusts em banks could notand ought not to expand their discount line, nor their exchange transactions, was fully correct and just. In what condition would our community have been at this time if the Bank of Louisiana, the Canal Bank, and Southern Bank had purchased even half of the foreign exchange offered, or would have been offered in September and early in October, based on cotton at 14@16c. per 1b? When we ponder on this subject, we commitity ano sicens terrible pus Injury ere has escaped. Have we not cause for thankfulness? The New York Enquirer says of the Bank of England The bank commenced business in 1691, with fifty four assist. unu PUL 01 permoms moq & jo security ey: 's)ue perpony ema Jo spaum SBM '0981 em and Jen and their salaries exceeded £210,000, or $1,000,000. The supreme Jo whole om up Person si runq am Jo ors, which meets weekly, when a statement is read of the position of the bank in its securities, bullion and liabilities. The Directors have equal power, and should a majority disapprove of the arrangement, they might reconstruct it. Eight of them go out and eight come in annually, elected by the Court of Pro0.18 yasq em JO яляць eq: which no system em pus conducted, of course liable to change, as new Directors may 1 SI 10 1811 V " no their LIOKS Jun 08 etable the puu go Country the 01 formly come in. Quakers and Hebrews are not eligible, although many are so well versed in monetary matters. When alams st Aumbuy Director meu B SW pesodoud "I as instituted concerning his vate character. The qualification is em Jo '00%9 JO innome the 01 1818 yung eq1 jo possession eqf deputy governor £300, and of the governor £400. For many years the Directors have adhered 10 the practice of possessing only the amount of qualification, and when the twenty five per cent. bonus on stock was given to the proprietors, they merely retained their previous amount. They are responsible for the 01 nowns permittes pus "Musq em Jo whichs eq2 10 MODO uodn 10 company the sions but by the charter they are not responsible for the pau 01 em Jo the whole security which the public have for that management depends on their discretion, subject to the new charter. The peculiar feature of the Bank of England, as to its circula000'000 113 nodn enser Anus 11 BI non sterling and upon government 8 curities, such as exchequer bills, etc., S millions more-making an aggregate of 14 millions; X0 tij persodep uoiling JO coling plas Jos Aluo this puokeq puw 0 change for notes. Thus the statement of the bank for the third week in October was as follows? Government debt £11,015,100 Government securities. Gold coin and bullion in the issues department Total amount issued Deduct notes hand in bank department 018'98's 11 Total in hand of the public 297'99'613 The gold and silver coin held by the bank department -Rrigo Following em 100m 01 009'7600 Ajuo tions SUM Public deposits a 002'198'13 Private deposits "1119 Aup пелод 00F'618 Although the bank held a reserve of notes of £3. un- £16,945,000 employed, yet these were totally insufficient, with the smal 01 pios JO premino am 199m 01 10 junours S

11. December 22, 1857 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, December 22, 1857

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New Orleans Money Market. CRESCENT OFFICE, No. 70 Camp, street, Monday Evening, Dec. 21, 1857. 5 The general money market to-day opened very quietly There was very little paper offering on the street though the offerings in bank were large, we learn that the discounts were free, but the best of security is required. The Exchange market was heavy. The banks were selling checks on New York at ½ per cent. discount. On the street there was no change from Saturday's figures, say 1@1% discount. Sixty days sight was taken at 3%@4 per cent. discount. Sterling opened heavi'y, and closed in the same way. We quote bills with shipping documents at 1021/203% ; clear good to A 1 bills at 103%@104 and 1043/2 though sales were made on Saturday at 105 to dealers, we did not learn of any sales at that figure to-day. Francs dull at 5.70@5.55. There were no transactions in stocks to-day. The Europa's mails were received to-day. We learn that many orders for cotton are countermanded. Many complaints are made, we may say iterated and reiterated, regarding the contraction of the banks, or as it is termed the want of disposition and willingness to grant dis counts and expand (possibly on the high pressure principle.) A great share of the public do not understand the mysteries of finance, and probably our commercial community, as well as the agricultural, will be surprised when we inform them that the eight banks of this city have now under discount and invested in exchange nearly fifty per cent. more than what they actually own, or what has been committed to the care and management of the several Board of Directors, directly or fiducially. The capital of these eight banks paid up is fifteen millions one hundred thousand dollars, with some surplus, is all that the banks can really and actually control. They have under discount and loan $17,818,222, and bills of exchange running to maturity to the amount of $3,256,929. Total, $21,345,151. Exchange balances or accounts may be deemed in the same category as paper discounted. The banks have nearly ten millions in coin in vault, and they owe depositors $11,000,000, which may be called for at any moment, and nearly $4,500,000 of notes in circulation. It is overlooked by the community that the depositors have something to say about the use-of their money or deposits. For instance, the State of Louisiana has on deposit in the State Bank about 750,000 dollars. Has this bank any right to discount or loan out this money The Citizens' Bank has the trust funds of the city on deposit. We think it will readily be acknowledged that the city has no money to loan, and that its deposits in bank cannot well be used for discounting, commer cial or other paper. To what extent it will be deemed good policy for our banks to discount on a line of deposits, one-half of which go in one day and drawn out the next, is not a mooted question, but is one that can be decided at once in the negative that deposits are not a safe reliance. We can point to the action of depositors in October with the Citizens' Bank, the Mechanics and Traders', the Canal, the Union Bank and the Bank of New Orleans-In fact to all the banks. The cry was gold, gold, coming from city depositors more than other sources. The mercantile community, including every merchant, trader dealer in every branch of business are refusing to sell on credit, even for the very best security, or what is termed good paper which will be paid at maturity. If sellers of merchandise have come to this determination to refuse the usual paper, how can it be expected that the banks will receive or discount the same paper, or paper of the very same character, which has been declined for merchandise or refused in the course of trade It is useless to refer to other cities for a mode of doing business, particularly where banks have been and are still under suspension. The banks of this city are restricted in all their movements by a supervisory statute, which is now receiving the highest praises throughout the country. It must not be overlooked that the free banking law of this State is very stringent in its provisions. Independent of the coin required to be in the vaults of the bank to meet deposits, an amount sufficient to meet circulation has also to be kept on hand, notwithstanding dollar for dollar is deposited in the hands of the State authorities to secure direclation. Some allusion has been made on the street the position of the Southern Bank on Saturday last, which returned in coin $374,918, when the law required it only to have $83,000. Even the law, as onerous as it is, will not shield the bank, nor any bank, from being called on at any moment for specie to the full amount of deposits and circulation. Thus the circulation of this bank was $152,195, and deposits $249,548. Total, $410,243. In addition to this, there is deposited in the Auditor's office $407.040 in bonds, Though It cannot be expected that an immediate demand for deposits and circulation could be made, yet the law implies as much, and during the unsettled condition of financial affairs in all parts of the world, it is incumbent on all banks to be watchful and guarded and as the majority of our banks, particularly the four old banks, have already loaned out more than they own, we think it will be some time hence before there can be any expansion of discounts. By the European mail, received to-day, we learn the result of

12. September 1, 1858 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, September 1, 1858

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60 days best bills, per cent discount, and commercial, discount, with loans of money being made at the rate of month. ner telegraph hourly brought accounts of the intensity and of the panic in distant cities. Our absent citizens rein numbers, giving dubious and doleful accounts of the financial condition of the country: Cotton arrived but was almost unsaleable, so much SO that factors had for foreign exchange, which they passed to the backs of their obligations. Parties who had been pr d+ denouncing the banks for their incapability of pure' 488change or extending discounts became still more c' amornouncing in unmeasured terms the course pursur d by the which course afterward proved to have beer the salva. our city. Stocks and bonds were almost unsaleable receded to 74 and 75 Bank of Louis Jana stock was 115@120. 13th October, we wrote as follo WS: "There is very be said about the money market this evening a large our community, instead of at sending to its own immeaffairs, are watching the tel sgraphic wires. This is unwe said three weeks "ince that 27 out of the 54 banks of New York, would suspend, and the advices this state 17 had suspended. This was not unexpected, and useless for parties to endeavor to create the im that these suspensions were not expected. We have along that we should receive the most unfavorable acor rather that bank suspensions and failures In Northern night ba considered a fixed fact." minor banks in New York began to close their doors, as their vaults on the 11th of the month, followed on the some of the larger ones. On the 13th 8 general run on all the banks, and Wall street was an excited which resulted in R general suspension of coin paywith the exception of one bank-the Chemical. Thus stood bankrupted, what else could have been expected followed the previous wild course and mismanagement of in expanding discounts to the extent of one hundred venty-two millions of dollars, one specie basis of the trifling of twelve millions of dollars, and then foreing curtailreduction to an amount exceeding twenty-tv millions in the short period of eight weeks, when the produce country could not be used. he meantime, say about the 10th of October, there had slent withdrawal of deposits from some of our banks, of their circulation being presented. This was folwith considerable briskness on the 12th and 13th. On of the 14th, intelligence was received here of the suspension of the New York Banks. And on the same some of our free banks could not liquidate their balwith the old chartered banks, which led to a reluctant rereceive the issues of three. The chartered banks were with a run, which had already commenced on the Bank, the Bank of NewOrleans and the Mechanics' and Bank, which led to a close of the doors of these instiuntil the following day. The closing of the doors of was forced on then by the action of depositors the bill holders at large did not take the alarm till the day. On the evening of the 14th, the run on the Citicommenced, which was continued the following day; day, the 15th, the run commenced on all the banks, Southern Bank, Louisiana State Bank, Bank of Louisiana, Bank and Bank of James Robb. On the Citizens' Bank the peared of the wildest kind, and we might say the poputhose who had a dollar on deposit, or held a note, were The brunt of the run was on this Bank, from what not to this day been learned. Its great popularity, its management, its liberality to the public the great which had attended its course the high value of $160; its connection with the State, through which over of dollars in bonds were to be liquidated its nuquessolvency-all, all were considered as naught, and a and unparalleled run commenced on the 14th of Octocontinued during the 15th, up to the close of which one million of dollars were paid out. The annals of do not contain another such instance of unprovoked and for assault, and one which was met with 80 much and alacrity. Though a temporary suspension to depositors followed, it must not be forgotten that alone was the panic against this bank mainly about. The same remark will apply to the three free which were forced temporarily to suspend. As to the dewe have yet to learn of a solitary indivi Jual who lost a is no doubt but the panic received its chief impetus discrediting of the notes of the three free banks on the was deemed A measure of prudence and safety to the themselves, for it was manifest that they had HS much could do to protect themselves and carry out their duties depositors and it was not known at what hour the burst on our ci y, Coupled with the refusal of the the accounts of the stoppage of the banks of New which came to hand the same hour. So much was said regarding the compulsory action of the old banks, to the course pursued towards the free banks S to, that it is not out of place to remark that some of been in arrears for a week or ten days previous to the a October. D close of the 15th, it was pretty well ascertained that f fear had done its worst. On the evening of that day, in our monetary column, as follows tl panic which started yesterday in our midst, with0 just cause, without reason, without shadow of found. and attained its colminating point to-day. Whatc consequences may be. we have the sincere gratification 3 uncing that the following banks stood the run and e complied with every demand until the usual hour of Citizens' Bank, Canal Bank, Bank of Louisiana, Lou1 Bank, Southern Bank. and Bank of James Robb. 1 Orleans Saving Institution, Canal street, was densely 5. at an early hour. It met all obligations according to and by 12 o'clock there was not a person present. This a The Mechanics' and raders Bank opened, and regular business, with the exception of redeeming So did the Union. The Bank of New Orleans in at the suit of one of its Directors. This is singular. e that the occurrences of the past two days will tend P confidence in the future, is not warranted. We concrisis is now past that the worst has been realized. we may expect tight money market for some di yet the decided action of the New York banks for good, has tended to relieve the general anxiety, and cadvices, received to-day, if they are to be credit to understand that an improvement has already in New York. We learn from Mobile that the banks have no thought of suspending. This augurs well, S have been highly gratifying to us to have had it to all our own banks had manfully stood up to the presT time affairs commenced to improve, confidence be and we might say, reason resumed its empire with e Individuals who appeared to have been bereft of it. di however, no paper nor money market. Some few ta were entered into, towards the close of the month, be aging from 2½ per cent. per month. Cotton came and the prospects for sugar were flattering. Under a J in cotton, factors did not offer the receipts freely, W to sell in large lots at which, thirty days be. D September,) commanded 14%@15c. Exchange was 01 demand only in small sums, large transactions only qt in the way of barter. Sight drafts on New York la made conditionally, that is, payable in the currency on they sold at the reduced rate of 314@ and 5 per CO Between the 20th and 30th of the month, eight