7687. Merchants Bank (New Orleans, LA)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
state
Start Date
October 15, 1857
Location
New Orleans, Louisiana (29.955, -90.075)

Metadata

Model
gpt-5-mini
Short Digest
29160b35

Response Measures

Full suspension

Description

Contemporary dispatches (Oct 14-16, 1857) report a heavy run on the 'free' banks in New Orleans; before 3pm the Union, Merchants' (Merchants' Bank), and Bank of New-Orleans suspended specie payments. Articles mention rumors the Bank of New-Orleans might reopen but give no clear reopening for Merchants' Bank — classification therefore is run leading to suspension with outcome unclear. OCR corrected bank name to include apostrophe as 'Merchants' Bank'.

Events (2)
1. October 15, 1857 Run
Cause
Local Banks
Cause Details
Run began early on the 'free' banks after chartered banks refused to take free banks' notes; heavy withdrawals targeted free banks including Merchants'.
Measures
Depositors moved funds to chartered banks; Merchants' Bank later suspended specie payments (see suspension event).
Newspaper Excerpt
The run commenced early on the free banks, and before 3 o'clock the Union, the Merchants' and Traders' and the Bank of New-Orleans suspended specie payments.
Source
newspapers
2. October 15, 1857 Suspension
Cause
Local Banks
Cause Details
Suspension followed heavy run on free banks and refusal of chartered banks to accept free banks' notes; Merchants' Bank suspended specie payments that day.
Newspaper Excerpt
before 3 o'clock the Union, the Merchants' and Traders' and the Bank of New-Orleans suspended specie payments.
Source
newspapers

Newspaper Articles (5)
1. October 16, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, October 16, 1857

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Article Text

THE BANKS IN NEW-ORLEANS. New-Orleans, Wednesday Oct. 14-A. M. The Union Bank has just suspended. There is & heavy run upon all the Free Banks. There is a great deal of excitement. The Branch Mint has purchased from the banks $200,000 in silver. It is paying out gold, and 80 affording some relief. SECOND DISPATCH-P. M. Affairs are yet very unsettled, and it is supposed that the run upon the banks will continue to-morrow. Great confidence is felt in all the banks now standing, and large sums were deposited in them to-day. No failures are reported to day. Appearances are more cheerful than in the morning. There are rumors that the Bank of New-Orleans will open in the morning. Its notes are taken by the Citizens' and Southern Banks and by James Robb & Co. The banking house of James Robb & Co., with others, kept open till 6 o'clock, and not & doubt is ex. pressed as to it or the Southern, the only Free Bank left standing. THIRD DISPATCH. Thursday, Oct. 15-A.M. The run on the Citizens' and Canal Banks continues heavy, but is to a less extent on the rest. There is much excitement, and business is paralyzed. FOURTH DISPATCH. The Citizens' Bank, the Bank of the State of Louisiana, the Bank of Louisiana and the Canal Bank all refused this morning to take the notes of the free banks. The run on the free banks commenced early in the day, and before 3 o'clock the Union, the Merchants' and Traders' and the Bank of New-Orleans suspended specie payments. There was no run on the Southern (free) Bank, and it is considered perfectly good. The bank of James Robb & Co. (free) is considered safe. Its circulation is distant and heavy. The Citizens' Bank held its doors open, paying specie until 6p. m. The chartered banks are standing by each other, and large deposits are being made with them and the Southern Bank. It is said the sums being deposited with them are larger than those drawn out. Although there is considerable excitement, good humor prevails. We have no failures to report to-day.

2. October 19, 1857 Daily Iowa State Democrat Davenport, IA
Article from Daily Iowa State Democrat, October 19, 1857

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Article Text

The Financial Crisis. New Orleans, Oct. 15. The Citizens and Louisiana Bank, of La., and the Canal Bank, all this morning refused to take the notes of the free tanks. The run commenced early on the free banks, and before 3 o'clock the Union, Merchants' and Bank of New Orleans, had suspended specie payments.There is no run upon the Southern Bank, and it is considered perfectly good. LATER. Affairs are very unsettled. It is supposed that the run will continue to-morrow, and great confidence is felt in the banks which are now standing. They have had large deposits to-day. There are rumors that the bank of New Orleans will open in the morning. Notes of the Bank of James Robb are taken at the citizens and Southern Banks. St. Louis, Oct. 16. The reported suspension of Doane, King & Co., and Collins, Kerley & Co., of this city, published in the New York Express of the 12th, is authoritatively contradicted. No paper of these firms is protested here, and they are regarded as among the most solvent and responsible houses in the city. New York, Oct. 16. Our financial and business affairs appear to improve. Stocks of all kinds took a further advance at the first board. New York State S ining at an average advance of 9 per cent. Specie is almost unsaleable at a are premium. quiet and irregular, Rates of domestic but the exchange bulk of the F stern is done at about 3 per cent. Our importers have concluded the work of reshipping British goods from the bonded warehouses, there being no market for them at the 2d board. Bridgeport, Ct., Oct. 16. The Connecticut, Bridgeport, Farmers' and Hequinnock banks at this city have suspended specie payments to day. Boston, Oct. 16. Money market quiet, and everybody appears to be waiting the result of the suspension. Stocks show a little more activity. The specie brokers are realizing small gains, gold being plenty. Oswego, Oct. 16. Luther Wright's bank does not open today. All the other banks are paying specie as usual. Albany, Oct. 16. Samuel A. Foot and Samuel G. Ruggles were heard this morning before Gov. King, in behalf of the New York city banks, objecting to an extra session of the Legislature. The Governor sees no necessity for it at present, but will hold the subject under advisal.

3. October 19, 1857 The Davenport Daily Gazette Davenport, IA
Article from The Davenport Daily Gazette, October 19, 1857

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Article Text

The Financial Crisis. NEW ORLEANS Oct. 16. The Citizens and Louisiana Bank of La and the Canal Bank all this morning refused to take the notes of the free banks The run commenced early on the free banks and before 3 o'clock the Union, Merchants and Bank of New Orleans, had suspended specie payments. There was no run upon the Southern Bank, and it is considered perfectly good. The chartered banks are standing by each other Large Deposits are made in all the charter ed and Southera banks. more it is said, than has been withdrawn. There is considerable excitement but good humor prevails. LATER. Affairs are very unsettled. It is supposed that the run will continue to-morrow, and great confidence is felt in the banks which are now standing They have large deposits to day. There have been no failures and there is more cheerfulness than in the morning. There are rumors that the Bank of New Or leans will open in the morning. Notes of the Bank of James Robbare taken al the Citizens' and Southern Banks St. Louis. Oct. 16. The reported suspension of Donn, King & Co. and Collins, Kirby, & Co., of this city pub lished in the New York Express of the 12th is authoritatively contradicted. No paper of these firms is protested here, and they are re garded as among the most solvent and respon sible houses in the city, LATER. NEW YORK Oct. 16. Our financial and business affairs appear to improve Stocks of all kinds took a further advance at the first board. New York State gaining at an average advance of 1 per cent Specie is almost unsalable at a premium Rates of domestic exchange are quiet and ir regular, but the bank of the Eastern is done at about 3 per cent. Our importers have conclu ded the work of reshipping British goods from the bonded warehouses there being no market for them. BRIDGEPORT Ct., Oct. 16. The Connecticut, Bridgeport, Farmers and Pequannock Banks of this city suspendent specie payments to-day BOSTON, Oct. 16. Money market quiet, and everybody appears to be waiting the result of the suspension. Stocks show a little more activity. The specio brokers are realizing small gains gold being plenty

4. October 19, 1857 The Daily Gate City Keokuk, IA
Article from The Daily Gate City, October 19, 1857

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Article Text

Democrats have nominated Fernando Wood for Masor; the Americans and Republicans of this Second Judicial district have nominated Thos. Nelson of Westchester, American, for the long term, and L. Birdsie, Rep., of Kings, for the short term. TROY, Oct. 14.-Under the advices from New York this morning, all our city banks, 11 in number, suspended specie payment.The are open, however, and doing business as usual. NEW ORLEANS, Oct. 15.-The Citizens and Louisa bank of Lr., all, this morning, refused to take the notes of the free banks.The run commenced early on the free banks and before 3 o'clock the Union, Merchants and bank of New Orleans had suspended specie payments. There is no run upon the Southern bank and it is considered perfectly good. The chartered banks are standing by each other. Large deposits are made in all the chartered and Southern banks-more, it is said, than has been withdrawn. There is considerable excitement, but good humor prevails. LATER. Affairs are very unsettled, and it is supposed the run will continue to-morrow.Great confidence is felt in the banks which are left standing. They have had large deposits to-day. There have been no failures, e and there is more cheerfulness than in the be morning. There are rumors that the bank of New Orleans will open in the morning.-The notes of James Robb are taken at the Citizens and Southern bank. e BRIDGEPORT, Conn., Oct. 16.-The Connecticut Bridge, Bridgeport, and Farmers and Pequineck banks, of this city, suspended specie payment to-day, y BOSTON, Oct. 16.-The money market is e quiet and every body appears to be waiting d the result of the suspensions. Stocks show a little more activity. The specie brokers are realizing small gains, gold being plenty. BOSTON, Oct. 14.-The suspension of the il banks did not create much excitement. It is probable the suspension will extend throughout New England with few excepa tiens. The banks of New Bedford, Fair Haven, Worcester, and other principal towns, have suspended. At Nantucket and Lowell the banks paid specie through the day. The Boston banks will pay their balances at the clearing house. y PETERSBRRG, Va., Oct. 14.- Farmers' Bank of Petersburg has suspended, but the Bank of Virginia and Exchange Bank are r still paying specie. WASHINGTON, Oct. 14.-One hundred and forty-three thousand dollars worth of U.S. stocks were redeemed to-day, of which three went to virginia, and nearly all the balance to New York, di : The Times indignantly denies that Parson Brownlow has been invited to this n e nul. city by Judge Douglass!-[Chicago Jourg Why should the Times be indignant ? Plue tarch, in bis Lives, delights in drawing par. di allels; and there is a parallelism in Douglass and Brownlow. They are both vain of their disgrace. They both abuse other people. They are both tools of slavery. One pretends to be a parson, and the other a hut thas are noich

5. October 22, 1857 The Weekly Pioneer and Democrat Saint Paul, MN
Article from The Weekly Pioneer and Democrat, October 22, 1857

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Article Text

The Brooklyn banks and saving institutions have all suspended. BOSTON, Oct. 14.-The Massachusetts Bank continues to pay specie. The banks met at one o'clock to consult upon the expediency of redeeming small notes in specie. HARTFORD, Oct. 14.-All the banks have suspended, except the Corn River Banking Co. Portland. MR., Oct. 14.-The banks have all suspended. NEW YORK, Oct. 16.-The California mail steamer Northern Light has arrived with 718 passengers and $1,664,000 in specie, of which about $28,000 is from Havana and Aspinwall. The principal consignees are Wells & Fargo, $238,000 : Howland & Aspinwall, $214,000 : American Exchange Bank, $181,000 : Duncan, Sherman & Co., $122,000 : Robert Hallett & Co., $110,000. There is no news of importance. In addition to dispatches received from New Orleans, a full list of passengers on the Central America has been received. NEW ORLEANS, Oct. 15.-The Citizens', Louisiana and Canal banks of La. have refused to take the notes of the free banks. The run commenced early on the free banks. and before 3 o'clock the Union, Merchants', and Bank of New Orleans had suspended specie payments. There is no run upon the Southern Bank. and it is considered perfectly good. The chartered banks are standing by each other. Large deposits are being made in them-more, it is said. than has been with drawn. There in considerable excitement, and good humor prevails. It is supposed that the run will continue to-morrow. Great confidence is reposed in banks which are now standing. They have had large deposits to-day. No failures, and more cheerfulness than in the morning. There are rumors that the Bank of New . Orleans will open in the morning. Notes of the Bank of James Robb are taken at the Citizens' and Sopthern Hanka ALBANY, Oct. 16.-Samuel A. Foote and Samuel G. Ruggles were heard this morning before Governor King on behalf of New York City Banks Objection is made to nn extra session of the Legislature. The Governor sees no nocessity for it at present, but will hold the subject under advisal. Sr. LOUIS, Oct. 16.-The reported suspension of Doone, King & Co., and Collins, Kellogg & Co., of this city, as published in New York Express of the 12th, is authoritatively contradicted.