7721. Southern Bank (New Orleans, LA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
September 16, 1861
Location
New Orleans, Louisiana (29.955, -90.075)

Metadata

Model
gpt-5-mini
Short Digest
da8029f5

Response Measures

None

Description

Articles describe banks suspending coin payments on 1861-09-16 (government recommendation) and later resumption/requirements to pay depositors in current funds (General Butler order, June 1862). There is discussion of specie outflows and payments to depositors, but no explicit bank run (heavy depositor crowding) is described. I therefore classify as a suspension (government-directed suspension of specie payments) followed by reopening/resumption.

Events (5)
1. September 16, 1861 Suspension
Cause
Government Action
Cause Details
Banks suspended coin payments at the recommendation of the Confederate government (executive), endorsed locally; suspension of specie payments beginning Sept. 16, 1861.
Newspaper Excerpt
Since the 16th of September, the date of suspension, the banks have increased their circulation
Source
newspapers
2. October 15, 1861 Other
Newspaper Excerpt
The Southern Bank never has refused its depositors and bill-holders coin when called on. The decrease at the Southern Bank, say $26,000, is owing to some depositors and collections for Tennessee : so, with the sums paid out, the decrease is readily accounted for. Since the 16th of September, the date of suspension, the banks have increased their circulation ... The banks suspended coin payments at the recommendation of the Government at Richmond, endorsed by our Executive. Confederate notes are to be the currency during the war.
Source
newspapers
3. December 9, 1861 Other
Newspaper Excerpt
The decrease in specie is large, but is accounted for by the payment to depositors on the part of the Southern Bank, who, it appears, have been calling for coin from week to week since the suspension on the 16th of September. The Southern Bank never has refused its depositors and bill-holders coin when called on.
Source
newspapers
4. June 2, 1862 Other
Newspaper Excerpt
General Butler has ordered the officers or the Southern Bank to pay all their depositors henceforward in current funds, United States Treasury notes, or gold and silver, and the Provost Judge has decreed that the Louisiana State Bank shall pay a depositor in current funds ... COMMERCIAL. JUNE 2, 1862.
Source
newspapers
5. June 2, 1862 Reopening
Newspaper Excerpt
General Butler has ordered the officers or the Southern Bank to pay all their depositors henceforward in current funds, United States Treasury notes, or gold and silver, ... COMMERCIAL. JUNE 2, 1862.
Source
newspapers

Newspaper Articles (5)
1. October 15, 1861 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, October 15, 1861

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Article Text

Alcho Orleans Money Market. CRESCENT OFFICE No. 70 Camp street, 1861. Monday Evening, Oct. There was nothing whatever transpired in the market o-day. The note and bill-brokers are-resting money on laureis earned, and capitalists ar on mohors won. Some large cargoes of produce the rived this morning, that's they were large for times. The sales of these cargoes, with the large rums disbursed on account of Government, small keep ap a good supply of currency The calls for deor small notes, appear to be on the The defect at this time is cline. shange, great which in were the sup exply of small notes (fives and tens) Conpeeted to have been furnished through the federate treasury. The banks suspended coin payments at the recommendation of the Government at Richmond, endorsed by our Executive. Confederate notes are to be the currency-durin the the war. Our banks are aiding and sustaining Government by receiving and-paying out its issues. If a party has anything to sell or dispose of, and refuses to receive Confederate notes, he or they may be regarded at once as sympathizers with our enemies, and should be proceeded against accordingly The bank statement, published this morning, shows a decline in specie of. nearly $54,000, which has occasioned considerable surprise. An explana tion being asked for, results show that $22,000 decrease is accounted for by an oversight at the Mechanics' and Traders' Bank in rendering the statement according to the old mode, calling the balances due banks as so much coin, instead of currency. The decrease at the Southern Bank, say $26,000, is owing to some depositors and collections for Tennessee : so, with the sums paid out, the decrease is readily accounted for. Since the 16th of September, the date of suspension, the banks have increased their circulation as follows First week. $223,630 Second week 142,087 Third week 73,643 Fourth week 30,476 $469,736 The city authorities have issued change to the amount 35,000 $501,736 At this rate we should have about six millions of added to our currency in a year. This to be ample for all purposes, paper ought money change fives and tens to which we may add the issues of of the Confederated treasury, which, we learn, will be coming for ward as fast as possible. In the meantime, gold and silver are becoming as uncurrent. in Most every person having ten or twenty dollars gold or silver, goes directly to the money dealers, and exclaims, " how much will you give for this just the same as if it was a cord of wood or a hogshead of sugar. There was nothing done in exchange to-day. Sterling is held at @@122 up to 125. Nothing doing in domestic or inland bills. We republish the act of the Confederated Congress in regard to debts due by Northerners to alien enemies, that is, the act of the 20th of May last, with our prefatory remarks at the time The Congress of the Confederated States passed South act prohibiting debtors residing in the from an paying debts to enemies. This is in conformity to rules and laws of war, which have been with all belligerents from time immemorial, established during the war Britain and Great Britain fully coeval Great between and France the old the and during the first fifteen years present The present residents of New United therefore, States century. prohibits attitude Orleans of all events, of owing debts to alien enemies, which means money becoming due in the Black Republican to States, due or from paying the same. Nor is it allowed it debts to collectors who are now roving, as pay through the South. We have before rewere, marked that parties receiving notes or accounts at from the alien States are bound to return them We again repeat to all collecting agents, that they once. are liable to prosecution for attempting of to collect a debt for account of residents outside the Southern Confederacy. It is presumed they are aware there are eleven Sovereign States comprising the Southern Confederacy. The following is the law now in force in the Confederate States AN ACT to authorize certain debtors to pay the amounts due by into the Treasury of the Confederated States SEC. them 1. The Congress of the Confederate States of America do enact, that all persons in any manindebted to individuals or corporations in the ner Unted States of America (except the States of Delaware, Maryland, Kentucky and Missouri, and the District of Columbia) be and are hereby prohibited from paying the same to their respective creditors, or their agents or assignees, pending the existing war waged by that Government against the Confederate States, or any of the slaveholding States before named. SEC. 2. Any person indebted as aforesaid shall and is hereby authorized to pay the amount of be. his indebtedness into the Treasury of the Confederate States, in specie or treasury notes, and shall receive from the Treasurer a certificate countersigned by the Register, showing the amount paid, and n what account, and the rate of interest which the same was bearing. SEC. 3. Such certificate shall bear like interest with the original contract, and shall be redeemable at of the war and the or its equivalent, on original in specie the close certificate. restoration presentation of peace, of the SEC. 4. All laws and parts of laws militating pealed. against this act, be and the same are hereby reHOWELL COBB, President of the Congress. Approved May 21, 1861. JEFFERSON DAVIS. Rebiebu of the Markets.

2. November 18, 1861 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, November 18, 1861

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facturing, if it comes not from the cultivators and producers of the earth? The wealth of the great South is to be derived in part from its prospective European and other foreign trade to arise from its productions of cotton and tobacco, and if necessary, sugar; for undonbtedly the sugar lands of Louisiana and Texas_can be made to yield an increase in sugar for exportation to Europe. The general money market continues very easy. The dross is abundant for those who do not want it, or whose business and avocations will not admit of the high rates of interest now asked for the usual run of mercantile securities-2@3 Pet. per month usance is beyond the means of any regular business, and of such paper that is neither first, second nor third class. The mass of the paper now offering is composed of mortgage securities. There are occasional transactions at the rate of from 12 @18 Bet. per annum. These are few and far between. In the meantime money is accumulating, and in a short time owners will not know what to do with it. They can loan at 8 Pct. to the Confederate Government, and will then have the satisfaction that they have in some degree contributed and aided in the glorious cause of Southern independence. The bank return. for the week shows considerable eveness in the movements. There has been a further loss of specie, over $7000 of which went out of the Southern Bank on the old deposit line. The balance has been paid out in the way of change over the different counters, which goes to show there is a spirit of accommodation prevailing. The demand for small notes appears to be somewhat declining, With the half million of Is, 2s and 3s of the Bank of Louisiana and State Bank, the cutting into halves the 5s and 10s of the Citizens' Bank, and the 5s of the Canal Bank, together with the issues by the city authorities, the demand will probably be met. The hordes of small issues of individnal parties, under one dollar, which are appearing each succeeding day, warrant the belief that the day of universal shin-plasterism has returned, or rather the era of pasteboard has arrived. The variations in the bank movements for the week are:

3. December 9, 1861 New Orleans Daily Crescent New Orleans, LA
Article from New Orleans Daily Crescent, December 9, 1861

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In other branches of trade-wholessle jobbing, retail and fancy local trade-general dullness rules supreme. It is gratifying to observe and learn of the increased feeling towards manufacturing pursuits. Among the last associations formed-which will go far to establish the general independence of the South-we notice the Southern Leather Manufacturing Company. This is an organization which is bound to be successful, premising that it is skillfully conducted. Then there is the Southern Candle and Soap Manufactory, which, of course, must succeed, unless soap and candles should be deemed out of use and unfashionable. It will be unnecessary hereafter to send hides to Northern States to be made into leather and returned to us in boots and shoes, even after the independence of the Southern States is established. A cotton manufactory is in successful operation in the adjoining city of Jefferson, and several other branches of industrial and manufacturing pursuits are in course of being carried through. Our leading or moneyed men cannot do a higher service to the South than by coming forward at this time with their dollars and putting the wheels of industry in motion. Wishers and sympathisers are not wanted. Money, money, money, which is now lying idle in our public institutions to the amount of millions of dollars, is what is required. The return of the banks to the Board of Control shows a decrease in specie, an increase in circulation, a decrease in loans, with some other unimportant changes. The decrease in specie is large, but is accounted for by the payment to depositors on the part of the Southern Bank, who, it appears, have been calling for coin from week to week since the suspension on the 16th of September. The Southern Bank never has refused its depositors and bill-holders coin when called on. The increase in long loans or dead weight is attributed to the entering up under one general.head of assets-not realizable within ninety days at the Southern Bank-of loaus made to the Confederate and State Government. The variation for the week in the movements is-

4. June 15, 1862 The New York Herald New York, NY
Article from The New York Herald, June 15, 1862

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The Latest Financial and Commercial Reports. [From the New Orleans Bulletin. June 2.] NEW ORIEANS, May 31, 1862. The week and month close upon a languid and unsettled money market. Capital is again becoming abundant, but there is no demand whatever for it, and no indication of any improvement in business that is likely to lead to heavy financial movements till after our political troubles are definitely sottled. Monday being the last day prescribed by General Butler for negotiation in Confederate currency, some exceedingly large amounts of it changed hands, principally in settlement for stocks and insurance scrip, which had been purchased at the public sales on the previous Saturday, after which the demand for these securities entirely ceased; both buyers and seliers have since appeared to be unwilling to outer into new engagements. The present currency consists of city and bank bills, gold and silver coin and United States Treasury notes, and the circulation of all shinplasters or change bills that have been amply secured is permitted by the military commandant Lill such time as the city treasurer shall be able to redeem those now outstancing in current funds. All further move. ments in private bills, whose ultimate payment has not been provided for according to the requirements of the Finance Committee of the City Council, are strictly prohibited, but weare pleased to learn that most, if not all of the issuers of the latter cia-s are themselves redeeming them in current notes as fast as presented. There have been no efforings, and consequently no sales, of commercial or mortgage paper during the week, and transaction s in specie have been of too restricted a character through ut to establish quotations, while receipts of uncurrent bank notes in m oti Southern States were at DO time much better than nominal. and the movement in ex hange continued whelly suspended. There are no foreign bills of any kind now upon the market, and we hear of but one party who is ready to sell domestic lu sums to suit purchasers. A considerable diversity of opinion still exist as to the amount of reduction which should be made on the inflated prices heretotore demanded in Confederate notes for all of the various articles of trade, but the matter will doubties soon adjust itself, and rates will be graduated to correspond with the improved condition of the Cui rency of the city. To day Mesers. Paitrey & Co. tested the affair by offering for sale at pub. lic outery some small lots of stocks, bonds and Insurance scrip, with the following result:-10 shares of Bank of America stock were knocked off at 103; 35 do. Bank of Louisiana ai 120; 10 do. City Railroad Company at 155; six $1,000 six per cent Louisiana State bonds at $810, tlat; $500 Crescent Insurance Company's scrip of 1869 at 85: $500 do. at 93; $190 Citizens' do. of 1857 at $630 do. of 1858 at 61; $130 Louisiana do. of 1861 at 5,590 New Origans do. of 1860 at 55, and $300 Crescent do. of 1861 at 70, all payable in the present ruling cur. rency. On the 24th inst. the same classes of securities were disposed of for Confederate notes, at the following fg. ures:-Bank of America stock as 190: Bank of Louisiana do. at 221; City Railroad Company, at 290; Crescent Insurance Company's scrip of 1859 at 141, and of 1861 at 125: Citizens do. of 1857 and 1868 at 95; Louisiana do. of 1861 at 110, and New Orleans do. of 1860 at 105. There have been no further proclamations issued from the military headquarters touching financial questions since our last, but General Butior has ordered the officers or the Southern Bank to pay all their depositors henceforward in current funds, United States Treasury notes, or gold and silver, and the Provost Judge has decreed that the Louisiana State Bank shall pay a depositor in current funds who had an amount of gold to his credit at the date of the suspension of the bank, and subsequently withdrew from is in Confederate notes the balance due to him, having been refused the same in specie or specio paying funds. COMMERCIAL. JUNE 2, 1862. The sales of sugar on Saturday included 58 bhds. at auction, by B. Turpin, as follows:-9 hhds. good common at 3c., 30 good fair at 416 a 416, and 19 hbds. white at 316 R 714. We remarked in our weekly review that with an incre sed supply of tonuage freights meat decline. and with a decline in freights sugar must improve.

5. August 11, 1862 The New York Herald New York, NY
Article from The New York Herald, August 11, 1862

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der the existing depression of finance and trade. There is no real money in circulation. There is representative money of a local character, which, it is presumed answers all necessary purposes. There are some United States Treasury notes; but they are, like the gold and sil ver, considerably above par, or the standard of surrency. There were advices received to-day from New York quoting gold on the 15th inst. in that market at 116 a 117, and sterling exchange at 128 1/2 a 129 1/6. Money in the open market was quoted at 5c. a 6c. on first class securities. We have nothing to remark on our local market. In and about the banks it is quiet; a few deposits are made and some transactions in sugar going on. There are a few deposits made daily, with renewals on maturing obligations acceding. We have nothing to quote in regard to gold and silver. Gold commands 125 a 130, United States demand Treasury notes 120 a 125, legal tender notes 108 a 111, exchange on New York at sight, 7 1/2 a 10 per cent premium; time bills, sixty days sight, DO demand. They might be forced off ut par to three per cent premium for the highest grade of signatures, though there have been transactions in bills of lading drafts; but we are not advised of the rates. Our banks say they are doing nothing in time bills, nor are they doing much in demand bills. We are informed that our banks which held balances in favor of the Confederate States, or to the credit of the Confederate Treasury, have paid the amount-it being remitted to Mr. Cisco, United States Treasurer at New York, a few days since. It amounted to $258,000. We do not learn of any movements in foreign exchange. There is a small supply of francs on the market at from 4.20, 4.10 a 4-the latter for bank drafts. As for sterling, it is difficult to raise a quotation-we might quote 135 140, as covering small sums for remittance. The produce now going forward to England has been paid for long since, and, of course, the shipments furnish nothing for a basis for exchange transactions. The most important sale which has transpired for months past was the sale of real estate belonging to the succession of the late Philip Avegno. The amount of the property sold, as per bids, was $370,000, on the usual terms-say one-third cash, the balance at one and two years' credit, with interest at the rate of six per cent from date. We append below the statement of the banks. as made on the 21st inst., and also the statement of the 19th of last, the last previous to the change of government. The specie reported by the several banks covers the amount sent away during the weeks ending the 19th and 26th of April. There are only two banks-the Citizens' Bank and the Bank of America-which have the amount reported actually in vault. The Southern Bank, never having suspended coin payments, has no debts to liquidate beyond its circulation, which, we learn, will be paid on presentation in specte. It will be observed that within the short space of ninety days the deposits of the several banks have been reduced from $28,692,872 to $10,132,268. To carry out this very great reduction the circulation has only been increased $2,877,907. The statements before us are made up to the 21st inst., and our banks W old be, If the specie represented was in vault, or within control, in the very strongest position. The payment to depositors of $18.560,000 within ninety days ofiers room for many remarks. for which we have not space, at this time, to comment on. The True elia of the same date says:Financial movements have been of a very restricted character since the close of our last review, and the mus ket still presents an exceedingly langund and monotonous appearance. There is no business progressing in other commercial or mortgage securities, and operations in all olasses of stocks and bonds appear to have come to a complete stand-still, while transactions in uncurrent bank notes are confined to unimportant exchanges of the issues of other Southern States, and all descriptions are still subjected to a reduction of 25 a 40 and 50 per cent discount. Commercial News. The Delta of the 26th ult. has the following commercial intelligence:RECEIPTS FROM THE INTERIOR. Baton Rouge-Per steamer Morning Light-73 bales cotton. to order. Vicksburg-Persteamer Iberville-229 bales cotton, 150 hbds. sugar, to order. Vicksburg-Per steamer Ceres-158 hhds. sugar, to order. Baton Rouge-Per steamer Bee-7 bales cotton, 4 bags do., 7 boxes merchandise, to order. RECEIPTS FROM THE COAST. Per schooner Renaissance-64 bbls. molasses, to order. Per schooner Sister Kate-100 hhds. sugar, to R Brugier. Per schooner Adeline-102 sugar, to order. Per sloop Ellen-66 bbin rum, to T Lanoux. Per schooner Tiger-73 bbls. molasses, to Lapene & Ferre. Per sloop Balona-30 hhds. sugar, to J. Labatat. Per Russell's boat hhds sugar, 20 bbls. cistern sugar, to order.