7724. State Bank of Louisiana (New Orleans, LA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
May 15, 1838
Location
New Orleans, Louisiana (29.955, -90.075)

Metadata

Model
gpt-5-mini
Short Digest
5a74223a

Response Measures

None

Description

Contemporary newspaper reports (May 15–16, 1838) state that the State Bank of Louisiana has 'resumed' operations. The articles refer to a prior widespread suspension ('bugbear of suspension') affecting many banks; no specific run on this bank is mentioned. I therefore classify this as a suspension followed by a reopening. OCR errors in Article 1 ('State Bank et Louisiana') were corrected to 'State Bank of Louisiana.'

Events (2)
1. May 15, 1838 Reopening
Newspaper Excerpt
From New Orleans we learn the State Bank of Louisiana has resumed; ... Tomorrow is the day for the Detroit banks to follow suit, and most of the banks of that State are to do likewise within 60 days.
Source
newspapers
2. * Suspension
Cause
Macro News
Cause Details
General regional/national suspension panic affecting multiple banks (widespread suspensions referenced), not a bank-specific failure.
Newspaper Excerpt
The bugbear of suspension in this city having passed away, financial business is rapidly resuming its former standing.
Source
newspapers

Newspaper Articles (2)
1. May 16, 1838 Morning Herald New York, NY
Article from Morning Herald, May 16, 1838

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Article Text

MONEY A R K T. Tuesday, May 15-6 P. M. The bugbear of suspension in this city having passed away, financial business is rapidly resuming its former standing. Money is as plenty as can be wished for. Exchanges are still improving in all directions; on Philadelphia sales were made today at 14 per cent; on Baltimore at 2}; and on all other points it has improved preportionally. Every day's mails bring reperts of resumption by banks in different parts of the country. From New Orleans we learn the State Bank et Louisiana has resumed; in Augusta (Me.), a resumption by the banks of that place has been effected; and tomorrow is the day for the Detroit banks to follow suit, and most of the banks of that State are to do likewise within 60 days. By the Lexington, at Mobile, the State Bank of Alabama has received $50,000 from Liverpool, being returns for advances on cotton, and is supposed to be making preparations for an early resumption, while some of the Basks of the other states pass resolutions that another crop is necessary ere a resumption takes place. How if the next crop should not pay the raising and if there is net a vast increase of demand for English manufactured goods, itsurely cansot. The warehouses, in Liverpool, are already crammed with the manufactories of last year, waiting orders-the quantity of cotton on hand is unusually largethe number of bales gone forward exceeds that of former years by a vast amount; add to this the fact that at the close of this year there was an increase of 60,000,000 lbs cotton yarn over the stock of ast year; and there is yet no prospect of orders being sent forward to any extent. How then is the price of cotton to rise so as to pay the culture, and assist the banks to any extent in a resumption? We opine the credit incident on an immediate off hand and bold resumption, would go farther towards sustaining the banks than the uncertain product of another crop. It is in this view that some of the warmest supporters of Mr. Biddledoubt and tre uble while they doubt"-they say the New York banks are in the full tide of a successful resumption. Why does not the United States Bank resume! Every day's delay, therefore, takes'from the credit of the bank. We understand Messrs. Prime, Ward & King have taken the state loan of half a million for the enlargement of the Erie Canal at 100.26 for each $100 of 5 per cent stock, redeemable after 1855, having 17 years to run. The sales at the stock exchange this day have again been extensive, and at such rapidly advancing rates as may lead to a reaction. In almost every sale an advance has occurredU. S. Bank improved 1 per cent, on the close of yesterday; Del. & Hudson and Farmers T. closed each at an advance of 1 per cent; Mohawk rose 2 per cent; Ohio L. & T. went up 11 per cent; although the sales of Harlaem were large, it closed at an advance of 21 per cent. Other stocks went up from # a I per cent. Treasury notel, sixes, still at par. Foreign exchange today for the packets exhibits but little variation from our last notice; the amount sent forward was limited at our previous quotations, 61 a 7, but holders were firm at these rates; OR France f. 5.35. Is the afternoon sales were made at 1061 and some few aslow as 1061; a fair amount sold at these rates. The developement of the Custom House frauds is progressing. A seizure of French cloths smuggled in cases, to an im. mense amount, was made today by the collector, on information given by the ex deputy. It is surmised that this nefarious business has been practised to greatex ent is this community. In this escription of merchandize a number of other seizures will take place, from information lodged by the same person. State of Trade. The business part of the city still presents a busy appearance, and a fa'r amount of trade is no doubt transacted, with the exception of the dry goods line, which seems not so anima ted as some of the other mercantile branche The auction sales continue to a fair extent, and good prices are realised.Terms are. in almost all instances, cash. Island exchanges are so rapidly equalising, and our city is so replete with specie, the credit system will to doubt be revived, though probably not for some months-perhaps for the fall trade. At the auction sale givo below, by Hoffman, the terms were cash. Ashes-Centinue with little or no variation. Sales Pots for shipment at former prices. COFFEE-Little change is manifest in this description of goods. At Philadelphia, sales Rio at 91 11); Cuba 94 . 101demand fair. At Havana 1st inst, prime Coffee was scarceother qualities 6 At Boston, 12th, the demand for the trade was fair, but falling prices. Sales Perto Cahello 101 . 104: St. Domingo 81: Cub , 8c; Rio, 9) a 10. SUGAR-Continues without variation. At Philadelphia, prices steady. Sales New Orleans, 61 a 7#: W. Brazil, 9a91:B. Havans, 8 Richmond, 10th, sales Porto Rico, 74 a 11## New Orleans, 7f a sj. Boston, 12th last. market was Arm for I prime qualities Sides Havana 9c) old crop, 6a ⑉ Porto RI. r co,7a7t. Brazil, 10th, New Orleans, by auction, 6) a 6f. h Transmetlo This Day. D 71-77 Coffee bags Brazil 9.101 Sugar-100 PR, I 61n7 80 de NO. 300 de Laguira 9a91 175 150 St Domingo 8 Ashes-300 bble Pots

2. May 21, 1838 Morning Herald New York, NY
Article from Morning Herald, May 21, 1838

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Article Text

COMMERC AL RECORD. # MONEY MARKET. Sunday, May 13-6 P. M. Up-up-up-was the word at the stock exchange yesterday; the sales were extensive of all kinds, and priceslooked universally better, with the exception of U. S. Bank, which is stationary Del. & Hassen rose 1 per sent, and State Bask closed at an improvement of 24 per cent on the prices of Friday. Hariem rose 24 per cent, but from the quantity offered fell off to an improvement of If on the close of Friday. Other stocks shewed an advance off to 14 per cent. Treasury notes improved-sales of 6 per cents at par. Although the steamer Lionel Smith sailed today, nothing was done in foreign exchange yesterday. Money is still very plenty in Wall street, and exchanges are daily improving in all directions; on Philadelphia it was held at 24 per cent. It isyet uncertain what effect the news by the England will have on our market. From present appearances the cotton marketin Europe must fall fearfully. It has, since the commencement of this year fallen ad per ib. every week, and the only hope of a reaction on that side of the water, was a dependence on a revival of demand here for English goods, but of that there is as yet no prospect. The country, indeed is bare of goods of that descrip ion, but as yet the importer sees no encouragement for sending orders for a full supply. In the mean time, this condilton of things is werking fearfelly against the cotton holding banks, although the faith in Mr. Biddles' financial talents continues undiminished as yet. As the plot thickens, instead of his prospects brightening to the pub-fic view, they appear involved in deeper gloom. There seems a squall yet coming from which capitalists are disposed to shelter themselves until it has gone by. But at the same time the banks are very liberal in their discounts, and for all present business purposes money is very plenty. But in the interior this is not the case; and as our merchants, in the present state of exchange, are shy of selling on credit, the bulk of the business is still cramped. This may create a revolution in the manner of doing business, as we learu our Northern manufac-turers are already in the Southern markets buying cotton for factory purposes. The goods so manufactured will be consigned to different points for consumption, and thus step in between the English manufacturer and our home consump-tion, and be thus enabled more successfully to compete with foreign manufactures, through the assistance of Eastern and Western banks already resumed. # Monday, May 14-6 P. м. An extensive business has been done this day at the board of brokers, and at generally improving rates. The sales of United States Bank were very heavy, and the first 700 shares sold at an improvement of percent on the last sales, but the large quantity offered had the effect of depressing the prices to a declire of per cent under the close of Saturday. A large quantity of these stocks were the property of the Charleston Insurance offices sold to meet their recent losses, and some of them have returned from England. The sales of all other stocks were large and at improving rates. Del. Hudson rose 4 per cent; Phenix bank advanced 1 per cent; Harlem per cent; Stonington went up to an advance of 1 per cent; and most of the others showed an improvement of a per cent. So large sates at so firm prices have not oe-curred in a long time. The return of the committee from Philadelphia, with a favorable answer from Mr. Biddle, with regard to a new bank under the generalbanking law, has given a new impulse to returning confidence, the financiers of the Biddle policy, (there is formed for the time, apart from politics, a Biddle party and an anti Biddle party among finan-ciers,) are in high spirits. One capitalist was heard to say he would, without hesitation, invest a large fertune in United States Bank stock had he the opportunity. There are others who look askance at his cotton operations fearing the results The importations of specie still continue to such an immense amount that it produces a glut in the market. By the Phila-delphia from London, this day, has been received $500,000 in gold on U. S. Bank account, and $850,000 to Prime, Ward & King. This surcharge of specie must again set in motion pa-per credits, and all that is wanted to regenerate confidence, and thereby set the current of trade once more in motion, is some decisive action on the part of Biddle, to de away with the doubt that yet hangs mysteriously around the capitalist and the merchant, and equalize the exchanges. The estab-lishment of a bank in Wallstreet, under the ample provisions of the new law, will eff ct this The process of equalization, consequent upon the resumption of our banks, and the preparatory curtailments of the banks of the other States, 18 of whom must resume by the first of January next, is still going on, and every day witnesses an int-provement in exchanges. Money was never so plenty in this city as now. # Tuesday, May 15-6 P. м. The bugbear of suspension in this city having passed away, financial business is rapidly resuming its former standing. Money is as plenty as can be wished for. Exchanges are still improving in all directions; on Philadelphia sales were made today at 11 per cent; on Baltimore at 24; and on ail other points it has improved proportionally. Every day's mails bring reperts of resumption by banks in different parts of the coun-try. From New Orleans we learn the State Bank of Louisi-ana has resumed; in Augusta (Me.), a resumption by the banks of that place has been effected; and tomorro w is the day for the Detroit banks to follow suit, and most of the banks of that State are to do likewise within 60 days. By the Lexington, at Mobile, the State Bank of Alabama has received $50,000 from Liverpool, being returns for advances on cotton, and is sup-posed to be making preparations for an early resumption. while some of the Basks of the other states pass resolutions that another crop is necessary ere a resumption takes place. How if the next crop should not pay the raising? and if there is net a vast increase of demand for E glisk manufactured goods, it surely cannot. The warehouses, in Liverpool, are al-ready crammed with the manufactories of last year, waiting erders-the quantity of cotton on hand is unusually large-the number of bales gone forward exceeds that of former years by a vast amount; add to this the fact that at the close of this year there was an increase of 60,000,000 ibs cotton yarn over the stock of ast year; and there is yet no prospect of orders being sent forward to any extent. How then is the price of cotton to rise so as to pay the culture, and assist the banks to any catent in a resumption? We opise the credit incident on an imme-diate off hand and bold resumption, would go farther towards sustaining the baaks than the uncertain product of another crop. It is in this view that some of the warmest supporters of Mr. Biddledoubt and "tremble while they doubt"-they say the New York banks are in the full tide of a successful resump-tien. Why does not the United States Bank resume? Every day's delay, therefore, takes from the credit of the bank. We understand Messrs. Prime, Ward & King have taken the state loan of haif a million for the enlargement of the Erie Canal at 100.26, for each $100 of 5 per cent stock, redeemable after 1855, having 17 years to run. The sales at the stock exchange this day have again been extensive, and at such rapidly advancing rates as may lead to a reaction. In almost every sale an advance has occurred-U. S. Bank improved 1 per cent, on the close of yesterday: Del. & Hudson and Farmers T. closed each at an advance of 1 per cent; Mohawk rose 2 per cent; Ohio L. & T. went up 1 per cent; although the sales of Harlaem were large, it closed at an advance of 24 per cent. Other stocks went up from a per cent. Treasury nores, sixes, still at par. Foreign éxchange today for the packets exhibits but little variation from our last notice; the amount sent forward was limited at our previous quotations, 6 a 7, but holders were firm at these rates; on Fraнсе г. 5.35. In the aftercoon sales were made at 106), and some few as low as 1061; a fair amount sold at these rates. The developement of the Castom House frauds is progress-