7735. Traders 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
2f78bb4d

Response Measures

Full suspension

Other: Articles describe runs on 'free banks' and suspension of specie payment by Union, Mechanics' and Traders' Banks in New Orleans during the Panic of 1857.

Description

Multiple dispatches report a heavy run on the free banks in New Orleans and state that the Union, Mechanics' and Traders' Banks suspended specie payment on Oct 15, 1857. No article reports a reopening or receivership, so final disposition is not stated; classified as run -> suspension but outcome unsure. The panic appears tied to the broader 1857 financial crisis (macro_news).

Events (2)
1. October 15, 1857 Run
Cause
Macro News
Cause Details
Part of the wider financial panic of October 1857; heavy runs on free banks in New Orleans following unsettled affairs elsewhere.
Measures
Depositors poured into chartered banks; branch mint purchased silver; banks stood by each other. (No specific ad hoc measures by Traders' Bank beyond suspending specie.)
Newspaper Excerpt
A run commenced early on the free banks, and before 3 o'clock the Union and Mechanics' and Traders' Banks, of N. Orleans, suspended specie payment.
Source
newspapers
2. October 15, 1857 Suspension
Cause
Macro News
Cause Details
Suspension occurred amid the heavy run and general financial panic in October 1857; reported as suspension of specie payments (temporary stoppage).
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 (4)
1. October 16, 1857 The Evansville Daily Journal Evansville, IN
Article from The Evansville Daily Journal, October 16, 1857

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Article Text

NEW ORLEANS, Oct 15-M The Citizens'. Louisiana. State Bank of Louisiana, and the Canal Bank. all refused this morning to take notes of the free banks. A run commenced early on the free banks, and before 3 o'elock the Unio h a id Mechanies' and Traders' Banks, of N. Orleans, sus pended specie payment. The Southern Bank had no run. Itis considered good. The free bank of Jas. Robb is considered safe. Its circulation is distant. A heavy run was made on the Citizens Bank. It kept open, paying specie, until 6 o'clock. Chartered banks are standing by each other. Large deposits were made in all chartered Banks, and in the Southern Bank, it is said, considerably more than was drawn. The excitement is good humored. The bank of Jas. Robb also kept open until 6 P.M. No doubt expressed of it or the Southern Bank, the only free banks left. NEW York, 15-p. M. Affairs are unsettled. It is supposed the run will continue to-morrow. Great contidence is expressed in all banks now standing. Large deposits were made to-day.No failures-affairs are more cheerful than in the morning.

2. October 16, 1857 The Evansville Daily Journal Evansville, IN
Article from The Evansville Daily Journal, October 16, 1857

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Article Text

TELEGRAPHIC 1 TELEGRAPHED EXCLUSIVELY TO THE EVANSVILLEDAILY JOURNAL Financial. BOSTON, Oct 15-P M At an adjourned meeting to-day for the purpose of arranging plans for facilitating business at the Clearing House, it was pro posed to discount liberally on undoubted pa per, so as to turnish relief to business men who are beginning to bend beneath the pressure. Little, Alden & Co. have not suspended. and ask an extension only on behalf of several mills of which they are the agents. Philadelphia, Oct 15-P M The disposition manifested by the banks. not to accept the provisions of the late act of the Legislature. has cast additional gloom upon the business community. Nashville, Tenn., Oct 15 The Bank of Tennessée has suspended.The Legislature is considering the propriety of legalizing a general suspension. The Planters' and Union banks will hold out to the last, unless authorized to suspend. CINCINNATI, Oct 16-P M Money matters quite unsettled in consequence of the news from New York and elsewhere. Some Banking Honses refuse to take notes of suspended banks. Others take notes of all good banks. Exchange on New York is nominal; rates called 5 to 7 per cent premium. It is thought Kentucky, Indiana. and Ohio State Banks will not suspend at present! NEW ORLEANS, Oct 15-M The Citizens'. Louisiana. State Bank of Louisiana, and the Canal Bank. all refused this morning to take notes of the free banks. A run commenced early on the free banks, and before 3 o'elock the Unio h a id Mechanies' and Traders' Banks, of N. Orleans, sus pended specie payment. The Southern Bank had no run. Itis considered good. The free bank of Jas. Robb is considered safe. Its circulation is distant. A heavy run was made on the Citizens Bank. It kept open, paying specie, until 6 o'clock. Chartered banks are standing by each other. Large deposits were made in all chartered Banks, and in the Southern Bank, it is said, considerably more than was drawn. The excitement is good humored. The bank of Jas. Robb also kept open until 6 P.M. No doubt expressed of it or the Southern Bank, the only free banks left. NEW YORK, 15-p. M. Affairs are unsettled. It is supposed the run will continue to-morrow. Great contidence is expressed in all banks now standing. Large deposits were made to-day.No failures-affairs are more cheerful than in the morning.

3. 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.

4. October 21, 1857 Semi-Weekly Standard Raleigh, NC
Article from Semi-Weekly Standard, October 21, 1857

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Article Text

Bank Suspensions. NEW ORLEANS.-The Bank of Orleans, Union, Mechanices' and Traders' Banks have suspended. Cotton nine and a half to ten cts. Sr. LOUIS.-A heavy run is being made on the Bank of the State of Missouri. The ability of the Banks to hold out is doubted by some. NASHVILLE.-The Bank of Tennessee has suspended. 'The Legislature is engaged in considering the legalization of the policy.