Union Bank - New Orleans, LA

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: state
Start Date: May 15, 1837
Location: New Orleans, Louisiana (29.955, -90.075)

Metadata

Model: gpt-5-mini
Short Digest: cc8ff791

Response Measures

Accommodated withdrawals, Full suspension

Other: Continued redemption of $5 and $10 notes as an accommodation to the public was practiced.

Description

Multiple articles report that on/around May 15, 1837 there was a run and that Union Bank suspended specie payments with many other New Orleans banks. Later coverage (Dec 25, 1838) states banks resumed specie payments in New Orleans (only $20 withdrawn from the Union Bank). A 1838 legal article mentions the Union Bank's suspension and a court decision upholding its charter. Classification: run → suspension → reopening. I corrected minor OCR errors in the extracts (dates and phrasing) but did not invent facts.

Events (4)

1. May 15, 1837 Run

Cause: Macro News
Cause Details: Panic of 1837 and widespread loss of confidence leading to runs on many New Orleans banks; contemporaneous suspensions and general crisis across state banking system.
Measures: Continued redemption of $5 and $10 notes to provide small change and reassure depositors.
Newspaper Excerpt: Notwithstanding the want of confidence which prevailed on Saturday, and the run on all the banks, ... The Union and Commercial Banks, prior to their determination to suspend specie payments, wisely resolved upon continuing the redemption of their five and ten dollar bills.
Source: newspapers

2. May 15, 1837 Suspension

Cause: Macro News
Cause Details: Banks suspended specie payments amid the wider 1837 financial crisis and inability to collect specie from debtors; suspension was part of a city-wide/state-wide reaction to the panic rather than a single-bank insolvency.
Newspaper Excerpt: The banks that have suspended specie payments in this city amount to twelve ... Union Bank ...
Source: newspapers

3. June 7, 1838 Other

Newspaper Excerpt: In a suit brought by this bank against one of its debtors ... the exception was raised, that the Bank had forfeited its charter by a suspension of specie-payments ... a decision given in favor of the bank, maintaining its charter and corporate rights. ... decision in the case of the Union Bank will be published ... . (The Madisonian, 1838).
Source: newspapers

4. December 25, 1838 Reopening

Newspaper Excerpt: Specie Payments at New Orleans.-Yesterday specie payments were resumed by the banks in our city. ... We understand, that only twenty dollars in specie was drawn out of the Union Bank, one of the largest in our city and no where was there manifested a disposition to make run upon the banks (Dec. 25, 1838).
Source: newspapers

Newspaper Articles (5)

1. May 23, 1837 Morning Herald New York, NY

Article from Morning Herald, May 23, 1837

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Article Text

NEW By the Express Mail. specie in this to suspended OBLEANS, payments May 15. -The banks city that amount have twelve, to Mechanies' and Traders' Carrolton Bank Orleans Pank *State Bank *Louisiana Bank: +Improvements Bank: Commercial Bank: *Union Bank; Exchange Bank; *Canal Bank; Atchafalaya Bank The Citizens' Bank, Merchants' Bank, Consolidated Association and Gas Light Bank, were the only institutions that redeemed their notes in full. The Banks marked with an astorisk redeemed their $5 and 810 notes. The Collector of the Custom House, J. W. Breedlove, Esq., gives notice that he will receive the notes of all the City Banks, in payment of bonds - Bee. PROJECT OF RELIEF.-At the moment we were about to put our paper to press, we were informed of a project suggested by the Committee of Finance of the 1st Municipality, which will be submitted and discussed by the Council, and will doubtless receive the approbation of all good citizens desirous of allaying the present melancholy crisis, and restoring confidence among that part of the population who do not see the expediency of the conservative measures adopted by several of our banking institutions. The proposition seems to us to be peculiarly adapted to lieve the public exigencies, particularly as every other plan appears to argue a want of solidity more apparent than real; and as are compelled to rely upon our own resources entirely, we think it offers the safest guarantee that be desired, and will contribute greatly to relieve the banks from their responsibilities. It will also afford a currency that cannot depreciate, and which will be more and more sought after. The proposition is to emit bills of various denominations from 85 to $100. in the name of the 1st Municipality, redeemable at different periods, bearing in est, and secured by mortgage on the property from which the greatest revenues are derived, as well asby an additional privilege on the amount of these guarantees, which are eqnal to three times the amount of emission. Notwithstanding the want of confidence which prevailed on Saturday, and the run on all the banks, one of them (the Improvements') showed a balance of $27,000 between the deposites and payments.-Tbid. The Union and Commercial Banks, prior to their determination to suspend specie payments, wisely resolved upon continuing the redemption of their five and ten dollar bills. This measure we regard as highly prudent and commendable, and believe that if pursued by all the other institutions which have suspended or are likely to do so, would afford very general satisfaction, and be the means of contributing in an eminent degree to the general restoration of confidence in the stability of the Banks. The payment of notes of aless denomination than ten dollars will put into local circulation about the quantity of specie absolutely necessary for the minor but not less important transactions of the city, and will moreover protect the poor and laboring classes who generally hold small notes, from loss by any depreciation in the value of their small but hard-earn ed pittance. Though the wealthier and middle clas ses may be but little effected by a total suspension of specie payments, it is totally otherwise with tho ho nest and industrious laborer who toils incessantly for the accumulation of a small sum the loss of any part of this smalf drives him at once to greater exertions or to greater restrictions in his ordinary comforts.-Com. Bulletin. MOBILE, May 16.-We have received from Tuacaloosa, authentic information that the Governor has decided to convoke the legislature, for an extra session, to be held on the 2d Monday of June next, which will be the 12th. This decision was undoubtedly hastened by theintelligence, which reached Tuscaloosa on the 12th inst -the day after the Governor got here of the pension of specie payments in the Montgomery branch of the State Bank. The further intelligence which has since reached there, of the suspension of the three banks here, will confirm any who might have doubted of the propriety of this decision. The southern part of the state is unanimously IR favor of the step already. The North has many dissentients, but the daily growth of accumulating evils, in the social and state systems, will not fail to reconcile all to the wisdom of immediate consultation on the state of the country It is, now, not merely to confer, on the mooted questions of relief by state interposition, by bonds or post notes, that the legisla. are to be brought together, but to consider, espe cially, the condition of the state banking system, the common interest of the state, which isi in a novel at critical condition. The suspension of specie pay ments, which has already partially taken place, and must in all probability become general, demands the earliest attention of the state. The convertibility of paper into coin, which 18, in theory and practice, the check upon ov issues, the preserver of the integrity of the circulating medium, and consequently the standard of value has been withdrawn from the lie, for reasons which are acquiesced in by nearly the whole community. This deplorable necessity leaves the country in a condition demanding prompt interference, to check at once a flood of evils, which the smallest indiscretion may let loose upon us. Unchecked issues of irredeemable paper will be a curse, greater than any we have yet encountered. Bank rectories, rivals in business, and uncontrolled by the customary laws of trade, under a specie paying system, may not safely be left at liberty to enlarge their issues, thus vitiating the currency still more, and disarranging hopelessly the measure of value.-Com Herald. ADJOSENED TOWN MEETING.-It will be rementbered that an adjourned town meeting is to be held Independence Square, at ten o clock this morning, for the purpose of hearing the report of a Committee pointed to confer with the Banks. We doubt not will be well attended, and from what we have heard upon the subject, we feel confident that a statement will be submitted, calculated to satisfy all reasonable minds as to the policy and propriety, nay the absolute necessity of the course pursued those institutions. We learn that the intercoursebetween Committees has been characterized by much courtesy, and that every disposition has been shown on the part of the Banks to furnish answers to all proper in terrogatories.-Pennsylranic Inquirer. COMMON COUNCIL.-The Board of Aldermen met last evening, at clock. The Board of Assistants did not meet. The principal matters brought ferward in the Board of Aldermen, were as follows A communication was received from C. W. Law rence, Esq., enclosing a letter from the American Minister, at the Court of London, accompanied with the statutes, regulations, &c. governing the Police of that metropolis. A message from his honor the Mayor, containing an exposition of the financial and other affoirs of the city of New York. The document is of considerable length, and embraces views on our political, financial and social systems. It is to be printed and circulated Two propositions, one for cleaning the streets of New York, the other for regulating tne pavementa thereof Ordered to be printed. Report of the Finance Committee was recieved ad.

2. May 27, 1837 South Branch Intelligencer Romney, WV

Article from South Branch Intelligencer, May 27, 1837

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Article Text

VERY LATE FROM NEW OKLEANS. From the New Orleans Bee, May 15. The banks that have suspended specie payments in this city amount to twelve, to wit : Mechanics' & Traders'-Carrolton Bank-Orleans Bark--State BankLouisiana Bank-*Improvements Bank -Commercial Bank--Union BankExchange Bank-*Canal Bank-Atchafalaya Bank. The Citizens' Bank, Merchants' Bank, Consolidated Association and Gas Light Bank, were the only institutions that redeemed their notes in full. The banks marked with an asterisk redeemed their $5 and $10 notes. The Collector of the Custom-house, J. W. Breedlove, Esq., gives notice that he will receive the notes of all the City Banks in payment of bonds.

3. August 23, 1837 Morning Herald New York, NY

Article from Morning Herald, August 23, 1837

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By the Southern Express. We have dates New Orleans August 15th, Augusta 18th. Charleston 18th, Mobile 16th, Tennessee CANAL BANK.-I gives us great has reaumour readers that the Canal to to in specie of her notes. the ad18th, THE inform the payment institutions Bank We hope satisfaction see ed followed by the other as to of whose affairs have ministration the example been public such credit so, as individual and demanda this at their hands. the of doubtful policy and our has developed its pernicious under of the present imperiously sion ginning, permit of their specie suffering doing epayment its crueleffects. influence, from The Withouten- suspeninto a discussion of the contradiction citizens are bankingsystem, tering without defects fear of banks, weassert have injured of the the essays public opinion, than all of more in the, fruitful discussion existence been the theme. With of the counthem their that theimpolitieproceeding opponents during their credit own which with the natural to expect that try be have abandoned jeopardized, they have prostrated, it was industry and this mea- they even have come either to the affairs, and sure, and basis, or of winding up went. by ing creditors as far as is not just, that the would, paying their the specie before this, their resolution their means of restor- whole intertheir property. It subserve the should besacrificed to have a few persons, who have no gets of comparatively community the sale of who been their own misfortunes, and assistance. claim the cause to our of sympathy, much less to our -Bee. The editors had been much edified by seeing the Indians at Pass Christian play ball. Tuscanutchy-e-Math classically styled is Jim in New Boy, the principal warrior of the friendly Indians, Orleans to see the "lions." ult. of the Houston Telegraph to the 29th to Files received. The books for subscription Comhave be Railroad, Navigation and Banking on the 15th be in the capitol remains tranquil. is still the pany Texas were The to country opened The crops, at especially inst. corn, are promising. The army La The Baca, Brasos in good river, health Texas, and has spirits. been forded as high as Marion by a New Orleans steamer. Mexican prisoner Hon. Wm. H. Wharton is a in a very small The Matamorae, where he is confined devoured by fleas, at bristling with bayonets, half plundered by room the heat, continually when denied even medical guard, and is a return for the leniency Santa Anna. half sick. the suffocated This by assistance shown to EXPLOSION. The Caroline, city, burst on her her from New Orleans to in Mobile Bay, passage the mouth of Dog some six or eight boiler, STEAMBOAT near loss of three lives and able river, this to learn the the cause wounded. with We have not the been absence of all information, the long feel inclined have of the explosion. to In attribute the calamity been to defective of the boilers, was on the age. years, and could and two negroes jumped for many was killed, The wounded who were James use Smith, from we the pilot, The Caroline which drowned. must scarcely be Alabama seaworthy. McCarthy, were river of ship Wm. Crawley Capt. Clintock, John towed up by the overboard, Daniel Knight, wreck Colchis, Harks, Chron. steam- and Corn. The from Pensacola.-Mobile Champion, are making liberal which The property holders Mobile. Tenements last er James in reductions in the rates of rents two to three thousand dollars thousand. commanded now from offering for one and its proper two channel. year, are like water, is seeking its equitable Money, Property seeking and value. comHigh time. time. And people returning to reason High mon sense. High has time been again. produced the at author Cincinnati. may The A new editor tragedy of the Republican says ' write himself down de an Janetro ria Baltimore. month- Much Dates has from prevailed Rio there throughout i.e distress business has been inactive. for inwith from England was on looked the 17th with betThe packet and her arrival markets of England, ter advices from far to allay the London, of the drafts ten-e interest; have gone the money in fears of our business capitalwould but the non-acceptance of this whose that they large rendering it shock was given was suspend payment, The disinclination to ruled ists; of should much confidence. English extended, house a fresh specie necessary having take high bills to have houses reviving England continues; with bills, and several of coffee. our remitting on in comparison turned their attention to From our Correspondent. NEW ORLEANS, Aug. 14, the 1837. dull through DEAR Best has been one of thus the far dullest I have ever which has like a Sabbath thankful for the with. We have, to season, seen-every should be goodly day appears city is blest continued but good we weather yet always we be which our of fever (yellow,) community. had some which cases does not alarm the begin a few, sickness- now this This is the season destroyer for (yellow fever) has been for season. an important should expect sure, ed think the fell week. The avert- have 11th to We have passed most of the banks State are the day on which the Canal and all, only ones that of nine banks by an and act the was resumed specie charters payments- resumed and null paid void-the of deposit, conse- legisquently the become ip80 facto government lation, these a names of now Commercial,government & Traders', Presi tremendous pile of the stock is held its make do.-Orleane, most of who will, no doubt, deAndrew Hodge, Union Bank, government Louisiana, dent, bank of it, insolvent-Bank of to be thought Gas and it is thought she ter the general the expiration of good-Improvement good-The private posit, uncertain- suspension, City, badly continued 90 days. managed, to pay some time will will afLegislatare resume at is much talk about what but the if they only act as do There with respect to least the banks, bree-fourths of of these them licensed wish, the they people, will never or at centinue cannot, the nor charters ever the will people be able know to re- it. their promises to pay, our legislature renew The say robbers. deem question They arises people dare and no they cannot, their the charters when are the in a deplorable to a single dollar in 60 nor The do banks not of assist discount the merchants they continue to renew at abane

4. June 7, 1838 The Madisonian Washington, DC

Article from The Madisonian, June 7, 1838

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AN INFAMOUS DEFENCE. In the following case of a suit by the Union Bank of New Orleans against one of its debtors (which we take from the Commercial Bulletin,) it will be seen that the defence set up was, that the Bank, by suspending specie payment, on account of not being able to collect specie of its creditors, was to be made the victim of the most miserable sophistry, and the basest injustice; while its creditor claimed a legal right of taking advantage of his own wrong!-The very foundation of all law is, that NO MAN SHALL TAKE ADVANTAGE OF HIS OWN WRONG. It was the case all over the country, that the banks, not being able to collect specie of their debtors, were forced to suspend specie-payments-as Col. Benton justly says, "THEY HAD CAUSE FOR STOPPING." Suppose, for a moment, such a defence-no, not a defence, such a cheat! such a fraud!-had been legalized by the judgment of the Court, where would now be five hundred million of property which would have been classed in this category, and have changed ownership upon the principle of this Locofoco defence? It is but too obvious, that A REVOLUTION WOULD HAVE BEEN PRODUCED, if these agrarians who required hard money but refused to pay it, had been able, with the assistance of the Courts, to have carried out their infamous conspiracy of plunder, under the forms of law But enough.-The decision: UNION BANK.-In a suit brought by this bank against one of its debtors, the exception was raised, that the Bank had torfeited its charter by a suspension of specie-payments and was therefore incompetent to bring suit. The point has been argued, we understand, before Judge Buchanan, and a decision given in favor of the bank, maintaining its charter and corporate rights. Some difference in the provisions of the respective charters led to a different opinion as to the effect of a suspension of specie-payments upon the Atchafalaya and Union Banks. It is no doubt fresh in the recollection of our readers, that the charter of the former institution was adjudged forfeited, in consequence of having refused to redeem her issues in gold and silver. The decision in the case of the Union Bank will be published in to-morrow's paper, or as soon as a copy can be procured. Not having read the opinion, we cannot give the grounds upon which it was predicated. But the clearness, accuracy and stern impartiality of the decisions which have emanated from that bench antecedently should be a satisfactory pledge to the community, that sound and substantial reasons are rendered.

5. January 12, 1839 Richmond Enquirer Richmond, VA

Article from Richmond Enquirer, January 12, 1839

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cut off, or have been removed to their new country your [ have the the Mississippi. honor to be, very respectfully, TH. LAWSON, your obediservant, Surgeon General The Hen THOMAS H BENTON, United States Senator, Washington MISTS. We have pleasure in of BRANCH the following extract of a letter from richness an ficer our readers in the branch mint of Georgia, showin favorable the prospects of the gold region there, and Connected the with this subject, which attend ,remark, the miners. that the bill which passed of the the Senate two we have last session, for exte nding the coinage the coinat the Georgia and North Carolina, to cent branch silver mints, change, to wit: 25 cent, 10 cent, and ing of revived in the Senate, and we presume will pieces, is little or no objection, as the additional coinage counter will occasion no additional expense will only will occupy give when it might otherwise be idle. and which the mint of silver change in parts of the Union, mints to of New supply with difficulty, come from the silver. Orleans would, and Philadelphia, which alone now UNITED STATES BRANCH MIST. 'Dahlonega, January 1. 1839 "DEAR SIR: We commenced operations in February to enable the edifice being sufficiently advanced have relast, to commence before. Since that time, we us gold bullion amounting in value to $140,000 ceived amount would have been greatly exceeded, had there This not been a very great demand of laborers different for the railroads now in progress of construction in and of the State. The country abounds in gold, should labor become redundant, will become eminently The want of capital and science among the it productive. miners are among the causes which conspire to render comparatively unproductive In point of climate, this will yield to none and, as it respects scenery, country inferior to Western Virginia. Considering how recently is not the country has been settled, the society is very good. DISTURDANCES AT Oswego.-The following letter was received here by this morning's mail, gives narrative which of some deplorable disorders on our frontier These are matters with which according to the doctrine laid down in the hig newspapers Governor Seward now and the civil authority of the State have nothing wonder to do After such a declaration there is little that the laws are set at defiance -N Y Post Extract of letter from Oswego. dated 2d January, 1839: Mr We had asad mob here yestegday. Our Collector, G Mc Whorter, received information on Monday evethat two brass cannon were secreted near the bridge. ning He immediately gave information to Captain Gwynn, United who commanded here with a small force of the States troops who posted sentries over the guns until morning. The Collector and an officer of the United States went with a guard to take possession of them, to when they were prevented by a meb that increased between two and three hundred persons; after bearing their insults for some time, the Collector sent for Cap tain G. with his whole force. after their arrival and bearing the insults of the mob for half an hour, they re turned to their barracks without the recovery of the he mob then took possession and mounted them guns. their carriages, and in bravado to the laws, continued firing on them until night, finishing their lawless act, by burning the Collector and a de puty marshal of the United States in effigy. POST OFFICE DESPATCH.-Yesterday - our post office clerks had busy time Upwards of fifteen thousand letters were received by the Liverpool and London packThe steamer Royal William brought eight thouers. sand, and the United States five thousand five hundred from Liverpool, and the Wellington, fifteen hundred from London, besides various other arrivals. These were all despatched by the regular mails of the day [N Y. Post THE CHESAPEAKE AND OHIO CASAL occupies prominent place in the Message of Governor Veazey to the Legislature of the State of Mary land, which is so large a proprietor in that great work Notwithstanding all the discouragement under which this enterprise labors, the Canal has been steadily pressed forward, a force from 2,500 to 3,000 hands Saving been kept constantly employed upon it. The line of the Canal from Dam No 5 (eight miles above Williamsport,) to Dam No 6, so nearly completed that the water will be admitted into it during the present winter, and the entire line of one hundred and forty miles is expected to be in good order and ready for the ception of the Spring trade to The remainder of the line (from the Great Cacapon) Cumberland is in progress, and will, it is believed, rith adequate means at command, be completed in the year 1840.-Nat. Int. NEW YORK, January extensive forgery, sup posed to the extent of £50,000. was committed on the house of Lizardi & Co. London, about the middle of November, by clerk connected with the establishment, of the name of Macnim. Amongst other things which it is said be has forged, is a large amount of Mexican bonds of the new conversion, of £500 each; but as it appears that Mr Macnim was anthorized to sign the name of the firm. there is consequently no forgery in this particular as regards Messrs Lizardi, for it only amounts to breach of faith in having issued more bonds than he was authorized to sign. and. of course, the house will be the sufferers and not the holders of paper. No claim. of course, can be made upon the Govern ment of Mexico, for this celebrated version was never ratified by the Executive or Legislature The public must bear in mind, that it is the nete bonds issued by the conversion, which are said to have been issued fraudulently, and not the old bonds of Mexico. It was supposed that Macnim would cross over to Holland, and might ultimately find his way to the United States [Courier. NEW ORLEANS. December 25 Specie Payments at New Orleans.-Yesterday specie The payments were resumed by the banks in our city. unusual occurrence produced no excitement. The con fidence in our banking institutions is so firmly esta. lished that very few attempted to convert their notes into hard money We understand, that only twenty dollars in specie was drawn out of the Union Bank, one of the largest in our city and no where was there manifested a disposition 10 make run upon the banks The fact is, the people are well satisfied of their solvency, and would as readily hold their bills as hard money. These results highly gratifying, and will contribute greatly to heighten the hilarity and convivial enjoyments of our citizens during the present holiday.-Bulletin. PHILADELPHIA. Jan 7 A Rich Ship -The packet ship Monongahela, Captain Henry F. Miercken new in the Breakwater, from Liverpool, has on board the most valuable cargo that has been imported into our port for many years She is chiefly filled with dry goods, the value of which cannot fall short of half million of dollars Her freight list is upwards of £1300, and not quite as large as soine of the York packets, she not having as great capacity as many of them.-If there should not be prospect of her getting up soon. we understand it is contemplated by Messrs Copes, upon a consultation with the consignees of the cargo, to send the ship round to Amboy, there discharge her cargo, and have it immediately transported to our merchants, via the Camden and Amboy Railroad Exchange books. THE OUTRAGE AT LOUISVILLE The Gazette of that city, under date of the 29th ult., says The case of the Messrs. Wilkinson and Murdaugh, for the killing of Rothwell and Meeks has just closed before the Examin ing Court Doctor Wilkinson was discharged. Judge Wilkinson and Mr Murdaugh were held to bail; the former in $50,000. the latter in 5.000 The bail was given. and the prisoners left the Court-house, without disbance FROM DELAWARE We hear that, owing to the composition of the two branches of the Legislature, it altogether possible that no election of Senator of the United States will be made at the present session of the Legislature of that State-Not Int It is stated, in the European Correspondence of the Commerce that Mr Muhlenberg, the United