7737. Union Bank (New Orleans, LA)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: state
Start Date: June 1, 1842
Location: New Orleans, Louisiana (29.955, -90.075)

Metadata

Model: gpt-5-mini
Short Digest: e0ba2495

Response Measures

Accommodated withdrawals, Full suspension

Description

Contagion runs began early June 1842 when the Union paid out specie and withstood an initial run (June 1). On July 5, 1842 the Union Bank suspended specie payments along with other New Orleans banks. By October 1843 the board resolved the Bank was to go into liquidation unless a compromise was reached—indicating permanent closure/liquidation. Causes are best described as panic driven by runs on other local banks and interbank distrust. OCR errors in some articles corrected (e.g., dates and phrasing); I used contemporary article dates and internal references to set event dates.

Events (3)

1. June 1, 1842 Run

Cause: Local Banks
Cause Details: Run occurred amid wider New Orleans banking panic and distrust caused by disagreements and suspensions at other local banks; depositors sought specie.
Measures: Answered all demands with silver; doubled/trebled paying tellers and paid out specie promptly to satisfy claimants.
Newspaper Excerpt: The Union and City Banks were crowded with note holders until a later period; but before 3 o'clock, the demand for specie upon those institutions slackened off ... The Union Bank paid out about $50,000.
Source: newspapers

2. July 5, 1842 Suspension

Cause: Local Banks
Cause Details: Part of a wider suspension precipitated by loss of confidence and runs on several New Orleans banks; interbank distrust and prior runs led to suspension until December (statutory date) announced by banks.
Newspaper Excerpt: Two more of the Banks of New Orleans suspended specie payments on the 5th instant namely, the Union Bank and the Mechanics' and Traders'.
Source: newspapers

3. October 9, 1843 Receivership

Newspaper Excerpt: By a resolution of the board of directors of the Union Bank at New Orleans, adopted unanimously, the Bank is to go immediately into liquidation, unless, prior to December 1st, some compromise could be entered into ... The condition of the Bank is such, that the payment of the February interest is very doubtful.
Source: newspapers

Newspaper Articles (23)

1. December 21, 1841 New-York Tribune New York, NY

Article from New-York Tribune, December 21, 1841

Click image to open full size in new tab

Article Text

The pressure in the money market continues. Treasury notes, 6 per cent., ¼ per cent. discount. Good short paper in the street 1 a 1½ per cent. per month. The New-Orleans Advertiser states that the subject of resumption was before the Board of Directors of the Commercial Bank on the 9th inst. and it was confidently believed that she would follow the example of the Bank of Louisiana. This Bank has about $1,100,000 Circulation and Deposites and $315,000 Specie and Bank notes. If like the Bank of Louisiana she only resumes on her circulation, she will have the above amount of assets to meet $629,000 of notes. The Advertiser also states that it is believed that the Citizens,’ the Union, the State Bank and the Consolidated Association are preparing to speedily resume. It was understood that the message of the Governor would take high ground on the immediate resumption of all the Banks, and that those that were unable should go into liquidation. A motion in the Virginia Legislature to release the Banks from the penalty of 12 per cent on every note they shall fail to redeem after the 1st January next, was lost by a majority of five votes, as was another requiring of the Banks a rapid curtailment of discounts. The Buffalo Commercial Advertiser of the 14th instant states that an effort will be made to resuscitate the Commercial Bank of that City. The argument on the injunction which was to have been heard on the 7th, was postponed until the 21st, and in the mean time strong efforts will be made to sustain the Bank. Although a large part of its capital is locked up in Real Estate, yet it is some of the most valuable in Buffalo, and is worth more in cash than it cost the Bank. Counterfeit Threes on the Bank of Brunswick, Maine, are in circulation at Buffalo. The Baltimore City Council have under consideration a proposition to issue $500,000 of City Bonds at six per cent. to be used in the purchase of Railroad orders. The Comptroller we understand has made a requisition on the Banks for one half of one per cent. on their capital for Safety Fund purposes, payable on the 1st January. He will therefore soon be in funds to redeem the liabilities of the suspended Safety Fund Banks. Holders of such notes should not submit to a sacrifice. ### New-York Markets. ASHES. Sales 50 bbls: Pots at 5 87½; 40 do Pearls at 5 50, at which holders are firm. COTTON. The sales to-day have been 600 or 700 bales without change in price. The stock has been reduced by shipments, and the market has a tendency to be more firm. FLOUR. Very little doing. Shippers offer 6 00 for Western Canal which is refused. 6 12½ is demanded. We could not hear of sales for export. Southern without change and dull; Georgetown 6 37½ Brandywine 6 50, Richmond City Mills at 7 50. GRAIN. The only sales reported were 2000 bushels Rye at 75c in the slip, time and interest, and 2600 bushels Ohio Corn at 65c. weight, delivered. Oats have improved in consequence of the closing of the Hudson. We quote 48 a 50. Barley is firm at 74c. No sales Wheat. ### New-York Cattle Market. [Reported for the Tribune.] At market 875 head of Beef Cattle, including 200 left over last week, 250 of which was from the South, and the balance from this State; 40 Milch Cows and 1100 Sheep and Lambs. There was a better demand for the best qualities of Beef, but common and inferior qualities were the same as last week. Sales of 775 head at $4½ to $7¼, averaging $5½ the 100 lb. MILCH COWS. Sales of 30 at $25 to $40 each. SHEEP AND LAMBS were all taken—Sheep at $1 50 to $5. Lambs at $1 to $3 each. HAY. Sales by the load at $1 to $1 12½ the 109 lb. ### ST. LOUIS MARKET. Dec. 7. Business on the Levee is quite brisk, and boats are arriving and departing daily. The Mississippi is free from ice as high up as Keokuk; but is falling. Navigation is, however, not interrupted. Boats for the South, with Western produce, are leaving every day with full freights. FLOUR is held at $5 50, which may be quoted as the ruling rate.

2. March 22, 1842 The New York Herald New York, NY

Article from The New York Herald, March 22, 1842

Click image to open full size in new tab

Article Text

Financial Explosions in New Orleans. This is truly the age of revolution in every branch of human life-but in none more so thani in banking and currency. We have just received accountsfrom New Orleans, of the great bank explosion which has taken place in that city. This upheaving of the financial revolution has already closed five banks, and the prospect that ten more will give up the ghost. The following is from our correspondent NEW ORLEANS, March 1812 Grand Bank Revulsion in New Orleans-More Bank Frauds-Tellers running away-Italian OperaIrish Repeal. JAMES GORDON BENNETT, Esq.:DEAR SIR:It is a great pity that there is no one to read your articles on the currency, (which are the best written of any paper in the United States,) and so understand them as to put them in practice. If some one here would undertake to do it, he would reap more honor in the end than half a dozen financiers. As this is the second commercial point in the United States, it should have a solid specie currency, and its exports should always exceed the imports. Yesterday the city was all excitement again, caused by the closing of the Atachafalaya Exchange and Orleans Banks, by the Attorney General, under the new Bank Law, which will be liquidated by the Board of Currency, who are all in favor of specie payment, and three better men could not have been chosen is our whole community. The Improvement Bank has petitioned the Legislature to go into liquidation, which I think will be granted. The Attorney General has commenced suits against all of the other banks that have not accepted the law-viz: City, Union, Louisiana, Canal and Commercial, all of which will probably be closed upin a few days. The Merchants' Bank has closed her doors, after being perfectly used up She was trying to get a snapat the public pap, but her wind broke before that stream could be brough to her aid. Uncle Sam cannot de better than to leave his money where it is, in the Union Bank. Failures are plenty here, but rouges are more so. Yesterday morning the Paying Teller of the Atachafalaya Bank was discovered to be among the missing; and as usual in suca cases, the cashier, clerks and all, began to overhaul the accounts, when it was ascertained that several individuals, with himself, had overdrawn their accounts to the amount of 150 to $2000,000, for which amount he left his due bill. His securities are not worth one cent, and some of them may have had a finger in the pie. So wego-we will soon arrive to such a state that when a man accepts any office whatever in a bank, he will be immediately set down as a rouge. We are a very quiet people here; the banks can pay or not, just as they please; it matters not to us. If they had acted in some places as they have done here, they would all have been laid to the dust ere this; while here you will only discover few persons collected together in some shanty, talking the subjectover very calmly. Business-as far that there is none here, and the less said about it the better. Cotion dull, very; flour $5, and dull; will be lower with you; pig lead, one of our great articles, has of late taken a new channel, and some 10 to 12,000 pigs have been purchased for the French market, at $3,75 to $4; whiskey 16c; corn 42s. Theatricals are in full tide just now. At the San Carlos they have the Italian Opera, which is doing wonders. Madame Ober Rassi has taken our creoles by storm, and it is with the utmost difficu ty that you can get a seat on the nights of the Opera. Mr. Bulter is playing the off-nights, in conjunction Brown and Miss Rock. Last night Fanny tz commenced an engagement at the American to a brilliant house. The Or.eans is doing nothing of note while the Italians are at the Saint Charles. This is a great city, and we do things up on the most approved plan. Of late we have had several Irish repeal meetings; and to-morrow night we are to have an anti-repeal one, so you see we shall have the benefit of both sides of the argument. We have had a very serious los in the burning of Jefferson College, which was one of the greatest ornaments to the State. Loss about $160,000; insured for $62.000, $40,000 of which is in the Ocean Insurance Company We have here now the most delightful weather, like July with you. River on the stand: More anon.

3. May 25, 1842 Daily Richmond Whig Richmond, VA

Article from Daily Richmond Whig, May 25, 1842

Click image to open full size in new tab

Article Text

, From the N. O. Bee, May 17. : THE CRISIS-THE FIRST DAY. I Yesterday morning. at nine o'c'ock. The Union, City, Louisiana, Carroliton, Commercial, Me I chanics' and Traders' and Canal Bank, opened their , doors under full resumption. The Consolidated , Bank, very unaccountably, withdrew from the arI rangement entered into on the Saturday before, by which it also had agreed to resume, and refused to throw open its vaults, alledging, as a reason for r such conduct, that the Citizens' and Louisiana State Banks had refused to undertake cash ments, would no. the and of that it, therefore, At paymeeting the Bank Presidents, of Saturday, at which resumption was agreed upon, the Citizens' , Bank was not represented, and the President of the ) State Bank refused to sanction the measure, as the Directors had not empowere.i him to decide, either , for or against resumption. The subsequent determination of those Banks, therefore, could scarcely ) be appealed to to justify the course of the Consoli) dated Bank Upon the opening of the Banks, a considerable run was made upon them by the holders of small sums. The excitement was increased materially by the refusal of the Consolidated, Citizens' and State Banks to join in cash payments, and until half past two o'clock. the calls for specie, at the Union, City, and Canal Bank, were constant. At the Mechanics' and Traders', Carrollton and Commercial there was some stir early in the morning; but it was not kept up for more than forty minutes; after which time the demand for coin abated, and to the expiration of banking hours few notes were presented for specie. The Union and City Banks were crowded with note holders until a later period; but before 3 0'clock, the demand for specie upon those institutions slackened off to such an extent, that there was not a man in either of them desirous of obtaining cash for his notes, unsatisfied. So far from any attempt being made to evade the full force and effect of resumption, the payir g tell. ers in the resuming banks were doubled and trebled, in order to detain note holders as little as possible. The banks "stood up to their fodder" like "Georgia majors," and made every exertion to pay out as fast as the notes were produced. The exact amount of coin taken from the vaults, we could not ascertain; but we were happy to remark a feeling of confidence gradually taking possession we noticed several of the under public mind, and persons, who, the previous excitement, had drawn specie, returning it to the banks, being perfectly satisfied to exchange it for the same notes they had so shortly before hurried over their counters for the coin. Had the Consolidated, State and Citizens' bank joined in the measure, there had been nothing left for us to regret; as it is, the resuming banks will, in our opinion, weather the crisis in fine style. The notes of the non resuming Banks are at a discount of course; and will continue to depreciate until they likewise resume. We have been furnished with the following statement of the specie drawn from the various Banks yesterday. The City Bank paid out $80,000 and received on deposite $15,000-loss $65,000. The Union Bank paid out about $50,000-Canal $25,000, Commercial $30,000, Carrotton about 2,000, Mechanics & Traders a trifling amount, and the Bank of Louisiana paid out $3,000 and received upon deposit $14.000-making in all a diminution of about $175,000 in the specie of the resuming banks. P. The Presidents of the resuming Banks have had a consultation, and are determined to go ahead. The best spirit prevailed amongst them, and they are convinced of their ability to sustain cash payments.

4. May 26, 1842 The Daily Madisonian Washington, DC

Article from The Daily Madisonian, May 26, 1842

Click image to open full size in new tab

Article Text

HURRA FOR A SOUND CURRENCY Yesterday's sun rose brighter than usual, and looked down upon the broad lands of Louisiana with a smile that gladdened the hearts of all good citizens, and men were observed to move upon the dull earth with lightsome step and heads erect. be reYesterday was a memorable day. It will ferred to hereafter as the epoch of " honesty" returned to Louisiana after a five years' absence. Seven out of the ten surviving banks made a grand effort aad paid their obligations in the legal money of the Republic. It was a remarkable day, too, for the signal piece of treachery to sacred promises on the part of the State ank Consolidated Banks. These institutions solemnly agreed on Saturday last to pay coin yesterday, but the directors reconsidered that promise, and refused to come up to the rack." two Nothing daunted by the desertion of these George Stanleys, on the morning of the battle the City, Commercial, Union, Mechanics' Carrollton, Canal, Louisiana Banks marched out in solid column, and opened their vaults to their creditors. Had the three Banks down town, now known by the significant title of the 'State of Consolidated Citizens, done their duty to the public, resumption of specie payments would have passed of as an ordinary occurrence. But it proved otherWise, not in consequence of any doubt on the part of the holder of notes, but in consequence of a scheme said to be set on foot by the State of Consolidated Citizens, which paid out the notes of the resuming institutions to an army of Faithfuls to go up and draw the cash, for the purpose of replenishing the vaults of the said "State, &c The appearance of these gentlemen in such numbers alarmed, temporarily, the unwary, and the crowd in the Union, City, and Canal Banks increased up one o'clock, when people having got wind of the "movement" of the "State, &c., fell off and for two hours thereafter great indignation was expressed by the bystanders and the citizens generally. The main point of attack was upon the City Bank, whose President is regarded with especial horror by "State of Consolidated Citizens." The common talk among those citizens was, Ah, ah, we have got damne. Yankees on the hip at last. The Citizens' Bank will give Peters hell to-day, the Consolidated will follow to-morrow, and on the third day the State will close his weer with a "sockdologer.' This is evidently the feeling at the bottom of this whole affair, but It has failed, and will fail most miserably. The Seven Banks will pay their debts, let come hat may The people are with them, heart and hand. Au early hour, the notes of the "State of Consolidated Citizens" were offered in the streets and in the brokers' offices, at all sorts of discounts. Actual were made as follows Citizen's Bank notes, 10 to 18 per cent. discount. Consoididated " 10 to 18 State 101515 They are tendi downwards, and it three clock yesterday, they were regarded with great suspicion. is The Citizens' Bank committed gross violation law in paying out Third Municipality Shinpiasters yesterday, at her counters, in exchange for her own notes. This was th game played by the Burstups, when they were driven to the wall. They say that the Citizens' paid out $40,000 of this trash in the course of the day, and " is now known by the name of Citizens Bank currency. The State Bank did large business. She paid her notes under five do lara in coin. It was a disgrace to see S wealthy a conc rn palter in a double serise. and treat the public so scurvily The Consolidated threw herself upon her reserved rights, and refused to redeem her notes in anything. She considered them as good as wheat, though the holders did not, as the above table will show. Considerable quantities of specie, drawn out of the coin paying Banks, by the inhabiants of the region of "les trois Banques," were deposited, it is said, in those institutions, on special deposite. The notes of the "State of Cons ls. and Citiz ns, were repudiated by the seven specie-paying Bank and refused in payment of debts On a comparison of the best information out dorrs, it appears that some $150,000 in coin were paid out by the seven Banks, but chiefly by the Union and City, at which a dead set seemed to be made. But what are $150,000 to these institutions? They can and will pay out if called on. ten times that amount They stand on the rock of truth and honesty, and not all the enemies of a sound currency in the world can overthrow them. The amount of coin received on deposit by the seven Banks, we learn, reached $100,000. two days more, the deposits will exceed all that has been paid out. Public confidence is with the-seven Banks, and in their march they will not leave a vestige of irredeemable paper behind them. The Courier of last evening (French side) asserts that " confidence is the basis of human affairs." To be sure it is, but Banking affairs must rest upon the basis of coin, before confidence in them can exist.No talk, no argument will sustain the " Trois Banques" against Banks which pay their debts in coin. The Plaquemine Gazette gives the alarm against Consolidated notes. It says that that section of the State is flooded with this paper, and remarks that an enormous flight of Exchange and Atchafalaya Bank iper preceded the destruction of those institutions. The seven Banks paid out coin yesterday with the utmost alacrity and promptitude. No let or hindrance was made to bill-holders and depositors, but all were immediately accommodated. This is the way. Men or Banks who can pay their debts, have nothing to fear, and the seven Banks are fortunately in this category. Immense quantities of sight Exchange were sold yesterday, on New York, at par to one per cent. premium. To people, abroad, we have but one word to say, and we think we have a right to say it, for we have been alone in our advocacy for resumption in this city, and gave warning always, where there was danger. Our word is Stand by the seven specie-paying Banks of New Orleans. if you doubt them, try them, and they will dissipate all doubt, by paying you what they owe you. They resolved to pay, they can pay, let come what may If the three repudiated Banks, the C. C. S. do not c ome in. their notes will be at 30 per cent. discount in a week's time. Trade has already felt the benign influences of resumption. People breathe.freer. Confidence has returned. The People of New Orleans have sworn eternal enmity to irredeemable paper currency, and they will foster the seven honest coin-paying Banks, and the law and public opinion will prevent them from ever suspending again.' Hurrah, then, for a sound currency

5. June 10, 1842 Holly Springs Gazette Holly Springs, MS

Article from Holly Springs Gazette, June 10, 1842

Click image to open full size in new tab

Article Text

NE 10, 1842. VOLUME 1---NUMBER 46. From the Kennebeck Journal. THE Banks.-On Sunday morning we announced the PASS ROUND unanimous opinion of the Banks, with one solitary exception, to resume specie payments yesterday, and even that bank had The true Whig, published at Washington, reminds its not given a direct negative to the question of recumption-she readers and the public that in the two years previous to Gen. was merely not represented at the meeting, at which it was Jackson's war on our currency system, the number of tanks agreed ou. We hailed the announcement as le commencecreated was 22, with a capital of $8,000,0000: that in the ment of a new and a better era; we thought it would be the next two years the number of banks created was 268, with signal for the restoration of confidence--the prelude to the $368,000,000; that the former banks were generally sound, the that improveme of business-the harbinger of Leaer trade and and the latter have generally better times. Bu: what was our astonishmen: to find, yesterLoco Focos are now breaking down the very currency they day morning, that of the nine banks which had resolved to regave us, bad as it is, and are fast reducing us to the condition sume the payment of specie, two of them, the Consolidated of no currency at all. Bank and the Louisiana State Bank, withdrew from their reAnd pass it round, we add, that by the reports of the Secresolve, and in common with the Citizens Bank refused to pay tary of the Treasury, it appears that the bank bills in circuspecie on the opening of their doors yesterday morning. lation in the whole Union. in 1816, amounts to This circumstance, and the reports so industriously circu$68,000,000. lated by interested individuals, of the solvent condition of this This was before the charter of the second U. S. Bank, and institution and the bankrupt condition of that, created quite a when we had been without a National Bank for four years. panic among our community, and every one, from the holder The charter of that Bank wasthen granted, with a capital of of a V to him who had thousands placed to his credit in certain of the banks, seemed eager to convert it into the precious thirty five millions of dollars. Did expension follow? Oh metal. The consequence of this feeling was, tha: the seven no-very far from it. Fourteen years afterwards, or in banks that commenced the good work of resumption, had 1830, the whole amount of bank paper in circulation, from what is called in technical phrase, a run on them all day. all the banks, was They withstood it nobly. All hands were called to attend $61,323 898, to the desires of claimants; indeed, the wish seemed to be with being a decrease in fourteen years, while the U. S. Bank was them, not how little, but how much they could reekon and in operation, of nearly seven millions. pay out. As sheer justice to them, we will here give their Well, what next? The President vetoed a bill to re-charter names. They are-The Bank of Louisiana, The Union the Bank in 1832, and then what followed! In 1837, the Bank, The Canal Bank, The Mechanics and Traders Bank, bank paper in circulation had increased to The Carrolton Bank, The City Bank, The Commercial $149,185,890. Bank -N. O. Picayune of 24th May, 1842.

6. June 10, 1842 The Yazoo Whig and Political Register Yazoo City, MS

Article from The Yazoo Whig and Political Register, June 10, 1842

Click image to open full size in new tab

Article Text

BANKS OF ORLEANS.-There seems to as be no such thing as keeping up with the various movements of the financiers of New Orleans. The latest intelligence we can place before our readers relative to the banks of that city, is the following from the Picayune of Friday, the 3d instant:"The BANKS.-The present specie paying banks ale the Mechanics' and Traders,' the Carrollton, the Union, and the Bank of Louisiana. All these banks, except the Union, have but a nominal existence. They are neither issuing theirown notes, nor discount. ing those of others; so that their position is a matter of little consequence to the public. Their liabilities are but little, and they are known to have means to meet them. It was not so yesterday with the Union Bank. There was a brisk run on her in the morning, but she promptly answered all demands with silver. This created confidence in her behalf, and long before the time of closirg her doors the "run" declined to a very easy "walk," her counter in the meantime being filled with specie."

7. June 12, 1842 The New York Herald New York, NY

Article from The New York Herald, June 12, 1842

Click image to open full size in new tab

Article Text

COMMERCIAL BANK OF NEW ORLEANS, NEW ORLEANS, June 1st, 1842. public is hereby notified that this not Bank resume has until susThe its payments in specie, and will fixed by law. pended the 5th of December next, the GEO. peried O. HALL, Cashier. following are further extracts from New that Orleans The papers, describing the state of feeling in pleasant capital NEW ORLEANS, June 1 SpeANOTHER BANK CRISIS-MORE throughout SUSPENSION.-The the whole of vestercie excitement abatement. continued The crowd at the Consolidated gave way day without was so dense and eager that the of counters the police became before Bank the pressure, and the presence Several persons in urging necessary to to the preserve paying order. teller, fainted from with exhaustion, a compact betheir way the heat and wrestling confusion some ing overcome multitude. by In the midst of the profitable munutuary fingered gentry cerried on Banks. a more By the bye, of the light the bill holders of the that class of this business run upon than the Banks is facilities, furnishing which, if there best our be population with rumours, uncommon they are improving to the that set truth advantage. in current Notwithstanding Association, the strong current she stood her in against the Consolidated and was paying specie to the alose pub- of ground manfully, hours. From the statement there of her should affairs, be no lished doubt business 01 in the the Courier ility of the of yesterday, institution corporations. to sustain resumpwas tion Against equally the with Canal her Bank hours sister a run was commenced prosecuted with early vigor, in the day, towards and for the at several afternoon the City Bank, abated but considerably. the supposition was carried There is, off.- that some nearly stir as too much specie was said, deposited that the as run upon the banks On the whole it failure. may be The attack may be renewed The towas but decided certainly with poor prospects confined of success. chiefly to the feeling, day, we are glad to classes percieve, of our is population. Among poorer and informed transcient and truly patriotic a and resolution public spirited, not to sa- a the strong well confidence is cherished the community and for the gratification if crifice the avarice interests or of a selfish cupidity. Very of the little, pending any of a blind expressed of the result world table of doubt, need be institutions publish to the a receive struggle. Our to their liabilities, and if deserve, they there assets, equivalent generally the support they specie pay from the citizens uncertainty as to the continuance Bulletin. of 2. can ments be by no the banks of New Orleans. JUNE The run upon consequence, the Banks continued three institutions, yesterday the without Con- are solidated abatement. Association, In the Commercial, ments. and The the remaining Canal, forced into a cessation viz. of the specie City, pay the Union, the Louisiana, Mechanics' and seem resolved to hold on, the five corporations, and Traders' and the Carrolton, of their still to hold out manfully, can be little, if any doubt, unthe ability end. to maintain There their resumption ground. The commenced, circumstances were cerder which the recent and ill-advised, and to this, more We alluded than any to tamly untoward be ascribed the failure. Banks themother want cause, of confidence is to existing jealousy among so the openly and frethe selves, and the hostility There and can be no question and sustained but that, each if quently displayed. had acted in concert have been very our institutions of the experiment might excited a similar other, the result As is, their mutual The distrust inevitable consequence was, a run ableto stand.- [bid. different. feeling in the opon public the banks, mind. which none but the strongest if was greater, of them BANKS. is excitement yesterday day. The stoppage jourTHE than upon any previous announced in the public the possible, Consolidated Bank, and as the subsequent the withdrawal number of of nais of the morning, and Canal Banks from unsettled the the Commercial institutions, so of cempletely one or two of the paying publicimind, specia-paying that the counters suffocation until the distrust expiration o spread banks were hours. crowded The to contagion became of popular fidgety, uneasy drain- and banking itself to the depositors, considerable who extent assisted The in amounts suspicious, vanits already and to beset a with the multitude. ing abstracted were enormous. that we acquaint the public It s with no little chagrin which had borne the brunt determined of the that the City such Bank, fortitude and resolution, There has could be no to discontinue crisis with cash payments of to day. her depositors had been dedisguising their the fact faith that or some constancy : and her assistance directory of shaken in evening, rather than accept the suspend at other cided last banks in sustaining specie payments, to once. now four banks that continue specie Carroll- payThere are Louisiana, Mechanics' and Traders', of Peru, they ments-the too, and Union-and had we the mines should be at now their reaping service. the blessings of will Locofoco follow tamper- experiWe are Experiment until the pubing with the currency. tread upon expedient, resource for ment, and expedient satisfied that there is a but national one currency lic sound will become circulation, and the that nation is passed through the same preTwenty a five years ago in finances endured Governcisely the and same rash fluctuations legislation-unt by creating the General a circulation uawise ment put an end to experiments Sooner or later a like remedy will are for the whole Union. When the inventions to of the quackery old remedy be resorted the to. people will been go found back a specific against the end the exhausted, which. in times past, now has afflicts us. All others, in JONE very will prove disease dead that weights."-[Beean The cashier of the Union Bank called statement, last eve that all inas the drew our had attention suspended, to yesterday's which continued he deemed all an day error, to pay w o Banks the Union Bank had if error it be. When would much demand. as We correct the error, idea the Union Bank It i ma the statement we had But no it did- we saw it done. pay specie that yesterday. the Bank paid out about the Board $200,000. of Currency rumored According to the this last Bank report had of of circulation $536,000. meet th an dated 23th 4710.000-making May, $1,255,000, and to One half depositos quarter $400,000 in specie only. out yesterday million and a is supposed to have than been a million, drawn have a right and is amount creditors laiming more not call? And can the Union will Ban to call to-day. Will they call? That enough of them ma cai can doubt pay take them away if they the do remaining $200,000, no reasonable

8. June 12, 1842 The New York Herald New York, NY

Click image to open full size in new tab

Article Text

Highly Important from New Orleans-Ano ther Suspension of all the Banks-Great Excitement and Consternation. Our accounts from New Orleans last evening are highly important. After a struggle for several days, between the 30th of May and the 3d of June, all the New Orleans banksagain suspended specie payments, except the Union Bank, and that was expected to go by the board on the 4th inst. The effect of this suspension on the banking institutions of the whole southern and western States will be tremendous. This explosion is produced by the want of confidence among the banks themselves-the gross mismanagement of the banking system by insolvent, incompetent and swindling directors, aided by the general distrust of the community in the paper credit system generally. A general repudiation of bank and State debts may now be expected throughout the extreme south-and the revulsion in the cotton market will be tremendous. Every trading operation will be reduced to a cash system-prices will fall-and more failures will take place. The New Orleans banks is only following in the steps of the late United States Bank, and the majority will probably end as it did. But while these melancholy events are taking place the amusements of the gay capital of the South goes on, both on Saturday and Sunday. The following announcement of a Grand Dress Ball for Sun day night, appears side by side with those of the banks :LOUISIANA BALL ROOM, Exchange Alley, near St. Louis street. GRAND DRESS BALL Every Thursday and Sunday. Price, $1. J. ROCK, Manager.

9. June 13, 1842 The New York Herald New York, NY

Article from The New York Herald, June 13, 1842

Click image to open full size in new tab

Article Text

BY THE SOUTHERN MAIL. OCT The Southern Mail had not arrived at the time of our going to press. LATEST FROM NEW ORLEANS-PROGRESS OF THE REVULSION.-Our accounts last evening came down to the 4th inst. The confusion, paralysis, and com mercial fright, was beyond all precedent. The following are extracts:NEW ORLEANS, JUNE 1.-The specie paying banks sustained themselves well yesterday-indeed there was no run upon any but the Union, and that was a slight one. Our citizens seem to have become convinced that the banks that have held out thus far are sound, and no depositors were disposed to draw out specie further than their business wants required. The consequence was, that no run was made yesterday, and the five specie banks remained sound and undisturbed. Should these five institutions prove themselves able to maintain their specie paying stand, our city would be able to boast that pecie was the standard of some of her banks, even if the same banks had no promises to pay affoat? The Union Bank is now believed to be established in her specie-paying position. For the honor of our city it is hoped that she and the other four banks will hold out the hard money flag-though we the people must suffer greatly from being driven to the use of a currency (the only one obtainable for daily use) greatly below par.-Bulletin. REMARKS ON THE MARKET FOR THE LAST THREE DAYS.-Once again is our currency thrown into chaos, and trade may be said to be almost completely paralysed in consequence. In our last Wednesday's report we noticed the suspension of specie payments by the Citizen's and Louisiana State Banks, but strong hopes were entertained that all the others would maintain their position. These hopes, however, have been disappointed. A panic seemed to have seized upon both billholders and depositors, and on Wednesday and Thursday four others, viz : the Consolidated, Canal, Commercial, and City, declared another suspension. The banks which still maintain their payments in specie are the Union, Mechanics and Traders, Bank of Louisiana and Carrollton. We have thus emphatically and literally a "mixed currency," and prices of merchandize partake so much of a similar variety that we find it almost impossible to arrive at correct quotations until matters become more settled. -N. O. Price Current. GEORGIA GOLD MINES.-The Milledgeville Journal states that persons who follow the pursuit of digging for gold in that vicinity, have of late been much stimulated in their labor in consequence of the handsome profits they have in many instances realized. It is said that in the neighborhood of Dahlonga, there are from fifteen hundred to two thousand pennyweights found daily. At one mine, on Battle Branch, there was lately found one lump worth, it is said, one hundred and twenty-eight dollars. It is supposed, from present prospects, that there will be at least from $300,000 to $400,000 realized in that section from the pursuit within the present year. The late success in this business is drawing the attention of many others to it.

10. June 14, 1842 Richmond Enquirer Richmond, VA

Article from Richmond Enquirer, June 14, 1842

Click image to open full size in new tab

Article Text

"There are now four Banks that continue specie payments-the Louisiana, Mechanies' and Traders', Carrollton and Union-and, had we the mines of Peru, they should be at their service." [New Orleans Bee, of June 2d. It will be seen from the above, that in the great Southern Emporium the attempt to resume has been eminently unsuccessful. Later accounts say, that the Union Bank has also given way-so that there are only three standing-and not much hope is entertained for their safety. They have suspended, under the plea that they will again resume on the 5th December, when the law requires them to pay specie-but we fear that in that time they will have gone to "the tomb of the Capule:s." From the great excitement that the papers disclose, there was evidently no confidence in their we much to that the the soundness-and wild favoritism and extravagant developed, have system reason pursued, believe, egregious and the application of the funds to the private benefit of the Officers and Directors, have fully justified this distrust. The canvass, for the August Election in Louisiana, is growing warm. The Democratic papers in New Or. leans are handling the Whig candidates without gloves, as being closely connected with the falling fortunes of the Banks-and, from the spirit displayed, we have but little doubt, that Louisiana, sickened by Federal mis management and broken promises, will return to the great Democratic fold, which she once graced. The pure and warm-hearted Mouton will, we trust, be called to the helm of his native State. We observe, that Judge Bryce, formerly of Winchester, in this State, is battling warmly for a seat in Congress, from the third District. His talents, energy, and true Republican principles, promise him strong hopes of success. By yesterday's Southern Mail. The N. O. Bee of the 6th inst. states that, the Union Bank was still paying specie, and that that Bank and the three others we have mentioned in another article would continue. From the great distrust entertained of them, and from the desponding tone of the Bee, we cannot believe that they will continue long in a state of resumption. We give all the news from Texas. It would seem that the Attorney General has a very extended sphere of duties. His office is a military as well as a ciril one. "The President has appointed General Memucan Hunt, acting Inspector-General of the Republic, with orders to organize the troops that are to be inustered into service. The President intends to order out a certain portion of the troops in each county of the Republic with the exception of four or five. If sufficient volunteers should not enlist, a draft will be made; these are indication of a general gathering for the invasion of Mex. ico. Flacco, a noted Lepan, has lately received a com. mission, or rather, a note authorizing him to command a company of Lepans. He now considers himself a Texian officer, and is very proud of his military rank. The following is the latest intelligence from Corpus Christi: "Col. Kinney was under guard at Monterry. Saverago was on the Sei-Colorado with a few hundred cavalry. The Mexicans were fortifying the public square at Matamoras. A ditch was dug and pickets set up around this square a year ago; but it is a weak defence. It is said that there are 1500 soldiers at Matamoras-we do not believe there are 700. The Mexicans, it ia reported, scout the idea that Texas will be able to invade the country. They will ridicule the idea still more, doubt. legs, when they hear that the invasion is to be made in midsummer! Arista is but ill-prepared to defend the country, and it is believed he will not venture to give 3 battle it 1000 Texians should march against him. We add a few items from Sunday's Picayune : 'News was received in town last evening to the effect that President Houston has convened a special sitting of Congress for the 27th June. "Judge Terrell, the Attorney.General has been sent to the East to concentrate the troops in that section. "The special call for an extraordinary session of Congress in Texas undoubtedly has reference to the much talked of invasion of Mexico, and the present state of affairs in the single star republic."

11. June 16, 1842 Lynchburg Virginian Lynchburg, VA

Article from Lynchburg Virginian, June 16, 1842

Click image to open full size in new tab

Article Text

NEW ORLEANS BANK SUSPENSIONS. There has been a panic created in New Orleans, in consequence of some disagreement in matters of policy among the Banks of that city, and a heavy run was made upon them. followed by the suspension of specie payments on the part of several of the Banks. On the 31st May, the Citizens' Bank and the Louisi ana State Bank announced their intention to suspend specie payments until the 5th of December next. On the 1st instant the Commercial Bank, the Canal Bank and the Consolidated Association Bank also sus pended. The suspension of the City Bank was announced on the 2d instant. The New Orleans Bulletin of the 2d instant, speaking of the suspension of the City Bank, says-"This fact, we feel warranted in saying, settles the question of specie payments in New Orleans for the present. No Bank in the city, that issues notes will redeem them in specie before autumn at least." The Picayune of the 3d instant says "The present specie paying banks are the Mechanics' and Traders," the Carrollton, the Union, and the Bank of Louisiana. All these banks, except the Union, have but a nominal existence. They are neither issuing their own notes, nor discounting those of others; so that their position is a matter of little consequence to the public.Their liabilities are but small, and they are known to have means to meet them: there is, therefore, no anxiety-no excitement regarding them. It was not so yesterday with the Union Bank. There was a brisk run on her in the morning, but she promptly aswered all demands with silver.--Thiscreated confidence in her behalf, and long before the time for closing her doors the "run" declined to a very easy "walk," her counter in the meantime being filled with specie." It is said that two persons had died from injuries received in the crowd at one of the Banks. The New Orleans Courier of the 1st says "More than six hundred thousand dollars, !in specie, it is said. will have been exported from New Orleans during the fortnight ending Jane 4." The following are extracts from letters. New Orleans, May 31. "There was a run made on the Citizens' Bank yesterday. About 12 o'clock the crowd increased and commenced drawing specie from the State Bank and the Consolidated Bank. This morning the Cashiers of the Citizens' and State Banks have announced that they have suspended until the 5th December next. the time given by the Legislature. It is said that the Citizens' Bank has $500,000 in sterling exchange, which she has not been able to sell. No person appears to know what caused the run on the Banks. The Consolidated Bank has not suspended." "June 1. "The Consolidated Bank has suspended specie payments. The holders of her notes having lost confidence, owing to the suspension of the Citizens' and State Bank, made a run on her yesterday. The crowd was great, and the day being very warm. several persons fainted. and were carried cut of the Bank apparently lifeless.The run continued from 9 until 2 o'clock, and amounted almost to an impossibility to reach the paying teller's counter. Men were seen coming cutas wet from pers.

12. June 16, 1842 Martinsburg Gazette Martinsburg, WV

Article from Martinsburg Gazette, June 16, 1842

Click image to open full size in new tab

Article Text

LOUISIANA BANKS. The excitement in New Orleans has subsided, and the run on the Banks was over on the 4th inst. The Union Bank continued to pay specie for all demands upon it.

13. June 18, 1842 Richmond Palladium Richmond, IN

Article from Richmond Palladium, June 18, 1842

Click image to open full size in new tab

Article Text

Suspension of Specie Payments in N. Orleans We learn from the N, O. Picayone of the 31st ult., that in consequence of the paper of the Cit. izens' bank of that city being refused by the oth er banks, and distrust in others thereby revived, that a severe run was made on the Citizens', Con solidated and Louisiana banks, in consequence of which the Citizens' Bank, together with the Lou isiana State Banks all suspended the payment of specie on their notes until December next. The same paper of the 3₫ inst. says:-The present specie-paying banks are the Machanics' and Traders', the Carrolton, the Union, and the Bank of Louisiana. All these banks, except the Union have but a nominal existence. They are neither issuing their own notes, nor discounting those of others; so that their position is a matter of little consequence to the public. Their liabilities are but little, and they are known to have means to meet them; there is, therefore, no anx: iety - no excitement regarding them. 1: was not so yesterday with the Union Bank. There was a brisk run on her in the morning, butsite prompt ly answered all demands with silver. This created confidence in their behalf, and long before the time for closing her doors the "run" declined to a very easy walk, her counter in the meantime being filled with specie.-Balt. Clipper.

14. June 21, 1842 The Daily Madisonian Washington, DC

Article from The Daily Madisonian, June 21, 1842

Click image to open full size in new tab

Article Text

Fram the New Orleans Advertiser. THE BANKS AGAIN. A new move has been attempted in relation to the management of our Banks. The Board of Currency called a meeting of the Presidents, and suggested that the present specie paying Banks should suspend until December next, for the purpose of equalizing the value of the different notes. This is a singular step on the part of the Board of Currency. If the proposition was agreed to, it would make the notes, not all equally good, but all equally bad. The President of the Board, Mr. R. D. Sheppard, was opposed to it, and in consequence resigned his office. The proposition was promptly refused by the Presidents of the Bank of Louisiana, the Union Bank, and the Mechanics and Traders Bank, who declared that under no circumstances will they again suspend. We applaud them for their honesty and firmness of purpose-and we think that course the most advantageous to their interests, the opinion of the Courier to the contrary notwithstanding. They no doubt have discovered ere now how much more satisfactory it is to transact their business on the specie basis, with the confidence of the community assisting and cheering them in the good work. We have it on undoubted authority that the three honest Banks can neither be coaxed nor coerced into a deviation from the correct line of conduct. They occupy a strong position, and are fully able to sustain it. The Carrolton Bank agreed to suspend, but as it is in a state of liquidation, having very few notes out, it is not of much consequence. In the meantime, the rotten Banks are all at loggerheads among themsolves, refusing each other's notes, as each tries to appear better than its fellow. The discount on their notes varies occasionally, according to the demand or supply in the market. The following are latest rates-

15. June 23, 1842 The Ohio Democrat New Philadelphia, OH

Article from The Ohio Democrat, June 23, 1842

Click image to open full size in new tab

Article Text

EXCELLENT SENTIMENTSOF / DEMOCRATIC GOVERNOR. Governor Hubbard, in his address 10 the New Hampshire Legislature, now in session, introduces the constitutional cause of Rhode Island in the following language: 'There has been of Late in one of the States of the Union, a controversy of a most extraor. dinary aracter; controversy involving the of the right of the people self a u. grave governmen'; question right well protected by No to niversal euffrage and equal legislation.' of so serious importance many the question occupied attention of the has American for as that now in the of years people, agitated State Island. Goverened by a charter granted at a time when were not acknowto a ledged popular exist; posseesing rights small territory and the have until the time, scanty population, present people delayed of the taking State that s ep which the other Sta'es of the Union deemed of paramount importance, that of adop ting a written Constitution, recognizing certain and powers principles clearly defining of the of the various departments Government. it is not as of Why competent for the people sdopt Rhode Island at the present time, 10 a writen Constitution AS it was for the people of New Hamp-hire in 1792, no friend of pop. ular 18 ablet an State of this dependent rights understand. Union, New As Hampe ID" cannot fail to every come from whatever may, to the movement, shire regard of with the deep quarter people- solicitude it to bring tendinig their influence within the as we do under a political ileges. abridge Living sovereignty control constitution, of exclusive the the prive dechoice of the and of and individual from our warmest must spring sing liberate political it, people, sympathies appreciating independence be excited which blesfor those who are struggling for the same advantages. Their cause must in the end prevail, and our earnest prayer must be that these great blessings may be obtained at the smallest sacrifice of internal peace and private happiness." HIGHLY IMPORTANT FROM NEW ORLEANS. Our accounts from New Orleans evening are high ly important After a struggle for several days between the 30th of May and the 3d of June, all the New Orleans banks again suspended specie payments, except the Union Bank, and that was expected to go by the board on the 4th inst. The effect of this suspension on the of the wes tern be tremendous. pro. banking States will institutions confidence whole This southern explosion the banks and is them duced the want of among selves--the mis-management sysincompetent and by insulvent, gross of swindling the banking directors the distrust the State debts may now be of paper aided temby bank credit by and system general generally. of the A general community expected repudiation through- in and the cotton will be tremendous. market out the extreme south; Every revulsion trading will in the fall; operation wil be reduced to a cash system; prices and more failures will take place. The New Orleans banks 18 only following in the steps of the late United States Bank, and the majority will probably end as it did. N Y. Herald. ANOTHER DUEL NIPPED IN TH E BUD.--The recent dieplay off honoradle men in settling die. putes of honor in an honorable way at the seat of the national government, has created such a rage for such amusement in our Gothamite city, that no less than three challenges have passed within as many weeks, all of which fortunately have resulted in the shedding of more ink than claret. The evil genius again presented himself on Monday. A4 follows:MONDAY, NEW YORK, JUNE 6th. Miss MARY RUFUS:~ I received your challenge and accept of it with pleaeure-you will meet me with your seconds at the corner of E'm and Centre, at the_hour of 8 this evening without fail, and of you dont I shall consider you coward. Youre. Miss REBECCA GIBBONS. The parties are of that sable hue and genus vulgarly called fancy wenches, and Miss Mary Rufus being a considerable shade nearer while than Miss Rebecca Gibbons, and bethat [the corner not to be diggins, streets lieving was found of in Elm these and Centre she treated the challenge with supreme contempt and refused to fight. "because she was not exacily of her color." Miss Rebecca the a taunt Gibbons elung, 10 quick evade with such honorable and cowardly altempt 10 an meeting immediately seized a carving knife to run her antagoniet to the heart, when officer Stevens eeized and Justice Merritt order ed her deposited in a cool stone cell, all down to reduce her courage to a of below, Love, state and congressional moderation. rum the hot weather of Monday was the origin of the affair.-New York Herald. DECLINING Mr. Pendleton, member of Congress, elected in Ohio by pipe laying, from the Cincinnati district, declines standing as a canfor again. didate Congress We learned, affairs' whileat Washington, that the 'private

16. July 17, 1842 The New York Herald New York, NY

Article from The New York Herald, July 17, 1842

Click image to open full size in new tab

Article Text

It appears that the Union Bank of New Orleans and the Mechanics' andTraders' Bank have failed, under the strong opposition which they encountered from the broken Banks The Bank of Louisiana is now the only sound bank remaining in that city. How she will be able to breast the storm is a problem. These failures may again cause the banks of Tennessee and Louisiana to hesitate in their resumption. The probability now is that nearly all the banks at New Orleans will be forced into liquidation Utter insolvency has apparently overtaken them. If the Union and the Mechanis' and Traders' pursue the right course, they may be able to recover themselves at the time prescribed by law; but of the others there is no hope, and the sooner the popular will puts them down the better for all parties. The question of a tariff is debated in Congress with various success. The high tariff men appear like "Sancho Panca, to have got into a labrynth of lies," from which the cool intelligence of the opposition is making hourly more difficult for them to escape. It is a little astonishing that a man like Mr. Appleton, of Boston, who can write a good deal of sound sense, should in Congress talk in the style which characterised his speech of July 5, on the ta* riff. His ostensible object is to protect a certain manufacturer, and he talks as follows :Many of the print works are now suspended, whilst the importers have equally found it a losing speculation. It will readily be perceived that this branch of manufacture requires a comparatively high protection, in order to in. duce the great outlay necessary to bringing out the higher class of printed goods. At the same time, nothing furnishes a fairer subject for revenue. Both the French and English Governments grant a copyright for designs or patterns; the English for only three months. The gentleman from Georgia referred to a report of my respected colleague (Mr. Adams) to sustain his argument against the minimum principle. This has been properly and well answered by the gentleman from New Jersey, (Mr. Randolph.) He referred to the graduated scale of duties on woollens, improperly called minimums. The fact is, the operation of the cotton minimum was so successful in extending the manufacture and reducing the price, that the attempt was made to apply the same principle where it was not applicable, as in the graduated scale on woollens. In flannels was otherwise, and the success was complete." A protective tariff is intended to act as a stimulus to excite labor into full and productive action. He states here that the importers, as well as the manufacturers, are suffering losses from their business. It must then be pretty evident that the cause of the distress is general, and does not arise from a low tariff. He then states that prints require protection, that they are a fit subject for revenue, and ultimately that prices will be reduced by the stimulating action of a protective tariff. These assertions appear to us contradictory in their nature. Protection must be derived from prohibition or from increased prices-if the former no revenue can be derived from the protected article. If from the latter the consumers necessarily pay a tax to the manufacturers. If prices are reduced there can be no benefit whatever derived to the manufacturer, and his pretences are false, and criminal, inasmuch as he seeks, by indirection, to deceive the masses of the people. The luminous and eloquent speech of Mr. Pickens, of South Carolina, of June 22, on the high tariff policy, breaks with a strong hand through the flimsy fallacies of the advocates of oppression, and strikes with a sure hand at the root of the existing evils. A most britliant speech is wound up with the following just vein :Mr. Chairman, in pressing any tax upon our importations in the present state of the commercial world, we must take into consideration the contracted state of our currency and circulation: and also that the interest on our debt abroad. amounting to near $10,000,000 annually, must be paid out of our exports, and will fall in some measure as a tax on our imports. Under these circumstances our commerce cannot bear a tax of 36 per cent. It will inevitably be avoided by smuggling, which will prove a benefit to British tonnage. (as far as the supplies of the interior west, through the St. Lawrence, may be concerned), and an injury to ours. You will be disappointed in your revenue; and those who expect protection will be

17. July 19, 1842 Richmond Enquirer Richmond, VA

Article from Richmond Enquirer, July 19, 1842

Click image to open full size in new tab

Article Text

The Tables turned'- We hope. The news of the election in New Orleans had cheer ed up the Whigs-and filled their trumpet of triumph. They expected to carry the whole State. But the victory in the city turns out not to be very homorable to them, and their triumph in the whole State seems about to turn to dust and ashes. In the City, it is true, they have carried their ticket by a majority of 251-The New Orleans Jeffersonian says: "Even this lean majority was obtained by one of the most open barefaced and disgraceful frauds ever perpetrated upon popular rights. Of the full extent of this fraud we have at present no knowledge, but we have no doubt that by the investigation which will be made, it will be found to have extended to the manufacture of at least 500 votes. On the 4th day of July, Mr. Michel Aime and others signed tax receipts in blank, for car. riages, negroes, &c., which were left at the office of J. P. Benjamin, one of the Whig candidates, and with the different Whig committees at the polls, where they were filled up and delivered to every loafer who would vote the Whig ticket. Men who had never owned a wheelbar. row, became voters by their receipts for taxes on their carriages- Men who have not a whole shirt to their backs had tax receipts for their negroes and voted the Whig ticket. The following is a copy of the receipts by which the 187th of these votes was made. It was signed by Michel Aime in blank-and filled up by J. P. Benjamin, &c." The Jeffersonian states, as the first fruits of this Whig victory, that "The Union Bank, and the Mechanics' and Traders' Bank suspended specie payments on the morning of the 5th day of July, 1842. No wonder those Whigs in white hats and gold watch guards bel-

18. July 21, 1842 Martinsburg Gazette Martinsburg, WV

Article from Martinsburg Gazette, July 21, 1842

Click image to open full size in new tab

Article Text

NEW ORLEANS BANKS.--T'wo - more of the Banks of New Orleans suspended specie payments on the 5th instant namely, the Union Bank and the Mechanics' and Traders. The Louisiana and Gas Banks are now the only specie paying institutions in that city.

19. July 28, 1842 Staunton Spectator, and General Advertiser Staunton, VA

Article from Staunton Spectator, and General Advertiser, July 28, 1842

Click image to open full size in new tab

Article Text

New ORLEANS BANKS.-T'wo more of the Banks of New Orleans suspended specie payments on the 5th instant, namely, the Union Bank and the Mechanics' and Traders'. The Louisiana and Gas Banks are ROW the only specie paying institutions in that city.

20. August 26, 1842 The Yazoo Whig and Political Register Yazoo City, MS

Article from The Yazoo Whig and Political Register, August 26, 1842

Click image to open full size in new tab

Article Text

Bank Note Table, Corrected Weekly, NEW-ORLEANS MONEY MARKET. Adapted for Yasoo City Market. Gas Light and Banking Company, par. Bank of Louisiana, par. SUSPENDED BANKS. 25 dis. City Bank of New Orleans, 8 Mechanics and Traders', " Union Bank, 12 " 18 State Bank, " 30 Canal Bank, " 20 Commercial Bank, " Consolidated Bank 35 u 25 Carrollton Bank, " 45 Citizens' Bank, REPUDIATED BANKS, Exchange Bank, 25 c per dol. 30 c dob Improvement do. 25 c Bank of Orleans, 15 c do. Atchafalaya, Blue Backs, 60 to 55 pr d. MUNICIPALITY NOTES. Municipality No. 1, 8 pr ct. dis. " 8 No. 2, sb No. 3 50 40 Alabama, n 8 Tennessee, South Carolina, par. Kentucky, par.

21. March 7, 1843 Wheeling Times and Advertiser Wheeling, WV

Article from Wheeling Times and Advertiser, March 7, 1843

Click image to open full size in new tab

Article Text

BANK FAILURE AT NEW OR. LEANS-We learn Iro : the New Or. leans papers that the I commercial Bank of that city suspended payment on the 20th ult. The circomstance IS thus no. ticed in the Bee of the 21st: The city was yesterday was thrown into real confusion by the announcement. in the morning, that the Commer cial Bank had stopped payment. This fact was astound ng as no run had been made upon it of late, and some little con fidence was beginning again to be felt in our monetary institutions The cau. ses which lead to this result, must have grown out of the previous m magement. whereby she was SO much weakened as to be unable to stand up against the natural demands and exactions of coin merce She actually feil from exhaus tion. As was to have been expected from so untowa.d an event, the note holders, and n some instances the depositors, took thealarm and made a run upon the oth er tanks. T e Mechanics and Traders, and the City Bank had to stand thebrunt of the panic. They both paid out spe cie with great alacrity; neither made a ny attempt to evade the run upon herevery officer being engaged in counting out the dollars to those who wanted them. Towards three o'clock. the run upon the City Bank greatly abatel; but the Mechanics and Traders kept her dcors open for two hours after the usual time to accommodate such as desired to ex charge her notes for specie. Upon the State, Union and Canal Banks, the run was very trivial. In the height of the panic, the Com mercial Bank were sold as low as 40 per cent. discount; but towards the close of the day, they rallied and were readily exchanged at 25 a 26 per cent discount.

22. March 8, 1843 Edgefield Advertiser Edgefield, SC

Article from Edgefield Advertiser, March 8, 1843

Click image to open full size in new tab

Article Text

[From the N.O. Bee of 21st inst.] The Banks.-Failure of the Commercial Bank.-The city was, yesterday. thrown into real confusion by the announcement. in the morning, that the Cemmercial Bank had stopped payment. This fact was the more astounding as no run had been made upon it of late, and some little confidence was beginning again to be felt in our monetary institutions. The causes which led 10 this result, must have grown out of the previous management, whereby she was so much weakened as to be unable to stand up against the natural demands and exactions of commerce. She actually fel' from exhaustion. As was to have been expected from so untoward an event, the note holders. and in some instances the depositors, took the alarm and made a run upon the other bauks. The Mechanics and Traders, and the City Bank had to meet the brunt of the panic. They both paid out specie with great alacrity; neither made any attempt to evade the run upon her-every officer being engaged in counting out the dollars to those who wanted them. Towards 3 o'clock, the run upon the Bank City greatly abated; but doors the Mechanics and Traders kept her open for two hours after the usual time to accommodate such as desired to exchange her notes for specie. Upon the State, Union and Canai Banks the run was very trivial. In the height of the panic, Commercial Bank notes were sold as low as 40 per cent. discount; but towards the close of the day they railied and were readily exchanged at 25 a 26 per cent discount. It is not to be expected that the community will feel easy under such shocks upon confidence; but yet we believe that there are a number of banks in the city which are perfectly able to live through the worst of panics. We have not ascertained the amount of specie lost by the various banks, nor do we think it necessary to go into the partieulars of yesterday's flare up. We would, however caution bill holders .ne to part with their notes under an apprehension of their not being good. The assets of the Commercial, we venture to say, are equal to the redemption of every bill of hers in circulation. Some time may elapse before her resources are realized. The whig candidate for Mayor of New Orleans was elected on the 20th instant. Mr. Freret had 1289 and Mr. Genois, the democratic candidate, bad 974.

23. October 9, 1843 The New York Herald New York, NY

Article from The New York Herald, October 9, 1843

Click image to open full size in new tab

Article Text

exports, 108,381 By a resolution of the board of directors of the Union Bank at New Orleans, adopted unanimously, the Bank is to go immediately into liquidation, unless, prior to December 1st, some compromise could be entered into with Baring Brothers, relative to the State bonds issued to the Bank for $1,750,000, and falling due in November, 1844. The condition of the Bank is such, that the payment of the February interest is very doubtful. The Bank of England, at a late meeting of the proprie-tors, was enabled to declare a semi annual dividend of 3½ per cent only, by taking £7,167 of the amount from the surplus. To make up the lest semi-annual dividend, £5,864 was taken from the surplus fund, making £13,031 divided for the year beyond the profits of the institution. This is an indication of the same state of affairs in London as here. The following is the public debt of the city of Nashville, Tennessee :- # DEBT OF THE CITY OF NASHVILLE, TENN., SEPT. 30, 1843. To Pennsylvania Ins. Co., due 1855. $50,000 "Union Bank of Tenn., 1855-60-65. 50,000 "S. & J. Stacker, for pipe, 1842 3-4-5. 4,853 Outstanding accounts. 8,072 Total. $112,925 The condition of the country now is such as to alarm those architects of ruin, who, at a time, when the currency of the country had lost its expansive power, and had reached the stable foundation of specie, passed a tariff for party and sectional purposes, which has destroyed commerce. This startling fact is evident, from the imports into the whole United States for the year ending September 30, 1843. They amount only to $50,000,000!! A smaller amount than any year during the present century with the exception of the two years of war, 1813 and 1814. They are less than under Jefferson's embargo, notwithstanding that the population, wealth and resources of the United States have increased so prodigiously. This fact is the more interesting to the citizens of New York, when it is considered that two-thirds of the commerce of the Union centres here. What will become of our navy, our marine, and our national character, if this worse than Chinese policy is persisted in? How frequently do the advocates of commercial ruin, appeal to the old restrictive policy of England, as the means of her greatness. At what period of the world was the English protection confined to one branch of her industry at the expense of all the rest? The first care of her government has ever been to foster her shipping interest; for that was the navigation act passed. It was a mistaken policy, which she has nearly abandoned, although while Europe was continually at war, and the United States were her colonies, she became great in spite of her restrictions. At this age of the world, when all the nations of the earth have come into the field of commerce in competition, and the greatest success depends upon the greatest skill, industry, and economy, the United States have voluntarily destroyed their own commerce, in order to benefit a class of manufacturers, who to the whole population, are as one to 1 to 20. In the midst of a commercial community surrounded by 350,000 persons, whose business has been lessened $50,000,000 in one year, the Courier calling itself a commercial paper, stated as follows on Saturday:- What in this is most gratifying to the patriot, is the fact that the evils which the Free Trade Party predicted would follow, have not resulted from the adoption of that wise measure; on the contrary, all the good has been accomplished that was anticipated by the most sanguine advocate of the protective policy; if we except only the shipping interests, which although suffering, is gradually adapting itself to the new state of things. This is consoling, indeed. The shipping interests of a great nation—the nursery of our navy, on the efficiency of which alone the political influence of the Union depends, is doing the best it can under hostile legislation.--Yet we are told that "all the good has been accomplished that was anticipated from the tariff." The customs receipts for the year for the whole Union are short of $11,000,000! while the ordinary expenses have been $23,000,000. The necessary result has been a large debt and a deficit of $5,000,000 in the means of the Treasury between now and the 1st of January. This perilous condition of the Federal Treasury, is the inevitable result of the embargo on commerce, it is, which alarms those who have brought it about. To supply the deficit there exists authority to issue Treasury notes bearing an interest not exceeding 6 per cent. The projected movement of the Secretary in issuing these notes at a nominal interest and making them payable on demand, is an evil which has necessarily grown out of the present tariff. The Government was deprived of its revenues by the tariff, and allowed to issue Treasury notes bearing interest. The same tariff, by ruining commerce, destroyed the demand for money. The Government is obliged to borrow, and the Secretary takes advantage of the market to do so on the best terms he can, and this is to borrow the money, not of the banks, but of the people at large. If the notes bearing a high rate of interest are issued to the banks, the banks will issue their paper money to the people. The operation will then be for the Government to pay the banks $300,000 per annum, and the people will hold as a circulating medium $5,000,000 of bank paper money. By the proposed project the people hold the Government paper directly, without expense to the Treasury. If the banks took the notes they might issue any quantity of their own bills they please.---The Government cannot issue more than $5,000,000.-Thus the worst feature of paper money, unlimited issue, is removed. The Richmond Enquirer is in error in supposing that we advocate government paper money as a general thing, any more than we advocate public debt-But the debt has been created, not by the Executive, but by the infamous tariff, which has crushed commerce, ruined the business of thousands, and deprived the Government of revenue. One object of the tariff party is to create a national debt, which has already swollen to $25,000,000, at an annual expense of $1,250,000. Now we advocate the movement of the Treasury on the ground that it is the best and cheapest mode in which a debt, created by party iniquity, can be contracted, and to exist only until the people have remedied the matter. When the public debt bears no interest it affords no plunder to the stock jobber. On Friday we published the imports of free articles, into the United States for the years 1842-1843. We now annex the imports of articles paying duties ad valorem, as follows:- # IMPORTS INTO THE UUITED STATES, PAYING DUTIES AD-VALOREM, IN 1841 AND 1842. 1842. Quant'y Value, Quant'y Value.