banks in New Orleans - New Orleans, LA

Bank Information

Episode Type: Run → Suspension → Reopening
Bank Type: state
Start Date: October 16, 1857
Location: New Orleans, Louisiana (29.955, -90.075)

Metadata

Model: gpt-5-mini
Short Digest: 65f34f7a

Response Measures

Full suspension

Description

New Orleans banks experienced runs (notably on the Citizen's Bank) during the Panic of 1857, suspended specie payments in mid-October 1857, and resumed specie payments by late November 1857. OCR errors in the source (spelling and punctuation) were corrected when extracting dates and quotes. The episode concerns multiple banks in New Orleans rather than a single institution.

Events (3)

1. October 16, 1857 Run

Cause: Macro News
Cause Details: Run occurred as part of the wider 1857 financial panic that reached New Orleans and precipitated bank runs.
Measures: Officers secured the vaults, mounted counters to hold back crowd; police sent (mayor dispatched specials and 60 additional policemen); bank paid out about $150,000.
Newspaper Excerpt: When the door opened a scene of the wildest confusion followed... By one 'clock the rush had subsided considerably, and when the bank closed at three—having paid out about $150,000
Source: newspapers

2. October 16, 1857 Suspension

Cause: Macro News
Cause Details: Banks suspended specie payments in response to the panic of 1857 and heavy withdrawals associated with runs and general loss of confidence.
Newspaper Excerpt: All the banks in this city suspended specie payments this morning.
Source: newspapers

3. November 27, 1857 Reopening

Newspaper Excerpt: Resumption of Specie Payments. A dispatch from New Orleans announces that the banks in that city, which suspended specie payments during the late panic, have again resumed.
Source: newspapers

Newspaper Articles (5)

1. October 20, 1857 The Davenport Daily Gazette Davenport, IA

Article from The Davenport Daily Gazette, October 20, 1857

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Article Text

Financial Incolligence. NEW York, Oct. 17. Messre. Winslow, Lanier & Co., Brokern, have suspended The rates for uncurrent money are be coming easier. State at 1-2al per cent. Eastern at 2 per cent., Philadelphia at 2n3 per cent., Pennsylvania 546 per cent., and Western and Southern 5a10 per cent. NEW OKLEANS, Oct. 16. All run on banks has ceased. Confidence is restored, and no failure. are reported. The suspended free banks contemplate an early - are more cheer. ful and easier. Accounts, Ga, Oct. 171 All the banks in this city suspended specie payments this morning. CINCINNATI, Oct. 15 At a meeting of the bankers this morning, it was decided to receive at par the notes of all Now Orieans banks, and mil banks, that are bankable in New York, Boston, Philadelphia, Pittaburgh and Baltimore. This causes H much improved feeling in the money market.

2. November 6, 1857 American Union Morgantown, WV

Article from American Union, November 6, 1857

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Article Text

The Bank at New Orleans. As the telegraph informed us sever. al days ago, when the "crisis" reached New Orleans and the banks commenced. suspending, there was intense excitement, which has since died away.The Crescent, describing the scene on the occasion of the run on the Citizen's Bank, says: "When the door opened a scene of the wildest confusion followed. The crowd acted like Bedlam broke loose— scrambling, fighting, shouting, losing hats and coat tails, and deasely jamming the interior of the bank in an instant. The bank officers, finding themselves beseiged by a crowd of madmen secured the vaults and mounted the counters to keep the crowd from seram. bling over. Other, outside, tried to clamber in at the windows, but were hurled back. Intelligence of this being sent to the chief of the police, that officer dispatched all his specials to the scene. They arrived, fought their way through the crowd to the counter and th n turned against them. They got an iron door-bar, with which they faced the crowd, having to fight freely with their fists at the same time, some of the besiegers being highly beligerent. "Finally the mayor had to send down sixty additional policemen, who managed to preserve something like order, when the work of redeeming the notes commenced. For several hours was the rush kept up and the panorama of faces—men of all classes and color, women ditto and boys-was variegated in the extreme. Anxiety, fright, grief, and in some cases the wildest despair were visible in the faces which streamed into the Bank. We never witnessed such a spectacle. Everybody seemed to think he or she was just a little too late. By one 'clock the rush had subsided considerably, and when the bank closed at three-having paid out about $150,000-the calls were comparative. ly moderato. One man with $120 in silver, purchased of his acquaintances in the fourth district $380 in notes on the Louisiana and Citizens' Banks. Another bought $40 on the Louisiana with $20 in specie, and $50 on the Citizen's with $18. Another man bought a check on James Robb for $37 with $3 in cash. Many others permitted themselves, in the excitement to be swindled to the same ex. tent. One man in the crowd had his coat tail containing $1,000, cut off by some wary sharper, and another had his pocket picked of $600.

3. November 27, 1857 The Bedford Gazette Bedford, PA

Article from The Bedford Gazette, November 27, 1857

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Article Text

Resumption of Specie Payments. A dispatch from New Orleans annuounces that the banks in that city, which suspended specie payments during the late panic, have again resumed. This is agreeable intelligence, and we hope to see our own and other suspended banks adopt the same course at an early day. The banks of Boston, it is said, are prepared to resume. Specie is rapidly pouring into New York, and a letter from that city, dated Tuesday evening, says: Our city banks are now so strong in their specie reserves (20,000,000) that they are abundantly able to resume spece payments. Some of the prominent bank men in the street to-day said they are willing to take that step as soon as the country banks are ready to "second the motion." In point of fact, specie payments at the counters of the principal banks are already resumed. Gold is 80 plenty that the suspension is only nominal. While these cheering signs are visible in financial circles there is much to encourage a hope of better times elsewhere. Many of the up-town shops that were panic struck a few weeks since, are taking back some of their discharged hands, and preparing to resume buisness. The grading of the Central Park is going to give work to 1,000 laborers nearly all winter, & it is expected that by the 1st of January 500 more will find something to do on the new post-office, to be built at the lower end of the park. The New York Journal of Commerce estimates that the specie in the banks of that city this week will equal $20,000,000 : a larger amount by several millions than was even in the banks before.

4. November 27, 1857 Wilmington Journal Wilmington, NC

Article from Wilmington Journal, November 27, 1857

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Article Text

From the Baltimore Sun. RESUMPTION OF SPECIE PAYMENTS.-A despatch from New Orleans announces that the banks in that city, which suspended specie payments during the late panic, have again resumed. This is agreeable intelligence, and we hope to see our own and other suspended banks adopt the same course at an early day. The banks of Boston, it is said, are' prepared to resume. Specie is rapidly pouring into New York, and a letter from that city, dated Tuesday evening, says : Our city banks are now SO strong in their specie reserves ($20,000,000) that they are abundantly able to resume specie payments. Some of the prominent bank men in the street to-day said they are willing to take that step as soon as the country banks are ready to 'second the motion.' In point of fact, specie payments at the counters of the principal banks are already resumed. Gold is SO plenty that the suspension is only nominal. While these cheering signs are visible in financial circles, there is much to encourage a hope of better times elsewhere. Many of the up-town shops that were panic-struck a few weeks since are taking back some of their discharged hands, and preparing to resume business. The grading of the Central Park is going to give work to 1,000 laborers nearly all winter, and it is expected that by the 1st of January 500 more will find something to do on the new post office, to be built at the lower end of the Park." The New York Journal of Commerce estimates that the specie in the banks of that city next week will equal $22,000,000-a larger amount by several millions than was ever in the banks before.

5. December 1, 1857 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN

Article from Memphis Daily Appeal, December 1, 1857

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Article Text

RESUMPTION OF SPECIE PAYMENTS.-A dispatch from New Orleans, says the Baltimore Sun, announces that the banks in that city, which suspended specie payments during the late panic, have again resumed. This is agreeable intelligence, and we hope to see our own and other suspended banks adopt the same course at an early day. The Banks of Boston, it is said, are prepared to resume. Specie is rapidly pouring into New York, and a letter from that city, dated Tuesday evening, says: " Our city banks are now 80 strong in their specie reserves ($20,000,000) that they are abundantly able to resume specie payments. Some of the prominent bank men in the street to-day said they are willing to take that step as soon as the country banks are ready to 'second the motion.' In point of fact, specie payments at the counters of the principal banks are already resumed. Gold is 80 plenty that the suspension is only nominal. " While these cheering signs are visible in financial circles, there is much to encourage a hope of better times elsewhere. Many of the up-town shops that were panic-struck a few weeks since are taking back some of their discharged hands, and preparing to resume business. The grading of the Central Park is going to give work to 1,000 laborers nearly all winter, and it is expected that by the 1st of January 500 more will find something to do on the new Post Office, to be built at the lower end of the Park." The New York Journal of Commerce estimates that the specie in the banks of that city next week will equal $22,000,000-a larger amount by several millions than was ever in the banks before.