7754. banks in New Orleans (New Orleans, LA)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
October 11, 1861
Location
New Orleans, Louisiana (29.955, -90.075)

Metadata

Model
gpt-5-mini
Short Digest
7b0f0c79

Response Measures

None

Description

Newspaper reports from Oct 1861 state that banks in New Orleans had suspended amid the blockade and fears of government seizure. Subsequent May 1862 reports describe Gen. Butler seizing the Canal Bank and the Smith Bank and taking possession of vaults and offices — an act of government seizure/takeover. No explicit reopening is reported; seizure implies government action/takeover consistent with permanent closure or at least government control. Bank type unclear from the articles; multiple banks are referenced collectively.

Events (2)

1. October 11, 1861 Suspension
Cause
Government Action
Cause Details
Banks suspended operations amid the Union blockade and fear of government seizure of specie and assets.
Newspaper Excerpt
The banks had suspended and were anticipating a seizure of their specie
Source
newspapers
2. May 23, 1862 Receivership
Newspaper Excerpt
Gen. Butler also seized the Canal Bank and the Smith Bank, and he has issued inflammatory proclamation... He also seized the Canal Bank and the Smith Bank, and he has issued inflammatory proclamation to incite the poor, promising to distribute to the poor ... He also seized the offices of the French and Spanish Consulates, in the old Canal Bank and placed a guard there. He also seized the Canal Bank and the Smith Bank, and he has issued inflammatory proclamation to incite the poor, promising to distribute to the poor 1000 bbls. New The of He beef ... (article describes Butler taking possession of banks and vault keys.)
Source
newspapers

Newspaper Articles (2)

Article from The Caledonian, October 11, 1861

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Article Text

he landed and took a horse. He passed through Sevier county, and a part of Polk, into the Indian territory, his secession uniform and his dispatch to McCullough proving a sufficient passport. He finally reached Fort Scott, and from thence came up through Kansas to St Joseph, where he took to the rail, which brought him to St Louis. As soon as he came in view of the stars and stripes, he exchanged his military for a civil suit which he had brought in his traveling bag. Mr Wright confirms the previous accounts from New Orleans. He is certain there is a great deal of suppressed Unionism. The blockade of the Mississippi was drawing closer-still vessels continued to arrive and depart through the "passes," though not so frequently as formerly. The slaves were quiet, but the inhabitants were under constant apprehensions of a rising. Some inconsiderable insurrections had taken place, but they were speedily put down. The business of New Orleans was prostrated, and there was nothing doing except in the necessaries, and these were scarce and high. The poorer class suffered terribly, but most of the men had gone to the war. The banks had suspended and were anticipating a seizure of their specie-of which they held some $12,000,000-by the government. There were great fears of an attack upon the city by a naval expedition, and preparations for defense were making on quite an extensive scale.


Article from Vermont Watchman and State Journal, May 23, 1862

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Article Text

FROM THE SOUTH, The New Orleans Delta says that 15,000 bales of cotton were burnt in that city on the approach of our gunboats to the city.The tobacco, being all held by foreign residents on foreign account, was not destroyed. The specie of the banks, to the amount of twelve or fifteen millions, was removed from the city and deposited in a secure place. The Memphis Appeal says the Government wants and must have all the tin on the roofs of the common sheds in that city. The Baton Rouge Advocate has closed its doors and suspended publication on account of the approach of the Federal gunboats. Col. Voseen, commanding the post at Memphis, published a special order of Gen. Beauregard, requiring all the banks, persons and corporations to take Confederate money at par and all persons will distinctly understand nothing in the least degree tending to discredit the operations of the Government, will be tolerated or treated as anything but disloyalty. The Memphis Appeal of the 15th contains the following dispatch, addressed to the rebel Secretary of State: Camp Moore, May 11. -Gen. Butler yesterday took forcible possession of the office of the Consul of the Netherlands, searched the person of the Consul, and took from him the key of a bank vault in which were $800,000, transferred by the Citizens Bank to Hope Bank of Amsterdam, intended for the payment of the interest of the Confederate bonds. Gen. Butler also took possession of the offices of the French and Spanish Consulates, in the old Canal Bank and placed a guard there. He also seized the Canal Bank and the Smith Bank, and he has issued inflammatory proclamation to incite the poor, promising to distribute to the poor 1000 bbls. New The of He beef is recruiting and sugar in captured New Orleans. in Orleans. poor will soon be starved. The enemy have sent up a force to Bonnecarre, which marched through the swamps and destroyed the Railroad bridge." The Richmond papers of the 16th have been received. They contain a correspondence between the Virginia Legislature and Jeff. Davis, in relation to the recent movements of the rebel army. Davis states that he has never entertained the thought of withdrawing the army from the course the that State if, of in Virginia, the and abandoning of events, capital State should fall, the necessity of which he did not see or anticipate, that would be no reason for withdrawing the army from Virginia The war could still be successfully carried on and maintained on Virginia soil, and for 20 years