7755. banks in New Orleans (New Orleans, LA)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
state
Start Date
May 14, 1867
Location
New Orleans, Louisiana (29.955, -90.075)

Metadata

Model
gpt-5-mini
Short Digest
72581eab

Response Measures

Full suspension

Other: Multiple banks involved; Sub-Treasury and First National were closed by Controller of the Currency, leading to runs and the City National Bank suspending.

Description

Articles (May 14–18, 1867) report defalcations at the U.S. Sub-Treasury and the First National Bank in New Orleans, which prompted a run on all banks and led the City National Bank to suspend. The sources do not state whether the suspended banks later reopened or were permanently closed.

Events (2)
1. May 14, 1867 Run
Cause
Bank Specific Adverse Info
Cause Details
Revelation of large defalcations at the United States Sub-Treasury and the First National Bank triggered widespread depositor panic and heavy withdrawals.
Newspaper Excerpt
This excitement has caused a run on all the banks and a very stringent money market. The bank and treasury have been surrounded by a crowd all day.
Source
newspapers
2. May 14, 1867 Suspension
Cause
Local Banks
Cause Details
Suspension followed the run on all banks precipitated by disclosures of defalcations at the Sub-Treasury and First National Bank.
Newspaper Excerpt
The City National Bank suspended this evening.
Source
newspapers

Newspaper Articles (2)
1. May 15, 1867 New-York Tribune New York, NY
Article from New-York Tribune, May 15, 1867

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Article Text

FINANCIAL PANIC IN NEW-ORLEANS. THE SUB-TREASURY AND A NATIONAL BANK CLOSED -THE CITY BANK SUSPENDED-HEAVY LIABILITIES. BY TELEGRAPH TO THE TRIBUNE. NEW ORLEANS, May 14.-There is great excitement here in financial circles, caused by the closing of the United States Sub-Treasury, and the First National Bank, by order of the Controller of the Currency. Mr. Knox of the Treasury Department. Washington City, has assumed charge of the Sub-Treasury, and has closed the Bank. Heavy defalcations are already announced in both. T. P. May. formerly Sub-Treasurer, and President of the Bank, made an assignment this morning of his effects, to the extent of a million and a quarter, to secure the Government. The Bank holds a large amount of the paper of Gen. Herron, United States Marshal, but Mr. Knox hopes to secure this out of Herron's distillery and plantation property. Gen. Gordon Granger, Gen. Herron, Judge Whittaker, Miles Taylor, and Mr. May are the principal directors of the bank. William R. Whittaker is Sub-Treasurer. This excitement has caused a run on all the banks and a very stringent money market. The bank and treasury have been surrounded by a crowd all day. The City National Bank suspended this evening.

2. May 18, 1867 The Ottawa Free Trader Ottawa, IL
Article from The Ottawa Free Trader, May 18, 1867

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Article Text

FINANCIAL AND COMMERCIAL Generally, at financial centers, matters are running in about the same grooves they have followed for a month or two past. The banks are nervous and distrustful about the prevailing prices in the grain markets, and loans to speculators are made only on very wide margins, but for "legitimate business," money is easy. At New Orleans there is a terrific financial excitement prevailing. Defalcations, to a large amount, have been brought to light in the United States Sub Treasury and the First National Bank. The Secretary of the Treasury has ordered them both closed. There was a run on all the banks on Tuesday, and the City National finally suspended. Eastern exchange is about 25c on $100 for buying, and 1 per cent. selling premium at our local banks. Gold has remained steady during the week at about 137.