Article Text
THE people of Louisiana see now the business troubles that come through the failure of their credit as a people. The suspension of the banks of New Orleans may be described as a "Greenback Victory"-but a Cadmean victory it will prove.
7764. banks of New Orleans (New Orleans, LA)
Bank Information
- Episode Type
- Suspension → Reopening
- Bank Type
- state
- Start Date
- March 1, 1879*
- Location
- New Orleans, Louisiana (29.955, -90.075)
Metadata
- Model
- gpt-5-mini
- Short Digest
37fc3fad
Response Measures
None
Description
In March 1879 the New Orleans clearing-house banks suspended payments for ten days, limited daily withdrawals to $200 and conducted business by certified checks; they then resumed full specie/currency payments by March 24-25. Some individual New Orleans banks (New Orleans Savings, Southern, Mechanics and Traders) subsequently failed and were placed in receivership, but the collective action was a suspension followed by resumption.
Events (2)
1.
March 1, 1879*
Suspension
- Cause
- Correspondent
- Cause Details
- Banks had large deposits placed in New York and other northern cities for making exchange and faced liquidity pressure after heavy withdrawals and falling Louisiana bond values; clearing-house banks agreed to a 10-day suspension with daily withdrawal limits.
- Newspaper Excerpt
- the banks of the clearing house association suspended for ten days, agreeing to pay no depositor more than $200 in any one day during that time
- Source
- newspapers
2.
March 24, 1879
Reopening
- Newspaper Excerpt
- The banks have resumed the payment of currency on demand. New Orleans dispatches announce that the banks of that city have resumed full payment in currency.
- Source
- newspapers
Newspaper Articles (4)
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Article Text
# FINANCIAL. BOSTON, March 21.-J. & A, Tyrrell, dealers in hides, have suspended. Liabilities, $160,000. NEW ORLEANS, March 24.-The banks have resumed the payment of currency on demand.
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Article Text
New Orleans dispatches announce that the banks of that city have resumed full payment in currency. The banks of the clearing house association suspended for ten days, agreeing to pay no depositor more than $200 in any one day during that time, and to conduct commercial operations by the agency of certified checks. Two principal reasons are assigned for this action of the New Orleans banks. One is that they make a practice of keeping large deposits in New York and other northern cities for convenience in making exchange. The other is that when the Nicholls government was installed in power Louisiana bonds advanced rapidly, going as high as 93. These bonds were then hurried back from Europe and from New York and were taken by the New Orleans banks very freely. Since that time they have declined to 48. There is a widespead belief, however, that neither of these excuses is valid, and that the ten days' suspension is only beginning of the end.
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Article Text
The banks of New Orleans have resumed payments. The New Orleans Savings, the Southern, and the Mechanics and Traders, have failed and their assets have been placed in the hands of receivers.