Commonwealth Bank (New York, NY)

Episode Information

Episode UID
1007870885
Episode Type
Suspension → Closure
Bank Type
state
Bank ID
100787 routing
Routing Number
1-0078
Start Date
September 20, 1873
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
3aee8c95a11fea9b

Response Measures

None

Events (3)
1. September 20, 1873 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Large overdrafts/overdrawing by principal broker Edward Haight and related defalcations tied to its brokerage dealings; capital small ($750,000) and could not sustain pressure.
Newspaper Excerpt
Meigs, the bank examiner in New York, telegraphed to Comptroller Knox that he had taken charge of the Commonwealth Bank of New York, the only bank failure reported to-day.
Source
newspapers
2. October 7, 1873 Other
Newspaper Excerpt
Application to the Circuit Court for appointment of a receiver in the matter of the Commonwealth, citation returnable 7th of October; proceedings to show cause why appointment should not be made were set forth in court reports.
Source
newspapers
3. December 13, 1873 Other
Newspaper Excerpt
There will be no further attempt made to revive the Commonwealth Bank, and depositors are now receiving a dividend of 30 per cent.
Source
newspapers

Newspaper Articles (7)
1. September 21, 1873 The New York Herald New York, NY
Article from The New York Herald, September 21, 1873

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WASHINGTON. The Financial Situation as Viewed from the Capital-Mr. Babcock as Cock of the Walk-What the President Proposes To Do. WASHINGTON, September 20, , 1873, At three o'clock this afternoon General Babcock the President's Private Secretary, had another conference with Secretary Richardson regardingthe financial crisis. The amount.of bonds offered in response to the notice of yesterday morning made it evident that those holding government securities had either no desire to part with them, or else they had already/hyperhecated them to their full amount. The list. of fairures following the announcement of the closing or the Stock Exchange again unsettled the confidence which had set in since the programme of the secretary was known. Telegram after telegram was received at the Treasury Department begying to know what the Government proposed to do. "What more can I do ?" said Mr. Richardson, as he handed to his private secretary a hundred telegrams from prominent bankers and merchants in every city. The panic feeling had reached Chicago, St. Louis, Cincinnati and New Orieans. The yellow fever scourge was forgotten in the apprehension of a commercial crisis. A few minutes after the interview between Babcock and Richardson terminated, a telegram was received from the President stating that he was going to New York at once and would be glad to meet the Secretary to-morrow evening. Accordingly Secretary Richardson and General Babcock left to-night for New York, where Assistant-Treasurer Hillhouse will meet the President. What the government will de more than is already proposed is not definitely known, but it is said to-night that the President will urge the expansion of the legal tender reserve by the purchase of government bonds. It is known that to-day the Treasurer accepted all bonds presented at the Treasury Department and paid for them in legal tenders. Even as late as half-past three o'clock, an hour and a half after the Treasury had closed, the Actuary of the Freedman's Savings Bank, who has already exchanged $100,000 in bonds for greenbacks, made a further exchange and received $30,000 in legal tenders. The Secretary said that both here and at all the Sub-Treasuries in the country the Treasurer and Assistant Treasurers would be authorized to buy bonds at the rate sold to-day. This it is which gives credence to the-statement that there will be a general purchase made and legal tenders issued in payment. In this city there has been a great stringency in the money market to-day. Contractors and builders found it very difficult to raise money, and a newspaper office failed to collect $10 from all its creditors. It is not believed here that Jay Cooke & Co. will resume business for at least some time. The depositors in their Washington bank included nearly all the government officials, judges and many of the leading business houses. Twentyfive thousand dollars deposited by order of the Supreme Court of the District, belonging to distributees, was among the recent deposits. E. L. Nourse has been appointed assistant receiver of the First National Bank. Meigs, the bank examiner in New York, telegraphed to Comptroller Knox that he had taken charge of the Commonwealth Bank of New York, the only bank failure reported to-day. The Embargo on American Property in Cuba Raised. The Department of State has received information from Madrid that positive orders have been sent to the Captain General of Cuba to raise all embargoes on the property of American citizens, and return the same to the owners, and that he replies that all our reclamations for restoration of embargoed property have been decided favorably to the applicants, and no claim of this kind is now pending. The Spanish government has, nevertheless, sent further orders suspending the sale of embargoed property belonging to our citizens, no matter if not claimed. Another Chance for the Indian Ring. Felix Brunot, of the Indian Commission, has telegraphed to Secretary Delano that he has succeeded in obtaining the signatures of the principal chiefs of the Utes to a document which gives 4,000,000 acres of land to the United States. These lands are supposed to contain minerals.

2. September 25, 1873 Rutland Weekly Herald Rutland, VT
Article from Rutland Weekly Herald, September 25, 1873

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heavy run yesterday, paying out about $700,000. It is a State and the ing fects no notes, suspension institution, only issudepositors. At Jay Cooke's matThe clerks a be laid are ters busy are before progressing preparing quietly. statement, to the meeting of the members which cannot take unthe arrival of the Rusof til sia, after the firm, steamer place as two of the partners are passengers on of that steamer. in New York on MonRussia is expected board The day. UNION BANKING CO. The failure of the Union Banking Co. was caused by the heavy run yesterday. EFFECT IN EUROPE. LONDON, Sept. 20. The continental houses are disturbed by the news from New York. FOURTH NATIONAL BANK. NEW YORK, Sept. 20, 1 p.m. The run on the Fourth up to this hour instiall demands. tution continues, is paying but National the There Bank seems to be an opinion that the bank will hold out. STOCK QUOTATIONS were the latest stock the the quotations The following before closing of board, as near as could be ascertained Rock Island 87, cash; Ohio 27 New 87 Western 32; Lake Shore 80 Union Harlem 100; Erie Pacific York Pacific Central Mail 18; Union 55+ 57 St. Paul 32 C. C. and I.C.20; Wabash 44. All offers of bonds under 111.25 are accepted by Government. THE UNION TEUST COMPANY DEFALCATION. It is now reported that the detalcation in Trust amounts to to a million the full Union half Company dollars, and that they have been extending over A consid. were committed the son of a of erable Methodist the time, officers, and prominent by one divine. While the is it is denied others to have fled the generally The culprit credited, reported by story city this morning. Though there are somegrumblers,there is general acquies cence in the wisdom and propriery of closing the Stock exchange until reason can assert herself on the street. Considerable disappointment has resulted to outsiders who came down in consdera ble numbers, desiring to purchase stocks and take them away for investment Gold is firemr and advancing under the Washington advices relative to the fur. ther issue of currency price now 112} CLOSING STOCK EXCHANGE 1:45 .--Cheer upon cheer followed when change from the Too closed. brokers much The Evening the Stock Express Ex say praise cannot be awarded to the men who conceived and carried out this master stroke of policy Bedlam was running loose and the craze was itself to outside but to rapidly shut multitude. the communicating Nothing remained the door and try and bring back the bulls and bears alike to their senses." BANK OF NORTH AMERICA of 2 p. n.-Certifientese of the Bank North America have been thrown out of the clearing house, which gave rise to the rumor of its suspension. UNION TRUST CO. AND NATIONAL TRUST CO. 2:07 p. in--The defalcation in the Union Trust Company is $500.00 000 The Secretary is said to be the defaulter. He has not been seen since yesterday after noon. The National Company sav that until have been short They they Monday, could but have would ther the kept up payment came on street with an amount currency could find no at a of forof ers except sixes, and discount but thirty to buy. ty per cent., refused to sell at such a sacrifice, and suspended for the better protection of themselves and customers. MEETING OF BANK PRESIDENTS 2:15 p. m.-The bank presidents at their meeting this afternoon passed a resolution to issue immedately ten millions in loan certificates COMMONWEALTH BANK. 2:25 p. m.-The stoppage of the bauk of does nor it having a and eral been the markets almost Commonwealth entirely other brokers banks, no effect bank genwith firms. of the & was its brokerage its brokerage dealings firm nearly of Edward Haight exclusively Haight, Co., principal banker, Tnd it is believed the suspension- of the bank was mainly due to his overdrawing large amounts to keep his firm over the pressure of the last few days. Its capital was only $750,000 ANOTHER ONE: PHILADELPHIA, Sept. 20. It rumored the Union banking house of this city has been compelled to suspend for few days. ALBANY BANKERS ALBANY, Sept. 20. It is rumored the banking house of Squires & Son of this city has suspended. Later.-Squires & Co., bankers announce their temporary suspension until further advices from New York. CONFERENCE OF THE PRESIDENT, SECRETARY RICHARDSON AND PROMINENT BANKERS AND MERCHANTS. NEW YORK, Sept. 21. 9 p. m. The conference at the Fifth Avenue hotel to-day, in relation to the best means of over-coming the difficulties resulting from the recent fiancial disasters in Wall street absorbed the public inter-

3. October 1, 1873 Nashville Union and American Nashville, TN
Article from Nashville Union and American, October 1, 1873

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The Premium on Greenbacks Nominal The Demand for Loan Certificates Almost Ceased. Foreign Exchange Regains Its Feet, And the Crops Begin to Move NEW YORK, Sept. 30.-Henry J. Brooks, leather merchant, has suspended, owing to the present financial troubles. He hopes for an of time and extension from creditors he will resume. of the Stock Re-Opening Exchange Wall, Broad and New streets in front of the several entrances to the Stock Exchange, were crowded this morning as the hour of approached. the opening When before doors were thrown open, shortly 10 members and spectators in, the floor of the o'clock, filling Exchange rushed and the The members closed the desk, VO ifand waving their ha's. erously, visitors' around gallery. President's cheering Promptly at 10 President Chapman rapped the to order and at once brokers o'clock, all follows: became silent. He then spoke to them as met again after a very for the purpose tous suspension, "We have of momen- interim resumYour action in has with universal ing business. met approbation, the and has been most satisfactory to yourselves. The business would be carried on under the rules adopted yesterday by the govern- a which he read, appointing to settle the contracts All I ask now is you ing committee ing parties. committee, that of default- has help faleach other to bear the burden that to upon us; to so conduct business as len the to carry on its work followed the successfully. enable Loud cheering Exchange address, and was begun. Good feeling appears stocks business exist, and the opening prices of following to confidence. The Cenquotations for 51, Lake Shore 77, show are tral the 92, returning opening Erie Pacific sales:- Northwest- Mail 35, 4312 Rock Island 91, Ohio 291, ern l'aul 351, preferred 571, Union PaSt. Union 681, Wabash 46, and St. cific Western 21, C. C. &I. C. 22, Hannibal Jo 24. 11:30 A. M. considerable pressure to sell from and Under stocks, prices have declined from 1 to 3 realize current on at the opening, unwilling per those operate cent. for Bankers customers generally settled. on margins are until the to offers become more 2P. M. and impression prevails on the houses street W ill An that all the leading on 'Change through, in which event financial a better circles. feeling pul. will be infused throughout suspended on Smith & announce Stover, reported that they will pay all demands the 19th, in full of money and resume. will depend now going upon on. the The Exchange price settlements through If these should many who look market. a fully, Stock there are working be carried of the for success- com- forparatively easy decided improvement in as a There was a which was looked confidence. upon eign exchange, symptom of returning their rates to favorable bankers advanced and 1071 for sight, the Leading 1061 for actual 60 days' business sterling, was at a reduction Are from but the these National rates. Banks Irresponsible to Depositors? in the United Application Court was made to-day for Currency an order and en- of States Circuit Comptroiler of of the Bank joining the Bailey, Receiver proceeding for furCommonwealth, H. from that bank; also a the ther in the show matter cause why his the appointment receivership that citation should not to be and vacated void and on the grounds its circudeclared the bank null never The refused citation to redeem was granted and into Court lating returnable notes. 7th of October. Going made and Bears Sullivan has given The Ex-District Balls Attorney rights of brokers its and his the doors. opinion on Gold the Exchange under He holds action in of the power that the of the not and cent bankers an at closing abrogation closing its contracts Exchange ordinary business, involved closed entire over of of al of the Exchaspension the without consent enforce y should prior to the Exchange, concerned, attempt ordinary to business be H the partiestablished for an injunction. the it would rules holds that be lisble contracts of to the Exchange entered the action into by it fore cannot be therefore, must be consid en that also Board Board; the closing and, Exchange extended by the exists contracts severa to 0 e the New York so far as any stated power that and bear closing were projected of the Stock ered force important anew contracts. suits consequent It between Exchange. is bulls upon the sudde

4. December 15, 1873 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, December 15, 1873

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New York Stock and Money Market. NEW YORK, Dec. 13-Morning.-The stock market opened dull and heavy, owing in some degree to the inclemency of the weather, which checks business. Union Pacific and Wabash shares were neglected and lower, but the other securities were steady. A general rally followed and the prices advanced somewhat. Gold opened at 1093, advanced to 110 and afterwards reacted to 1091. Sterling Exchange opened steady at 1083 @ 1093. The Central National Bank, which narrowly escaped railure during the panic, will voluntarily reduce its capital from three to two million dollars, and not liquidate. There will be no further attempt made to revive the Commonwealth Bank, and depositors are now receiving a dividend of 30 per cent. The suspension of Edson, Bradley & Co., cloth jobbers of Broadway, is announced, with $450,000 liabilities. The Panama Railroad Company have declared a quarterly dividend of 3 per cent., and the Wells-Fargo Express Company have declared a dividend of 5 per cent. Money is selling at 7 per cent. on good security. London markets are firmer and stronger and American bonds are higher than yesterday. Towards n on stocks were dull, inactive and without feature. In the afternoon the stock market became stronger and higher on the favorable condition of the national banks, as shown in their weekly statements. The figures prove a gain in the legal reserve of the banks to the extent of about three million dollars. Gold is firmer at 1101. The totlowing were the orotations of Government

5. April 3, 1874 The Wheeling Daily Register Wheeling, WV
Article from The Wheeling Daily Register, April 3, 1874

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NEW YORK. News Items. NEW YORK, April 2-The body found in a bonded warehouse turns out to be, from a card found yesterday, that of Charles Altred Page, of Polmica. Ill., who died in London May, 26, 1873. Navigation is resumed on the Hudson River. The Stock and Gold Exchanges will be closed to-morrow. John Elloitt, cotton merchant, has suspended. One million dollars in gold was awarded to-day at from 113 to 1131. The closing of the Security bank is said to be in no way due to the failure of the Commonwealth bank or to the panic. It is due to the diehonesty of the abscending cashier, and impropes speculation on the part of one of the officers of the bank. Temperance. The pledge not to use alcoholic liquore of any kind, as a beverage, and to welcome any adequate legislation, State and National, for the suppression of the traffic in alcoholic liquors for drinking purposes, which has been in circulation among the ministers of New York and Brooklyn, has received over one hundred signatures. Two lady delegates from each Evangelical congregation in this city will meet on Tues day next, to form a central union. Dio Lewis speaks at the tem perance raliv in Brooklyn, to-night.

6. August 12, 1881 The Daily Dispatch Richmond, VA
Article from The Daily Dispatch, August 12, 1881

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John Thompson, of New York, on Financial Panics, their Causes and Periodical Return. The following is from the speech of Mr. John Thompson. of New York, before the Bankers' Convention at Niagara Wednesday: The question is 80 often asked, When will this great prosperity end, or when will sweep over the country? that not only interesting, another it becomes panic the best but abso- ideas tutely to our safety, to get possible and to analyze the signs of approaching danger. Panics do occur about every decade. This ten-year period is quite natural; it takes about five years after a revulsion to pay up, compromise, or wipe out indebtedness. Then follows five years of prosperity, expansion, confidence fn credits-in fact, a 06 boom." The last panic was in 1873; the present pros perity commenced "In 1878. We have now had three years of extraordinary augmentation of riches, much of it real solid, but from raising prices or quotations. putting most of it up emanating The signs of but an approaching "blizzard" are numerous, very delicate as yet. At present there is but one alarming indication of trouble, and that is in the number and magnitude of new enterprises, involving the issue of millions on millions of obligations. In 1871-2. and for half of 1873, this same sign of coming trouble was apparent, but to a fractional extent as compared with the present. As this a convention of bankers, and the oldest as I am is purely probably member of the Association, I must be excused in uttering a word of caution to bank managers, more particularly to those at the head of deposit banks. We are positively going too fast, and it is the part of wisdom, and I conceive it to be our duty, to put on the "brakes," that the wreck when it does come may be the less disastrous. I instance an item of the panic of 1873. Early one morning the active managers of tbree of the New York city banks were invited to the office of Jay Cooke & Co. We were informed that one million of dollars were necessary by 10 o'clock to save that house from protest. What security do you offer? was asked. Answer: None; our securities are all used. It is needless to say that the million was not forthcoming. We left. In tifteen minutes Wall street was in a panic. And this is only a duplicate of what transpired in 1857, when the Obio Insurance and Trust Company suspended. I will not elaborate the progress and results of those panies, for you are all conversant with what transpired in and following 1873 Sufficient to say that houses of undoubted standing were unable to meet their engagements, and the New York city banks, after one startling failure (the Commonwealth), were saved from suspension of even currency payments by lodging with a Clearing House committee securities and taking certificates that were good only at the ClearingHouse for debtor balances. The banks then, to a great extent, declined cash or currency payments, but certified checks and drafts good through the Clearing-House." This was certainly a unique financial measure, but it saved the banks from an out-and-out suspension of even currency payments. Specie was then out of the category of money. I refer to these historical events to show that panics do burst upon us without warning, and panics culminate in revulsions of some five duration. I am not so do not stone me. I am years' evil, brakeman, prophesying only ring- for ing the bell to awaken the unless we 'slow up" and guard our assets nothing in the past will compare with what is in the future. The negotiations-the issue of stocks and bonds-are fourfold what they were in 1873.

7. August 18, 1881 The Stark County Democrat Canton, OH
Article from The Stark County Democrat, August 18, 1881

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The Democrat. THE COMING PANIC. Another financial panic is talked of much in financial circles. Almost every one regards it as inevitable, being only a question of time. At the Bankers' convention at Niagara old John Thompson,' a noted banker of New York, and a man of ideas as well as money, read a paper on the approach~ ing blizzard. The signs are numerous, "he said, but very delicate as yet. Panics occur every decade; it takes about five years after a revulsion to pay up, com promise or wipe out indebtedness; then follows five years of prosperity, expansion, confidence in credits-in fact a boom,' then a smash-up. The danger signals now evident to Mr. are first our trade balances and with Thompson foreign nations, the has heavy induced importations of gold which When metals is from us, over precious prosperity. the distrust flow of will the and lead to to pay. inspire directly contraction, inability contraction There will is an inadequate amount of real money to do business on, and Mr. Thompson asserts 95 per cent of our business and the business of England is done in paper tokens, checks, drafts, notes, letters of credit, etc., which, so long 85 confidence is good, are a perfect substitute for but, like young 'on call,' not disappear money, allowing partridges, three days Discounts are posits drawn and grace. hoarded. and declined,de- Thus not the credit system money is but money only power destroyed, the real token itself disappears, not to be again visible until induced out by an enormous depression in prices. The one alarming indication emphasized by Mr. Thompson will readily OCcur the reader. It is of new magnitude to enterprises, the number: involving and the of millions For two years ligations. issue and millions prior to of ob- the of the same was to a panic trouble 1873 apparent, but sign of fractional ccming extent as compared with the present. The issue of stocks and bonds are fourfold now what they were in 1873. He therefore advises the banks to the great est caution and conservation in using their We a exdeposits. make brief single and tract from Mr. Thompson's trenchant address: We are positively going too fast, and it is the of wisdom, it to our to on be part duty, put and I the conceive 'brakes,' that the wreck, when it does come, may be less disastrous. I instance an item of the panic of 1873. Early one mornthe active managers ing invited of three into New the York city banks were office of Cooke & were Jay Co. We informed hat $1,000,000 were necessary o'c ock to save What security you protest. by 10 that do house offer? from Answer-None; our all It is to say was ties are asked. used. needless securi- We the million was not forthcoming. left. In fifteen minutes Wall street was in a panic; and this is only a duplicate of what transpired in 1857, when the Ohio Insurance and Trust company suspended. will not elaborate the progress and results of those panics, for you are all conversant with what transpired in and to say, that of undoubted were following houses 1873. Sufficient standing and un able to meet their New one York city banks, engagements, after startling the failure-(the Commonwealth)-were sa ved from suspension of even currency payments, by lodging with a clearinghouse certificates that were good committee securities, only and at taking the for then to a banks clearing-house great debtor extent balances. declined The cash or and drafts checks currency payments, 'good through but certified the house.' was a financial measure, unique clearing This but certainly it saved the banks from an out and out suspension of even currency payments. Specie was then out of the catagory of money. I refer to these show that do upon us panics burst hi-torical events with- to out and in warning, panics culminate revulsions of five years duration.