15631. City Bank (New York, NY)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
state
Start Date
December 31, 1861
Location
New York, New York (40.714, -74.006)

Metadata

Model
gpt-5-mini
Short Digest
88e856e9

Response Measures

None

Description

Articles (Dec 31, 1861–Jan 6, 1862) report a general suspension of specie payments in New York; City Bank is named among banks initially dissenting but then suspension becomes general. The immediate trigger described is Treasury/Assistant Treasurer instructions to suspend specie payments for government-related claims (government action). The sources do not explicitly report a permanent closure or an eventual reopening for City Bank; historically the Civil War suspension was temporary — I select suspension_reopening as the most likely outcome given context, but reopening is not directly shown in the provided clippings.

Events (1)

1. December 31, 1861 Suspension
Cause
Government Action
Cause Details
Treasury directed Assistant Treasurer and government officers to suspend specie payments for most claims (only public debt interest/principal to be paid in gold). Banks followed with a general suspension of specie payments in New York around Dec 31, 1861–early Jan 1862, and City Bank is mentioned among the institutions involved or impacted by the decision.
Newspaper Excerpt
The Secretary of the Treasury has directed the Assistant Treasurer of this port ... to suspend specie payments on all claims save the principal and interest of the public debt.
Source
newspapers

Newspaper Articles (3)

Article from Evening Star, December 31, 1861

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Article Text

THE SUSPENSION.- The New York Post of last evening says: Wall street wears a new face this morning The adjustment of the Mason and Sildell controversy, followed by a suspension of specie payments by the banks, has produced a marked effect in Wall street. The Stock Exchange is rampant, and prices of the speculative shares are two per cent and in some cases five per cent higher. There was great excitement on all the active stocks when called, the transactions being largest in New York Central and Erie. After the extravagant effervescence early In the day, the stock market since is flat, and prices are Kaly per cent., and in some cases 21/2 per cent below the highest points touched at the board The foreign exchange market is at a standstill this morning, pending the rise in the value of gold. The premium on gold will in a great measure regulate the rate of exchange, and in the present transitied state of things among the butlion dealers it is difficult to quote the rate on Lon. don. Some of the leading drawers name 118, but as yet no business of moment has been accomplished. The Secretary of the Treasury has directed the Assistant Treasurer of this port, and instructions of a like nature have probably been forwarded to the government officers at other prominent points, to suspend specie payments on all claims save the principal and Interest of the public debt, failing Jue on the 1st of January. Public creditors, with the exceptions named, are now paid in United States demand notes. The Assistant Treasurer at the same time ceases to redeem these notes, but receives all denominations, whether payable at New York or elsewhere, in payment of debts due the Government. We hear of some Jarring among the banks this morning, several of the leading Institutions re. fusing to step into the line of suspension. The Chemical, City and America, and one or two others, are paying specie to-day whenever do manded, but whether this course is making seri. ous inroads upon their reserves we are unable to ascertain. The Chemical, it will be remembered, maintained specie payments in 1857 and in 1860, and somecuriosity is manifested whether the present effort will be equally successful. We hear as we go to press that the dissentients to the bank suspension of Saturday evening are getting new allies, several other large banks beIng about ready to try their strength for some time yes. The Bank of Commerce, Mercantile, Leather Manufacturers', City, Chemical and America are (we believe) now paying specie. The Government will pay on the 2d of January the interest on the public debt in gold, the banks having responded to a further call of $3,500,000 on the new funded stock, on condition that it be se applied by the Secretary of the Treasury.


Article from The New York Herald, January 6, 1862

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Article Text

NEW YORK HERALD, MONDAY, JANUARY 6, 1862. m of the country. It therefore probable that a fear of the Illusion. Several members elected from this city have D. for been daily in the habit of boasting,about and Executive veto prevent their making application ta this winter. D hotels, how much they were going to make on their votes ou or this and that bill, and how they would compel such The directors of the Harlem Railroad, understand, W and such persons to come down to keep them still. This have settled the difficulty between them and the milk pi D does not look very encouraging for the status of our law. producers along the line of this road, by giving them ad. a makers. There are, however, number of members of ditional facilities or rather better rates of transportation, th Assembly who are known to be men of marked ability, which will prevent that measure, so strenuously urged D. ta men of experience and integrity. Such men Pringle, during the last sessions, from being again brought fr up. In adopting that course the managers of the road Stetson, Ogden, Phelps, Coddington, Bartlett, Emory DaD have given evidence of good under the vis, Waterbury, Andrus, Porter, Johnson, Ely, Hulburd, .D on and others that we might mention, will hardly be found old rates a large number of the milk producers sa giving aid any of the corrupt schemes, and will not fail were preparing to abandon that business, and off wield an important influence upon the legislation of the turn their attention to other departments of agriculture, in b. depriving the railroad of much of its profits on the trans. session. But no person conversant with Albany mat. portation of milk. ers can look over the list of members elect without recognizing a large number of active lobbymenPROHIBITING TRAFFIC IN LIQUOR. men who have had a hand in anything that the The last Legislature passed a resolution to submit to up 35 fr could make if they are actuated by the the people the question of amending the constitution of same motives as members, as it fair to th the State to prohibit, by constitutional provision, 32 suppose from their antecedents that they will, can at the salo or use of all intoxicating liquors. Under the pro1 have but little hope honest legislation as far as the w vision of the constitution this has to be adopted by the lower house concerned. or the Senate we have a tie present Legislature before it can be submitted to the ter opinion. It is unquestionably composed of more on people for their approval or rejection. Should majority ability than any Senate that has met in Albany for qu of both houses endorse the resolution of the last session, it number of years. There are men elected to that body br will to the people for their rejection or approval at the who have distinguished themselves and earned a good next State election in November next. The liquor dealers pe name on the judicial bench, as lawyers, as Congressmen of the State are thoroughly organized, and resist at and diplomats, as merchants, and in other business purtic attempt to secure its endorsement by suits, and cannot fail to wield important influence in this Legislature. On the other hand, the temperance ad that body, and bring It nearer to its true standard, and m vocates and Maine lawites, encouraged by its adoption change that branch of the Legislature from the bear by the last Legislature, will meet the agents of heliquor R garden was during the term of the last Senators dealers on the threshold of the Capitol, assisted by the to a dignified body. or some of the New York Senators strong minded women and reformers generally, and will probably the least the better; but fortunately for the zealously labor to counteract anything that may be done in interests of the State there is every prospect of their by the friends of the traffic. Backed with criminal on being ciphers around the Senatorial desk. tistics, which they have been collecting, and with long du The public are, however, looking upon those members and romantic stories of the evil and suffering art at of both houses who have, through the earnest from intemperance, they will battle for the passage the en solicitations of the masses, entered the legislative resolution on the ground that it will put an end to de arona, to assist in once more placing the wheels drunkenness and intemperance, and consequently reduce of our State government in order, hoping that crime and evils in State. In fact, the same of ar. ma they will succeed in bringing about a marked change in gument that was used to secure the passage of the Maine m legislation at Albany. These members have heretofore law will be used in favor of this resolution. With the e belonged to different parties, but have now thrown friends of the traffic on side, the temperance ad u cates, Maine lawites and strong minded women on the all party predilections, abandoned every partisan prejuth 1. dice, ignored the mere politician, and it is to be hoped other, we may look for an interesting contest on the at they will devote their energies to the best interests of question this session: if not in the Legislature, th the State and country. We trust that their influence there will be in the lobby and at the hotels. If CO patriotism will be the means of removing from the Legis troversy ends in the adoption of some equitable ox ag lature the lobby corruption that has ao long disgraced the cise la which can be enforced and will be respected by to action of both houses. those in the trade, the public may be the gainers. The bu The heavy taxation that exists now, and still heavier following is the joint resolution adopted at the last pe session:in auticipation, must prevent the Legislature commaking any large donations to any of the institutions that, under Resolved. That the constitution of the State be ameuded y the name of benevolence or charity, ask for assistance, sale. or aiding railroad enterprises or onlarging and extendlines Y ing the Stato canals. The people will hardly sanction the violation the to be imposition of any further burthen other than what general the fra of necessary to carry on the State government and assist thirteen the nation in putting down the rebellion or demolishing the for three previous fit any foreign enemy that may, through our troubles at UNCLAIMED DEPOSITS IN SAVINGS BANKS. do home, take it into its head to commence a war upon The question of unclaimed deposits in savings banks joi us The State beggars had better prepare themselves for bas been regularly discussed at every session of the Le da short allowances this year. gislature in Albany for number of years, and astreTHE STATE CANALS. nuous effort made to transfer them to the State treasury The general supervision of those great State works. the for the benefit of the State. There are at this moment canals, originated by De Witt Clinton, as well as the maseveral millions remaining in those institutions which nagement and disposition of the canal funds, is placed by have for years been there, accumulating interest, and no the the constitution under the control of a body of State offi. person calling for money. Theadvocates of the transfer be cers designated as the Canal Board. The law imposes of fund to the State treasury urge it upon the ground th upon the Auditor very important duties and immense that the State is the only true guardian, and that the co responsibilities. All the regulations and resolutions fund becomes escheated, the same as real estate which by adopted by the Canal Board are entrusted to this officer, there can be found no owner. Heretofore all such bills ou upon whom the greatest responsibility rests, in dealing have been defeated by the savings banks and public err with forwarders and canal men during the season or navi. opinion. We learn that the subject will again be brought the gation. All complaints relating to tolls, loading of boate during this winter, backed by the argument that the be and obstruction of navigation-ap neglect or transfer at this time will be great advantage to the ble wilful settled by the Auditor. The only State, and relieve to greatextent the burdeus of the tax. to place, however, that judicious for him to occupypayers during the present crisis. The measure under On having this duty to perform-is that of a member of th that feature doubtless have more strength than it du Contracting Board, which should cousist simply of the ever before possessed. and there is fair prospect of its ou Surveyor and Engineer and Canal Commissioners, whose the duties along the lines of the canals give them facilities to EDUCATIONAL DEPARTMENT. wl know the wants of the public and the interests of the The Legislature will be called upon at an early day of dif canals, and render them fully competent to manage session to choose a person to discharge the duties of let contracts. The Auditor has no special canal duties Superintendent of Public Instruction, in the place of Mr. sh outside of his office in the State Hall, and the Legislature Van Dyck, appointed by the Governor Superintendent of ta should relieve him from the duties of a member of the the Banking Department. Ever since the adjournment Contracting Board. of the last session the Deputy Superintendent, Emerson Now that the enlargement of the Erie Canal is about W, Keyes, has discharged the duties of Superintendent to A completed, the Canal Board should commence economizthe general satisfaction of the friends of common schools ex ing the expenses, and thus enable the State to receive throughout the State. He is now strongly urged, by all ch that benefit which the political advocates of the canal who are desirous that the department should be kept no have always the public they would receive. The of politics, for the position of Superintendent. But little it great revenue has been so long coming that there legislation is expected for that department further than general belief that it will never come. There are gis the correction of some apparent inconsistency in the at large number of subordinate engineers, clerks and chain school laws, and condersing and systematizing the differ boarers under pay who can be discharged ouce without m ent acts in such a manner as to bring them within the th any detriment to the public interests, and if the Board comprehension of school trustees and all connected with Ma having the power do not exercise it, there should be some the administration of the school laws, from the highest to law passed by the Legislature abolishing all such superthe lowest officials. There are many conflicting he numerary offices, in order to stop the immense drain points which can be remedied with little trouble. upon the State treasury. which should be done at an early day, and much of the The Erie Canal has brought in revenue this season far the unnecessary matter should be stricken out, and the els beyond that of any previous year since its construction, arranged in a simple and comprehensive form. amounting to about four millions of dollars, or BANKING DEPARTMENT quarter of a million more than has been re all The suspension of specie payment on the part of the celved during any other single season of canal navi city bank will make it necessary for some legislation for be tion. The closing of navigation on the Mississippi the banks of the State. The suspension will no doubt Le by the rebellion ao doubt has had a great deal to do be legalized, and a law be passed. authorizing the it with driving has the products the Mississippi banks to do likewise in a similar case during valley to the lakes and Atlantic coast R market, as well up our national troubles. The present indications as the transport in return of the merchandise and luxutb are that there will be little or no other legislation th rics of the far West, that heretofore were brought up the asked for by the Banking Department Unless it is Mississippi from New Orleans. Should the rebellion be the discovery of soine technical obstacle in closing up in crushed out this winter, and the father of rivers opened golvent banks, discovered virtue of the failure of seve to its legitimate trade, there can be but hope of the Br ral banks in Albany, which it is necessary to have reme. same return in revenue another season from the Erie died to give to the billholders, stockholders and de Canal; but, rightly and honestly managed the canals positors greater security, there will hardly be any other would bring in a handsome revenue, with the of demanding legislative action. Mississippi epened to the commerce of the valley e INSURANCE DEPARTMENT. Extensive preparations have been made by the re. ell 8, tiring members the Canal Board in out work on This department appears to be working to the general the Chenango Canal; but we learn that the new chosen satisfaction of the public and the insurance companies, a and no change will be asked for as far learn. officials have already made their arrangements to put of stop to the work. and those interested are expected to or o Several bills were passed at the last session affecting apply to the Legislature, and we shall no doubt see the foreign and other insurance companies, and an attempt doubtless be made to repea! some of them. There bill providing for the extension of the Chenango Canal to d ell also another effort made to prevent the organization of the Pennsylvan in line brought in day of the e session. any new companies with capital less than half mit ib e LONG LOCKS. of ion, and also several other bills will-be urged by special insurance companies on points affecting their individual , twice passed State Senate providing for interests. the building of what is termed "Long Locks' on the Erie o THE THREE MILLION WAR APPROPRIATION. Canal, providing that the present locks shall be widened and extended so admit of the passage of boats of We understand that a portion of the three millions to nearly double the length of the present locks. It is urged appropriated by the last Legislature to arm and equip on the ground that the traffic of the canal will be increasTh airty-eight regiments, and placed under the controlos the ed by the admission of a larger class of boats. This al Famous Military Board, remains unexpended The precise fr measure will again be urged this session, accompanied amount, however, that remains unexpended we are un with propositions of private individuals to do the work pr able to state. It is owing to be constant and watchfolless of Secretary of State D. P. Floyd Jones, Lieuten their own expense, with the permission of levying cer m 'ain amounts of toils on all boats cked through. What its ant Governor Campbell, and Comptroller Denniston, that fate will be time alone can tell. the entire amount. and as much more as could have been


Article from Memphis Daily Appeal, January 15, 1862

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THE FINANCIAL IMBROGLIO AT THE NORTH. From the New York Herald.] A bank meeting was held this morning, with a view of restoring order in the affairs of the banks. Very little was effected. It seems that several of the banks claim that the suspension of specie payments of itself canceled the agreement of equalization," which was entered into in August last, when the banks began to lend money to government, and deeline to advance any more specie to the common fund. Other banks insist that this is unfair, and that the equalization should, at all events, be made for Monday. It is a very pretty quarrel, as it 8 ands. Some of the banks continue to purport to pay specie ; but it is not good for depositors to ask for any, if they should see any prospect of needing favors hereafter. Practically, the suspension 18 general. If, after BY day or two, the City Bank or Bank of America persevere in an eccentric course, we presume that their depositors will risk everything, and carry their gold over to the brokers for sale. The following is a € imparative statement of the exports, exclusive of specie, from New York to foreign ports for the week ending December 31, and since January 1: 1859, 1860. 1861. 2,294,601 8 1,513 182 For the week 2,019,092 100,905,966 135,944,176 Previously rep, 66,790,612 68,303,794 103,200,567 Since Jan. I 137,962,269 The last week of the year does not close with out return as some of its predeas heavy an expert cessors. The aggregate for the year, amounts to the imprecedented sum of $137,962,4 268-say $34,763,000 more than that of 1860, and rather more than double that of 1859, which only slightly fell below the average. Assuming our imports to have amounted to $125,000,000, our general merchandise account shows a balance in our favor of nearly $13,000,000 to offset the difference between our exports and our imports of coin. This is the first instance on record during which the balance has been in our favor, and it may be regarded as especially remarkable, in view of the fact that for one-half the year there have been no exports of cotton. The cause of the anomaly is, of course, the short harvests abroad and the sur-