City Bank (New York, NY)

Episode Information

Episode UID
319766790873
Episode Type
Run Only
Bank Type
state
Bank ID
31976679 hash
Start Date
September 20, 1872
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
86a5df93953a8866

Response Measures

None

Events (1)
1. September 20, 1872 Run
Cause
Macro News
Cause Details
Wider money panic and speculation losses in Wall Street and related failures created heavy withdrawal demands and attempts to convert checks into legal tender.
Measures
Refused to pay checks in legal tender over the counter; required redemption through the Clearing House (standard clearing procedure).
Newspaper Excerpt
His demands were refused at the City Bank in Wall-st.
Source
newspapers

Newspaper Articles (3)
1. September 20, 1872 New-York Tribune New York, NY
Article from New-York Tribune, September 20, 1872

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Article Text

WALL-ST. MORE QUIET. SEVERAL HEAVY FAILURES REPORTED-CHANGES IN ERIE. Comparative quietness followed, yesterday, the wilder feeling of the previous days in Wall-st. The effect of the heavy speculation and unsettled prices of the past few days has been to increase the list of failures on the Stock Exchange by the addition of two unimportant brokerage houses known as G. D. Munro & Co. and Samuel Lapsley. Considerable discussion was excited in financial circles by the failure of John Fox & Co., merchants, of Mincing-lane, London, with liabilities amounting to £500,000, or $2,500,000. They have connections with several American houses, and their suspension was caused by the recent failures in Baltimore. Another failure in the grocery trade was announced-that of Messrs. Phillip Dater & Co. of No. 112 Wall-st., for many years engaged in that business. It is believed that they had accumulated large stocks of tea, coffee, and sugar at high prices, and that the repeal of the duties on those articles, with the depreciation in price, was the immediate cause. Still another house was reported to have suspended, but the name was not obtained. Money was comparatively easy yesterday afternoon at from 5 to 6 per cent, although earlier in the day it had been lending at from 7 per cent currency to 1 per cent commission. Much feeling was created by the operations of Henry N. Smith, formerly of the firm of Smith Gould, Manton & Co., who is said to have combined with others for the purpose of locking up money. Mr. Smith, accompanied by a porter with several sacks and a carriage, proceeded to many of the banks in Wall-st. and its vicinity upon which he had certified checks, presented them to the respective paying tellers, and demanded legal tenders. His demands were refused at the City Bank in Wall-st. and at the Bank of Commerce in Nassau-st., Mr. Vail, the cashier of the latter institution, declaring that he would not pay the checks in that manner, as by doing so it would be a practical connivance at locking up money. Mr. Smith insisted upon having legal tenders, but was informed that his checks must take the usual course and be redeemed through the Clearinghouse. At the Fourth National Bank payment was refused at first, but finally granted. About a month ago it was resolved to place the maintenance and operation of the Erie Railway under the control of Vice-President Diven, and to divide the organization of the road into three departments, those of transportation, road, and rolling stock. Yesterday President Watson made public an order carrying this change into effect. An order from the Vice-President appoints Robert M. Brown Superintendent of Road, with full charge of the track, bridges. building, docks, and wharfs, and with headquarters at New-York. It also appoints Harnden D. V. Pratt of Elmira, formerly Division Superintendent, as Superintendent of Transportation, with charge of the movement of cars, loconotives, passengers, and freights, and with the responsibility of safe and expeditious transit. Myron E. Brown of Buffalo is appointed Superintendent of Rolling Stock, having full charge of locomotives and cars and the Company's repair shops.

2. September 20, 1872 The New York Herald New York, NY
Article from The New York Herald, September 20, 1872

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Article Text

Bank of Commerce, Mr. Henry F. Vall, refused also to pay legal tender 8 for checks for $131,000, and, persisting in the refusal, was waited upon by a notary, who PROTESTED THE CHECKS in the us nal formal manner. Subsequently he was served with a summons and complaint by Mr. David Dudley Field, on behalf of Mesars. Smith & Gould, who have commenced a civil suit for the "money. To the notary's demand he returned the following answer on behalf of the bank:As we are aware that these checks are presented for the purpose of withdrawing from use legal tender notes, we decline paying them over our counter or otherwise than through the regular exchanges from the Clearing House, as customary. In this answer Mr. Vail raises a novel and tugenious defence. As for the Implied bankruptcy in the refusal to pay legal tenders, the ten millions capital of the bank is an efficient offset to any discredit of the institution in the public mind. The conduct of the two banks, while certainly against THE SPIRIT AND LETTER of the law as to banking operations, will doubtless be warmly applauded by business men. The only penalty will be the costs of judgment, which result can be staved off for twenty, forty or perhaps sixty days, and meantime the clique has been utterly vanquished. This last feature of the Wall street excitement is one of the most remarkable developments of the occasion. It is said that the action of the two banks was wholly devoid of collusion and was A SPONTANEOUS IDEA with each. If ratified by the Clearing House Association, as It doubtless will be, for that body must be consistent with the rule expelling banks having anything to do with "locking-up" operations, and if the law courts do not declare the banks bankrupt, as they can hardly do without stultification, the extraordinary course of the City Bank and the Bank of Commerce this afternoon opens up a way of checking and repressing clique operations in the money market for the future. As for the moral and legal points involved they will be a curious study for everybody. The public will discuss the former and the lawyers the latter. The views of the most interested parties, the clique leaders themselves, are given below as they were communicated to one of our reporters this afternoon, and they enter very naturally into the history of this most curious combination of Wall street EVENTS AND INCIDENTS. When the defeat of the clique, temporary or otherwise as it may prove, became known, the money market relaxed instantly and the rate on call fell to 5 per cent before the close of banking hours, the final quotation being 4 a 5 per cent, figures strongly suggestive of the quiet and calm of last week, before the clique began their "sad, eventful history." In the stock market the chief fluctuation was in Erie, which sold at 55 cash against 54 regular, the rate for cash stock ranging up to 1 1/4 per cent and down to 1/4 per cent. The general market closed quiet and about at the opening figures, C. O. and I. C. being exceptionally lower. Panama declined to 125. The suspensions referred to in the preceding column are George D. Muaroe & Co., stock brokers, and Philip Slater & Co., wholesale grocers. GOVERNMENTS HIGHER AND STRONG. The government list was strong throughout the day and closed at a further advance of 3/1 a 1/4 per cent for the gold bearing issues-a direct consequence of the relaxation in money and the advance in gold. The currency sixes were exceptionally heavy and lower. The following were the closing quotations:-United States currency sixes, 111% a 1121; do. do., 1881, registered, 1131/2 a 113%; do. do. do., coupon, 11516 a 1153/; do. five-twenties, registered, May and November, 114% a 114%; do. do., 1862, coupon, do., 114 1/6 a 114% do. do., 1864, do. do., 114% a 114% ; do. do., 1865, do. do., 114 1/2 a 114%; do. do., 1867, registered. January and July, 1131/6 a 11314; do. do., 1865, coupon, do., 1131/6 a 1131/4; do. do., 1867, do. do., 113 1/2 a 113%; do. do., 1868, do. do., 113 1/2 113% do. ten-forties, registered, 107% a 1081/1; do. do., coupon, 08 a 108 1/2 do. fives of 1881, registered, 110% a 1111; do. do. do., coupon, 1103 a 1111. SOUTHERN SECURITIES FIRMER. There was a better inquiry for the Southern State bonds and a general recovery in prices, actual as well as nominal. The Tennessees sold at 721/2, but were afterward offered at 72. The following were the closing quotations:-Tenness ex coupon, 71 a 72; do., new, 71 a 72; Virginia, ex coupon, 44 a 47; do. registered stock, old, 37 a 39; do. sixes, consolidated bonds, 50 a 51; do. sixes, deferred scrip, 15 a 17; Georgia sixes, 70 a 78; do. sevens, 86 a 88; North Carolina, ex coupon, 32 a 34; do. to North Carolina Railroad, 45 a 47; do., funding, 1866, 23 a 25; do. do., 1868, 21 a 23; do., new, 20 1/2 a 22; do., special tax, 12 a 14; Missouri sixes, 91% a 92; do., Hannibal and St. Joseph, 85 a 88; Louisiana sixes, 53 a 57; do., new, 50 a 55; do., levee sixes, 50 a 60; do. do. eights, 70 a 75; do. do. eights, 1875, 70 a 80; Alabama fives, 57 62; do. eights, 83 a 86; South Carolina sixes, 45 a 55; do., new, January and July, 23 a :do. do., April and October, 23 1/2 a 25; Arkansas sixes, funded, 47 a 55. THE FLUCTUATIONS IN GOLD. The chief fluctuations of the day in the gold market are shown in the following table:113% P. 10 A.M. 114%

3. September 27, 1873 The Donaldsonville Chief Donaldsonville, Gonzales, LA
Article from The Donaldsonville Chief, September 27, 1873

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Article Text

OUR C., P: ASHINGTON September LETTER. 20, a to is very give impossible of the recent account intelligible here, The panic. money excitement not does compare intense, though in all day York New that raging yesterday. the when morning, of the suspensions of the NaFrst Jay Cooke was tional general to no what think and alarm no The say. definite the whole during form, however, no and one form any could day, the would blows where heaviest the Mr. Knox, Comptroller of the took Currency, possession Mr. Edand National The great Stanton receiver. the felt was regarding SavNational Savings Bank availed to est anxiety banks, and itself the of its char- nodays thirty right require Of its from course depositors. on run any checks effectually morning doors about Yesterday of the the and Bauk Savings Freedman's and City Bank, Savings Washington the run the during entire continwell. each The ued, holding of both declare officers institutions to meet ability demands be and made them, upon this that by evening will have Much, subsided. of the turn upon depends in New York. to are up coming Secretary Appeals for aid, from all Richardson and was given assurance be that taken would action afternoon to the but to-day relieve pressure, in this which manner assistance was not indicated. renderod is this morning supposed to of offer several millions purchase at be will New York, made bonds to that believed instructions the Sub-Treasnight. those sentto This till likely have banks having be then securities to the into convert cash. it is be done done anything of the afpresent human to-day, as, if till Monday, next being occur. there is fairs continuit what may can rotten in something will certhis panic That present financial apparent system to every surely one. to was evident now be was coming, observing to say, yet, ago, months strange of the its dared public nobody had Your correspondent upwards approach. in a letter published to speak of this of our acter occasion two months ago with the char- and at that time that stated matter in connection circulating medium, storm was This was brewing. certainly opinion the fact the that upon values founded were congreenbacks sepfarther stantly the When 110 the and of gold being and farther price and of gold fell movement many erated. weeks ago to-day ended to in inglorious the persons welcomed returning security. defeat event as a sign others, of however, a closer harbinger of us. near upon observers, There were evil, who as regarded a token it that as the evil may day was Secretary of the Treasury to the banks The temporary relief to my mind there be afford the country, but evident than that but must are taken measures nothing more temporary unless than more important of mere Until bonds. purchase to clear way specie payment run will riot and confispeculation be not The dence restored. trouble in is no this that decisive connection in be can this step taken direction of the without authority Congress, will not that and until body meet upof two What hence. in the occur months meantime no one know. received Information of the the safe of the at rival Navy Department 0 Polaris Dundee, a on board Scotch whaling has also been dispatch