Citizens Bank (New Orleans, LA)

Episode Information

Episode UID
4210989090452
Episode Type
Suspension → Reopening
Bank Type
state
Bank ID
421098909 hash
Start Date
August 5, 1837
Location
New Orleans, Louisiana (29.955, -90.075)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
2b8ef176efed9cc5

Response Measures

None

Description

Contemporary reports conflict on whether the bank was paying specie in late 1837; later board minutes discuss resumption plans.

Events (4)
1. August 5, 1837 Suspension
Cause
Macro News
Cause Details
Suspension of specie payments amid the broader Panic of 1837 and general banking crisis in New Orleans.
Newspaper Excerpt
They dose now on their circulation. The Citizens' Bank avows that it is not bound to pay more than $145.000 in specie.
Source
newspapers
2. September 28, 1837 Other
Newspaper Excerpt
Citizen's Bank, at New Orleans, La.; ... listed among specie-paying banks at the last advices (Sept. 28, 1837).
Source
newspapers
3. * Other
Newspaper Excerpt
Proceedings of the Board of Directors of the Citizens Bank ... disposed to place surplus active means at disposal of other City Banks ... opinion that resumption in August or September would be suitable (reported July 1838).
Source
newspapers
4. * Reopening
Newspaper Excerpt
That the most suitable time for a resumption is the dead season, say August or September ... this bank is disposed to place the whole of its surplus active means ... to attain so desirable and creditable an end.
Source
newspapers

Newspaper Articles (3)
1. August 17, 1837 Morning Herald New York, NY
Article from Morning Herald, August 17, 1837

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Article Text

442,876 1,050,533 78,000 44,650 Citizens' Bank, 200,684 757,213 78,003 89,890 Consolidated Bank, 50,841 702,970 558,964 514,727 Louisiana Bank, These estimates are brought up to August the 5th. It would appear that the first two are amply able to pay specie. They dose now on their circulation. Why not on their deposites Particularly as they aver that they have made arrangements with depositors to refund in the same kind of money paid in:The Citizens' Bank avows that it is not bound to pay more than $145.000 in specie. And yet Mr. Forstall has not the moral courage to come forward in the midst of a host of fifteen banks, and declare that he will pay all legal demands against the institution in specie. His very declaration of such intention would carry with him the sound banks of the city, and prostrate the bad ones. The people of New Orleans should certainly look to Mr. F. as a financier fully able to set the good example of rectitude and honesty. Unfortunately he belongs to what is called the French interest, and his influence is thus impaired. He could do much more if he were more liberal in his views. With him the question is Casar aut nihil. From the expose of the Citizens' Bank, it appears that the suspended domestic exchange debt is $258,700, of which about $195,000 are secured by real estate securities. If she comes off with no greater loss than this on her cotton operations she will be fortunate. But what is a little singular, we find $3,047,995 of discounts all maturing within 60 days from the 1st of August.To what class of dealers were these favors extended How much will be paid when they become due? The answer is plain to those acquainted with the business of New Orleans and the character of those friendly to this bank. The greatest portion of discounts were made to the French cotton dealers, or those exporting to Havre, and to a few speculators in the sugar trade. Their notes will be renewed on paying 15 per cent.But will there be no losses on these discounts? The 1st of Jannary next will tell. Again-her stock loans amount to $1,487,747. The extent to which this description of financiering is carried in New Orleans, can only be understood by a resident. Nearly all the money raised in this way went into cotton. Great losses of course will follow. The affair of the Lizardi loan,s much bruited about, appears to stand thus: $824,159 Due by F. de Lizardi & Co. Due to Lizardi Herm. 580,311 Balance, $243,848 Mr. Forstall is in a better position than same of his neighbors. He only wants moral courage and more liberal views to put him at the head of the Canal street financiers. But he must throw aside his foolish notion that the Americans will tamely submit to French dictation. From the statement of the ConsoildatedAssociation it seems that there is due this bank, from sundry European houses, the following am ounts: $64,277 Baring, Brothers & Co. London, 39,880 F. de Lizardi & Co., London. 4,865 Thos. Wilson & Co. London, Lizardi Hermanos, Paris, 3,213 8112,235 How is this? What a pity 'tis that banks could not be more explicit in their details. Their mystification only makes against themselves. These houses were large dealers with this Consolidated Association of Planters. It would form a curious exhibit, to see the amounts of their accounts current. We should then have a key to the late cotton speculations. It would unlock a door that leads to a scene of the most daring, dashing, and reckless enterprise. This institution owes the Union Bank in this city $28,908. The estimated loss on exchange notes, bills, &c., by the Bank of Lousiana and her five branches, since March last, is $100,000. It remains for the next legislature to probe the New OrJeans banks. Out of the sixteen now in existence, probably eight may stand the test. They are all in a curious condition. Party spirit prevails to a great extent among them. Twelve American banks generally combine against the four French institutions. The French move in a body; and though they are in the minority. they distract, most terribly, the monetary movements of their adversaries, because the latter do every thing, even among themselves, with a bitter and separate jealousy.We shall in a day or two show how fruitful the management ot the New Orleans Banks was in producing the late crisis. Being the centre of the cotton operation, they were the great levers which moved the whole mass. There has been a decrease in our canal tolls, for the first week of August, compared with the last week of July. Week ending August 1, $36,603 Week ending August 7, 27,564 $9,139 What's the matter? The interior, we fear, is beginning to experience the decline in trade. Stocks are a little firmer today. Specie comes in from the country very slowly. Some begin to thing that the channels of supply are drying up. Sales at the Stock Exchange.

2. September 28, 1837 The Madisonian Washington, DC
Article from The Madisonian, September 28, 1837

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Article Text

SPECIE-PAYING BANKS.-The following list of banks that were paying specie at the last advices, has been compiled by a friend from the recent statement made in various newspapers. It holds out great encouragement to others to go on and do likewise, now the panic is so much over. People's Bank, at Bangor, Maine ; Waldo Bank, at Belfast, do.; Belfast Bank, do. do.; Mequinticook Bank, at Camden, do.; Lime Rock Bank, at Thomaston, do.; Connecticut River Bank, at Roxbury, Massachusetts Yarmouth Bank, at Barnstable, do.; City Bank of New Haven, Conn; Brooklyn Bank, at Brooklyn, New York ; Bank of Rome, at Rome, do.; Patterson Bank, at Patterson, New Jersey ; Franklin Bank, at Washington, Penn.; Northwestern Bank of Virginia, at Wheeling, Va.; Insurance Bank, at Columbus, Ga.; Bank of Columbus, do. do.; Commercial Bank of Macon, do.; Central Bank, at Milledgeville, do.; Citizen's Bank, at New Orleans, La.; Consolidated Association Bank, do. do.; Louisville Savings Institution, at Louisville, Ky.; Shawneetown Bank, at Shawneetown, Illinois; Dayton Bank, at Dayton, Ohio ; Dank of Marietta, at Marietta, do.; Bank of Xenia, at Xenia, do.; Ohio Trust Company, at Cincinnati, do.; Pontiac Bank, at Pontiac, Michigan.-Globe To which may be added, the Tradesmen's Bank, at New York ; the Canal lank, at New Orleans ; and the Bank of Wasington, in this City.

3. July 18, 1838 Morning Herald New York, NY
Article from Morning Herald, July 18, 1838

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Article Text

MONEY NAR K ET Tuesday, July 17,-6, P.M. The election just terminated in New Orleans, though unimportant, viewed politically, yel from the features of the election, as shewing the great change which has taken place in public opinion with regard to a National Bank in those cities which have heretofore given large administration majorities, it becomes important. A letter from New Orleans dated 7th instant, has the following This has been the most contested election ever known in the state of Louisiana, and in this city has resulted in a small democratic majority for Go. vernor. The election for Senator turned on the question of Bank or no Bank. Jno. Sliddell, Esq., the (V.B candidate for Senator, a very popular man, and last year stood highest on the ticket for assembly, rested his election to Congress OR his opposition to a National Bank. His oppenent, Ed. White, E.q., being in favor of such an institution, the election was contested under large printed hand-bil beaded-" Bank or no Bank!" Thus the question was fairly at issue. and Mr. White triumphed over his opponent by a majority of 620 votes out of 300 0 votes polled. The other two members elected are in favor of a Bank." Thisis one of the many indications that the question of re establishing a National Bank, on coming before the approaching session of Congress will cease to be a doubtful one. We have received the proceedings of the Board of Directors of the Citizens Bank at New Orleans. at a meeting held on the 27th ult., to whom were referred the proceedings of the board of Presidents in their meeting of the 16th of June. 1. That in the opinion of this board the extraordinary derangement of our domestic exchanges, is the natural consequence of the suspension of specie payment. That to attribute it to the centrary proposition would be taking the effect for the cause. That were the trade suddenly cerrived of its standard of weights and mea-ures the same derangement would exist in the exchange of commodides. That the removal of the cause is the only reinedy to an evil so demoralizing in its effects. 2. That another great benefit to bederived from the resumption, wou d be the returning into circulation of upwards of seventy-five millions of specie, rendered a dead weight by the suspension. 3. That from dato furnished by the banks of this city. it appears that their outdoor circulation amounts to $5,000 000.That they hold $300,000.000 of specie. upwards of $2,040,000 of New York and European funds, $7,000,000 of Lou siana 5 per cent, and $51,700,000 of bills receivable, and that nothing but a wast of concert of action can prevent an early resumption of specie payments by the banks 4. That to attain so desirable and creditable an end, this bank is disposed to place the whole of its surplus active means the disposal of such of the other City Banks as may require them. 6 That the drain, so apprehended by many, for the western country, may be easily met by timely arrangements with the western banks for a deposit of their paper to be covered, as issued. by easternlunds. 7. That in the opinion of this Bank the most su'table time for a resumption is the dead season, say August or September, that the pub ma gradually be accustomed to said resump. tion, previous to the receipt of the next crop, This movement, if concurred in by the banks generally, will re leve the Philadelphia banks in a measure from the dilemma in which they stand with regard to the southern Banks. The New York institutions were accused ef want of courtesy and public spirit, in disregarding the intere t of the southern banks by returning to specie payments before these latter should so far have matered their operations as 1 render a simultaneous resumption safe and practicable. In this predica. ment do the Pbiladelphians now stand : and this may account for their backwardness In openly avowing that whi b, for all business purposes, they have been doing for the last fourteen days, redeeming their issues in specie, and which they have been driven into by the force of publie opinion and the exam. ple of the New York and eastern banks. This has probably been one of the dullest days in Wall street, perhaps ever known. 'Change was very thinly attended, and a great spirit of indolence was manifested among brokers generally. The Hudson Republican states that a new bank will go into operation in that city, probably before the close of the year, under the bank law of the last session of the legislature. The capitalis to be $200,000 Already something over one hundred and thirty thousand dollars have been subscribed. The business at the board today has been small, and butlit. tle disposition to sell has been manifested; in c nsequence of this the operations have been less than they otherwise would have en. Prices closed very firm, and in some instances, at an advance. N.J.R.R. went up one per cent: Stonington 17 r cent. Harlem closed at - per cent higher han the rates of yesterday, while Illinois bank declined 1 per cent.