Park Bank (New York, NY)

Episode Information

Episode UID
4792801890885
Episode Type
Run Only
Bank Type
state
Bank ID
479280189 hash
Start Date
September 23, 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
5088bade7fe77d38

Response Measures

None

Events (1)
1. September 23, 1873 Run
Cause
Macro News
Cause Details
Part of the broader Panic of 1873/stock-market-induced monetary stringency and heavy country demands for specie, producing large withdrawals and scarcity of currency.
Measures
Refused to pay out greenbacks for a period and confined payments to certified checks; participated in pooling/loan-certificate arrangements to conserve specie.
Newspaper Excerpt
Of all the banks in the city, only one in the afternoon-the Park Bank-refused to give out greenbacks, and confined itself to certified checks.
Source
newspapers

Newspaper Articles (6)
1. September 23, 1873 The Daily Phoenix Columbia, SC
Article from The Daily Phoenix, September 23, 1873

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or rad The Godelays without the tapes, "sis not added, verument Secretary trust and dou Institutionania of Congretion sanction niy to above allades using Thirty reserves. $40,000,000. to banks savings rigidly resolved the enforce clause. ..previous of New was James Jersey, in dead found City. Jersey He bad The in is the Trust Union of hands Now York to Stock day. closed Exchange The of the House manager Olearing says clearevery check passed through will ing He the says paid. banks in are and were never dauger the the 96 Irving doors of street, Warren Savings a were of crowd for their depositor The money. diately paying to set to work satisfy their howdemands; majority, ever, saw the was money willingis out, being paid they became quieted and left. the had bank out paid bad received a At deposits. the has present completely subsided Savings No. was Park Bank, Place, or being Broadwayiness no little usual; the paid to up did not 0.000, a while had been not do received. officials the Shortly Bank Bowery doors, this of delurge morning, beBOOD began to be came principal going, a The to run. decided ail p&y not believe the that of the One of the all money depositors were those The having say $12, got 000, trustees in 000 and bonds about in 000 New York $1,000,000 they which could 'draw run lasts, However, take they the thirty days but notice laws; clause will to even out up $200 or 80 $300. depositors from any The Union is beDime street, Savings a by 200 are sieged through the a doors closed plainside; iu the card BS that in off many paid is The to bauk able to-day. the meet about having will sell They 10-day $1,500,00 of 000 $500, bonds, going to run; they the sixty day by WS; this inThe Bank, 6th all checks are The being Green. wich has is promptly The met. all checia Bleecker is in upon at all paying tendance. of checks tion; are checks to quired days by-law. The bank day to sell States United resolved a securities, were, that jority Be there would them. The the day closed Evening 1111 with in the One with day more feeling; general the is will, Stock Exchange condithought, yo the tion, is reason will for prndent concerned, the business. This as bigh having by been paid Presi sident Vail, this said, Commence was confidence the of in action buying had in 5.203 highly loosening 4P. classca is of one of any the the and on crowds curious inquirs for with stocks street; in to purbut of chase, Stock No Exchange be Jay will meeting held until rebeen ceived from offices are now These throngbout de being the say to of duration

2. September 23, 1873 The New York Herald New York, NY
Article from The New York Herald, September 23, 1873

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NATIONAL AND DEPOSIT BANKS. The general feeling yesterday among the banks after the scare of Sunday was surprisingly good. Of all the banks in the city, only one in the afternoon-the Park Bank-refused to give out greenbacks, and confined itself to certified checks. All others paid in greenbacks, all day long. though some announced that where the demand for greenoacks was suspiciously large it would be refused and certified checks given. That, however, was a necessity very little resorted to. The consolidation plan, which was spoken of on Saturday, and which is generally calculated a good one in times of local monetary stringency, was not favored much yesterday by houses in good standing-just those ones which could do most in restoring confidence. It appears the consolidation would simply have been one in which the suspended banks and the weak ones would have been aided at the expense of others, and it was thought much better to follow the other plan-of issuing loan certificates, guaranteed by the Clearing House and received at the Clearing House as legal tender, being issued upon good and undoubted securities. The fact that the system worked well was proved by the generally easier feeling, the rally in the price of stocks, Western Union bringing 65, cash, and New York Central selling at par and other stocks showing a like increase, and the amount of money on the street-one firm, William Heath & Co., lending $15,000 at seven per cent.

3. September 24, 1873 New-York Tribune New York, NY
Article from New-York Tribune, September 24, 1873

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PRESSURE UPON THE BANKS. CURRENCY EXCEEDINGLY SCARCE-DEMANDS FOR LOANS POURING IN FROM THE COUNTRY-THE CROPS MUST BE MOVED. upon of the downtown to ascertain their viewa. A reporter the banks Presidents of THE of TRIBUNE many called, leading The yesterday, questions asked had reference chiefly to the demand for loans from city customers and e drain from banks out of town. The reporter found a marked difference between the banks doing business for the brokers and those transacting a strictly mercantile business. Money was scarce everywhere, and discounts could not readily be obtained. The best commercial paper was offered at two per cent a day, but the money could not be had. OUTSIDE DEMAND FOR LOANS. W. K. Kitchen, President of the Park Bank, told the reporter that the calls on the bank were not very great from the city, as they paid large amounts only on certified checks from the Clearing-house, and the demand for loans was not so large as one might suppose. The demand from country banks, however, was simply enormous, and could be in the banks to country amounted to not be raised in an banks met. banks which could The in the deposits city hour. a belonging The vast not sum, haven't got it; they ought to have taken on Saturit day the action which they took on Monday, and was a great mistake that they failed to do so. To a customer who called for a loan-We will let you have the money as soon as we can. Send around to your customers and make them pay up. This is a good time to collect in money. THE COMMERCIAL WORLD NOT AFFECTED. Geo. S. Coe, President of the American Exchange Bank, said that his institution was not a brokers' bank, and the demands for loans from merchants were not greater than usual. The commercial world was not affected in the least as yet, and he saw no reason why they need be. The out-of-town demand for money is always large at this season of the year, but is larger now than usual owing to the panic. Their deposits are small in proportion to their capital, and they are meeting demands from all sources. He looked upon the trouble as a stock-brokers' affair which need not troubln outsiders. The stock gamblers, he said, were drawing money from the banks, and stood ready with it in their pockets to buy stocks whenever they could put them down low enough. MONEY NEEDED FOR MOVING CROPS. John E. Williams, President of the Metropolitan Bank, told the reporter that they did a strictly commercial business, and were not affected in any way by the panic. There was great demand from out of town for money with which to move the crops. That was the cause of the trouble. "Our wealth in us poor and when a sudden call for grain Wall-st. Cooke's made failure created in currency, money Jay in it was n't in the city. The wheat was nor one was in a good." never 80 Every large the foreign hurry demand crop to get so his crop to the sea, and his bank sent out $100,000 a day for five or six weeks. The demand had somewhat increased, and some of the country bankers had gone wild. One man was day or two ago who had $70,000 on deposit and $40,000 in greenbacks in his pockets, and still wanted to get a discount. Mr. Williams told him to go home and cool off. The national currency, Mr. Williams said, is all out of the city; there is probably not more than $1,000,000, and perhaps not more than half a million in the banks. If they had all been paying out gold they would have been compelled to suspend. The great trouble was caused by the large amounts of worthless railroad bonds and stocks forced on the market by false representations. A JUBILANT BANK. At the Fourth National Bank the aspect of things had greatly changed since Monday. There were few persons at the paying teller's desk, but there was a long line of depositors at the window of the receiving teller reaching half around the bank. At 3 o'clock the line had not been shortened, and half an hour later it numbered 26. Mr. Lane, the cashier. told the reporter that they had found themselves a creditor bank at the Clearing-house, and were feeling quite jubilant over it. Heretofore they had been on the debtor side. The worst of the trouble, he thought, was over; there would still be ruin among the bankers, but the trouble of the banks, he thought, was over. After the suspension of Henry Clews & Co. a report was circulated on the street that the Fourth National Bank had suspended. The reporter returned, and was told that the report had probably arisen from their refusal to clear for Henry Clews & Co., but that the situation was unchanged since the former visit. The cashier pointed to the line of depositors, as if this were a sufficient answer to all questions of their elvency. A THRUST AT BROKERS' BANKS. W. H. Scott. President of the Hanover National Bank, said that they kept no brokers' accounts, and there was no unusual city demand, while the number had increased from the not be met: pouring the of panic their in, began. depositors and could Demands largely country there was since were currency to meet no which did a who dealt in business; fears for enough the the bankers banks in the city strictly them. stocks banking He would had not probably have to go down before things became settled. BROKERS MAKING SETTLEMENTS. Tappan, President of the Gallatin National Bank, said that the demand for loans was light. The brokers seemed to be settling up their affairs, exchanging stocks, and getting rid of collaterals, rather than incurring new obligations. There was a process of liquidation going on all around. They had no correspondents except in Philadelphia, and the out-of-town demand was limited to that city, but the demand from there was heavy. NO UNUSUAL CITY DEMAND, The reporter found everything quiet at the Continental National Bank. T.G.S. Flint said that a report had been telegraphed all over the country on Saturday that the bank had suspended; and the result was that their out-of-town customers were calling in their deposits. There had been a tremendous run by letter telegraphal day Monday and yesterday, and they did not know what was the cause until yesterday. They had responded to all calls, and unless there were a change within a few days they would liquidate their entire out-of-town indebtedness. The false report was circulated in had been no unusual denot how much ruthem, but it had inthe mand. mor country, had He caused could and there say certainly harm been city the inrious to their customers and to many from whom

4. October 22, 1873 New-York Tribune New York, NY
Article from New-York Tribune, October 22, 1873

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CURRENCY RESUMPTION. P. OPINIONS OF W. K. KITCHEN, SHEPHERD KNAPP, APCALHOUN, AND _RESUMPTION MONEY PROACHING C. BY NATURAL PROCESSES PANIC ABUNDANT-WHOLESO EFFECTS OF THE ON THE BANKS. The question of an early resumption subject of payments by the banks was again the currency investigation by TRIBUNE reportere, yesterday, of an bank officials. W. K. Kitchen, said that while be believed was a bad one at the arrangement of among the Park the Bank. beginning, President the Park it pooling would Bank be.injudicious to break it up hastily. The rather no benefit from it, but on the contrary was to derives all the large banks must, but its effect distress amoug weaker institutions, a | reflex of distress among all. to freely, and would doubtless as save loses. quent ing in as prètty Currency continue and giving was conse- com involume. His own bank was able crease accommodation in to merchants as it was to, much but it had paid out a great part of its deposits. Further and not able to give as much as it would wish. The was this, there had been no practical suspension. ability than of currency according to each bank's doubtpayment the rule throughout. Bank reforms would would prove less was out of the trouble, and so far it was grow a beneficial panic. Over-certification he to evils which would be one the banks that had been in the habit had already learned caution. certifying believed have of the been remedied, that way. The of and over- Park Bank itself had never done business in 33 Shepherd Knapp of the Mechanics' Bank, No. Wallsaid he did not believe it best to force full resump banks st., of currency payments just now. Most of the tion had paid out a large proportion of their deposits some of them might be seriously depleted paid and the understanding that currency would be if freely should get abroad. It was better to let the the currency out work its way back gradually, and, with great influx of gold here from abroad, he thought specie payments might be the result. That, of course, would it be better for everybody. Although we could not use for currency, yet it afforded a solid foundation upon and which all values and all paper could stand steadily, a continued apparent suspension of currency seemed to up the event of a resumption of specie. had been entered The likely pooling hurry arrangement into endangered, by the solid banks because the weak ones were and it would be unwise to break it up before all are fully prepared. He knew of no intention on the part and of the large banks to withdraw from it, he certainly had formed no such intention himself As to the loan certificates. they were already being retired. The Mechanics Bank had purchased $300,000 of them at the beginning in order to relieve the merchants and to be ready in case of an emergency; but recently they had returned them and taken back their securities. There had, indeed, been more than twenty millions issued, for it was understood the Committee could issue ad libitum after the last ten million was issued. He (did not know, therefore, just how much therew to be redeemed, nor when they would all be redeemed. Other banks, doubtless. found the loan certificates very convenient. The Mechanics' had no use for them. It had continued to give merchants about as much accommodation as they demanded, and its discounts had increased $160,000 since the days before the panic. One reform likely to grow out of the erisis was a reform in the matter of over-certifying checks. His bank at present required full securities before it certified anything. P.C. Calhoun, President of the Fourth National Bank. said.there had never been any practical suspension. The banks have all paid National bank notes. and there is now an actual surplus of currency in all the banks. A man was there yesterday rushing about to sell $100,000 of National bank notes, and he could not find a buyer. The currency is coming in in great quantity, faster than it ever aid before, and because of the accommodation afforded by loan certificates. it accumulates in the bank If man comes with a check for $100, $400, or the counter, of course; if $500, vaults. he is paid over the amount is larger, $1,000 or $2,000, he is paid by certified check Reporter-As to the loan certificates, Mr. Calhoun, are they likely to soon redeemed if Mr. Calhoun-They could all be redeemed at once, the holders care to do it. We have been carrying $1,200,000 of them, merely to relieve the needs of our customers, but we could return them to-day, if we wished, take back our securities. But we do not think it We consider the loan a best and to so. certificates very good substitute for currency, and while they continue in use the actual currency accumulates. It is not drawback on any of us to make use of them. Brokers' checks are all certified, and always will be certified as long as there are any brokers' checks. The pool arrangement of the Associated Banks does no harm, and ittmay do good. The banks I believe could all draw out of it now, but it might strain some of the weak ones, and again threaten the mercantile interests. It is better to keep up the pool, although we larger banks suffer a little by it, than to break two or three mercantile houses, and have distrust and panic on us again. The accumulation of currency forms very desirable reserve to facilitate, when necessary, the movement of the various crops. But even in that particular, matters are exceedingly easy. A gentle man from the South was here to-day, who says that there is currency enough in the South to move the cotton crop provided we can give them slight advances on five and ten-day bills, due when the cotton arrives. So you may say that currency payments are resumed. There will be no formal proclamation of resumption by the Bank Compittee. Currency will simply assert itself. and in the course of the week every bank in the city will be paying currency as freely as ever. J. E. Williams, of the Metropolitan National Bank. had time only to say, when asked as to the prospects of an early resumption of currency payment, that he thought it best to let it come about naturally rather than to force it by any formal action by the banks. THE IRON TRADE SUFFERING FROM THE STRINGENCY. A TRIBUNE reporter yesterday conversed with several extensive dealers in iron, both American and imported, to obtain their opinions as to the present condition of business and the prospects for the future. Edward Oothout of the firm of W. Oothout & Co., No. 3 CHiff-st., said that the iron trade is now almost at a standstill. The transactions of the past month have been little over 50 per centrol those of the same time last year. Money does not come forward to set in motion the products of the mines and mills, and to move the crops. Moreover, dealers want both confidence and ready means to sustain them in giving orders. At the beginning of the panic collections came in pretty well, but as the alarm and the consequent monetary stringency spread over the country, the receipts stopped, and now there is little coming in. Many of the mills and employing firms are embarrassed to pay their MCD. and either defer full payment or give part of what is due in orders on some bank. In the case of the larger mills and houses this difficulty is chiefly due to the limitations put on currency payments by the banks. Mills and firms which have less resources, beside trouble from this cause, find difficulty also because they can little or and because their not meet their Merchants get their not more. Some usually sell money among obligations nothing, and the will promptly. trustworthy, buy debtors cannot now buyers, do most can only meet their bille with

5. November 27, 1873 New Orleans Republican New Orleans, LA
Article from New Orleans Republican, November 27, 1873

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COURT RECORD. WEDNESDAY, NOVEMBER 26, 1873. the courts have adjourned till Friday and a Thursday All being thanksgiving day. legal holiday United States Circuit Court. Cockrem. receiver of the tion, New vs Or H. Reynes John National Banking Asso National leans & Brother and Park Bank of New York. of complaint in orator's bill The identical grounds with those in the case of Cock rent are vs. Schneider et els. Superior District Court. State Robert Ray vs. Charles Clinton, State and Antoine Dabuclet. Trea. following modifications of surer. A auditor, The decreed the injunce and tion have been counsel for the widow are On motion of Henry of J. Spotts, succession $465 30 the heirs permitted to be paid to that General, motion of the Attorney the pay. On enlarged to permit prosecuting ment injunction of $1000 is advance costs in defaulters. On motion of Richard enlarged Pritchard, to allow inter the the payment the venor, the injune out of the is general fund of at Insane Asylum, appropriations the Deaf. to Dumb and the Blind Charity Asy Jackson; Baton Rouge, and revenues 1mm. at at New Orleans, the to be kept lected Hospital, for these appropriations separate. State ex rel. William Durbridge State ex rel. vs Eagar, The Clinton, Auditor: the same important Charies Ellerman & Co. vs. the decision The following most in the above cases. At General Mr. was J. given .Q.A. vesterday Fellows appeared for the fal within torney presented in this case parties contractors The questions a narrow compass Two with the claim for to the have purpose been of improving act the of navi the State gation of Red river No. 59 under of 1868), an authorizing Legislature (act be made in that river improvements to State had agreed in to that act for the They allege execute that the her bonds work at twenty done under years a in contract payment as provided contract in the $85.000 Of the amount and, of that alleged, $50,000 has is to the caused bonds has yet due. been paid, It is allege be that executed the State by the into them over give proper officers, the and Auditor has to be delivered deliver those On the hands of Auditor reiused to whose demand to the the claimants or persons for the in reason bonds favor they have been the issued, act authorizing their ap that in his opinion The parties issue was unconstitutional mandamus to complied to the court for a pel him to deliver them in 187: (act No. 21 Under an act Legislature passed directed the where Attor of 1872), General the to appear or in any all cases other State officer employ ney the Auditor, is a party Treasurer to defend private them counsel They is were their not defense. allowed to The Attorney act -and General which also for authorized by in the the same nature of his herever office- 111 duties seem to be the State w ap the to be the defender it becomes of necessary. also for He and State, alleges, it pears his judgment here for the Auditor. on the part and of the State that tutional; hich lates that this act article 111 of the constitution, from creating W any prohibits without the providing Legislature the would means accrue of pay on debt. The ment debt of the and interest also providing which constitution for the pay this act. ment that of the principale when consid ered stitution, in refer ality to of that provision ascertaining of the whether ence be determined by imagine it must this is debt or not. to elaborate at all scarcely necessary question. Wherever shall the be done, State by claim any to provides on this that anything shall be satisfied iven running the or execution of time, of and bonds does not when provide it for might is cases extinction period of the debt principal against the State. That with mature, would seem to dispose as of these far as the bends concerned framers out going any further, I must conclude of that the con that was are the intention because of in the 1870 they caused be sub- an stitution. to the constitution for ratification to amendment mitted to the ratified people on the fourth and which of was November 1870. above prohibiting a certain or fifth of the State debt $25,000,000 the increase limit, which was constitution fixed at must be That provision reference of the to article 111 that of the the same shall not create considered const itution, in which provides a debt without in it wishing providing Legislature the means amount of extinguis above $100,000 It the same the was seen same act. that to an debts might manner. be creat Under provided 111 for debts in had been were created, increasing conrate article tinued to be creat and and it was found neces conform it to think that. t sary it au to alarming make another must provision prov be considered to as that the Legislablishing constitutionally, the doctrine no Legislatures power to system reate ure has, debts. In other words of general public an not enter on and create debts ained their own that improvement it was alarmdiscretion. When created debts an they had al ready and had enacted privileges conng the amount shape of franchises in and corpora II investing power it was found racts to create debts, in order that ions to make a provision bankrupted of he necessary State might not be entirely the Legislature, The y hich the was indiscretion unlimited in discovered its cha racter not to be rst limitation coercive was to prevent the Legisla and afficient from exercising too much of creating latitude debts provision a became discretion are in the was matter therefore placed part of in the the or anic stitution, law from and the necessary date ot to its annul adop fr his ion. act It of is the not Legislature constitution, on account be ause t question that there provision are so of many the other and acts. might It be could be revolution rplexing in the public unexe securi roduce a held. But here is au enforced nted es already claim which is sought the to nntitutional be is my opinion equally that binding with the I other will act mitation, sufficient determine unconstitutional this case. off ac article, ot un declare of its the infringi ing to on the previous prohibition I. aced but in the contine amendment it to the constitum Sp adopted evidence in 1870. discloses in this case with that Oliver in The was made, first Red river 0 Alban, contract to construct a dam That in contract dercertain under specification the provisions works of act to No be lik adop is of made 1868. authorizing these ion of the con al no. In 187 after hibition the 06 1870. limiting made the and an nst made. tutional $25. 00,000. of the be to was ne in the Board work of engine ho had giv by and were the been CITY State in such mattere to represe the ignment was not made is the the cons in tation. and there unexecuted con pr tation applied to all out after the is which he were const carried stution. It is not very

6. November 25, 1877 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, November 25, 1877

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troller of the Currency. President Pearce, of the Third, stated to the reporter that he had learned that the Park Bank, of New York, had thrown out the draft for $120,000 given to County-Treasurer Huck Tuesday. He had not heard directly from the managers of the Park, but thought that their action in so doing was unwarranted. Efforts to ascertain the truth of the rumor from Treasurer Huck were productive of no satisfaction, as the re- porter was denied access to his presence. # THE STATE. The customary visit to the broken savings banks was made yesterday by a reporter, but, as of late, very little could be gotten from the Re- ceivers, since they had next to nothing to com- municate. At the State, Judge Otis is still "busy on routine matters." There certainly will be no dividend this year. To pay 10 per cent will re- quire nearly $300,000, and it will be impossible to realize that amount this month or next un- less the bank building is sold. Whether it is advisable to sell now has not been seriously considered. Some of the depositors are in need of funds, but they are at the same time anxious to get all that is possible out of the estate, and it is conceded by everybody that to dispose of property now it must be sacrificed. The Re- ceiver consults the interest of the creditors by holding off, and they will doubtless be content to wait until spring, in view of the fact that the real-estate assets will bring better prices then than now. # THE DEPOSITORS IN THE FIDELITY -certainly the most fortunate people of any who had money in other than sound savings banks-are still drawing their first dividend. Of the 8,000 who have accounts about 1,600 had received the 10 per cent of their deposit up to the closing hour yesterday afternoon. Receiver Turpin says that the first 2,000 will take out 60 per cent of the $130,000, leaving $52,000 for the other 6,000, nearly all the applicants thus far being those who find the larger sums to their credit. There was a "line" in the bank all day. Payments are made as rapidly as possible, but only so many can be accommodated within a given time. Very little, if any, growling, how- ever, is indulged in, as the depositors know that the funds are there, and that, if they do not get what is due them to-day, they will to- morrow. Letters are still being received from the country asking that balances or interest be forwarded, the writer being unaware that the institution has failed. The Receiver breaks the news to them by circular, and gives them some consolation by notification of the dividend. # THE BEEHIVE. The Committee appointed by the depositors of the "Beehive" did a very indiscreet thing when they called on Receiver Ward Friday af- ternoon. They took a reporter along with them, who represented to Mr. Ward that he was a member of the Committee. He took notes of the conference and published them, giving the names of several of the debtors of the bank. This will have a tendency to impair the credit of the debtors, and will impede, if not absolutely pre- vent, the collection of between $30,000 and $40,000. The reporter could have been present only by the connivance of the Committee, and they alone are responsible for his act. Mr. Ward is justifiedly indignant at this unwise and inexcusable conduct, and when the Committee call to-morrow he will see to it that the in- terests of the mass of the depositors are not put in jeopardy by the "smartness" of three or four fellows who evidently haven't sense enough to consult their own interests.