National Bank (New York, NY)

Episode Information

Episode UID
7807228090694
Episode Type
Run → Suspension → Reopening
Bank Type
state
Bank ID
780722809 hash
Start Date
October 14, 1857
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
8b300d3b6fade036

Response Measures

None

Events (3)
1. October 14, 1857 Run
Cause
Macro News
Cause Details
Part of a broad October 1857 wave of heavy withdrawals and runs across many New York banks during the Panic of 1857 and related market distress
Measures
Paid out large amounts of specie to depositors while open; Clearing-House coordination later discussed
Newspaper Excerpt
The National Bank paid out some $43,000 in coin...; the run upon this institution was mainly by depositors
Source
newspapers
2. October 14, 1857 Suspension
Cause
Macro News
Cause Details
Collective suspension of specie payments by many New York banks in response to heavy withdrawals and financial panic
Newspaper Excerpt
the following banks suspended: ... National ... on the morning of the 14th
Source
newspapers
3. December 14, 1857 Reopening
Newspaper Excerpt
the undersigned banks... give notice that on and after Monday next they will resume specie payments on all obligations... Commerce, American, Manhattan and National Banks will resume on Monday.
Source
newspapers

Newspaper Articles (5)
1. October 14, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, October 14, 1857

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Article Text

Their loans were reduced $17,000 yesterday, and the specie $45,000. Bills receivable during the balance of this month, $500,000. LEATHER MANUFACTURERS' BANK. The Leather Manufacturers' Bank has closed its doers. MERCHANTS' EXCHANGE BANK. This Bank, located at No. 185 Greenwich street, suspended specie payments at 20 mnutes before 11 o'clock yesterday. During the time it was open, a large amount of specie was demanded and paid-our reporter could not learn the exact amount. The run upon this institution was mainly by depositors, and aton ded with much the same features as those already relat ed of the other banks. MANHATTAN BANK. The h 'ank of the Manhattan Company lost $140,000 in specie. MARINE BANK. The Marine Bank alosed its doors in the forenoon, in consequence of in in junction laid upon it by some of its stockholders. The hank needed only $40,000 to carry it through. Although it had ample security none of the Banks would land a dollar. It had NewYork stocks, but could not 2. aise $10,000 on $19,000 worth of them. MARKET BAN. 8. A very large crowd gathered 4 bout this back (located at the corner of Beekmen an d Pearl streets) as early as 11½ o'clock, and their effort to effect an entrance were 80 pressing that five polie emen found plen ty of employment in keeping the door ways passable. Depositors were present in strong force, and deposits were passed out to a great extent. But still 1 they came, and the stream of gold that passed from b ehind the deeks of the paying-tellers was dried up about 1 o'clock p. m. A notice was then stuck a, on the door, that the bank had suspended specie pey ment, but would remain open for the payment of notes. This gave great dissatisfaction to many among the crow outside, and some of them behaved 30 badly that the Police deemed it necessary to interfere to prevent a disturbance. MECHANICS' BANK. The Mechanics' Bank experienced a considerable run, commencing soon after 10. To checkholders they paid out notes as long as they lasted. Then they were compelled to pay everything in specie-in which about $130,000 was paid. MECHANICS AND TRADERS' BANK. The Mechanics' and Traders' Bank, in Grand street, paid every dollar up to 3 o'clock, the closing hour. MERCANTILE BANK. The Mercartile has nearly $60,000 less of specie in its (offers. MERCHANTS' BANK. The Merchants' Bank, out of nearly & million of speeie, paid $160,000. They paid out more bills than ever in any one day before. METROPOLITAN BANK, The Metropolitan Bank paid out something lover $200,000. NORTH RIVER BANK. This bank, one of the oldest in the city, whichris located at the corner of Greenwich and Dey streets, expèrienced a heavy run, in common with the other banks in that part of the town on Monday. During that day they paid out $50,000 in gold and silver. Yesterday morning the doors were opened, but a bulletin was immediately placed outside announcing to & large and anxjous crowd that they had suspended specie payment. This was received with ill humor by the congregated expectants of gold in exchange for their checks, but the announcement soon had the effect of diminishing the crowd. It may with truth be said that this institution has been run upon for more than a week, as they have for the past ten days been paying an average of $5,000 a day in specie to depositors. NASSAU BANK. The Nassau Bank paid out $80,000 in specie, paying straight through. NATIONAL BANK. The National Bank paid out some $43,000 in coin, which leaves it $458,000. BANK OF NEW-YORK continued to pay demands until ? o'clock, when the run became 50 great that they ran out of gold and were compelled to occupy the remainder of the time in certifying checks. The doors were kept open until 31 o'clock. Over $300,000 in cash and bills of other banks was paid out.

2. October 22, 1857 The Weekly Pioneer and Democrat Saint Paul, MN
Article from The Weekly Pioneer and Democrat, October 22, 1857

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ing the day-irrespective of the vague rumors with reference to others flying around through an already over excited community -it is no wonder that the equanimity of the city should have been seriously disturbed. In another article the Herald of the same date.-the 4th-says: Considering the tremendous pressure brought to bear upon these banks, the course is, perhaps. the best which they could have adopted. But for the overwhelming demands by mercantile depositors of the speculative and overtrading class, resolved upon forcing the banks to an expansion or a suspension. this alternative of a substantial suspension of specie payments might have been avoided. The result, as it is, will probably be equivalent to the direct loss of a hundred millions to the business community of this metropolis, from the inevitable reaction of this movement upon the banks and the financial and commercial interests of the State and the Union. Thus, in the interval to the meeting of Congress and the several State Legislatures, our city, our State, and all the States will be reduced to an irredeemable paper curreney ; for the example of this metropolis will doubtless be seized upon immediately by the interior banks of the State, and by the remaining open banks of all the other States, resting upon the faith and solidity of our city banks. Thus we approach the climax of the revulsion. On the evening of the 14th. ameeting was held by representatives of the various banks at the Clearing House, at which the following resolution was adopted : Whereas. in view of the excitement prevail ing in this community, and the fact of the ac tual suspension of a number of the banks of this city, Resolved. That it expedient that the banks of this city suspend specie payments to morrow. A Committee was also appointed by the meeting. to wait upon the Governor of the State, and request him to convene an extra ession of the Legislature. In accordance with the resolution adopted on the 13th, on the morning of the 14th. the following banks suspended : Merchants, America. Mercantile, Am. Exchange, Metropolitan. Atlantic. Nassau, City, National. Commerce. Commonwealth, New York County, North America. Continental, Oriental, Corn Exchange. Park. Dry Dock. Pacific, Fulton, Phonix, Greenwich. Hanover. Republic, State, Imp. & Traders. Seventh Ward. Manhattan. Shoe and Leather. Mechanics, Union. Mech's and Traders, In reference to the excitement on the streets, the Herald says: "The crowd in the street was no greater

3. December 12, 1857 Evening Star Washington, DC
Article from Evening Star, December 12, 1857

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Article Text

RESUMPTION OF SPECIE PAYMENT BY THE NEW YORK BANKS - The presidents of the Banks of America, Cômmerce, National, and Manhattan, have just issued the following important circular : "NEW YORK, Dec. 10th. "STR-Annexed is a copy osa proposed agreement for the resumption of specie payments by the banks of this city. The concurrence and cooperation of your bank in this important and most desirable object is earnestly solicited. The agreement will be presented to you on Saturday for signature. "Your obedient servants, "GEORGE NEWBOLD, "JOHN A. STEVENS, "C. 0. HALSTEAD, "JAMES GALLATIN." The following is the agreement referred to in the circular: "In view of the present strong condition of the banks of this city, and their duty to the community and themselves, the undersigned banks of the city of New York hereby give notice that on after Monday next they will resume specie payments on all obligations." The proposition meets with great favor in New York, and it is generally supposed that half of the banks will agree to it, though it is well known that some banks oppose the measure as tending to advance the rates of exchange on New York, and thus retard remittances; and, further, that it would cause a heavy drain of specie for export and render a second suspension imminent. In any event, however, the Commerce, American, Manhattan and National Banks will resume on Monday.

4. December 12, 1857 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, December 12, 1857

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in forces of this party having been divided, and a portion of their stock having found its way back into the street again, the bears in their turn have beco ne the influential parties, and now, strengthened by moderate success and the continued indifference of their rmer opponents, their movements become more determined and confident for a decline. Thus the market stands in its essential points, and while entsiders keep 80 entirely clear of the field, the chances for improvement do not appear encouraging. A more decided fall, together with cheerful accounts from Europe, may stimulate a reaction rapid and strong; but the market needs some items of nourishment of this kind to start from the lethargy which now hangs heavily upon it. At the First Board, lthe went at lower qotations, including New.York Central, which opened at 73% but fell to 731, Erie, which went down to 151, Reading and Toledo. La Crosse was one of the firmest at & practical advance over opening sales, which, however, was lost in the afternoon. At the Second Board, the decline continued as & general thing, and without any special effort on the part of the bears, the market seeming to fade out more in consequence of the "typhoid" state into which the stock business is for the time gradually set thing rather than on account of the movements of those supposed to be interested in producing & depression. As the session tapered off, there was a elight improvement in the tone of the market, prices leaving off with tolerable steadiness. At & later hour, in the street, quotations were given at a trifling improvement. Reading closed at 501 bid; Toledo, 411; N. Y. Central, 721: Erie, 151; Michigan Southern, 181. The floating debt of the Reading Railroad is gradually being absorbed in exchange for bonds of the Company 70. We understand that about half a million of dollars have already come in, and holders of the paper are beginning to be more disposed to the exchange as money becomes easier and rates of interest decline. Bond transactions were light during the day, with a moderate decline in several of the prominent State Stocks. Illinois Central bonds were a little firmer at quotations. The transactions in bills have been very light for the steamer to morrow. The supply is fair and rates are steady. Sterling 108} 1092; Francs, 5.30 181. The non arrival of the Europa checked transactions. Freights are better and more active. To Liverpool, 2,500 bble. Flour at 1s. 6d. 1s. 71d 27,000 bushels Grain at 41d., in bulk, and 5d. in ship's bags; Cotton at 5-32d.; 300 bexes Cheese at 22a. 6d.; 100 bales Oakum at 3-16d. To London, 1,200 bbls. Oil Cake at 2a. P bbl 500 do Rosia at 2a. 6d.; 1,000 do. Flour at 2s.; 50 hhds. Tobacco at 20s.; 50 tes. India Beef at 4a. 6d.; 300 tes. Navy Pork at 4s. 6d.; 400 bbls. do. at 3s. To Glasgow, 40 tuns Oil at 35a.; 75 pkgs. Tobacco at 28 6d. To Rotterdam, 400 bbla. Rosin at 3s. 3d.; 50 bble. Spirits at 4c. P gallon. A bark of 260 tuns to Windward Islands for $1 300. A brig of 350 tuns to Turks Island and back, with salt, at 13c. Sold, by Henry Moulton, ship broker, the superior new ship Augustus, built at Bath, May, 1857, 737 tuns register, on private terms. The business of the Sub-Treasury was: Receipts, $431,218 91, including $54,000 from Customs; Payments, $118,171 21, including $300,000 for tranfer draft on New-Orleans; Balance, $4,230,987 72. The most important financial event of the week is the movement of & portion of the Banks toward specie resumption. A meating of the fourteen Banks which voted at the Clearing-House meeting on Wednesday in favor of settling balances in specie, was held to day, and a Committee was appointed to invite the City Banks to resume specie payments on Monday next. The Committee have issued the annexed circular to the Banks of this city: 'NEW-YORK, Dec. 10, 1857. "SIR: The annexed is a copy of a proposed agreement for the resumption of specie payment by the banks of this city. The concurrence and cooperation of your bank in this important and most desirable ob. ject is earnestly solicited. The agreement itself will be presented on Saturday next for your signature. Your obedient servants, "GEORGE NEWBOLD President. JOHN A. STEVENS, President. C. O. HALSTED. Prendent " JAMES GALLATIN, President." On the third page 18 the following notice, to which the signatures of the various bank officers of the city are solicited In view of the present strong condition of the bar ks of this city, and of their duty to the community and to themselves, the undersigned banks of the City of New-York do hereby give notice that on and after Mond next, the 14th inst. they will resume specie payments on all their obligations. New York, Dec. 10, 1857 The fourteen banks which are parties to this movement are the Commerce, America, Manhattan, Merchants', American Exchange, Phenix, National, Fulton, Chemical, Greenwieh, Leather Manufacturer's, Broadway, Mercantile, Irving. All the banks will probably join in this resumption if it be persisted in, in which case the suspension will have lasted just two months. There will probably be & Clearing-House meeting to morrow (Saturday), to take the matter into consideration. It is understood that an istimation had been received from Gov. King that resump ion was very desirable before the meeting of the Legislature, and he has been telegraphed that it will take place on Monday. Communication has also been had with the Boston banks, which are prepared to resume as soon as New-York is on a specie paying basis. The action of the banks was the prominent topic of conversation on "Change, and that the gereral sentiment appeared to be that it was premature. Some of our leading financiers expressed fears that mischief might grow out of it. The Commerce, the National and the American have been the active movers in this step, these institutions having been desirous of resuming some time since. Those banks which have been opposed to resumption have, however. only urged a short delay on the ground that

5. December 14, 1857 The Day Book Norfolk, VA
Article from The Day Book, December 14, 1857

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LATEST NEWS. Resumption of Specie Payments by the New York Banks-Accumulation and Export of Specie, &c. NEW York, Dec. 11.-The presidents of the Banks of America, Commerce, National and Manhattan have issued the following important circular : NEW YORK, Dec. 10th. "Sir :-Annexed is a copy of a proposed agreement for the resumption of specie payments by tha banks of this city. The concurrence and co-operation of your bank in this important and most desirable object is earnestly sollcited. The agreement will be presented to you on Saturday for signature. "Your obedient servants, "GEORGE NEWBOARD, "JOHN A. STEVENS, "C. O. HALSTEAD, "JAMES GALLATIN." The following is the agreement referred to: "In view of the present strong condition of the banks of this city, and their duty to the community and themselves, the undersigned banks of the city of New York hereby give notice that on and after Monday next they will resume specie payments on all obligations." The proposition meets with great favor, and it is generally supposed that half of the banks will agree to it, though it is well known that some banks oppose the measure as tending to advance the rate of exchange on New York, and thus retard remittance; and further, that it would cause a heavy dran of specie for export and render a second suspension imminent In any event, however, the Commerce, American, Manhattan and National banks will resume on Monday. Money is very abundant, and the influx from the West is excessive. Should it continue it will nearly balance the heavy export. The Fulton to-morroy takes about three-quarters of a million for Europe.