Peoples Bank (New Orleans, LA)

Episode Information

Episode UID
8446043690951
Episode Type
Run β†’ Suspension β†’ Reopening
Bank Type
state
Bank ID
844604369 hash
Start Date
March 20, 1879
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
a48b59fdc2880781

Response Measures

None

Description

Suspension repeatedly described as temporary (order to expire March 29); article 8 reports heavy withdrawals ($500,000) from People's Bank.

Events (2)
1. March 20, 1879 Run
Cause
Local Banks
Cause Details
Runs occurred after collapse/suspension of other New Orleans banks and disclosures of rotten assets, provoking heavy withdrawals from Peoples Bank.
Measures
Clearing house limited payouts to $200 per depositor per day; other payments by certified checks.
Newspaper Excerpt
Another crash...created a panic, and there was a heavy run on the Canal, Louisiana State, Germania, Union and People's banks. In the latter institution $500,000 was drawn out on Tuesday.
Source
newspapers
2. March 20, 1879 Suspension
Cause
Local Shock
Cause Details
Temporary suspension ordered by the New Orleans clearing house due to scarcity of currency and to avert a threatened panic.
Newspaper Excerpt
The following is a list of New Orleans banks whose temporary suspensions were announced... People's bank ... The order of suspension will expire on the 29th inst.
Source
newspapers

Newspaper Articles (11)
1. March 21, 1879 New-York Tribune New York, NY
Article from New-York Tribune, March 21, 1879

Click image to open full size in new tab

Article Text

EFFECT IN THIS CITY. VERY LITTLE EXCITEMENT IN FINANCIAL CIRCLESOVER $1,000,000 SENT TO NEW-ORLEANS BY NEW-YORK BANKS. The news of the suspension of all the New-Orleans banks did not cause much excitement in this city yesterday, and bankers declared that it would be temporary. The suspension of one or two of the banks with small capital precipitated action by the New-Orleans Clearing House. The resolution to suspend was followed by telegraph orders upon the New-York correspondents for the balances here to be forwarded in legal-tender notes. The only regret manifested by bankers was that the suspension, even though temporary, should have occurred at this time. It was stated by a leading banker that between March 15 and April 1 was the general settling season between the banks of New-York, Pennsylvania and a part of New-England. Last year at this season $4,000,000 was sent away from this city, against $15,000,000 during the same time in 1877. It was not expected that much over $5,000,000 would be required this year, some of which had been forwarded. The Boston and Philadelphia banks are reported as well supplied with legal-tender notes, and exchange on New-York was quoted yesterday at a discount. The banks yesterday made demands for call loans to meet the drain of $1,000,000 sent to New-Orleans. It was feared that this would make a poor showing on this week's bank statement. The legal-tender surplus last week was less than $4,000,000, and it was feared that on Saturday it would run down to below $3,000,000. The New-York correspondents of the banks which have temporarily suspended are as follows: For the German National of New-Orleans, the Fourth National and Importers' and Traders' Banks of NewYork; for the Hibernia National, the Importers' and Traders'; for the Louisiana National, the Third National Bank: for the New-Orleans National, the American Exchange and Hanover Banks; for the State National, the Bank of New-York and Park Bank; for the Union National, the Park Bank ; for the Bank of Lafayette, the American Exchange Bank; for the Citizens' Bank of Louisiana, the Metropolitan Bank: for the Mechanics' and Traders', M. Morgan's Sons; for the New-Orleans Canal and Banking Company, M. Morgan's Sons; for the People's Bank, the Merchants Bank; for the Workingmen's Bank, the Park Bank: for the Mutual National, the City and Mechanics' Banks. Over $1,000,000 was sent to New-Orleans yesterday from this city. Seven banks in the city which hold the deposits of the New-Orleans banks were called on for money and promptly responded. The following are the amounts sent by the several banks:

2. March 21, 1879 Memphis Daily Appeal Memphis, Hernando, Grenada, Jackson, Vicksburg, Atlanta, Griffin, Macon, Montgomery, Selma, TN
Article from Memphis Daily Appeal, March 21, 1879

Click image to open full size in new tab

Article Text

A FINANCIAL EARTHQUAKE. New Orleans Banks Imposing Restrictions that Indicate an Alarming Shakiness-The Effect in St. Louis and New York. NEW ORLEANS, March 20.-The clearinghouse banks decide not to pay out on checks more than two hundred dollars to one depositer in one day, all other payments to be made by the certification of checks, which shall be received on deposit by the banks of the clearing house. The arrangement will be temporary. Collections for distant customers will be re.nitted for as heretofore in currency checks on New York. In effect, this action involves only local interests here, and has checked the panic, the pretext for which will be entirely removed in a day or two, when the currency arrives which is already ordered from New York. The banks held this morning about two million Etwo hundred thousand legaltenders and three million sight exchange on New York, Exclusive of their portfolios, with which to meet about ten millions due depositors, most of the banks to-day received more currency from depositors than they paid out. THE EFFECT IN ST. LOUIS. ST. LOUIS, March 20.-The news of the suspension of the banks at New Orleans had comparatively little effect on 'change other than in the southern provision jobbing trade, which was somewhat depressed owing to the belief that monetary affairs at New Orleans and adjacent towns which do their business through the New Orleans banks would be at least temporarily disturbed. The general business of the city and banks here will not be affected to any appreciable extent. NEW YORK COMING TO THE RESCUE. NEW YORK, March 20.-The following is a list of the New Orleans banks whose temporary suspension is announced: Germania national bank, Hibernia national bank, Louisiana national bank, Mutual national bank. New Orleans national bank, State national bank, Union national bank, bank of Lafayette, Citizens bank of Louisiana, Citizens savings bank, Louisiana savings bank, Metropolitan bank, New Orleans canal and banking company, Peoples bank, and Workingmen's bank. Many orders for currency were received here to-day from New Orleans, and large amounts shipped. The order of suspension expires on the twenty-ninth instant, and before that time funds from this city will have reached the banks. The action taken was to avert a threatened panic. Over one million dollars were sent to the New Orleans banks to-day from this city. Mr. Hendricks's Position. Indianapolis Journal: "We are not authorized to speak for Governor Hendricks, nor is Montgomery Blair, and when he says that Mr. Hendricks is for the old ticket of Tilden and Hendricks he does not speak authoritatively. That may be Mr, Hendricks's second choice. It is not fair play, however, for eastern Democrats to assume to speak by authority and place Mr. Hendricks second on the ticket. Hailing from the only State north of Mason and Dixon's line carried by the Democrats last year, he is entitled to fair play in the canvass. Natal Railwav Accident

3. March 21, 1879 The Cheyenne Daily Leader Cheyenne, WY
Article from The Cheyenne Daily Leader, March 21, 1879

Click image to open full size in new tab

Article Text

LOUISIANA. A General Suspension of Banks. New Orleans, March 20.-A growing scarcity of currency caused the temporary suspension here of the following banks: Germania National Bank, Hibernia National, State National, Union National, Bank of Lafayette, Citizen's Bank of Louisiana, Citizens' Savings bank, Louisiana Savings bank, Metropolitan bank, New Orleans Canal and Banking company, People's bank and Workingmen's bank. Orders for currency have been sent to New York and large amounts were shipped to-day. The order of suspension will expire on the 29th inst., and before that time funds from New York will have reached the banks. The action taken was to avert a threatened panic. The banks held this morning about $2,200,000 in legal tenders and $3,000,000 sight exchange on New York, exclusive of their portfolios, with which to meet about ten millions due depositors. Most of the banks to-day received more currency from depositors than they paid out. Collections for distant customers will be remitted for as heretoforein currency checks on New York. The effect of this action involves only local interests here and has checked the chances for a panic, any pretext for which will be entirely removed in a day or two when the currency arrives.

4. March 21, 1879 The Wheeling Daily Intelligencer Wheeling, WV
Article from The Wheeling Daily Intelligencer, March 21, 1879

Click image to open full size in new tab

Article Text

Wholesale Suspension of New Orleans Banks. NEW YORK, March 20.-The following is a list of the New Orleans banks whose temporary suspensions were announced to-day: Germania National Bank, Hebernia National Bank, Louisiana National Bank, Mutual National Bank, New Orleans National Bank, State National Bank, Union National Bank, Bank of Lafayette, Citizens' Bank of Louisiana, Citizens' Savings Bank, Louisiana Savings Bank, Metropolitan National Bank, New Orleans Canal and Banking Company, People's Bank, Workingmen's Bank. Many orders for currency were received here to-day from New Orleans and large amounts were shipped. The order of suspension expires on the 29th inst., and before that time the funds from this city will have reached the banks. The action taken was to avert a threatened panic. NEW York, March 20. -Over - one million dollars were sent to the New Orleans banks to-day from this city.

5. March 21, 1879 Wheeling Register Wheeling, WV
Article from Wheeling Register, March 21, 1879

Click image to open full size in new tab

Article Text

Financial Flurry in New Orleans. NEW YORK, March ).-The following is the list of New Orleans banks whose temporary suspension was announced to-day: Germania National Bank, Mutual National Bank, New Orleans National Bank, State National Bank, Union National Bank. Bank of Lafavette, Citizens Bank of Louisiana, Citizens Savings Bank, Louisiana Savings Bank, Metropolitan National Bank, New Orleans Canal and Banking Company, People's Bank andWorkingmen's Bank. Many orders for currency were received here to-day from New Orleans and large amounts shipped. The order of suspension expires ou the 29th inst. and before that time funds from this city will have reached the banks. The action taken was to avert a threatened panic Collections for distant customers will be remitted for, as heretofore, in currency checks on New York. In effect this action involves only local interests here, and has checked the panic, the pretext for which will be entirely removed in a dav or two, when the currenev arrives which is already ordered from New York. The banks hold this morning about $2,200,000 in legal tenders and $3,000,000 of sight exchange on New York, exclusive of their portfolios, with which to meet about $10,000,000 due depositors. Most of the banks to-day received more currency from depositors than they paid out.

6. March 21, 1879 Daily Globe Saint Paul, MN
Article from Daily Globe, March 21, 1879

Click image to open full size in new tab

Article Text

FINANCIAL FLURRY. Temporary Suspension of the National and State Banks of New Orlean-Scarcity of Currency and Threatened Panic the Cause -Large Currency Shipments from New York. NEW YORK, March 20.-The following is a list of New Orleans banks whose temporary suspension was announced to-day: Germania National bank, Hibernia National bank, Louisiana National bank, Mutual National bank, New Orleans National bank, State National bank, Union National bank, Bank of Lafayette, Citizens' Bank of Louisiana, Citizens' Savings bank, Louisiana Savings bank, Metropolitan bank, New Orleans Canal and Banking company, Peoples' bank, and Workingmen's bank. Many orders for currency were received here today from New Orleans, and large amounts were shipped. The order of suspension expires the 29th inst., and before that time funds from this city will have reached the banks. The action taken was to avert a threatened panic.

7. March 21, 1879 Chicago Daily Tribune Chicago, IL
Article from Chicago Daily Tribune, March 21, 1879

Click image to open full size in new tab

Article Text

NEW YORK. Recial Dispatch 10 The Tribune. NEW YORK, March 20.-The news of the action of the New Orleans Cluaring-House was early received on the street, but produced no apparent effect. Business went on as usual, and no apprehension was felt of trouble here in the future arising from the difficulties of the Now Orleans banks. The prlucipal cause of the fluancial troubles in Louisiana is here held to be Democratic misrule, and the probability of repudiation, which sent Louisiana bonds from S3 to 48 within the past six weeks. Between $1,500,000 and $2,000,000 left this city to-day for New Orleans. Some of the New Orleans banks made no call on their correspondents, though having large balances on deposit here. The New Orleans banks are nearly all in excellent condition as regards their New York accounts, and bankers here generally express their belief that the paute will subside without serious results to the Southern banks. The effeet of the withdrawal of 80 much currency just at this time, when New York bank reserves are down to $4,325,723 above the legal limit, and Government bond settlements, growing out of the marketing of the 4 per cent loan and the dunual settlements of the farmers of Eastern and Middle States are about to occur, was seriously discussed 'n financial circles. It was suggested that the Secretary of the Treasury be requested to change the place of payment of the called bonds to New York from Washington, to anticipate the payment of the April interest, and the payment of all called bonds maturing before April 15, making payment hero without robate, to agree to call on National banks for money only after nctual payment of checks given for called bonds, and to allow National banks to satisfy calls upon them for money by turning into the Treasury any past-due called bonds, they to be credited on account. These measures will probably be proposed to the Secretary, and no apprehensions are felt that he will refuse to act upon them, as bankers any he has given them personal assurance of his intention to prevent, by any legitimate means, the possibility of a monetary stringency here. Tothe Wastern Associated Press. New YORK, March 20.-The following is n list of the New Orleans banks whose temporary suspension is announced to-day: Germania National Bank, Ilibornia National Bank, Louisiana National Bank, Mutual National Bank, New Orleans National Bauk, State National Bank, Union National Bank, Bank of Lufayette, Citizens' Bank of Louisiana, Citizens' Savings Bank, Louisiana Savings Bank, Metropolitan Bank, Now Orlenus Canal & Banking Company, People's Bank, Workingmen's Bank. Many orders for currency were received here to-day from New Orleans, and large amounts shipped. The order of suspension expires on the 29th inst., and before that time funds from this city will have reached the banks. The netion taken was to avert a threatened panie.

8. March 25, 1879 Daily Globe Saint Paul, MN
Article from Daily Globe, March 25, 1879

Click image to open full size in new tab

Article Text

THE NEW ORLEANS BANKS. 4 Very Rotten State of Affairs Developed. [New Orleans Special (March 20) to Chicago Times.] Several days ago the attention of the Times correspondent was attracted to the statement of the Southern bank, wherein assets given at $672,728.30 were found by the quotations of that day to be worth but $273,669.12, and that the bank was short $429,256. The Times man at once called the attention of Mr. Thomas Layton, admitting that the analysis of statement was correct, and that its publication would RUIN THE BANK, asked for delay to straighten its affairs, at the same time exhibiting a letter from the London Joint Stock bank which prompted an early remittance of $30 a share of the stock it had. The condition of the bank was also known to Messrs. Bradish Johnson and John T. Moore, two of the directors, both of whom were made cognizant of the facts, and all three pledged their faith that if public attention was not attracted to the true condition of affairs, the depositors, to whom $628,869 was due, would be paid. These same parties, by an understanding with C. E. Girardy, DECLARED THE BANK INSOLVENT under act 166, of 1855. C. E. Girardy presenting a check, which was protested, the sheriff who accompanied him seized the bank and read an order from the Fourth district court declaring Thomas Layton, John T. Moore and C. E. Girardy receivers. This had the effect of placing the principal officers in possession and depriving the depositors of all recourse. A deposit of $2,900 was received at the moment the bank closed its doors Monday evening, never to open again for business. It is estimated that $700,000 is the full loss involved, and it is known that the bank has existed for years upon a nominal capital. ANOTHER COLLAPSE. The suspension of the Mechanics' & Traders' bank, which occurred on Tuesday, occurred by an identical process. Deposits were received up to noon, when suddenly the sheriff appeared with a citation, answer and order of court containing the appointments of G. Lanaux, J. A. Blaffer and A. Lehman receivers, all on the same sheet of paper, and, with the exception of the signatures, in the same handwriting. Here an over-valuation of $238,000 is apparent in the statement as assets, and the actual deficit is probably double the amount. Another crash following in such quick succession CREATED A PANIC, and there was a heavy run on the Canal, Louisiana State, Germania, Union and People's banks. In the latter institution $500,000 was drawn out on Tuesday. At a meeting of the funding board S. H. Kennedy presented a resolution of the board of directors declining to any longer pay the past due State coupons. The board failed to withdraw the $374,000 of State funds he has on deposit. During the evening THE CLEARING HOUSE passed a resolution declaring that until March 29th no depositor can draw more than $200 in one day, and that all other drafts are payable in certified checks. It is asserted that but for this resolution the Union, State National and German banks would have failed to-day. This morning certified checks were selling at 1 per cent. discount, and it is apprehended that they will be lower, in consequence of the number of sight drafts from the west for much larger amounts than the limit allowed. Among the more intelligent financiers this is regarded as the forerunner of crash, which will swallow up every bank out of line. MEETING OF DEPOSITORS. At a meeting of the depositors of the broken New Orleans Savings bank to-night, the committee of experts reported the total liabilities to be $1,432,000; assets, $817,044, with a deficit of $614,955. The law incorporating this bank declares it a felony for any trustee to use the means of the institution for any purpose, but notwithstanding that fact, David Urquhart, president of the board, loaned $90,000 to a concern in which he is a partner, and nearly every trustee is heavily indebted. No prosecution is even hinted. AN EXPLANATION of the frightful rottenness and the great apprehension which exists can only be made in one way. During the spring of 1877, $22,000,000 accumulated in the banks in consequence of an utter lack of confidence produced by the Presidential controversy. When Nicholls was installed this large sum was used for speculating in State consols. The banks carried the bonds on margins, and when bonds reached 93 New York and Amsterdam unloaded to the extent of $10,000,000. The margins by which these bonds floated were swept out of existence when THE STATE DEFAULTED upon her interest. The bulk of the State debt has, by the course of depreciation, been thrown back upon the banks and insurance offices of the city, and the threatened repudiation, which would deprive them of the greater portion of their capital, has created this feeling of uncertainty. The suspension ordered last night may be prolonged, but it is believed sufficient money can be raised for the ordinary movement of tlade. The disaster is attributed to the IMBECILITY OF FRANCIS T. NICHOLLS, who was informed shortly after his inauguration of the exact status of the State debt, and it is held he was urged to reanimate confidence and restored the bonds to European bondholders by a vigorous financial policy, but the gentleman who gave him the information and made a suggestion which would have supplied to commerce ample capital was politely told to mind his own business. Want His Name Samuel But Not Tilden. [St. Charles (Minn.) Times-Dem.] The Winona Herald raises at the head of its editorial columns the following: For President in 1880, Samuel J. Tilden. Subject to the decision of the National Democratic convention. Our friend Whipple of the Herald is generally pretty clear headed, and in his political predictions is always more than half right. In the above he is about two-thirds right, the Samuel J. being correct, but the Tilden he could better have written Randall. We make no prediction, nor do not wish to be understood as stating any preference for a Presidential candidate at this early dav

9. March 26, 1879 The Weekly Clarion Jackson, Meridian, MS
Article from The Weekly Clarion, March 26, 1879

Click image to open full size in new tab

Article Text

Merchants Convention at Forest. By a circular from Mr. J. T. O'Ferrall, Secretary of a Merchants' meeting at Newton, we learn that it is proposed to hold one at Forest on the first Monday in April, for the purpose of selecting a committee to confer with the Directors of the Vicksburg and Meridian Railroad on the subject of a reduction of the freight tariffs of the said road. All the towns on the line of the road are urged to appoint delegates to the Convention. THERE is great trouble among the New Orleans Banks, the following is a list of those whose suspension has been announced: Germania National Bank, Hibernia National Bank, LouisianΔ… National Bank, Mutual National Bank, New Orleans National Bank, State National Bank, Union National Bank, Bank of Lafayette, Citizens' Savings Bank, Louisiana Savings Bank, Metropolstan Bank, New Orleans Canal and Banking Company, People's Bank, Workingmen's Bank.

10. March 27, 1879 The Stark County Democrat Canton, OH
Article from The Stark County Democrat, March 27, 1879

Click image to open full size in new tab

Article Text

TEMPORARY BANK SUSPENSIONS. New Orleans Banks Suspend a Few Days to Avert a Panic. New Orleans, March 20.-The Clearing House banks decide not to pay out on checks, more than $200 to any one depositor on one day. All other payments will be made by certi fication of checks, which shall be received on de posit by the banks of the Clearing House. The arrangements will be temporary. Collections for distant customers will be remitted as heretofore in currency checks on New York. In effect this action involves only local interests here and has checked a panic, the pre. text for which will be entirely removed in a day or two when currency arrives, which is already ordered from New York. The banks held this morning about two millions two hundred thousand legal ten ders and three millions sight exchange on New York, exclusive of their deposits with which it will meet about $10,000,000 due depositors. Most of the banksto-day received more currency from depositors than they paid out. New York, March 20.-Following is a list of New Orleans banks whose temporary suspension was announced to day: The Germania Nat'l Bank, Hibernia National Bank Louisiana Nat'l Bank, Mutual National Bank, New Orleans Nat'l Bank, State National Bank, Union National Bank, Bank of Lafayettee, Citizens Bank of Louisiana, Citizens Savings Bank, Louisiana Savings Bank, Metropolitan National Bank, New Orleans Canal and Ba king Company, Peoples' Bank, Workingmen's Bank. The suspension has had but little effect in other cities. Many orders for currency were received here to-day from New Orleans, and large amounts shipped. The order of suspension expired on the 29th inst., and before that time funds from this city will have reached he bank The action taken was to avert a threatened panic.

11. March 30, 1879 The Weekly Elko Independent Elko, NV
Article from The Weekly Elko Independent, March 30, 1879

Click image to open full size in new tab

Article Text

A NEW ORLEANS dispatch announces the temporary suspension of the following banks: The Germania National Bank, the Hibernia National Bank. the Louisiana National Bank, the New Orleans National Bank, the State National Bank, the Bank of Lafayette, the Citizens' of Louisiana, the Citiz ns' Savings Bank of Louisiana, the Savings Bank, the Metropolitan Bank, the New Orleans Bank. the New Orleans Canal and Banking Company, the Peoples Bank, and Workingmen's Bank. Collections for distant customers will be remitted for. as heretofore, in currency checks on New York. The effect of this action only involves local interests and has checked a panic the pretext for which will be entirely removed in 11 day or two when the currency arrives which is already on its way from New York.