At the next meeting of the directors of the bank, John Oothout was chosen President.

During this year the bank sustained another loss in the resignation of Joshua Waddington, who had been identified with the institution as a director since 1784. In a letter to the directors on the 6th of June, 1843, Mr. Waddington stated that, having reached a period of life which made it difficult to continue his punctual attendance at the bank, he felt constrained to resign the office he had held for nearly sixty years.

Mr. Waddington died on the 29th of February, 1844, in his ninetieth year. He was a native of England, and had been in business there before coming to this country. During his long residence in New York he was universally respected and esteemed.

It is an interesting fact that Mr. Waddington's term of service as director of the Bank of New York and that of Charles E. Bill, now senior director, cover every year of its existence. Mr. Waddington was

elected a director at the first meeting of the subscribers in 1784, and continued to serve until 1843; Mr. Bill has held his office since 1837.

CHAPTER VIII.

1852-1884.

Expiration of the Charter of the Bank—Reorganization under the Free Banking Act in 1853-Increase of Capital to $2,000,000 in 1853-The Panic of 1857-Suspension of Specie Payments by the Banks in October, 1857-An Injunction Asked for Against the Bank of New York-Decision in Favor of the Bank-Resumption of Specie Payments in December, 1857-The New Bank Building Completed in 1858-Death of John Oothout in 1858 and Election of Anthony P. Halsey as President-The War of the RebellionIncrease of Capital to $3,000,000 in 1859—A Loan Committee Appointed in 1860-Financial Aid Extended to the Government by the Bank of New York-Death of Anthony P. Halsey in 1863 and Election of Charles P. Leverich as President-Organization of the Gold Department of the Bank in 1864-Reorganization of the Bank under the National System in 1865—Retention of its Former Title-Death of Charles P. Leverich and Election of Charles M. Fry as President in 1876—Reduction of Capital to $2,000,000 in 1878-Dividends paid by the Bank during its ExistenceConclusion.

N May, 1852, when the charter of the bank was about to expire, books were opened for subscriptions to a new bank under the general banking law known as the Free Banking Act, and passed in 1838. The capital of the bank was fixed at $2,000,000 in shares of $100 each, the stockholders of the bank being entitled to subscribe to twice the amount of their stock in the existing bank, and only one half of the additional capital to be immediately paid in.

The stockholders of the bank having subscribed to

the articles of association in accordance with the requirements of the statute, and the requisite security having been deposited with the Banking Department at Albany, the Bank of New York, on the 1st of January, 1853, became a free bank, with the directors, officers, and clerks of the previous bank. The assets and liabilities of the old bank had been sold and conveyed to it by deed of transfer. The real estate on the corner of Wall and William Streets was valued at $250,000. A careful estimate of the cash value of the assets in excess of the capital was made and a final dividend of thirty-eight and one half per cent. was declared, which dividend was receivable in payment of subscriptions to the new bank. It was estimated that the circulation of the bank which was lost or destroyed, and which would never be presented for redemption, amounted to $50,000. The subsequent return of notes reduced the estimate to $40,000.

The financial stringency which existed in the fall of 1857 occasioned a good deal of apprehension. Several conferences were held by bank officers in New York to devise means of relief, and the Secretary of the Treasury was applied to for aid, but without success. The stringency continued, and finally culminated in a general suspension of specie payments on the 15th of October. The panic of that day might possibly have been prevented by an earlier agreement on the

part of the banks to suspend specie payments, but each bank was desirous to be the last to propose such action. It was not until some of the banks out of Wall Street were reported to have suspended, that the larger banks decided that they must protect themselves, and instead of the usual certification they certified checks as being " due the depositor." This action created distrust and made depositors more anxious to receive gold for their checks.

A crowd filled the banking-room of the Bank of New York, and as it became evident that gold was being drawn on checks which should properly have gone through the Clearing-House, it was decided, at about 2 P.M., to refuse payment of any checks or bills not presented by a dealer in the bank.

On the 13th of October, during the run on the banks a person presented two one-hundred-dollar notes of the bank to the paying teller and demanded the specie, which was refused.

Application was immediately made by the holder of the notes to the Supreme Court for an order to show cause why an injunction should not be granted against the bank and a receiver appointed.

The case was argued before Judge Roosevelt, who decided against the application on the ground that while a bank may refuse to redeem its circulating notes during a period of general suspension, that refusal of