Atlantic National Bank (New York City) facts for kids

The Atlantic National Bank was a bank located at 17 Nassau Street in lower Manhattan in New York. It started in 1853 as a state bank. Later, it became a national bank after the United States Congress passed a law allowing such banks. In March 1856, the Erie Canal Board chose it to hold the money from its canal tolls (fees). Sadly, the bank ran into financial trouble and closed in April 1873.

History of the Atlantic National Bank

The Atlantic National Bank was one of only three banks in New York City that didn't have to pay certain taxes. This tax break was for money they had invested in United States government stocks after February 25, 1862. A special rule was passed on that date that gave them this exemption. The bank didn't have to pay $5,203.20 in taxes because of this rule.

In April 1864, the New York State Legislature made a change to the bank's official rules. In December 1865, the bank's directors announced they would pay a semi-annual (every six months) dividend of 6%. This payment was also free from government tax. The money for this came from the bank's profits over the previous six months. It was paid out after January 2, 1866. J. E. Southworth was the bank's president at that time.

By the end of March 1871, the Atlantic National Bank had $350,000 in capital. It also had $63,700 in profits that had not yet been divided among its owners.

Why the Bank Failed

When the Atlantic National Bank closed, it had $300,000 in fixed capital. After opening on April 26, 1873, the bank lost a lot of money. This happened because the value of the investments it held as security for loans dropped. The bank couldn't get this lost money back.

F. L. Taintor, who was the bank's cashier, announced that the bank was unable to pay its debts. He said it had lost about $400,000. Most of the money lost came from the bank's own funds. However, it was also noted that investments in a company called Pacific Mail were part of the losses.

Later, W. J. A. Fuller, who led a committee for the people who had deposited money in the bank, investigated. He found that the Atlantic National Bank had been in financial trouble for at least a year before it closed. The United States Department of the Treasury wondered how the bank managed to stay open for so many months. They were especially curious how a cashier could be responsible for such a large amount of money being lost without the bank's president or other officers knowing.

Other Banks with Similar Names

It's important not to confuse this bank with other banks that have similar names. These include:

• The Atlantic National Bank of the City of New York (which existed from 1914 to 1922)
• Atlantic Bank of New York (from 1952 to 2006)
• Atlantic National Bank of Jacksonville, Florida (from 1903 to 1985)
• Other banks with similar names

See also

In Spanish: Atlantic National Bank (Nueva York) para niños