Atlantic National Bank, New York City

The Atlantic National Bank, New York City was located at 17 Nassau Street (Manhattan) after being organized in 1853 as a state institution. It became a national bank after legislation authorizing such institutions was voted on by the United States Congress. It was selected by the Erie Canal Board as a depository of its canal tolls in March 1856. ["Canal Toll Deposit Banks", March 22,1856, pg. 3.] The bank became insolvent in April 1873.

Bank history

The Atlantic National Bank was one of three in New York City to be exempted from taxes which pertained to capital invested in United Statesstocks after February 25, 1862. On that date a clause in an act was passed specifying this exclusion. The amount which the Atlantic National Bank declined to pay was $5,203.20. ["A Raid On The Banks", New York Times, January 21, 1864, pg. 8.]

In April 1864 an amendment was passed in the New York Legislature to amend the bank's charter. ["State Legislature", New York Times, April 25, 1864, pg. 4.] In December 1865 the bank's directors declared a semi-annual 6% dividend which was exempt fromgovernment tax. The funds to be issued came from the profits of the previous six months. They were distributed after January 2, 1866. J.E.Southworth was the bank's president at the time. ["Dividends", New York Times, January 10, 1866, pg. 6.]

At the conclusion of March 1871 the Atlantic National Bank possessed a capital of $350,000, with undivided profits amounting to $63,700. ["Financial Affairs", New York Times, March 30, 1871, pg. 3.]

Insolvency details

At the time of its failure the Atlantic National Bank had a fixed capitol of $300,000. Following its opening on April 26, 1873, it incurred heavy losses after the depreciation of securities which it held as collateral for losses. These funds were not replenished. F.L. Tainter, the cashier, declaredthe bank insolvent and attested to its defaulting in the amount of $400,000. The money which was lost came primarily out of bank funds, but itwas acknowledged that Pacific Mail was among the securities which came up short in the losses sustained."A Broken Bank", New York Times, April 27, 1873, pg. 1.]

A subsequent investigation conducted by W.J.A. Fuller, Chairman of the Depositor's Committee, found that the Atlantic National Bank was in aninsolvent state for at least a year prior to its failure. The United States Treasury was left to consider the mysterious circumstances of how the bank remained afloat for many months. Of particular interest was how a cashier could drain $300,000 from the funds of depositors without the knowledge of the institution's president or its officers. ["Banks In Trouble", New York Times, April 30, 1873, pg. 12.]

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