Imports $12,864,942. The mortality had averaged for several years about 4,400 annually, in a population of about 100,000-44 per 1,000.

1841.

All banks this year suspended specie payment, although there had been a general resumption with all charter rights restored previous. This condition lasted but a brief few months. Crops were good and banking conditions in the latter part of 1841 and 1842 improved very much. The Canal bank notes circulated throughout the South, suffering little discount and at but a few points.

The banks having resumed specie payment, the General Assembly reinstated them in their chartered rights; it also endorsed the idea of a United States National Bank to regulate the issue of currency and to maintain a stability in its value. It was not until 1863 that this idea was carried out.

The exports at this time, 1840-41, of New Orleans, exceeded those of New York. 2,000 sailing vessels and 1,600 steamboats arrived in the port this year. There were sixteen banks doing business. Population of the State, 350,000.

1842.

The chief matter considered by the Legislature in 1842 was remedial laws looking towards the control of banks; prohibiting them from violating their charters, and providing for the liquidation of such as were insolvent.

Two were paying specie-the Canal Bank and the Citizens. During the year seven went by the board, leaving only nine in sound financial condition, with a reserve of $4,565,925 against a trivial circulation of $1,261,514.

So severe had been the lesson, that even with this strength, the banks would not venture the usual aid to commerce. There was a general scheme of financial retrenchment from now on.

In "Pitts and Clarke's Directory" of New Orleans, 1842, ten banks are apparently doing business still, despite the panic of 1841: The Union, capital $7,000,000, C. Adams, president; The Consolidated, Royal and Toulouse, capital $2,398,000, Hugue Lavergne, president; City Bank, 13 Camp St., S. J. Peters, president, capital $2,000,000; Carrollton, Canal near St. Charles, G. C. Duncan, president, capital $3,000,000; Bank of Orleans, Canal corner Exchange Place, capital $500,000; Gas Bank, capital $6,000,000, St. Charles street opposite the Verandah; New Orleans Canal and Banking, with Geo. A. Prevost, Wm. M. Goodrich, James T. Kelly and Glendy Burke added to the Board of Directors; Bank of Louisiana, Benjamin Story, president, capital $4,000,000; Improvement Bank, $2,000,000 capital, J. M. Ducros, president; Citizens' Bank, Toulouse between Royal and Chartres, capital $7,088,000 "paid," W. C. C. Claiborne, president; Louisiana State Bank, Conti and Royal, capital $2,000,000, J. B. Vignie, president; The Commercial, the Merchants, the Exchange and the Mechanics and Traders.

Bank statement of the Canal Bank of Nov. 4th, 1841, shows circulation $564,765; less local bank notes, $247,125; and due to banks, $6,005-$241,120, $323,645. Specie, $114,156. New circulation of stamped notes and others, double the amount, $228,312. "Porte feuille," $3,703,282— amount to be paid in cash $370,328.

In all the banks there were $2,931,892 in specie and $5,853,784 circulation. The Canal Bank ranked with three others, Bank of Louisiana, Citizens and Union in resources, and in the credit of its outstanding notes. The ten other banks reporting, about equalled these four.

GLENDY BURKE,

Probably the greatest crisis that the Canal Bank has met in its history, was during the panic of 1841. Every bank in the city had to suspend specie payment; this was done by mutual consent. Mr. Glendy Burke had been made a

director of the Canal Bank. That year the dissolution of the bank became a matter of discussion, when the new Board of Directors had been elected. Mr. Burke himself, in a pamphlet, tells the story:

“Upon taking possession of the bank, an examination showed the deposits to be extremely small, with eighteen thousand dollars in the vault to meet a circulation of more than $60,000, as appeared from the books.

"Scarcely had the new Board organized, before a clamorous crowd of hungry note holders were besieging the doors, demanding specie. After a protracted session, the then President, (Mr. Ogden), felt himself justified in declaring that there was nothing to be done, except to 'let the institution go.' Everything was dismay and confusion. The hour for opening the bank had passed; there was no helping hand, and the first unpaid five dollar note would, under the law, bring with it the forfeiture of the charter.

"The then President, seeing no hope of assistance, and justified by the concurrence of a majority of the Board, proposed to resign his post. Believing fully in the eventual solvency of the bank, and desiring to have its integrity remain unimpeached, I volunteered to interpose my personal means and resources between the bank and ruin.

"My offers were accepted. Withdrawing from other banks a sum necessary for the purpose, which was standing to the credit of my house, I returned with their notes to the bank of which I had so recently become a director. Not having time to obtain the specie, I exchanged these notes for those presented at the counter, until the run was stopped, everybody satisfied and order restored.

"The interests of the stockkholders, and the gratification of a natural feeling of pride for the character of the institution with which I was connected, formed the sole inducement, as they did the only compensation, for the responsibility I thus incurred."

There followed an administration of the Canal Bank's affairs by Mr. Glendy Burke as president of eight years,

1841-49, the stock had fallen to ten cents on the dollar, this, by his care, was brought back to par, and another chapter of integrity was written to endear this institution to the people.

Banks in those days were not fortified as they are today by the careful mutual helpfulness of a Clearing House, and the national treasury took little interest in preserving State banks.

Integrity was largely a matter of good personnel on the directory board. The conduct of employees even had effect. The German porter of the Canal Bank stood so well that a story is told of his single assurance given to friends -that the bank was all right-dissipating a gathering at the time of the Atchafalaya Riot.

The period following the reorganization of the Board by Glendy Burke, the Canal Bank did an extremely conservative business. Beverly Chew had immediate charge of the banking office, and the Board took on two new men, J. J. Hanna and A. S. Addison. A few months later Col. Chew retired, and Samuel C. Bell was made cashier.

1845.

In 1845 the Bank's quarters being partially destroyed by fire, Dakin the architect, was commissioned to erect an office building on the corner diagonally opposite; this structure stands today.

Norman in 1845 says: "The Canal Bank has its entrance in the center of the front on Magazine street, of a substantial granite building, which stands on that and the corner of Gravier street. That portion of the edifice is very tastefully arranged after the designs of Dakin. It was erected in 1845. The residue of the structure is used for stores. Capital $4,000,000."

Norman also speaks of the fine collection of paintings owned by Glendy Burke, saying, "a rare picture by Wilkie, the only one of that artist's in America, is in the splendid collection of Mr. Burke."

In the year 1845, there had been a final disposal of the relations between the State and the banks. After an adjustment of mutual obligations, there was a renunciation by the State of all interference in bank management. This brought relief to the extent of $3,000,000 of State debt, and the banks too, were enabled to extinguish their bonded debt. New Orleans retired her depreciated "promises to pay."

Public credit was restored, and a sound currency was in circulation before the year closed. The recuperative power of our people was much appreciated by the great Southwest from this time on, and although there were fewer banks during the next several years, they were stronger. Total deposits, all banks, in New Orleans Jan. 1st, 1846, $7,202,450. Circulation $4,760,060.

To facilitate the disappearance of the many improvement banks which had outlived their improvement use, and which were still clogging the banking machinery of commerce, liquidators were appointed in 1847 by the State to wind up the Exchange Bank, the Atchafalaya, the Merchants, the Bank of Orleans, the New Orleans Improvement and Banking Company, and several shattered railroad companies.

New Orleans had been the basis of supplies during the Mexican war just closed, and much added business had been done by merchants.

1849.

When Glendy Burke retired in 1849, R. W. Montgomery, capitalist, who lived at Burgundy and Canal, and who made his fortune in hardware with Richards and Montgomery, No. 13 Chartres, was elected president. The commodious building, with columns, at Natchez and Magazine, was erected to accommodate a rapidly increasing business, and another ten-year period of still greater success was entered into.