Atlantic National Bank (New York City)
| Company type | Bank |
|---|---|
| Industry | Banking |
| Founded | 1853 |
| Fate | Insolvency and closure in April 1873 |
| Headquarters | New York City , United States |
| Products | Banking services |
Atlantic National Bank operated as a bank at 17 Nassau Street in lower Manhattan, New York City. Founded in 1853 as a state-chartered institution, it later converted to a national bank following congressional approval. In March 1856, it was designated by the Erie Canal Board to serve as a depository for canal toll collections. The bank ceased operations due to insolvency in April 1873.
Bank history
Among three New York City banks exempt from taxation on capital invested in United States government securities after February 25, 1862, Atlantic National Bank refused to pay taxes amounting to $5,203.20.
The bank's charter was revised by the New York Legislature in April 1864. By December 1865, it announced a semi-annual dividend of 6%, exempt from federal taxes, financed through accumulated profits and scheduled for distribution after January 2, 1866. At that time, J. E. Southworth held the position of president.
As of March 1871, the institution reported capital totaling $350,000 alongside undivided profits of $63,700.
Insolvency details
When the bank failed, its fixed capital stood at $300,000. Following a reopening on April 26, 1873, significant losses arose from the depreciation of securities pledged as collateral, which were not replenished. Cashier F. L. Taintor declared insolvency with outstanding defaults reaching $400,000, primarily involving bank funds; among the lost assets were securities from Pacific Mail.
An inquiry led by W. J. A. Fuller, chairman of the Depositor's Committee, uncovered that the bank had been insolvent for at least one year prior to its collapse. The United States Treasury questioned how the bank could continue functioning for such an extended period and how a cashier managed to misappropriate $300,000 without detection by senior management.
Other banks
This institution should not be confused with other similarly named entities such as the unrelated Atlantic National Bank of the City of New York (1914–1922), Atlantic Bank of New York (1952–2006), Atlantic National Bank located in Jacksonville, Florida (1903–1985), or other banks bearing similar titles.