 |
|
One of the most significant banks in the South, the Citizens Bank once occupied the building that now houses the parking garage of a modern-day financial institution, the Whitney Bank.
|
Photo by Eileen Loh Harrist
|
Hey Blake,
I've noticed the name of Citizens Bank of
Louisiana on several mortgage depositions in New Orleans, circa 1800s. What
can you tell me about this bank, and where was it located?
Banking on an Answer
Dear Banking,
The 1830s was a decade of great economic expansion
in Louisiana, and there was a rapid expansion of the state's banking facilities
between 1831 and 1836. In 1833, the legislature chartered three new banks, the
most significant being the charter that established the Citizens Bank, a property
bank. The bank's authorized capital of $12 million made it the largest state-chartered
bank in America. The Citizens Bank became one of the most famous banking institutions
in the United States.
However, during the period between 1837 and
1842 there was a financial crisis, and the era of banking expansion ended. No
new banks were chartered, and five of the 16 established banks entered into
liquidation or closed entirely.
After a decade of liquidation, Citizens Bank
was permitted to resume operations in 1852. The new state constitution adopted
a "free banking" law which made it possible to incorporate a bank following
prescribed rules and procedures rather than by obtaining a special chartering
act from the legislature. Citizens Bank's charter was renewed in 1853 as a commercial
bank.
Prior to 1853, the Citizens Bank was located
on Toulouse Street between Royal and Chartres. Then the bank moved to a building
previously occupied by the Union Bank on the corner of Royal and Iberville.
After two years, they purchased the building for $64,000 and remained at this
location for 27 years before moving to 620 Gravier St.
Citizens Bank has taken its place in Louisiana
legend as the bank that gave us the name "Dixie Land." Here's how it happened.
In the days before the Civil War, the Citizens
Bank, like most banks of the period, had authority from the U.S. government
to issue paper-money notes. In those days, the country was flooded with wildcat
money and counterfeiting was so common that nearly every species of paper money
was eyed with suspicion. But the money from the Citizens Bank was respected
everywhere, and its $10 notes were regarded as the standard of value.
In the days when New Orleans was divided into
distinct American and French sectors, the shopkeepers on Canal Street needed
to hire salespeople who were bilingual to accommodate customers from both parts
of the city. The Citizens Bank began printing its currency in both languages.
On the front of the bill the wording was in English, and on the reverse side
in French were the words "Banque des citoyens de la Louisiane" and "Dix," the
French equivalent of 10.
Louisiana banknotes circulated throughout
the Mississippi valley. Some folks had a hard time pronouncing the French and
began called the bills "Dixies." Pretty soon it became common that when you
were going down the Mississippi River to trade in New Orleans to say that you
were going to get some "Dixies." Eventually, New Orleans and the entire South
became known as the land of "Dixies" or Dixie Land.
Daniel Emmett, an African-American minstrel,
was inspired to compose a song for Bryant's Minstrels, a group performing in
New York. In it was the now-famous phrase "I wish I was in Dixie." When the
war came, General Albert Pike rewrote the tune, and it became somewhat of a
battle song.
During the Union occupation of New Orleans
and even after the war, the military under the command of Gen. Benjamin Butler
and Gen. Banks and later the carpetbaggers, raided the Citizens Bank's storehouse
and tens of thousand of dollars were taken. In 1866, Gen. Canby forced the bank
to turn over just over $1 million to him in bonds, stocks, and securities upon
which the bank had made loans to the then-defunct Confederate government.
But in spite of all, the bank that was originally
organized "primarily for the purpose of financing extensive deals in land and
slaves" continued to thrive and even had as one of its presidents the first
governor of Louisiana -- W. C. C. Claiborne.
Finally, in 1924, the Citizens Bank was merged
into the Canal-Commercial Trust and Savings Bank.
-->
NOTE: I tip my hat to Jack Stewart who reminded
me that the Desire streetcar line did intersect with the Cemeteries line. How
could I have forgotten? Mr. Stewart also pointed out that our caption writer
erroneously identified the streetcar in the accompanying photograph, the CL10,
as the St. Charles Avenue streetcar.
