Atlantic National Bank was a

bank A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Because ...

located at 17 Nassau Street in lower Manhattan in New York. It was organized in 1853 as a state institution. It became a

national bank In banking, the term national bank carries several meanings: * a bank owned by the state * an ordinary private bank which operates nationally (as opposed to regionally or locally or even internationally) * in the United States, an ordinary p ...

after legislation authorizing such institutions was voted on by the

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. It was selected by the

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Board as a depository of its canal tolls in March 1856. 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

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stocks 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. In April 1864 an amendment was passed in the

New York Legislature The New York State Legislature consists of the two houses that act as the state legislature of the U.S. state of New York: The New York State Senate and the New York State Assembly. The Constitution of New York does not designate an official te ...

to amend the bank's charter. In December 1865 the bank's directors declared a semi-annual 6% dividend which was exempt from government 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. At the conclusion of March 1871 the Atlantic National Bank possessed capital of $350,000, with undivided profits amounting to $63,700.

Insolvency details

At the time of its failure the Atlantic National Bank had fixed capital 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. Taintor, the cashier, declared the 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 it was acknowledged that Pacific Mail was among the securities which came up short in the losses sustained.A Broken Bank
''

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'', April 27, 1873, p. 1. A subsequent investigation conducted by W. J. A. Fuller, Chairman of the Depositor's Committee, found that the Atlantic National Bank was in an insolvent state for at least a year prior to its failure. The

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was left to consider the mysterious circumstances of how the bank remained afloat for so 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.

Other banks

This bank should not be confused with the unrelated Atlantic National Bank of the City of New York (1914-1922),

Atlantic Bank of New York Atlantic Bank of New York is a bank holding company and a subsidiary of New York Community Bank. History In 1926, Bank of Athens Trust Company, a subsidiary of Bank of Athens, received a bank charter in New York State. In 1952, the bank change ...

(1952-2006),

Atlantic National Bank The Atlantic National Bank was an American bank based in Jacksonville, Florida. It existed from 1903 until 1985, when it was acquired by First Union. Subsequently, First Union changed its name to Wachovia Corporation when it also acquired Wachov ...

of Jacksonville, Florida (1903-1985), or other banks with similar names.

References

{{Reflist History of New York City Banks based in New York City Banks established in 1853 1853 establishments in New York (state)