Explore the dynamics of financial crises. The case illustrates the role of real economic shocks (war, judicial decisions, and immigration) in stressing the financial system. Moreover, it shows that the crisis began in the capital markets, not the banking system. Consider the decision among banks regarding the suspension of convertibility of demand deposits into specie in a panic. The instructor can use this case to represent the "coordination game" dilemma that banks face during a run; Illuminate early remedies to prevent bank runs and suspensions. The New York "safety fund" intended to provide privately funded deposit insurance. The NYCH was a private-market means of supplying liquidity to the system and of promoting coordination among banks. These private-market innovations aimed to stabilize the financial system. Gauge the impact and legacy of the Livingston decision as a regulatory doctrine for the treatment of illiquid banks in a panic.