Union Five Cents Savings Bank

Bank Information

Episode Type: Suspension → Reopening
Bank Type: savings bank
Start Date: March 24, 1882
Location: Exeter, New Hampshire (42.981, -70.948)

Metadata

Model: gpt-5-mini
Short Digest: 0a30fcc2

Response Measures

None

Description

President George E. Lane (County Treasurer until Jan 1882) was discovered to have embezzled county and depositor funds. The board announced it would take advantage of the law requiring thirty days' notice previous to the withdrawal of deposits, i.e., a temporary suspension of immediate withdrawals. No run is described and no permanent closure or receivership is mentioned in the article; outcome beyond the 30-day notice is not reported.

Events (1)

1. March 24, 1882 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Defalcation/embezzlement by George E. Lane (bank president) who used about $20,000+ of depositors' funds and county funds; directors invoked 30-days' notice to restrict withdrawals.
Newspaper Excerpt: the directors will take advantage of the law requiring thirty days' notice previous to the withdrawal of deposits.
Source: newspapers

Newspaper Articles (1)

1. March 25, 1882 New-York Tribune New York, NY

Article from New-York Tribune, March 25, 1882

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Article Text

A BANKER'S FAILURE AND DEFALCATION. EXETER, N. H. March 24.-Excitement prevalls here to-day over the defalcation and failure of George E. Lane, banker, and until January, 1882, County Treasurer. Lane had the confidence of nearly every citizen in the town, and many of the business men had large deposits with him. W. N. Dow a lumber man had a large deposit with Lane, and yesterday drew a check for $3,000 which was refused by Richardson, Hill and Co., of Boston, Lane's bankers. Dow questioned Lane, who went at once to his bankers and by their advice gave himself up to Sheriff Kent. He is now in custody at Portsmouth. Lane has informed the County Commissioners that he used about $25,000 of the county's funds, and over $20,000 of the depositors' money. His property has been attached. Speculation in stocks beyond beyond his means is the cause of his downfall. Some of his bondsmen will lose all they possess. Lane is Commissary General on Governor Bell's staff. He is also President of the Union Five Cents Savings Bank. Its directors state that the bank is not affected. PORTSMOUTH, N. 11., March 24.-George E. Lane had a preliminary examination to-day. He preaded not guilty to the enarge of embezziement and was ordered to furnish bonds to the amount of $10,000 for his appearance on April 8. Lane's affairs are in the greatest confusion, and it will be several days before any definite knowledge as to the extent of his crookedness can be obtained. The directors of the Union Five Cents Savings' Bank of Exeter. with which Lane was connected, are in Boston to-day in its interests. While no doubts exist of the bank's perfect soundness, the directors will take advantage of the law requiring thirty days' notice previous to the withdrawal of deposits.