13824. City Savings Bank (Manchester, NH)

Bank Information

Episode Type
Suspension → Closure
Bank Type
savings bank
Start Date
June 9, 1877
Location
Manchester, New Hampshire (42.996, -71.455)

Metadata

Model
gpt-5-mini
Short Digest
e1e602d5

Response Measures

None

Description

Articles show the City Savings Bank was found insolvent (June 1877 investigation, 21% cut to savings), later suspended in Feb 1878 with an order that no more money be paid out and the Supreme Court appointing a receiver to wind up the institution. There is no clear standalone depositor run on this bank preceding suspension in the articles (rumors provoked runs on other local banks), so this is a suspension leading to permanent closure (receiver appointed).

Events (3)
1. June 9, 1877 Other
Newspaper Excerpt
Rumors are circulating this morning as to the solvency of the City Savings Bank. ... the deposits were reduced twenty-one per cent, and no interest. The amount of deposits affected is about $411,000. Depositors will receive seventy-nine per cent. with a prospect of future dividends if the New York security can be made available. (Daily Kennebec Journal, June 9, 1877).
Source
newspapers
2. February 16, 1878 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Longstanding bad loans and depreciated New York land/iron-mine security leading to large losses and prior 21% reduction to depositors; commissioners/trustees found insolvency and ordered curtailment of payments before suspension in Feb 1878.
Newspaper Excerpt
Another Savings Bank Gone. MANCHESTER, N. H., Feb. 16.The City Savings Bank has suspended. Deposits $180,000. (Daily Los Angeles Herald, Feb 17, 1878, reporting Feb 16).
Source
newspapers
3. February 25, 1878 Receivership
Newspaper Excerpt
The Supremo Court has appointed William B. Johnson to be receiver of the City Savings Bank, who will convert the assets of that institution into cash, and wind up its affairs as rapidly as possible. (New-York Tribune, Feb 26, 1878, reporting Feb 25).
Source
newspapers

Newspaper Articles (5)
1. June 11, 1877 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, June 11, 1877

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Article Text

AN INSOLVENT SAVINGS BANK. Condition of Its Affairs. MANCHESTER. June 9. Rumors are circulating this morning as to the solvency of the City Savings Bank. The commissioners came here yesterday, at the request of the trustees, and upon an order issued by the supreme court as required by law, and have been making a thorough investigation. The facts drawn from the bank authorities are as follows: In 1867, the savings bank advanced on notes on account of R. S. and H. Webster about $40,000, secured by one-fourth interest in seventy-five thousand acres of land located in Clinton county, New York, upon which there is said to be one of the most prolific iron mines in the country. Taxes have not been paid and the interest has accumulated since 1867. It was believed the bank would realize enough to pay the whole amount of their indebtedness, but owing to the general depression nothing has been realized. After a severe struggle to carry this dead weight, which had amounted to nearly $70,000. the trustees became satisfied the bank would be unable to continue business without reduction. Upon examination by the trustees and bank commissioners, the deposits were reduced twenty-one per cent., and no interest. The amount of deposits affected is about $411,000. Depositors will receive seventy-nine per cent. with a prospect of future dividends if the New York security can be made available. The commissioners say no blame whatever attaches to the officers or trustees of the bank. The bank is now left in a perfectly sound and solvent condition. No disposition IS manifested to create a run on the bank, though small depositors feel the loss keenly of the twenty-one per cent. Later.-Nothing new has transpired in relation to the City Savings Bank, though the loss of $82. 000 to the depositors is the universal topic of conversation. The bank organized in 1859, and was managed by Capt. E. Warrington, until his death last July. Dividends ranging from tive to seven per cent. were always paid until the present. In 1863 the deposits amounted to $600,000, and have since been gradually falling off to the present amount, $411,000. It is believed that the bank will realize something on their depreciated securities, so that the loss to the depositors will amount to from ten to fifteen per cent. instead of twentyone.

2. February 17, 1878 Daily Los Angeles Herald Los Angeles, CA
Article from Daily Los Angeles Herald, February 17, 1878

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Article Text

cline in prices during 1877 was quite ten per cent. Among the treasures of Marsh. field lost in the recent fire, were Healy's fine portrait of Webster, a marble bust of Pope Pius IX., a portait of Queen Victoria, miniatures of the children of Webster and a scaglio table presented him by King Bomba. The house also contained a set of Sevres ware once owned by Louis Phillipe. A part of the Rush silver and all the wedding presents of a granddaughter of Webster, valued at $10,000. On these there was no insurance. Fortunately, however, the pictures and silver were Insured for $3,000 and the mansion for $6,200. Mrs. Webster, after the fire, became the guest of Mrs. Adelaide P. Phillips, whose house is near the famous homestead. A Virginia statistician, figuring upon four and one-half months returns of the Moffatt barroom register, estimates that Richmond consumes 5,330,000 drinks annually. This is equal to four hundred and eight drinks annually to each voter. Boston Wool Market. BOSTON, Feb. 16th.-Wool is generally unchanged with no prospect of any improvement and holders find it difficult to place wool except at concessions. Oregon combing 30@31; unwashed fleeces 22@28; Oregon 22@1@35; scoured 34@85. Superfine is in very fair demand, with sales of 566,000 pounds at 17@34 for Spring and 13}@26 for Fall. The movement in California wool is more satisfactory than in other kinds. Another Savings Bank Gone. MANCHESTER, N. H., Feb. 16.The City Savings Bank has suspended. Deposits $180,000. It is not expected that there will be any shrinkage in this amount. Deposits were cut down in June 21 per cent.

3. February 17, 1878 The New York Herald New York, NY
Article from The New York Herald, February 17, 1878

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Article Text

SAVINGS BANK TO BE CLOSED. MANCHESTER, N. H., Feb. 16, 1878. J. G. Kimball, President of the State Board 01 Bank Commissioners, has completed his examination of the City Savings Bank and ordered that no more money be paid out. Ho 18 of opinion that the affairs of the bank should be brought to a close, in which opinion the trustees concur. A receiver will be appointed by the Supreme Court to wind up the institution. This course is taken with 14 view to the general deposit business-only, and will in no way affect the discount bank doing business under the name of the City National Back. Deposits in the savings bank amount to about $156,000, and there will probably be little or no shrinkage. The deposis in this bank were cut down in June last twenty-one per cent, which, up to this time, 18 a dead loss.to the depositors, but there 18 Sall IA prospect that they will realize something on the outstanding securities, thus reducing their loss,

4. February 26, 1878 The Cincinnati Daily Star Cincinnati, OH
Article from The Cincinnati Daily Star, February 26, 1878

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Article Text

Solid Savings Bank. National Associated Press to the Star. MANCHESTER, N. H., Feb. 26.-The suspension of the City Savings Bank and the closing of the different banks on Washington's birthday gave rise to a runior that the Amoskeag Savings Bank, of this city was about to suspend. Fully two hundred persons withdrew their deposits yesterday and the bank was kept open two hours later than usual, n order to accomodate the anxious depositors. The officers of the bank state that the rumor is entirely without foundation. They can, they say, pay dollar for dollar and still have a surplus of over $150,000.

5. February 26, 1878 New-York Tribune New York, NY
Article from New-York Tribune, February 26, 1878

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Article Text

MANCHESTER, N. H., Feb. 25.-The Supremo Court has appointed William B. Johnson to be receiver of the City Savings Bank, who will convert the assets of that institution into cash, and wind up its affairs as rapidly as possible. A rumor prevailed on the street to-day, affecting the standing of the Amoskeag Bank, causing a panie among small depositors. Thirty thousand dollars was paid out. The officers of the bank claim a surplus of $200,000, and will meet all demands. The deposits amount to $2,000,000.