13850. Nashua Savings Bank (Nashua, NH)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
savings bank
Start Date
January 1, 1893*
Location
Nashua, New Hampshire (42.765, -71.468)

Metadata

Model
gpt-5-mini
Short Digest
1d38b384

Response Measures

Full suspension

Other: Bank appears to have closed permanently; article states 'will probably never resume business.'

Description

Article 1 reports a suspension (March 28, 1895) and states the bank will probably never resume business, implying permanent closure; Article 1 also references a prior run in the panic of 1893. I therefore record both the 1893 run and the 1895 suspension leading to closure. Bank is a savings bank (state-chartered). Dates: 1895-03-28 given; 1893 run dated to year only as panic of 1893.

Events (2)
1. January 1, 1893* Run
Cause
Macro News
Cause Details
Run occurred during the nationwide panic of 1893 (systemic financial panic).
Measures
none reported in article
Newspaper Excerpt
it barely struggled through the panic of 1893, when a run was made on it.
Source
newspapers
2. March 28, 1895 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Heavy exposure to western farm mortgages with large foreclosures and inability to collect interest and notes on western holdings left little available cash; demands of depositors exhausted quick assets causing suspension and likely permanent closure.
Newspaper Excerpt
The Nashua savings bank... has closed its doors, and will probably never resume business.
Source
newspapers

Newspaper Articles (2)
1. April 4, 1895 The Coconino Weekly Sun Flagstaff, AZ
Article from The Coconino Weekly Sun, April 4, 1895

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Article Text

A SAVINGS BANK SUSPENDS. The Oldest Financial Institution of New Hampshire Closes Its Doors. NASHUA, N. H., March 28. - The Nashua savings bank, for forty-one years the pride of New Hampshire, regarded as safe and sound as the rock of Gibraltar, has closed its doors, and will probably never resume business. The institution has $2,700,000 in deposit, and its depositors outnumber those of any other bank in the state. Its depositors were mainly poor people, and the excitement last night among the mill help over the announcemennt of the suspension was intense. The bank was heavily loaded with western farm mortgages, and it barely struggled through the panic of 1893, when a run was made on it. The past six months' losses on real estate under foreclosure were $45,000, and inability to collect interest and notes on western holdings, followed by the demands of depositors, has left it with little available cash and quick assets.

2. January 26, 1904 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, January 26, 1904

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Article Text

Nashua Company, the first defalcation in the city occurred at Indian Head National Bank in 1895, when Cashier Frank MeKean fled to Buenos Ayres leaving a shortage well up in the vicinity of $100.000. McKean's wrongdoing ,however, had no effect on the Indian Head Bank, as it is one of the strongest financial institutions in New Hampshire. During the troublesome times of 1893 and 1894, the Mechanics' Savings Bank and the Nashua Savings Bank of this city failed owing depositors large amounts. In 1897. the Security Trust Co. of this city, and Grand Forks, N. D., was placed in the hands of assignees and was wound up. About the same time the Globe Savings Bank of Chicago, of which Charles Spaulding .formerly of Nashua, was president, failed. Of the $200,000 capital, Nashua people held $100,000 and their losses through this crash were considerable. The affairs of the New Hampshire Banking Co., of Nashua were SO affected that it went into the hands of an assignee. Nashua investors were heavily interested in the Sioux City National Bank and the Union Stock Yards Bank of Sioux City, Iowa, and during the panic of 1893. heavy assessments were levied on the stockholders. Nashua people lost similarly through the failure of the Omaha Exchange Bank of Omaha. Neb., and through the closing of various other Western concerns. In all it is estimated that within 10 years citizens of Nashua have lost fully $2,000,000 through the embarrassment of banking institutions.