13851. Nashua Savings Bank (Nashua, NH)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: savings bank
Start Date: March 26, 1895
Location: Nashua, New Hampshire (42.765, -71.468)

Metadata

Model: gpt-5-mini
Short Digest: 254742f3

Response Measures

Borrowed from banks or large institutions, Full suspension, Books examined

Other: Bank sought injunction from court on application of bank commissioner; considered voluntary liquidation.

Description

Multiple articles (Mar 26–27, 1895) report a run/large withdrawals on Nashua Savings Bank leading commissioners to obtain an injunction and the bank to 'close its doors' / suspend. Underlying problems cited: large western mortgage losses, reduced dividend (to 3%), fallout from the Panic of 1893 and falling deposits. Officials discussed voluntary liquidation and articles indicate the bank 'will probably never resume business.' I classify this as a run that led to suspension and apparent permanent closure. Suspension was effected by injunction from the bank commissioners (government action) though the proximate trigger was heavy withdrawals tied to bank-specific asset problems.

Events (3)

1. March 26, 1895 Run

Cause: Bank Specific Adverse Info
Cause Details: Heavy withdrawals after reduced dividends, losses on western mortgage investments and continued post-1893 depositor nervousness; large fall-off in deposits forcing sales of securities to meet calls.
Measures: Bank borrowed $90,000 to meet demands; paid out large sums since Jan; directors applied to bank commissioners and sought injunction to avoid selling securities at a sacrifice.
Newspaper Excerpt: The application for the injunction was made solely because of the run upon the bank by its depositors.
Source: newspapers

2. March 26, 1895 Suspension

Cause: Government Action
Cause Details: Injunction issued on application of the bank commissioner because depositor demands were such that the bank could only meet them by selling securities at a sacrifice; suspension followed the run and inability to meet impending withdrawals.
Newspaper Excerpt: The Nashua Savings Bank ... closed its doors this afternoon, an injunction having been issued against it on application of the Bank Commissioner.
Source: newspapers

3. March 27, 1895 Other

Newspaper Excerpt: Expressed Desire to Go Into Voluntary Liquidation. Depositors Will Lose Nothing if Leniency Is Shown Toward Bank Officials. ... The bank asked the commissioner to consider the question of voluntary liquidation.
Source: newspapers

Newspaper Articles (12)

1. March 27, 1895 The Times Richmond, VA

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where the rate of dividends is larger. Then again, being a border bank, a considerable amount of its deposits are from non-resident depositors who came in from Massachusetts when the bank was paying a higher dividend than was paid by Massachusetts banks. The Nashua Savings Bank has in round numbers $2, 600,000 of deposits. Application for the injunction was made solely because of the run upon the bank by its depositors. The bank had already borrowed $90,000 to meet these demands. The assets of the bank, at a conservative appraisal, are more than sufficient to pay all claims. The bank was examined last September and another examination will be made by the commissioners, after which they will apply to the court for some modification of the existing order to give relief to the existing board.

2. March 27, 1895 Wheeling Register Wheeling, WV

Article from Wheeling Register, March 27, 1895

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CLOSED ITS DOORS. One of the Largest Banks in New Hampshire Suspends. Nashua, N. H., March 26.-The Nashua Savings Bank, the fifth largest in New Hampshire, closed its doors this afternoon, an injunction having been issued against it on application of the Bank Commissioner. Several reasons are given for this proceeding, the principal one being the large falling off in deposits, thereby compelling the bank to sell its securities to meet calls until a point was reached at which the principal of all depositors would be imperilled if the forced sale continued. Nearly $3,000,000 are involved. News of the suspension of the bank spread quickly and caused great excitement throughout the city, although among many financiers something of the sort has been anticipated for some time. This feeling extended to depositors of the bank, and since January more than $50,000 has been paid them, while notices of withdrawal for April amount to $100,000 more.

3. March 27, 1895 Waterbury Evening Democrat Waterbury, CT

Article from Waterbury Evening Democrat, March 27, 1895

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BIG BANK FAILURE. Nashua Savings Bank (Liabilities, $3,000,000) Closes Its Doors. NASHUA, N. H., March 27. - The Nashua Savings bank, the fifth largest in New Hampshire, has closed its doors, an in junction having been issued against it on the application of the bank commissioner. Several reasons are given for this proceed ing. the principal one being the very largo falling off in deposits, thereby compelling the bank to sell its securities to meet calls until a point was reached at which the principal of all other depositors would be imperiled if the forced sale continued. Nearly $3,000, 000 is involved. News of the suspension of the bank spread quickly and caused great excitement throughout the city, although among many financiers something of the sort has been anticipated for some time. This feeling extended to depositors of the bank, and since Jan 1 more than $150, 000 has been paid them. while notices of withdrawal for April amount to $100,000 more. The officials claim that they will be able to pay dollar for dollar, and it is generally believed that the assets are sufficient to pay the depositors in full if time is allowed to convert paper to the best advantage and losses do not occur.

4. March 27, 1895 Pawtucket Tribune Pawtucket, RI

Article from Pawtucket Tribune, March 27, 1895

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NASHUA BANK CLOSED. Combination of Adverse Circumstances Crippled Its Business. Expressed Desire to Go Into Voluntary Liquidation. Depositors Will Lose Nothing if Leniency Is Shown Toward Bank Officials. Nashua, March 27.-The Nashua SawSags bank closed its doors yesterday, an injunction having been issued against it on application of the bank examiner. Several reasons are given for this proceedmg, the principal one being the very large falling off in deposits, thereby compelling the bank to sell its securities to meet the salls until a point was reached at which the principal of all other depositors would the imperilled if the forced sale continued. The officials claim to be able to pay all depositors in full. News of the suspension of the bank spread quickly and caused great excitement throughout the city, although among many financiers something of the sort has been anticipated for some time. This feeling extended to the depositors of the bank, and since Jan. 1 inore than $150,000 has been paid them, while notices of withdrawal for April amount to $100,000 more. The Cause of the Trouble. The treasurer, V. C. Gilman, summed up the situation as follows: "The bank asked the commissioner to consider the question of voluntary liquidation. The reasons for such a course are continued adverse legislation, compelling the banks to reduce the rate of interest to 3 per cent, which caused and continues to cause large withdrawals; the panic of '93, which filled all timid depositors with alarm and led to the withdrawal of all they could get under the rules; continued business depression, necessitating withdrawals of large sums for legitimate use and the loss of three successive crops at the west, so that the farmers had nothing to sell, and therefore could not pay the interest on their mortgage loans nor their notes at the local banks, and the banks in turn had to suspend unless help was furnished. Although nearly $8,000,000 is involved, the officials claim that they will be ableto pay dollar for dollar, and it is generally believed that the assets are sufficient to pay the depositors in full, if time is allowed to convert them to best advantage and losses do not occur. The last statement of the bank, issued Jan. 1, 1895, shows the amount due depositors to be $2,703,482.78; surplus and guaranty fund, $113,077.21, and amount due other banks, $80,000. The market value of the assets was figured at $2,925,721.88, with a par value of $3,002,265.28; of the latter amount $616,075.02 was in western investments.

5. March 27, 1895 The Roanoke Times Roanoke, VA

Article from The Roanoke Times, March 27, 1895

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Nashua Savings Bank Suspends. NASHUA, N.H., March 26.-TheNashua Savings Bank, the fifth largest in New Hampshire, closed its doors this afternoon, an injunction having been issued against it on application of the bank commission. It is generally believed that the assets are sufficient to pay the depositors in full, if time is allowed to convert them to best advantage and losses do not incur.

6. March 27, 1895 The Morning News Savannah, GA

Article from The Morning News, March 27, 1895

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A RUN ON A BANK. It Stops Payment in Order to Avoid Sacrificing Its Securities. Concord, N. H., March 26.-The Nashua Savings Bank has been enjoined upon application of the bank commissioners to the court for the reason that the demand made by its depositors upon the bank for their deposits is such that the bank is unable to meet them without selling its securities at a sacrifice. The bank reduced its dividends Jan. 1 to 3 per cent. Since then the bank has paid to its depositors over $150,000, and the notices of withdrawals for the month of April aggregate nearly $100,000 more. The situation of the bank near the Massachusetts line is such that it is almost as convenient for its depositors to place their money in Massachusetts savings banks, where the rate of dividends is larger. Then, again, being a border bank, a considerable amount of its deposits are from non-resident depositors, who came in from Massachusetts when the bank was paying a higher dividend than was paid by Massachusetts banks. The Nashua Savings Bank has in round numbers $2,600,000 of deposits. The application for the injunction was made solely because of the run upon the bank by its depositors. The bank had already borrowed $90,000 to meet these demands. The assets of the bank, at a conservative appraisal, are more than sufficient" to pay all claims. The bank was examined last September and another examination will be made immediately by the commissioners, after which they will apply to the court for some modification of the existing order to give relief to those depositors who need a part of their deposits.

7. March 28, 1895 Hutchinson Gazette Hutchinson, KS

Article from Hutchinson Gazette, March 28, 1895

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A SAVINGS BANK SUSPENDS. The Oldest Financial Institution of New Hampshire Closes Its Doors. Nashua, N. H., March 27. - 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.

8. March 29, 1895 The United Opinion Bradford, VT

Article from The United Opinion, March 29, 1895

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CLOSED ITS DOORS. The Nashua Savings Bank's Busi ess Crippled. Expressed Desire to Go Into Voluntary Liquidation-Depositors Will Lose Nothing if Lenieney Is Shown Bank Officials. NASHUA, March 27.-The Nashua Savings bank closed its doors yesterday, an injunction having been issued against it on application of the bank examiner. Several reasons are given for this proceedIng, the principal one being the very large falling off in deposits, thereby compelling the bank to sell its securities to meet the calls until a point was reached at which tbe principal of all other depositors would be imperilled if the forced sale continued. The officials claim to be able to pay all depositors in full. News of the suspension of the bank spread quickly and caused great excitement throughout the city, although among many financiers something of the sort has been anticipated for some time. This feeling extended to the depositors of the bank, and since Jan. 1 inore than 1 50,000 has been paid them, while notices of withdrawal for April amount to $100,000 more. The Cause of the Trouble. The treasurer, V. C. Gilman, summed up the situation as follows: "The bank asked the commissioner to consider the question of voluntary liquidation. The reasons for such a course are continued adverse legislation, compelling the banks to reduce the rate of interest to 3 per cent, which caused and continues to cause large withdrawals; the panic of '93, which filled all timid depositors with alarm and led to the withdrawal of all they could get under the rules; continued business depression, necessitating withdrawals of large sums for legitimate use and the loss of three successive crops at the west, so that the farmers had nothing to sell, and therefore could not pay the interest on their mortgage loans nor their notes at the local banks, and the banks in turn had to suspend unless help was furnished. Although nearly $3,000,000 is involved, the officials crim that they will be able to pay dollar for dollar, and it is generally believed that the assets are sufficient to pay the depositors in full, if time is allowed to convert them to best advantage and losses do not occur. The last statement of the bank, issued Jan. 1, 1895, shows the amount due depositors to be $2,703,482.78; surplus and guaranty fund, $113,077.21, and amount due other banks, $80,000. The market value of the see was figured at $2,925,721.83, with it par value of $3,002 265.28; of the latter amount $616,075.02 was in western investments,

9. March 30, 1895 Spirit of the Age Woodstock, VT

Article from Spirit of the Age, March 30, 1895

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CLOSED ITS DOORS. Nashua Savings Bank Can't Meet Demands. Injunction Secured Rather Than Sacrifice Assets. Has Deposits of $2,700,000 and Considerable Western Security. With 82,700,000 in deposits and a record of 41 years as a leading bank there, the Nashua, N. H. savings bank has closed. The feeling is intense, for no other bank in the city, and but three in the state had more depositors. It was essentially the poor man's bank, and for two score years all believed in it. Western investments is the cause ascribed for the bank's financial difficulties. The officers struggled since the panic of 1893, but matters grew worse, and the inevitable result followed. On April 1 a large number of withdrawals become due. The bank could not meet them without sacrifleing valuable securities and so decided to close. The directors held a meeting and George Andrews went to Concord and laid the case before the bank commissioners. They applied for an injunction, which was granted by Judge Carpenter. The bank was enjoined for the reason that the demand made by its depositors is such that it is unable to meet them without selling its securities at a sacrifice. Since Jan. 1 the bank has paid to its depositors over $150,000, and notices of withdrawals for the month of April aggregate nearly $100,000 more. The bank had already borrowed $90,000 to meet the demands.hoping that they would not continue. The bank had a hard run in the summer of 1893, but several men came forward and saved it. Two causes led to bad trust in the institution. The notices of withdrawals were not lived up to, the bank not always of late honbring the legal notices. Then in January of this year it was discovered that the bank had been paying only three per cent interest for a year when depositors thought theold four per cent rate was still in force. Then the statement of January last was far from satisfactory. It showed continued losses since the one issued six months before, and included $45,000 more on real estate under foreclosure than the previous one. It believed that the assets are sufflcient to pay the depositors in full. if time is allowed to convert them to the best advantage and losses do not occur. 1

10. April 3, 1895 The Manning Times Manning, SC

Article from The Manning Times, April 3, 1895

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A Novel Case. CONCORD, March 26.-Nashua Savings Bank has been enjoined upon application of the bank commissioners to the court, for the reason that the demand made by its depositors upon the bank for thir deposits is such that the bank is unable to meet them without selling its securities at a sacrifice. The bank has in round numbers $2,600,000 of deposits. Application for the injunction was made solely because of the run upon the bank by its depositors. The bank had already borrowed $90,000 to meet these demands. The assets of the bank, at a conservative appraisal, are more than sufficient to pay all claims.

11. April 4, 1895 Mineral Point Tribune Mineral Point, WI

Article from Mineral Point Tribune, April 4, 1895

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Incendiaries caused the total deruction of Robinson & Co.'s stock arns near Decatur, Ind. Loss, $40,'00 Anthony Comstock raided Trinity aptist church in New York and arsted the organist for circulating an oscène pamphlet. George H. Schofer, general manager : the Wankesha Water company, has een appointed receiver of the comany. The Nashua Savings bank, the third rgest in New Hampshire, has closed ecause of not being able to realize , western investments. Professor James Edward Oliver, of ornell university, died at Ithaca, Y., after a long illness, aged 66 ars. Fire at West Superior, Wis., deroyed J. P.Nelson's property. His ife and three children were badly irned. Loss $20,000; no insurance. Pictures valued at $18,000 and aced on exhibition by F. Hopkinson nith were destroyed in the Milwaufre. 9 Robbers, by means of dynamite, ened a safe in the Auburn State nk at Auburn, Ill., and got away '000'T$ que Miss Amy Thill. an actress. was urdered by John Bigelow, an actor, ho then ended his own life, at her oms, in New York. The mavor and board of trustees of adison, III., have been found guilty malfeasance in office for permitting gambling-house to run. Burglars, in an effort to find hidden oney, cruelly tortured Mrs. Mary erger. aged 86 years. of Springfield, Officers of the Queen and Crescent ilroad intercepted train robbers at reenwood, Ky., and killed two of me Tudge Sanborn has issued an order r the eviction of white settlers from e Winnebago reservation, holding eir leases were never approved. Mr. Cleveland told Mr. Hesing, in a nversation regarding the next camign. that money would be the great 'ans The state department has received information regarding the imprisonent of ex-Consul Waller in Madagasa The body of Mrs. John W. Bent, e wife of a wealthy Chicagoan. was humed because it was suspected at she died of arsenical poisoning. The commission sitting in the claims American citizens against the Veneelan government has decided in the rmer's favor. The revisors of elections in St. Louis ve completed their work by elimining 11,548 names from the poll oks. Cincinnati aspires to be a market * blooded horses. and mammoth sale ables will be erected near the Oakley ek. Joseph Boyer, a miserly farmer, who ed near Sedalia, Mo., died without realing the hiding place of his ealth. Archbishop Hennessy has ordered at a Catholic church in Sioux City, wa. be closed. The members will

12. April 10, 1895 The Abbeville Press and Banner Abbeville, SC

Article from The Abbeville Press and Banner, April 10, 1895

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Domestic. THE fourteen-year-old daughter of Jacob Dean, a farmer, who lives near Harmony, Caroline County, Md., was murdered while on her way to school. Her throat was cut from ear to ear. THE Commercial Bank. Cincinnati, Ohio. assigned. The bank was compelled to make good $50,000 worth of bad paper. A MASS-MEETING was held in Cooper Union to insist upon the passage by the Legislature of reform bills affecting New York City. JOHN A. BIGELOW, an actor. shot and instantly killed Amy Thill, an actress and artsts' model, in her room. New York City. Then he fired a bullet into his temple, inflicting a wound from which he died almost immediately. THE old Nashua Savings Bank. the fifth (argest in the State of New Hampshire, closed Its doors by order of the Bank CommissionMS. MRS. MARY ANN MEDINGER was killed by a trolley car in Brooklyn. She was the trol!ey's one hundred and seventh victim in the city. OWING to the enormous demand for our apples abroad the retail price of good fruit advanced to fancy figures. THE tallow caked and the big ship St. Paul could not be dragged from the ways at Cramp's shipyard, Philadelphia. It was the first failure of the kind at Cramp's in twenty-two years. THERE was discovered at Chicago a shortage of nearly $2,000,000 in the accounts of the Whisky Trust. THE Newport (Penn.) Deposit Bank failed to open its doors owing to the general stringency of currency. Approximately the assets are $262,406 and liabilities $160,298. E. S. JAFFRAY & Co., the well-known drygoods house of New York City, went into the hands of receivers for liquidation. COLLIS P. HUNTINGTON. President of t. Southern Pacific Company, was indicted at San Francisco, Cal., by the United States Grand Jury for violating the Inter-State Commerce law. SIDNEY W. SPRAGUE. cashier of the Continental Clothing Company, was arrested at Boston, Mass., charged with embezzlement of the funds of the concern to the extent of $25,000 or $30,000. IN New York City flfteen election inspectors and voters charged with felonies and misdemeanors were arrested on indictments. A JEWELRY store in upper Sixth avenue, New York City. was robbed in daylight of diamonds valued at $6000. The clerk in charge was called to a carriage. MAYOR STRONG, of New York City, appointed Edwin Einstein a Dock Commissioner, Dr. Daniel E. McSweeney a School Commissioner, and J. Van Vechten Oleott a Civil Service Commissioner. THE New Jersey Legislature took a recess to June 4. when it will meet to hear the report of the Voorhees Investigating Committee. A TRAIN, southbound, was stopped by five masked robbers just outside Victor, Col. The bandits went through the mail and express car, but found nothing valuable. The robbers relieved passengers of $500 and watches. Two were tracked by a bloodhound and captured in a log cabin in the woods.