Park Savings Bank - Brooklyn, NY

Bank Information

Episode Type: Suspension → Closure
Bank Type: savings bank
Start Date: December 19, 1876
Location: Brooklyn, New York (40.660, -73.951)

Metadata

Model: gpt-5-mini
Short Digest: df27b25b

Response Measures

None

Description

The bank's directors decided to surrender the charter and close the savings bank, paying depositors in full. There is no mention of a depositor run; this is a voluntary wind-up/closure due to poor investment returns on government bonds.

Events (2)

1. December 19, 1876 Other

Newspaper Excerpt: Most of the depositors already paid offall claims to be met in full. Since November last the officers have made no effort to secure more deposits. On Nov. 12 the directors decided to close up its affairs as soon as possible, and the depositors were informed by letter that their accounts would be paid off on demand.
Source: newspapers

2. December 19, 1876 Suspension

Cause: Voluntary Liquidation
Cause Details: Directors decided (Nov 12) to close and surrender charter because high prices of permitted securities and losses on 1865 government bonds; to pay depositors in full rather than risk future decline.
Newspaper Excerpt: Owing to the present business depression and the difficulty of placing savings bank deposits in profitable investments, the Park Savings Bank of Brooklyn has concluded to surrender its charter and close up its business.
Source: newspapers

Newspaper Articles (3)

1. December 19, 1876 New-York Tribune New York, NY

Article from New-York Tribune, December 19, 1876

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Article Text

SUSPENDED BANKS. BROOKLYN PARK SAVINGS BANK CLOSED. MOST OF THE DEPOSITORS ALREADY PAID OFF-ALL CLAIMS TO BE MET IN FULL. Owing to the present business depression and the difficulty of placing savings bank deposits in profitable investments, the Park Savings Bank of Brooklyn has concluded to surrender its charter and close up its business. This is one of the smaller banks of Brooklyn, having never had more than $212,000 in deposits. Its investments have been in Brooklyn city securities and in government bonds, principally of the issue of 1865. The latter have proved an unfortunate investment, and the bank lost heavily when these bonds were called in upon the issue of the 412 per cent bonds. Since January last the officers have made no effort to secure more deposits. On Nov. 12 the directors decided to close up its affairs as soon as possible, and the depositors were informed by letter that their accounts would be paid off on demand. On Nov. 12 the bank had $130,000 of deposits. It has now paid off all except about $39,000. The teller and acting cashier R. A. Lindsay said to a TRIBUNE reporter yesterday that the bank had on hand sufficient cash to meet all claims, and that the remaining deposits, which were all in small sums, would be paid on demand. The bank owns no real estate. The bank was incorporated in 1868, and was first situated at Washington-ave. and Fulton-st. While doing business there $30,000 of securities were stolen from its safes, but these were afterward recovered. It moved to its present quarters, at Fulton and Greene-aves., in 1871.

2. December 19, 1876 The Sun New York, NY

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Article Text

ANOTH BANK GONE One Savings Institution Paying Up Every. body and Closing Out Business. The Park Savings Bank of Brooklyn. organized in 1868. has suspended business. and is paying depositors in full with interest up to July 1, 1876, preparatory to closing up business. The trustees on the 12th of November concluded that on account of the high prices of such se. curities as savings banks are permitted by law to Invest In and the danger of a possible decline in a year or two in the value of all securities, 11 was better to close up when everybody could be paid off. than to run the risk of a less. The earnings since July have been entirely wiped out by the losses on Government bonds of the I-sue of 1865. which declined in value when the new four per cent. town was made. Other banks, which are older, have in their possession securities, purch sed when prices were low, and these in Investment are profitable now, and would enable the holders to pull through. Six hundred depositors b ve been paid since Nov. 12. and $41,000. representing about 700 depositors, is yet o be paid. The bank's business was fair until July 1. At the beginning of the year their resources were $198. 548.04. and their liabilities $195,676.76. The trustees have contributed about $22,000 to carry on the business, but as the times did not improve they abandoned all hope of continuing it. The bank 13 situated at Greene venue. Ful. ton street and Oxford street. The officers are: President. Daniel McCabe: Vice-President, Jullan Allen: Secretary, Jas. W. Cielland: Counsel. Stewart L. Woodford: Tru-tees, H. W. Slocum, John Norton. H. W. Hunt. William Richardson E G. Humbert, Romer Cole. Charles Cornev. James Jow rdan. James G. Raymond, T. N. Whitney, and A. G. Johns.

3. December 19, 1876 The New York Herald New York, NY

Article from The New York Herald, December 19, 1876

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Article Text

ANOTHER SAVINGS BANK GONE. THE PARK SAVINGS BANK OF BROOKLYN TO WIND UP ITS AFFAIRS. At a recent meeting of the Board of Directors of the Park Savings Bank. Brooklyn, it was resolved that all the depositors should be paid in full, with interest up to July 1, and that the bank would wind up its ex. istence by January 1 next. Mr. R. A. Lindsey, the cashier of the, Park Bank, when questioned upon the subject yesterday, stated that the directors were only too glad to give the money back to the depositors in order to get the business of the bank closed up. This determination was arrived at, he said, because of the nigh prices of such securities as savings tanks are compelled by. law to invest in, and the danger of a possible decline in a year or two of all securities. .It would be unwise, the directors believed, to run such a risk unless the bank had an ample surplus to meet the emergency. Since November 12 about 600 depositors have been paid, and the remaining depositors-700 in number-will be paid. upon prosentation of their pass books. The amount due is not over $41,000. Mr. Lindsey says that the feeling of uncertainty is such among many of the depositors who have taken their money out that they say they do not think they will Dut it in bank again. At the opening of the present year the resources of the bank were $198,548 04, and the habilities were $195,676 76. The depositors numbered 1, 422.