Article Text
The Providence Savings Bank, R. L, suspended January 31. The Mercantile Savings Bank, Boston, Mass., suspended on the 5th.
17119. Providence Institution For Savings (Providence, RI)
Bank Information
- Episode Type
- Run Only
- Bank Type
- savings bank
- Start Date
- March 15, 1878
- Location
- Providence, Rhode Island (41.824, -71.413)
Metadata
- Model
- gpt-5-mini
- Short Digest
c1fa0d448f72bbdd
Response Measures
None
Description
Multiple articles in early 1878 describe runs on Providence savings banks. Article 3 (The Sun, 1878-05-02) explicitly names the Providence Institution for Savings as a target of the run. There is a separate brief item (Article 1) noting suspension of a 'Providence Savings Bank' on Jan 31 — that appears to be a different institution (name differs) and there is no evidence in the provided texts that the Providence Institution for Savings suspended or closed. Therefore classify as a run-only episode. Measures by savings banks included invoking notice rules or undertook to wear out the run.
Events (2)
1.
March 15, 1878
Run
- Cause
- Bank Specific Adverse Info
- Cause Details
- Runs spread to local savings banks amid doubt about soundness and management; perception that savings banks' investments in mortgages made them risky.
- Measures
- Banks undertook to wear out the run; some (Franklin) required sixty-days notice for withdrawals.
- Newspaper Excerpt
- A heavy run began on the 15th on the Dime Savings bank, Boston, ... and extended to ... the Providence Savings bank.
- Source
- newspapers
2.
May 2, 1878
Run
- Cause
- Bank Specific Adverse Info
- Cause Details
- Widespread impression that the institutions were unsound or ill managed, partly due to large mortgage investments and higher interest paid to depositors.
- Measures
- No specific new measures for Providence Institution for Savings mentioned in this article beyond general attempts by savings banks to resist the run.
- Newspaper Excerpt
- The Mechanics' Savings Bank and the Providence Institution for Savings each hold over six millions ... and against them the run has been chiefly directed.
- Source
- newspapers
Newspaper Articles (3)
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Article Text
The Newburyport, Mass., five cent savings bank suspended on the 14th. A heavy run began on the 15th on the Dime Savings bank, Boston, Mass., and extended to the FrankJin Savings bank, the Providence Savings bank, and the Suffolk Savings bank. The Franklin bank required sixty-days notice; the other banks undertook to wear out the run.
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Article Text
The old and wealthy city of Providence, R. I.. is agitated at present by a run upon savings banks. The Mechanics' Savings Bank and the Providence Institution for Savings each hold over six millions of dollars. and against them the run has been chiefly directed. It seems impossible to remove the impression that these institutions are unsound and ill managed. In accordance with the usual custom of New England savings banks, their deposits are largely invested in mortgages. Indeed. the high rate of interest paid to depositors has made it necessary for the banks to seek some other investment than United States bonds and other high-class securities bearing low interest. The result is that the Mechanics' Savings Bank has not less than $5,000,000 in mortgages. the foreclosure of which would cause widespread ruin and distress.