1754. Putnam Savings Bank (Putnam, CT)

Bank Information

Episode Type
Run → Suspension → Unsure
Bank Type
savings bank
Start Date
October 24, 1913
Location
Putnam, Connecticut (41.915, -71.909)

Metadata

Model
gpt-5-mini
Short Digest
52d1ad37

Response Measures

Accommodated withdrawals, Partial suspension, Full suspension, Books examined

Other: State Banking Commissioners issued a restraining order and restrained payments/receipts; bank continued other business under commissioners' direction.

Description

October 1913 articles describe heavy withdrawals after a dividend cut and the bank imposing a four-month notice and restricting payouts (a depositor run/withdrawal episode). On Dec 29, 1913 the State Bank Commissioners restrained the bank from paying out or receiving deposits (government-ordered suspension) due to depreciation of railroad bonds. Later reporting (Dec 1915) indicates the bank remained closed but prospects for reopening were positive; no clear evidence in these articles that it had reopened, so outcome is 'unsure'.

Events (2)
1. October 24, 1913 Run
Cause
Bank Specific Adverse Info
Cause Details
Dividend reduction in October (3.5% from 4%) and prior heavy withdrawals; depositors reacted to bank's reduced dividend and depressed bond values leading to large withdrawals.
Measures
Stopped paying out sums up to $100 without notice; required depositors to give four months' notice of withdrawal; restricted payouts to safeguard depositors.
Newspaper Excerpt
To further safeguard their depositors the officials of the Putnam Savings bank put greater restrictive measures in force Thursday, and stopped paying out sums up to the $100 limit previously placed in force requiring depositors to give notice of intent to withdraw. ... This action was taken to prevent excitable persons from taking out large sums of money
Source
newspapers
2. December 29, 1913 Suspension
Cause
Government Action
Cause Details
State Banking Commissioners issued an order restraining bank from paying out funds or receiving deposits because assets (large railroad and municipal bond holdings) were depressed and insufficient to meet liabilities.
Newspaper Excerpt
The Putnam Savings Bank was closed to-day by order of the State Banking Commissioners. ... The reason given for temporarily closing the bank is that large holdings of railroad bonds show depreciation impairing the assets to a point where heavy withdrawals of deposits could not be met.
Source
newspapers

Newspaper Articles (8)
1. October 24, 1913 Norwich Bulletin Norwich, CT
Article from Norwich Bulletin, October 24, 1913

Click image to open full size in new tab

Article Text

Running Nights. The Waterman Worsted company, the newest of Putnam's textile industries has started running nights. The Company has had an excellent business since it first started operations and the orders have increased to such an extent that a night force of workers is now required, making about 90 employed at the mills. PAYING ALL DIVIDENDS. But Savings Bank Requires Depositors to Give Notice of Withdrawals. To further safeguard their depositors the officials of the Putnam Savings bank put greater restrictive measures in force Thursday, and stopped paying out sums up to the $100 limit previously placed in force requiring depositors to give notice of intent to withdraw. All dividends are being paid without restriction. This action was taken to prevent excitable persons from taking out large sums of money and is in the interest of all the depositors. The bank is absolutely solvent, but does not intend to be handicapped by allowing depositors to take out large sums without giving the required notice.

2. December 29, 1913 The Evening World New York, NY
Article from The Evening World, December 29, 1913

Click image to open full size in new tab

Article Text

BANK CLOSES DOORS. Putnam, Conn., Savings Institution Affected by Bond Shrinkage. PUTNAM. Conn., Dec. 29.-The Putnam Savings Bank was closed to-day by order of the State Banking Commissioners. The closing is regarded as only temporary. The reason given for temporarily closing the bank is that large holdings of railroad bonds show depres clation impairing the assets to a point where heavy withdrawals of deposits could not be met. In October the declaration of a dividend at the rate of 3½ per cent., a decrease of one-half per cent. in the rate, was followed by withdrawals. The bank used the four months' notice rule. That time would soon expire. and as the bank would be unable to market securities without considerable loss the bank commissioners were called in. The latter announced that other banks are authorized to accept deposit books up to su per cent. of deposits shown on them. The statement of the bank's condition to-day shows that 7,291 persons have $2,700,000 on deposit. As assets the bank holds railroad bonds of par value of $2,105,000. municipal bonds $350,000, and real estate mortgages $267,000. The commissioners expect the bank will be able to resume business in six months.

3. December 30, 1913 Norwich Bulletin Norwich, CT
Article from Norwich Bulletin, December 30, 1913

Click image to open full size in new tab

Article Text

stitution Has High Grade Assets. Under a temporary restraining order issued by the bank commissioners of Connecticut, Fred P. Holt and Norris S. Lippitt, and by authority given them through an act passed by the legislature of 1913, Chapter 187 of the Public Acts of this year, the Putnam Savings bank was closed at noon Monday and is restrained from paying out dividends or money or receiving deposits until further notice. The bank is to remain open, however, for the transaction of other business and its officials retain the right of reinvesting the funds of the bank, under the direction of the commissioners, so that the institution may go on producing earnings in the largest possible degree. Due To One Cause. The bank's difficulties are due to the depression of the bond market, in which the greater part of the assets of the bank are invested, principally in railroad and municipal bonds, and to no other cause. A Precautonary Act. The closing of the bank came as a surprise to the people of Putnam, but not as a shock. In October last the bank reduced its dividend rate by onehalf of one per cent. This action was taken to safe guard the depositors' interests, and followed a heavy series of withdrawals extending over a period of several months. The action in making the slight reduction in the divdend rate caused a flurry, though it was taken for the best interests of all concerned, and almost immediately following the announcement of the reduction many more depositors sought to withdraw their funds, this resulting in further action by the bank to protect itself and requiring that depositors give four months' notice of intent to withdraw their money. Hundreds of these orders have since been filed and this fact, in view of the near approach of the expiration of the notice time limit, is believed to have had some bearing in connection with the action taken by the bank commissioners Monday: for if those who gave notice to withdraw had been permitted to do so a heavy drain on the institution's resources would have resulted, as it would have been necessary to dispose of securities that cannot be profitably or even advantageously disposed of at this time. Bond Market May Improve. Indications are that the bank will be closed until the annual meeting of the corporators, which comes on the third Monday of July, 1914. In the meantime there is an opportunity for the bond market to improve, as there is also for the formulating plans for the reopening of the institution. May Pass A Dividend. People familiar with the condition of the institution declared Monday afternoon that, according to their best knowledge and judgment, there will probably be no greater loss to the depositors than would be represented by the passing of a dividend. Income Not Impaired Treasurer Jerome Tourtelotte, who has been with the bank in his present capacity since March 1, 1880, a period of nearly 34 years, said Monday afternoon that the action taken by the bank commissioners was due to the depression of the bond market, The income of the bank has not been at all impaired, he said, and the dividend for April, 1914, is already nearly earned. Mr. Tourtelotte was optimistic and expressed the opinion that the bank's troubles will be adjusted without any great loss to depositors. Would Not Scale Accounts. Mr. Tourtelette said that at a meeting of the trustees of the bank Monday morning a proposition from the bank commissioners that the accounts be scaled 5 per cent was rejected; that the bank holds a number of trust accounts representing a large sum of money and in the opinion of the trustees it would not be proper to impair the principals of these trust funds by scaling, but rather, in view of the situation, to take such small less as may have to be met by passing a dividend, if necessary. Bank Commissioners at Conference. Bank Commissioners Helt and Lippitt spent the greater part of the morning at the bank in conference with

4. January 1, 1914 Norwich Bulletin Norwich, CT
Article from Norwich Bulletin, January 1, 1914

Click image to open full size in new tab

Article Text

DANIELSON Watch Night Services-Bank Commise sioners Commend Savings Bank's Securities-White Way Lights Fade, Lights shone brightly at the Meth-s odist and Baptist churches Wednesday evening, when church members repre< senting various denominations gathered for the annual watch night services. Putnam Bank Endorsed by Commis sioners. Local banks are in receipt of communications from the state bank com4 missioners relative to the closing 01 the Putnam Savings bank this week, stating that "we trust that the state and savings banks will do all they can to help the depositors of the Putnam bank," this with reference to making loans on the passbooks of the latter institution. The letter sets forth that banks will be absolutely safe in loaning up to 80 or 90 per cent. of the amounts called for by the passbocks, as the Putnam bank has a fine list of securities, though the value of many of its railroad bonds are now depressed. and the books of the bank are in excellent condition. Hi Henry's Minstrels at Orpheum. Bringing recollections of the famous minstrel man, who was a regular visitor to and a big business getter in Danielson, Hi Henry's minstrels came here Wednesday for the first time in several seasons, and as the first of the attractions booked at the Orpheum thertre under the management of John T. Lewis gave a holiday eve show that pleased the audience. feature of the visit of the company, which is traveling in its own car, was the street parade by the band and the noon and evening concerts. End of Borough's White Way. The strings of electric lights in Dan ielson's holiday White Way glowed for the last time New Year's eve, their brilliancy fading with the coming of 1914. Tonight there will be only the regular system of street lights in service. Within a few days the strings of lights will have been taken down. There seems little doubt that what was spent for the special illumination paid big dividends. Crowded streets on the Saturday evenings during the season, a perfect crush on Christmas eve and augmented shopping throngs on week nights indicated the attraction the illumination had for the crowds, representing all of the places in this vicinity. Changes in Trolley Schedule. With the coming of the new year there are some changes in time on the local trolley road. Commencing today, the trolley express that has been leaving here at 11.45 a. m. for Putnam, to connect with Boston and Worcester trains, is to leave exactly at noon. The car is to leave the carbarn at Dayville at 11.30 a. m., and is due in Danielson at 11.50, leaving at 12 m., due Putnam 12.35 p. m. Returning, the express will leave Putnam at 3.87 D. m., running ahead of the regular southbound car. The early morning Providence car that has been leaving the carbarn at Dayville at 6.20 is to leave five minutes earlier, at 6.15 a. m. Briefs and Personals. David Witter is to leave next week for a visit with his children at Brawley, Cal. Mrs. Frances Burroughs is seriously ill. Ralph Meunier of Montreal is spending the holiday with his parents, Mr, and Mrs. Benoni Meunier. Mr. and Mrs. Allie Vachon and Mr. and Mrs. William Mercier, all of New Bedford, are here to spend the holiday, guests of Mrs. M, V, Belanger, Samuel Upton, charged with intoxication and vagrancy, was sent to Brooklyn jail for 90 days from the town court Wednesday morning. Mr. and Mrs. Frederick A, Jacobs have returned from a visit at Авпарolis. Fred E. Kies, proprietor of the Home hotel, is able to be out after an illness.

5. January 2, 1914 Putnam Patriot Putnam, CT
Article from Putnam Patriot, January 2, 1914

Click image to open full size in new tab

Article Text

Terminal Ass'n of St. Louis 100,000 25,000 Terre Haute & Indianapolis The Putnam Savings Bank was incorporated in 1862 and has always borne a fine reputation and has always been considered one of the strong banks of the state. The temporary closing of the doors was in a measure anticipated. There is no panie nor any feeling of fear for the outcome. The officials of the bank are as follows: President, John M. Paine. Vice president, Benjamin Grosvenor Treasurer, Jerome Tourtellotte. Trustees, Charles M. Fenner, Jerome Tourtellotte, John M. Paine, Benjamin Grosvenor, Josiah W. Dike, Arthur C. Stetson, Frank G. Letters, Arthur Tourtellotte, George D. Clark.

6. January 15, 1914 Norwich Bulletin Norwich, CT
Article from Norwich Bulletin, January 15, 1914

Click image to open full size in new tab

Article Text

bank commissioners, Fred P. The and Norris S. Lippitt, have governor just Holt in the hands of the savings placed annual report, covering savings their trust companies having 1913, departments banks, both as of Oct. statements 1, with the annual companies, together of the state banks and trust close of their condition at the date of business showing on Aug. 9, 1913, the the last call. 3 1-3 Per Cent. Gain. total amount on deposit in all The banks under the jurisdiction was of the this department on Oct. 1, 1912, 1913. was $344,994,319.37, and on Oct. 1. $356,870,739.05, a gain of $11,876,419.68, 3 1-3 per cent. in total deposits, the or which shows a healthy condition, report says. Regarding Banks Closed. Regarding financial institutions towards which the bank commissionhave found it necessary to exercise et's their powers in restraining continuance reof business, the commissioners port: The Windham County Savings bank, which was under a restraining order at the time of our last annual report, the continued in this condition until time when, acting with the approval to of the attorney general, we asked have a receiver appointed to wind up in its affairs. The case was delayed the court, not coming to trial until the Sept. 22. 1913. During the trial counsel for the bank offered to bring about an immediate and complete change in the management of the dis- institution and we were glad to continue the suit and thus save This the institution to the community, change in management has taken place. We are, therefore, gratified to report that the outlook for this bank is very bright. Greenwich Savings Bank. Late in the year we found the depositors' ledgers in the Greenwich Savings bank in such a tangled condition that we were unable to arrive at a correct total of its deposits. Under these circumstances we could not have allowed a dividend to be declared in January. We realized that, if the dividend were passed and heavy withdrawals made, an injustice would be done to as failed to It best for all to close the such therefore. We deemed depositors institution concerned, withdraw. thorough and take possession of it until a audit should reveal its exact condition. This audit is now being made by com- be petent accountants. We hope to able to report the bank solvent and return it to its directors in a few weeks. Thames Loan and Trust. The Thames Loan and Trust comof Norwich was closed on our motion pany on April 16th. Later a receiver was appointed who is now settling its affairs. Its condition had given us much concern for a considerable period before it seemed necessary to close it. In accordance with Chapter 79, Public Acts 1913, we notified the Columbia Trust company of Middletown on May 28th that an impairment of its capital must be made good by August 1. 1913. On August 2d, the trustees voted to terminate its corporate existence and it is now being liquidated under authority of the superior court. Putnam Savings Bank, On December 29th the assets of the Putnam Savings bank were found to be insufficient to meet its liabilities so that we, acting in concert with the counsel of the bank, issued an order restraining the bank from receiving deposits or paying out funds. The bank has an earning power of approximately $120,000 gross per annum. We hope, therefore, that it will be able to resume before any serious inconvenience results. Under former conditions the powers of the commissioners were exceedingly limited, but the legislature of 1913 extended their powers to a degree where it has been found possible to remedy intolerable conditions. It is a source of regret that for the protection of the depositors we have found it necessary to use these powers

7. January 23, 1914 Putnam Patriot Putnam, CT
Article from Putnam Patriot, January 23, 1914

Click image to open full size in new tab

Article Text

Bank Commissioners' Report A Word About Putnam and Danielson Banks In their annual report for the year ended Sept. 30, 1913, the state bank commissioners report as follows relative to the Windham County Savings bank of Danielson and the Putnam Savings bank: The Windham County Savings bank, which was under a restraining order at the time of our last annual report, continued in this condition until the time when, acting with the approval of the Attorney General, we asked to have a receiver appointed to wind up its affairs. The case was delayed in the court, not coming to trial until Sept. 22, 1913. During the trial the counsel for the bank offered to bring about an immediate and complete change in the management of the institution and we were glad to discontinue the suit and thus save the institution to the community. This change in management has taken place. We are, therefore, gratified to report that the outlook for this bank is very bright. On Dec. 29th the assets of the Put. nam Savings bank were found to be insufficient to meet its liabilities so that we, acting in concert with the counsel of the bank, issued an order restraining the bank from receiving deposits or paying out funds. The bank has an earning power of approximately $120,000 gross per annum. We hope, therefore, that it will be able to resume before any serious inconvenience results.

8. December 29, 1915 Norwich Bulletin Norwich, CT
Article from Norwich Bulletin, December 29, 1915

Click image to open full size in new tab

Article Text

TREE FOR OWLS Followed by Entertainment and OldFashioned Dance. Putnam nest of Owls social club had a Christmas tree and entertainment in their hall Monday evening. There was a large gathering of members and guests. The programme of the evening included a piano selection by Mrs. James Nichols; recitation, Miss Marie Jassamine: recitation, Miss Rose Demute, Alfred Demute: song, Elizabeth Hurdman; Henry Hurdman, comedian; bone selection, Nelson LeClair, accompanied by Joseph Forest, violinist, and Mr. Tetreault, pianist. After the distribution of gifts and remarks by the president, Walter Wallen, there was an old-fashioned dance. The committee in charge was Louis Reeves, Raymond Franklin and Arthur Demute. The Owls are to elect their officers for the ensuing year this week. Business Boom in 1916 for Putnam. The forecast for business in Putnam for 1916 is said to be splendid. Manufacturers who were interviewed on Tuesday gave great encouragement for Putnam's prosperity during the year about to open. That mills are running full time these days and apt to continue to do likewise during all of the coming year is at this time only incidentally in a way. It is the rule now, and not the exception, to hear of mills running day and night. That is the way things are going here. The Manhasset, French River Textile, Dady Silk, Waterman Worsted are among the concerns that are engaged on night work. Bank Prospects Most Encouraging. It was two years ago today that the Putnam Savings bank was closed by order of the state bank commissioners and restrained from paying out money or receiving deposits. Dec. 29, 1915, has brought about conditions, however, that promise fine things for the future, and there seems little doubt at this time but that the bank will be doing business as of old a year from today. City Notes. Mrs. Wells Partridge and her daughter, Miss Dorothy, of Wallaston Mass., are guests of Mr. and Mrs. Chauncey Morse. Miss Grace Child of Hartford spent Christmas with her mother, Mrs. Abbie Child of Grove street. Mr. and Mrs. Walden Wright of New Haven are visiting Mr. and Mrs. Edward Murfey. Miss Marjorie Main of New York city is spending her vacation with her parents, Mr. and Mrs. H. J. Main. Miss Ruth Daniels and a friend from New York city and Miss Anna Daniels of Manchester, N. H., are visiting Mr. and Mrs. F. J. Daniels. Mr. and Mrs. C. F. Waterman and Percy Waterman spent Christmas with relatives in Providence. J. G. Johnson has returned from a brief stay with his sister in New York city. Mr. and Mrs. E. M. Brown and their son, of Brooklyn, N. Y., are guests of Mrs. Charlotte Champlin. Ermond F. Brunn of New York is the guest of his mother, Mrs. C. Brunn. Mr. and Mrs. H. J. Mayer, Mr. and Mrs. Frank Mayer, have been the guests of Mr. and Mrs. Charles Mayer of Centerville, R. I. George B. Champlin of Chicago, Ill., is spending a brief time with his mother, on Bradley street. On Vacation Visit. Miss Helen Bradley of Springfield, Mass., is spending her vacation in this city. Harold Corbin of Worcester, Mass., has been the guest of his parents on Fremont street. Mrs. A. H. Lord and daughters, the Misses Dorothy and Alice, are the guests of relatives In Groton. of Mr. and Mrs. Harry Meniken