Savings Bank - Stafford Springs, CT

Bank Information

Episode Type: Suspension → Reopening
Bank Type: savings bank
Start Date: October 20, 1887
Location: Stafford Springs, Connecticut (41.954, -72.302)

Metadata

Model: gpt-5-mini
Short Digest: 0a9296d0

Response Measures

None

Description

Article (1887-10-20) describes the Savings Bank limiting payments (scaling down deposits 15%) and opening a department for draft deposits while a new bank is organized; a receiver was appointed for the (separately named) national bank and examiner retired. The Savings Bank appears to have suspended full payment due to discovered shortage/poor paper (bank-specific adverse information) and taken measures that indicate an attempt to resume operations or reorganize, so classified as suspension_reopening.

Events (2)

1. October 20, 1887 Other

Newspaper Excerpt: The Savings Bank of Stafford Springs has opened a department for deposits subject to draft or check, and is supplying customers with needed blank checks and other stationery, thus to a degree relieving the temporary inconveniences to business men.
Source: newspapers

2. October 20, 1887 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Discoveries of a shortage and probable amount of poor paper; actions taken to scale down deposits to cover losses and protect remaining depositors; receiver appointed (for the national bank) and examiner left town indicate bank-specific problems uncovered in examination/administration changes. 2xx omitted trailing repetitive OCR noise in cause_details to keep concise.
Newspaper Excerpt: It is probable that before opening the bank fully for business the deposits will be scaled down 15 per cent.
Source: newspapers

Newspaper Articles (1)

1. October 20, 1887 The Press Stafford Springs, CT

Article from The Press, October 20, 1887

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Article Text

Stafford's Bank Troubles. The savings bank directors on Monday unanimously elected W. M. Corbin president of the bank, C. F. Harwood treasurer and James Risley secretary. It is probable that before opening the bank fully for business the deposits will be scaled down 15 per cent. This will prevent those who would promptly draw their deposits from getting their money in full and leaving any possible losses to fall upon those continuing with the bank, the percentage of course increasing as the amount of deposits decreased. Whatever the bank cau pay above the amount so scaled down will come back in the form of dividends. E. C. Pinney has been chosen a director in place of G. H. Baker, deceased. The report that Mr. Hicks had gone to Canada did not produce any sensation in Stafford, as has been published, for the reason that no one believed it. He came to Stafford Springs last Saturday and will remain here and face the consequences of his acts. Charles M. Joslyn of Hartford has been appointed receiver of the national bank. He is well known to Stafford people, being a native of Tolland, and a former law partner of E. H. Hyde, Jr. His selection for the place should have the fullest approval of all interested. The Savings Bank of Stafford Springs has opened a department for deposits subject to draft or check, and is supplying customers with needed blank checks and other stationery, thus to a degree relieving the temporary inconveniences to business men. This will continue until a now bank is organized, which is an event to be looked for. Col. Joslyn arrived on Wednesday and has entered upon his duties. His sappointment gives good satisfaction. He is willing already to express confidence that no loss will come to creditors or depositors in the bank, and is of the opinion that there will be something left for stockholders, though so far as this goes he has had no time yet to investigate. Mr. Forman, the examiner retired from the conduct of affairs on Mr. Joslyn's arrival and has left town. Mr. Joslyn will in a few days be able to give an idea of the condition of the bank and of the actual amount of shortage and probable amount of poor paper. The papers allude to Mr. Hick's home and habits of living as if the former was palatial and the latter the most luxurious imaginable. The fact is that Mr. Hick's house, though pleasant and tastefully planned and built, is far from an excessively costly one. We have many private dwellings larger and much more costly to build. Its furnishings are tasteful but not extravagant for a man in Mr. H's. position. And further he has never been regarded as a man of extravagant or costly habits. All this is contrary to the impression that has gone out, but is well known here in Stafford.