19641. East Greenwich Institution For Savings (East Greenwich, RI)

Bank Information

Episode Type
Suspension → Closure
Bank Type
savings bank
Start Date
February 6, 1860
Location
East Greenwich, Rhode Island (41.660, -71.456)

Metadata

Model
gpt-5-mini
Short Digest
194dba99

Response Measures

None

Description

Articles from Feb 1860 report discovery of large embezzlement by the cashier/treasurer Daniel C. Kenyon, forcing closure of the savings institution and prompting commissioners/injunction and appointment of a receiver to wind up affairs. No bank run is described; this is a suspension/closure driven by bank-specific defalcation.

Events (2)

1. February 6, 1860 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Discovery of large embezzlement/defalcation by the treasurer Daniel C. Kenyon, misapplication of deposits to stock speculations; forced closure of the savings institution.
Newspaper Excerpt
Heavy Defalcation and Bank Failure.-... Daniel C. Kenyon, Cashier of the Rhode Island Exchange Bank, at East Greenwich, has been discovered to be a defaulter to a heavy amount, compelling the closure of the institution. Mr. Kenyon was Treasurer of the East Greenwich Institution for Savings, and is a defaulter in that capacity also.
Source
newspapers
2. February 14, 1860 Receivership
Newspaper Excerpt
Gov. Turner yesterday appointed Shubael Hutchins and Henry Anthony of this city, commissioners to make an examination of the affaires of the bank. They will at once report its condition to the Supreme Court, when an injunction will undoubtedly be issued, and a receiver be appointed to wind up its affairs.
Source
newspapers

Newspaper Articles (2)

Article from Worcester Daily Spy, February 11, 1860

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Article Text

GENERAL NEWS SUMMARY. BOSTON AND VICINITY. The third legislative educational meeting was held at the State House, Thursday eve. ning. In the absence of the chairman of the Committee on Education, George B. Emerson, Esq., presided. Hon. George S. Hillard delivered an able address upon "Books and Reading," which was listened to by a crowded audience. The Boston Transcript says a gentleman of that city has sent $100 to the widowed mother of the dancer who lost her life by her dress taking fire in New York, last Saturday evening. ESSEX COUNTY. Hersey A. Skinner of Lynnfield committed suicide, Thursday, while suffering under temporary aberation of mind. Not long since he laid down in the snow in a state of nudity with the evident intention of freezing to death. The semi-annual examination of the State Normal School at Salem took place on Thursday. Twenty-three young ladies graduated. Addresses were made by Gov. Banks, and exGovs. Boutwell and Washburn. Mr. Charles Smith of Newburyport has an apple tree in his garden on Lime street, that bears a mixed fruit, one side of each apple being sour, and the other side sweet. The color upon the surface shows how far each variety prevails. This mixture was produced in budding. MIDDLESEX COUNTY. The high wind of Friday morning, which did so mnch damage in this vicinity, blew down a shed near Waltham, 100 feet long by 24 ein width, directly upon the track of the Fitchburg Railroad. The train was delayed for a considerable time. NORFOLK COUNTY. The family of George Bird, of Stoughton, were all taken with measles at one time, about two weeks since, and the father and mother both died within two days of each other, leaving five small children, all dangerously sick. BRISTOL COUNTY. New cases of virulent throat disease continue to be reported in the town of Westport, and the physicians are of opinion that nearly all the inhabitants will be attacked. HAMPDEN COUNTY. The loss by the burning of David E. Jones' dwelling house, in Ludlow center, on Tuesday morning, is about $1,200, the furniture being mostly saved. There was an insurance upon the building for $800 in the Farmers' and Mechanics' office of Worcester. Theorigin of the fire is unknown. BERKSHIRE COUNTY. A little son of Michael Barry of Great Barrington, while playing around the stove a few evenings since, drank a mouthful of boiling hot water from the spout of a tea kettle, scalding his throat terribly but by medical treatment he is now considered out of danger. RHODE ISLAND. The Woonsocket Patriot learns that the severe frost of last week has destroyed the peach buds in that vicinity. In the heart of the buds are black spots indicative of decay. Few, if any, of the trees have escaped damage. Heavy Defalcation and Bank Failure.-The Providence Press announces that Daniel C. Kenyon, Cashier of the Rhode Island Exchange Bank, at East Greenwich, has been discovered to be a defaulter to a heavy amount, compelling the closure of the institution. Mr. Kenyon was Treasurer of the East Greenwich Institution for Savings, and is a defaulter in that capacity also. Employment of the funds entrusted to his care in stock speculations, is understood to have been the occasion of the default. The amount of Mr. Kenyon's robberies is stated in round numbers at $72,000 from the Rhode Island Exchange Bank, and $39,000 from the Savings Institution. The capital of the former was $60,000, and its circulation is about $40,000. Mr. Kenyoni is some thirty five years of age, has hitherto borne an excellent reputation, and the exposure of his misconduct occasions profound regret. The excitement in East Greenwich is intense. CONNECTICUT. George W. Bishop of New Haven has sued the Palladium for $10,000 damages, for publishing that he was charged with kidnapping and selling into slavery a negro boy. He was in fact arrested at Philadelphia and charged with kidnapping a boy 15 years old but he soon produced the boy in court, and the case was dismissed-the court being satisfied that he had taken the boy to Alabama to ride racehorses. John Garrity of Roxbury was found with his neck broken a short distance from Botsford's store in Weekeepeeme, on Wednesday night. He had been dead but a short time. His death was attributed to drunkenness. An Irishman was found dead in a shed in New Milford the same night. His skull was cracked. The barn of Robert Goodwin, Jr., at New London, was destroyed by fire Wednesday. Four horses, several carriages, &c., were also consumed. Loss about $4000-insured. Thomas Brady's mill, at Rockville, Conn., used for the manufacture of cotton twine, was almost entirely destroyed by fire last Wednesday night. Insurance on mill, stock, and machinery, $11,000, which will not cover the loss. A large number of workmen are thrown out of employment by the disaster. The parishioners of Rev. Mr. Griggs of Bristol, on the afternoon and evening of the 3d, made a visit to the parsonage, and presented the pastor and his family about $100 in cash and valuable articles. PERSONAL. Captain Glyn, who is said to have furnished to his friend Thackeray the character of Capt. Strong, in "Pendennis," recently died in the New York Hospital, and was buried by the hand of charity in the Cemetery of the Evergreens. n excellent linguist, a thorough scholar, a tasteful artist, an accomplished musician, a poor gentleman, a brave soldier, and an inebriate! POLITICAL. In the Virginia House of Delegates, a reso. lution has been offered, requiring every one who has emigrated from or shall emigrate from a non-slaveholding state to Virginia, to take an oath to support her constitution and laws, and defend her soil and institutions against her enemies. The three opposition papers of Baltimore have each run up the name of a different presidential favorite, and each is publishing elab-


Article from New-York Daily Tribune, February 14, 1860

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Article Text

THE RHODE ISLAND BANK DEFALCATION. From The Providence Journal, Feb. 11. The community were startled yesterday morning by the announcement that Daniel C. Kenyon, the Cashier of the Rhode Island Exchange Bank, at East Greenwich, was a defaulter to that institation to a large amount, as well as to the East Greenwich Savings Bank, of which corporation he was Treasurer. The discovery of the embezzlement was made by the Cashier of the Merchants' Bank in this city. That bank had received information from New-York that the bille of the Exchange Bank had been hypothecated in Wall street to raise funds. As there had been repeated charges against the bank, at the instance of the management of the Merchants' Bank, the Cashier went down to East Greenwich on Thursday to entisfy himself of its actual condition. The first evidence of wrong was found in a discrepancy of a number of thousands of dollars in his account with the Merchants' Bank; but as soon as an examination of the note account was made, which disclosed a deficiency of some $25,000, concealment was no longer possible, and he confessed to Mr. Robbins that he was a defaulter. He also confessed that he had added to the crime of stealing the still greater crime of perjury. On the 6th inst., in the return he made to the State Auditor of the condition of the bank, he had sworn that the circulation was $19,268, when in fact it was $44,000. He also swore that the deposits were only $3,756, when they exceeded the sum of $12,000. The whole amount of his defalcation to the bank is about $72,000. The capital is only $60,000. Billholders will not be losers by the dishonesty of Kenyon. If the circulation is not greater than now believed, the assets of the bank will pay ja as well as the deposits. But, if there should be a lack of assets, the stockholders, among whom are many men of large property, are personally liable for the deficiency. Kenyon has also confessed that he has robbed the East Greenwich Savings Bank of $36,000, one-half of the whole amount of its deposits. These deposits were the savings of the industrions poor in his neighborhood, and this faithlessness to a most sacred trust will bring upon him the execration of many ready to perish. The large sum which he has embezzled-$108,000Kenyon alleges has been wholly lost in stock speculations. He commenced his stock gambling some years ago, and was at first successful, having made $10,000 in bis early operations. His losses have been in Érie Railroad and in mining stocks. His dishonesty is the more surprising as he has always borne a most excellent character, and his style of living prudent and befitting bis station. His aged father, Mr. George Kenyon, well known in Kent County, is his bondeman to the bank for $15,000. Mr. James B. Pierce, the President of the Exchange Bank, is his bondsman to the Savings Bank in the sum of $10,000. Gov. Turner yesterday appointed Shubael Hutchins and Henry Anthony of this city, commissioners to make an examination of the affaire of the bank. They will at once report its condition to the Supreme Court, when an injunction will undoubtedly be issued, and a receiver be appointed to wind up its affairs. From The Providence Post. Mr. Kenyon is a young man, who has been supposed to possess tii e business talents, and who has enjoyed in an eminent degree notonly the confidence of his employers, but that of the entire community in which he resided. That one 80 full of promise should thas make shipwreck of his life, is indeed deplorable; and still worse is the case when we reflect that in his fall he has brought ruin and distress to many who had relied upon bis honesty. Mr. Kenyon frankly states that no other living soul has known of his illegal acts, or is in any diway implicated in the transactions which he now vulges. Led on by the hope of gain, he has gone forward, step by step and deeper and deeper in his crime, until at last the black cloud is abut down upon him, and be finds bimself and his innocent friends involved in a common ruin.