Kingston Savings Bank - Kingston, RI

Bank Information

Episode Type: Suspension → Closure
Bank Type: savings bank
Start Date: May 14, 1877
Location: Kingston, Rhode Island (41.480, -71.523)

Metadata

Model: gpt-5-mini
Short Digest: c16d4fa5

Response Measures

None

Description

Article (New York Herald, May 14/15 1877) reports Kingston Savings Bank 'compelled to suspend payment' after losses (Sprague failure, Northern Pacific loans). Depositors had withdrawals and were paid, then directors decided to stop payments; a depositor meeting was called to consider resuming or placing the bank in the hands of a receiver. The ultimate reopening is not reported; the piece contemplates receivership, so I classify as suspension leading to closure (possible receivership).

Events (1)

1. May 14, 1877 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Heavy losses tied to the failure of A. & W. Sprague and losses on Northern Pacific Railroad loans amid depressed real estate and manufacturing conditions; led directors to stop payments.
Newspaper Excerpt: THE KINGSTON (R. I.) BANK COMPELLED TO SUSPEND PAYMENT ... A meeting has been called of the depositors, to be held May 23, at which time the matter of resuming business or putting the bank into the hands of a receiver will come up for consideration.
Source: newspapers

Newspaper Articles (1)

1. May 15, 1877 The New York Herald New York, NY

Article from The New York Herald, May 15, 1877

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Article Text

A WEAK SAVINGS BANK. THE KINGSTON (n. I.) BANK COMPELLED TO SUSPEND PAYMENT-A RELIC OF THE SPRAGUE FAILURE. NEWPORT, May 14, 1877. Another bank is in trouble. This time it is the Kingston (R. I.) Savings Bank, and for a week or more reports have been circulated of its shaky condition. It seems that the bank met with several severe losses a few years ago, the principal ones being caused by the well known failure of the house of A. & W. Sprague, and it also lost heavily on Northern Pacific Railroad loans. The interest on the Sprague paper has been paid up to July last. Since that time, however, owing to the great depression in manufacturing circles, the mills of Messrs. A. & W. Sprague were obliged to stop running, consequently the trustee of the estate has been unable to meet the mortgages and other paper when due. This, the bank officials claim, together with the general depression of real estate, is the cause of the present crippled condition of the bank. The news of the condition of the bank caused quite a number of depositors to apply for their deposits. They were paid in full, but the Board of Directors concluded that if money was to be paid out all the depositors should share alike, and so a meeting was beld and it was determined to stop payments in the future. A meeting has been called of the depositors, to be held May 23, at which time the matter of resuming business or putting the bank into the hands of a receiver will come up for consideration. The directors claim that the actual loss of the depositors, as matters now stand, will be one year's interest and about eight per cent of the deposits. It their calculations are correct the condition of the institution is not as bad as was generally supposed. This makes no less than four savings banks which have severely suffered by the failure of the Spragues. The Kingston Bank was considered one of the best in the western section of the State, and it is hoped that it will come out of its present dulicalties without any serious loss to its depositors, who are mostly farmers.