Franklin Institution For Savings

Bank Information

Episode Type: Suspension → Closure
Bank Type: savings bank
Start Date: May 29, 1828
Location: Providence, Rhode Island (41.824, -71.413)

Metadata

Model: gpt-5-mini
Short Digest: 59d0c49d

Response Measures

None

Description

Article (May 29–31, 1828) reports the Franklin Bank suspended payment after a chancery injunction was granted on petition of the president; petition states the bank could not meet drafts and believed insolvent. No reopening is reported; a receiver may be appointed. The provided bank name (Franklin Institution For Savings) appears to be a mismatch with the article, which names Franklin Bank—I use the name shown in the source.

Events (1)

1. May 29, 1828 Suspension

Cause: Government Action
Cause Details: Temporary injunction granted by the Chancellor on petition of the president; bank unable to meet drafts and petition stated bank likely insolvent.
Newspaper Excerpt: FRANKLIN BANK.-The Directors of this Bank last night resolved to suspend payment for the present. The Chancellor this morning stated from the bench, that he had allowed an injunction against the institution... In consequence of this petition, the Chancellor has ordered that on Saturday next the Bank shall show cause why an injunction should not issue, and a receiver be appointed; and in the mean time a temporary injunction is granted on the prayer of the petition.
Source: newspapers

Newspaper Articles (1)

1. May 31, 1828 Literary Cadet and Rhode-Island Statesman Providence, RI

Article from Literary Cadet and Rhode-Island Statesman, May 31, 1828

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Article Text

[BY THE STEAM BOAT.] The Steam boat Washington, Captain Com STOCK, arrived yesterday in 17 hours from New-York, with 120 passengers,among whom we noticed our Senator, Mr. KNIGHT, and a number of members of Congress from the Northern States. From the Commercial A vertiser. Franklin Bank.-The Directors of this Bank last night resolved to suspend payment for the present. The Chancellor this morning stated from the bench, that he had allowed an injunction against the institution, on the application of the President and one of the Directors. We understand that there is but a small amount of bills in circulation P. S. Since the foregoing was written. we have seen and examined the petition of the President of the Bank for this injunction. In this paper it is set forth that the embarrassments of the banks commenced in 1826that large debts are due from the bank, and to the bank-but not enough of the latter to meet its engagements-that the president is a stockholder and a large creditor of the bank--that that the bank could not yesterday meet the drafts from the other banks--and that believing there would be a run upon the bank to day for specie, which they could not pay,-and that as they could not longer continue banking operations, he has resigned his office as President and a Director of the Institution,-and he therefore prays for an injunction under the act of 1825. The petition concludes as follows: "Your petitioner further shows, that a meeting of the Directors was last night held, at which, after a full examination of the funds and resources of the said bank, it was determined and ascertained that the bank would be 1 unable to meet the claims that would be presented during the day, and that they would be petitobliged to suspend payment. And the I ioner further shows that he has great reason to believe that the bank is insolvent" In consequence of this petition, the Chancele lor has ordered that on Saturday next the Bank shall show cause why an injunction I should not issue, and a receiver be appoint3 ed; and in the mean time a temporary injunction is granted on the prayer of the petition. A quarter past one.-We have just reh ceived the following note from the Cashier: h FRANKLIN BANK, 29th May, 1828. d To the Editors of the Commercial Advertiser. r Gentlemen-His honour the Chancellor having granted an injunction "restraining the President, Directors and Company of the Franklin Bank, and its officers from paying out, transferKring, or otherwise disposing of the funds property or money of said bank," and for other purposes, I was under the necessity r of suspending the operations of the Bauk immediately. The injunction was served upon me at a very unexpected moment sometime after the opening of the bank. n The public are respectfully requested to suspend their opinions until further proceedings are had, which it is presuined will be in a few days. I am, very truly, your obedient servant, JOHN H. HILL, Cashier e FIRES. Our city was again fired in four dif, ferent places yesterday, after this paper went a to press. At a quarter past four o'clock in f the afternoon, flames were discovered issuing from the upper story of Mr. Leonard Kip's r brick stable, in Church-street, one door from Fulton-street. Owing to the prompt assistance f the firemen, not much damage was sustained. h Mr. K.'s carriage had left the building about a quarter of an hour previous; and as no fire had been ever allowed to be used about the e building. the mischief can beimputed to nothing but design. Immediately after the above, St. g Paul's vestry-room, on the opposite corner of Fulton and Church-streets, was discovered to t. have been fired. The Gazette says there was t to have been a meeting of the vestry at five h o'clock. A person went to Mr. McFarlan for the key of the vestry-room, on opening which a bundle of papers were discovered to be on fire, which had communicated to the baize icovering the floor. On examination it was e found that a pane of glass had been broken 1, and the back door opened, through which the incendiary had, no doubt, entered, and after placing his train, retired. The timely assist" ance afforded, prevented any further injury.Another attempt was made in Franklin-street, d during the course of the afternoon. A carpenter's shop between Church and Chapel-streets