19753. Merchants Savings Bank (Providence, RI)

Bank Information

Episode Type
Run → Suspension → Closure
Bank Type
savings bank
Start Date
July 31, 1893
Location
Providence, Rhode Island (41.824, -71.413)

Metadata

Model
gpt-5-mini
Short Digest
19de9fc9

Response Measures

Partial suspension

Other: Trustees petitioned the supreme court to wind up the bank; court empowered trustees to liquidate rather than appointing a receiver.

Description

During the July–Aug 1893 panic depositors demanded withdrawals and the bank invoked the 90-day time clause. Continued notices and withdrawals (~$125k–$130k) forced the bank to seek court permission to wind up in October 1893; trustees were authorized to liquidate (i.e., permanent closure rather than resumption). Later (1895) depositors called for a receiver. Cause of suspension attributed primarily to the monetary panic and depressed market values of Western investments (unable to realize securities).

Events (4)
1. July 31, 1893 Run
Cause
Macro News
Cause Details
Part of the widespread monetary panic of summer 1893; heavy withdrawals and loss of depositor confidence led to many notices to withdraw (reports cite $125,000–$130,000 called).
Measures
Enforced the ninety-day (30/60/90) time limit on withdrawals; posted notices requiring 90 days' notice for withdrawal of larger sums.
Newspaper Excerpt
The Merchants' Savings Bank called for ninety days' notice on withdrawal of deposits to-day.
Source
newspapers
2. October 11, 1893 Suspension
Cause
Macro News
Cause Details
Inability to realize Western securities at reasonable prices due to the prolonged monetary panic and loss of confidence; many depositors had served notices amounting to over $100,000 and the bank could not convert investments without great sacrifice.
Newspaper Excerpt
At a meeting ... on the 11th day of October, 1893 ... it was unanimously voted ... that it is expedient to wind up the business of said bank and convert its property and assets into money ...
Source
newspapers
3. October 26, 1893 Other
Newspaper Excerpt
Trustees of Merchants Savings Bank Allowed to Wind Up Its Business. A hearing was given ... The court ... decided that the trustees are competent to wind up the business and so empowered them.
Source
newspapers
4. March 22, 1895 Receivership
Newspaper Excerpt
A meeting of the depositors of the Merchants' Savings bank has been called for the purpose of appointing a receiver. The bank has been in liquidation since Oct. 1, 1893, and depositors are dissatisfied with the conduct of affairs.
Source
newspapers

Newspaper Articles (10)
1. July 31, 1893 The Providence News Providence, RI
Article from The Providence News, July 31, 1893

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PRECAUTIONARY MEANS. The Merchants Savings Bank Will Enforce Tim) Limit, TAKES 90 DAYS TO DRAW MONEY Directors Though Eest to Be on the Safe Side During These Shaky days of Finance-The Bank Solveut and 1 No Danger-First Bank to Put in Force The Merchants Savings bank is the first savings institution in this city to take precautionary measures in protecting its depositors. At a meeting of the trustees it was decided to enforce the ninety day limit on all depositors who wished to withdraw money, this action was taken not because the bank was not fully able to meet all present or prospective demands, but because it was thought to be the most conservative way to protect the interest of all concerned at at time when a run might be which momant started any no instution however strong stand, there have been a few withdrawls lately of larger amounts than usual but none that in ordinary times would OCcasion any action or part of the officials. The trustees of the other savings banks are considering the question of enforcing the 90 day limit, but none have thus far adopted that course.

2. August 1, 1893 New-York Tribune New York, NY
Article from New-York Tribune, August 1, 1893

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TO ENFORCE THE TIME CLAUSE. ACTION TAKEN IN ALBANY, BINGHAMTON AND OTHER CITIES-MASSACHUSETTS BANKS IN LINE. Albany, July 31.-The trustees of the Albany Savings Bank met to-day and adopted a resolution to pay depositors the amount due them on demand without notice. The deposits in this bank amount to $15,500,000, and the surplus to $2,500,000. The bank has about $515,000 on hand. The trustees of nearly all the other savings banks in the city met to-day and the sentiment expressed was in favor of enforcing the sixty days' notice from depositors. The only banks which to-day required such notice were the Albany City Savings Institution, the Home Savings Bank and the National Savings Bank. Binghamton, N. Y., July 31.-Binghamton's savings banks have decided to demand sixty days' notice of withdrawal of Sunds by depositors. Boston, July 31.-At a meeting in the Parker House to-day of representatives of eighty-three savings banks of the State It was voted to recommend that the banks take action at once in applying the restrictions against the withdrawal of large deposits without notice. Fall River, Mass., July 31.-This morning the savings banks of the city took advantage of their by-laws to prevent any' further withdrawals of deposits and depositors will not be allowed to withdraw large sums except after having given thirty or sixty days' notice. This action was necessitated as a result of heavy withdrawals in the last few days. It Is said that last week the withdrawals were $100,000 in excess of the deposits. Providence, R. I., July 31.-The Merchants' Savings Bank called for ninety days' notice on withdrawal of deposits to-day. New-Haven, July 31.-Early this morning n startling rumor became current to the effect that there was to be a run on the local savings banks. About 9 o'clock it became known that the directors of the three banks, the New-Haven, the Connecticut and the National, had held meetings and had decided to avail themselves of the provision In their charter, which provides that notice varying from three to four months shall be given by depositors wishing to withdraw money. This fact increased the excitement and soon the corridors of the Connecticut and New-Haven banks were packed with anxious depositors. They were Instructed regarding the action and were allowed to draw Interest. and most of them availed themselves of this. That the banks are perfectly sound there Is no doubt in the minds of all the prominent local business men, and their action in protecting panic-stricken patrons is generally regarded as a wise movement.

3. August 1, 1893 Waterbury Evening Democrat Waterbury, CT
Article from Waterbury Evening Democrat, August 1, 1893

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SILLY RUNS ON BANKS. New York Savings Institutions Crowded With Depositors. WOMEN WANTED THEIR MONEY. People With Small Sums Got Scared and Hastened to the Bank to Get Their Savings-Foreigners Were Hard to Reason With Did Not Like to Take Gold. NEW YORK, Aug. 1.-At all of the banks here an unusual number of nervous depositors want their money. More than :hree-quarters of these are women. At the east side banks, where the depositors are mostly foreigners, the run is heaviest There is no alarm among the savings banks officials over the situation. They all declare that they are more than able to meet with their cash balances the demands that will now be made upon them. They expect that the excitement among the igaorant depositors will subside by the end S of the week at least. r This confidence on their part is warranted by the actions of depositors at the banks. At many of the banks the amount of money paid in did much to offset what f was drawn out. At one of the largest a banks the amount deposited was almost S one-half as large as the amount drawn out. S So far as is known, all the savings banks is in the city except two or three put the time clause into effect before the day closed. is There were strange scenes around the a banks during the day. At the Emigrant n Industrial Savings bank, in Chambers d street, there was a crowd of from 200 to 400 % depositors all day. The great majority of them were poor women. and a very large d percentage of them were Italians. The bank had not availed itself strictly of the r time clause, but they paid the small depositors in full. il They Objected to Gold. c At this bank, as at all the others, the officers had clerks out among the depositors an explaining to them the foolishness of their t fright, and these emissaries induced scores of those ho had come to get their money to go away without it. All those who insisted on drawing as much as they could h were paid half in greenbacks and half in n gold. It was a somewhat remarkable fact that nearly all objected to the gold and at asked that it be exchanged for the paper n money. ne At the Franklin Savings bank on Eighth le avenue the crowd of depositors vhowanted 10 to withdraw their money was very large. The time clause had there been posted. ne President Archibald Turner said that he thought the excitement would all be over in three or four days, as it was confined ce only to the poorer and more ignorant de positors. he The Broadway Savings institution. the ne Irving Savings institution and the East nt River bank had only about 12 time notices served upon them and no great rush of people at any time during the day. The Harlem Savings bank had a crowd, but er the drafts exceeded the deposits for the od day to the amount of only $18,000. Everybody was accommodated with all the money he wanted if he could show a good reason for withdrawing it. on How a Run Started. There was printed in a Jewish paper on Saturday morning that the "Neb. State bank." meaning the Nebraska State bank. Iso had closed its doors. This caused a senseless run on the State bank at 378 Grand se street, which was kept up all day. The Polish and Russian Jews, who are the depositors in the Grand street State ns bank, did not know what "Neb." meant. ill They came to the conclusion that it was a typographical error and that the bank reap ferred to was their bank, and when it was he opened there was a rush of depositors to ed draw out their money. It was impossible of to reassure them, so the officers simply repaid out every account that was called for and prepared to stand a run. nd About all of the Brooklyn savings banks insisted on the rule requiring notice of the nd withdrawal of deposits, but only in case of ag, demands for over $100, and smaller sums ng were paid out freely. There were crowds before the window in of nearly all the banks when they opened rs' for business, but there was no evidence of he panic. There were complaints heard of the enforcement of the 30 day notice rule. but n't there was very little excitement, and the isspecial policemen who were detailed at the banks had nothing to do but to keep peofor ple in line. Furniture Dealer Gives Up. mCLEVELAND. Aug. 1.- H. J. Moriarty rill furniture dealer, made an assignment. P. the M. Spencer was made assignee and roughly a estimated the liabilities at $20,000. bA Springfield Bank Assigns. SPRINGFIELD. Ills., Aug. 1.-The Spring ou field Savings bank, with a capital of $25, res 000 and deposits of about $100,000, made at ayassignment. he Leather Firm Suspends. ou, BOSTON, Aug. 1.-F. A. Loring & Co. the leather dealers, of 132 Lincoln street, with mR tannery at Woburn, have made an as signment. ng A Providence Bank Wants Time. do PROVIDENCE, Aug. 1.-The Merchants to Savings bank called for 90 days' notice or deposits to

4. August 2, 1893 The Sun New York, NY
Article from The Sun, August 2, 1893

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Banks and the Time Rule, PROVIDENCE, R. L. Aug. 1.-The People's. Merchants'. and Mechanics' savings banks have decided to enforce the ninety-day rule. The three savings banks in Pawtucket posted notices to-day that they would enforce the ninety-day rule. DANBURY. Conn.. Aug. 1.-The Danbury and the Union savings banks of this city now require ninety days' notice from depositors. BOSTON, Aug. 1.-The Franklin Savings Bank now requires sixty days time for the withdrawal of more than $50. PORTSMOUTH. N. H.. Aug. 1.-The directors of the savings banks have availed themselves of the right to insist on a ninety days' notice before paying out larger sums than $50 to any depositor. OMAHA. Aug. 1.-At a meeting of the Presidents of the Omaha savings banks this morning it was resolved to require sixty days' notice for the withdrawal of deposits. AUBURN. N. Y., Aug. 1.-The two savings banks of this city have decided to demand sixty days' notice. BRIDGEPORT. Conn., Aug. 1.-The four savings banks in this city have decided to take advantage of the ninety days' clause.

5. October 14, 1893 The Providence News Providence, RI
Article from The Providence News, October 14, 1893

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ASK FOR AN INJUNCTION And Permission to Wind Up the Affairs of the Institution --- Believe That if Well Managed the Bank Will Pay Dollar for Dollar---The Petition Was a Surprise--What the Treasurer Says. rumor, and found that it was unfounded. Intense surprise was caused in mercanA reporter was informed at Wilbour, tile circles by the announcement that the Jackson & Co.'s, that that conMercha ts Savings bank of this city had cern did not know of any asked the supreme court for permissi in to bank that would have to suswind up its business. The anpend on this account, and that neither of nouncement was totally unexthe banks mentioned in the street rumor pected. The bank has never was in any danger. shown signs of weakness. Many frightThe reporter called on the president of ened depositors had served the ninety one of the banks in question and teld days notice required by the bank, and inhim about the rumor. ability to meet these obligations and the "What a ridiculous idea!" exclaimed general depression of the money market the president. "Why, we have over $300,drove the bank to the wall. 000 in cash on hand at this moment and The Petition. can pay every depositor in full without a This petition was filed in the supreme moment's notice. I've got $100,000 court today: of my own money in here. Petition of the trustees of the Merchants Savings This bank is solid, and, so far as known, bank of Providence to wind up its business. etc.: all the banks of the city are sound. It is To the honorable the justices of the supreme always better to go right to headquarters court, sitting at Providence within and for the when rumors like this are current, and I county of Providence, in appellate division: Respectfully represent the undersigned that the am glad that the policy pursued by The Merchants' Savings Bank. of Providence. is a corNews. Some other papers are not so poration duly created by the general assembly of careful." this state and located and doing busiNot Seriously Involved. ness in the city of Providence in said county; that they are two-thirds The News reporter then saw Cashier in number of the properl chosen and duly qualiNoves of the Globe National bank. tied trustees of said savings bank; that at a meeting "Suspend he said, "No, Sir! We of the said trustees duty called and held at the banking rooms of said bank in said Providence are not seriously involved in the Wilbouron the 11th day of October, 1893 Jackson failure; we are not seriously It being the regular quarterly meeting of the involved in anything. We are all trustees, it was unanimously voted, two-thirds of the whole number of trustees concurring. right! Why, just look at our that it is expedient to wind up the last report and see our resources. Does business of said bank and convert its that look as if this bank was shaky? So property and assets into money and divide the far as I know all the banks of Providence same among depositors in proportion to their reare in good condition. None of them will spective interests therein, and that proceeding be at once instituted in the supreme court suspend on account of the two recent for the necessary authority so to do, failures." a duly certified copy of which vote is hereto annexed and made a part of this petition; that said All In Good Condition. bank as your petitioners believe with proper John W. Vernon of the Merchants' Nahandling and convers ion of its property and assets, tional bank, 20 Westminster street, had is solvent and capable of meeting all its obligaheard of the action of the Merchants' Savtions. the present situation of the bank being as follows, viz:-ings bank when The News reporter called RESOURCES. on him. He said he understood that 404,660.49 Mortgages that bank had been refusing to receive 10,002.92 Collateral loans 63,912.67 Real estate deposits for some time, and he was not 562,800.00 Bonds apparently surprised because it de202,345.00 Stocks sired to wind up its af451.36 Cash fairs. He understood that it had LIABILITIES. invested in Western securities. To the 1,207,601.95 Deposits best of his knowledge all the other banks 8,782.78 Interest 790.71 Surplus in Providence were in very good condi27,000.00 Call loan tion; he had heard nothing to the conand that the reasons upon which said vote was trary. founded are the present stringency of the money Wilbour, Jackson & Co., and Sheldon market and consequent lack of confidence of de& Binney do not know just when their positors; notices of intention by many depositors undor sec. 72, chap. 123 of the Public statements will be ready. There are no Statutes to withdraw deposits amounting to more new developments in the affairs of either than $120,000; and the impossibility without concern. great sacrifice to the great body of deposi-

6. October 14, 1893 The Providence News Providence, RI
Article from The Providence News, October 14, 1893

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Intense surprise was caused in mercantile circles by the announcement that the Mercha ts Savings bank of this city had asked the supreme court for permissi in to swind up its business. The announcement was totally unexpected. The bank has never shown signs of weakness. Many frightened depositors had served the ninety days notice required by the bank, and inability to meet these obligations and the general depression of the money market drove the bank to the wall. The Petition. This petition was filed in the supreme court today: Petition of the trustees of the Merchants Savings bank of Providence to wind up its business. etc.: To the honorable the justices of the supreme court, sitting at Providence within and for the county of Providence, in appellate division: Respectfully represent the undersigned that the Merchants' Savings Bank. of Providence. is a corporation duly created by the general assembly of this state and located and doing business in the city of Providence in said county; that they are two-thir ds in number of the properl chosen and duly qualitied trustees of said savings bank; that at a meeting of the said trustees duly called and held at the banking rooms of said bank in said Providence on the 11th day of October, 1893 It being the regular quarterly meeting of the trustees, it was unanimously voted, two-thirds of the whole number of trustees concurring. that it is expedient to wind up the business of said bank and convert its property and assets into money and divide the same among depositors in proportion to their respective interests therein, and that proceeding be at once instituted in the supreme court for the necessary authority so to do, a duly certified copy of which vote is hereto annexed and made a part of this petition; that said bank as your petitioners believe with proper handling and convers of its property and assets. is solvent and capable of meeting all its obligations. the present situation of the bank being as follows, viz:-RESOURCES. 404,660.49 Mortgages 10,002.92 Collateral loans 63,912.67 Real estate 562,800.00 Bonds 202,345.00 Stocks 451.36 Cash LIABILITIES. $ 1,207,601.95 Deposits 8,782.78 Interest 790.71 Surplus 27,000.00 Call loan and that the reasons upon which said vote was founded are the present stringency of the money market and consequent lack of confidence of depositors; notices of intention by many depositors undor sec. 72, chap. 123 of the Public Statutes to withdraw deposits amounting to more than $120,000; and the impossibility without great sacrifice to the great boly of depositors in the present financial situation within the ninety days allowed of realizing from its investments and securities said sum and the further sum needed to safely and properly continue the business of the said bank. Wherefore, your petitioners pray that the president. directors, trustees, treasurer and other officers of said bank may be enjo ned by order of this honorable court from proceeding further in transacting the business of banking, and that the board of trustees may be authorized to collect the debts, dispose of the property, and from time to time as they are able divide the proceeds over and above the debts of the bank and the necessary expenses of winding up its affairs among the depositors in proportion to their, respective interests therein as provided in sec. 64. cap. 153, of the Public Statutes. This petition was signed by the several trustees and a copy of the resolution of the trustees was appended. Temporary Injunction Granted. The petition was heard by the court and set down for further hearing October 26, and a ten days notice was ordered for publication. Meantime the officers of the bank are restrained from carrying on the bank's business. Treasurer Angell Explains. John W. Angell, cashier of the Lime Rock National bank and treasurer of the Merchants' Savings bank, 42 Weybosset street, when askel about the petition for the winding up of the business of the latter bank, said: "We have taken this action in order to protect our small depositors. We ave received notices of withdrawals amountting to over $100,000. Most of these notices are from large depositors, and it would be unjust to pay them at the expense of the small depositors. We simply cannot do it, "We cannot collect interest on our securities, and we cannot sell our securities without great sacrifice. Our securities are good, but we cannot turn them into cash. It is almost impossible to raise money on anything except government bonds. "Our embarrassment is due to the six months of panic, and other banks will soon be forced to take action similar to ones if things do not improve, :"Time is all that we need, and if we are not forced to secrifice our securities we hope to be able to pa) 100 e nts on the dollar. Our deposits amount to over $1,200,000. This bank was started in 1871, and this is the first time we have had any trouble. The interests of our small depositors could only be protected by the course we have taken. We hope everything will come out all right, and that every depositor will be paid in full. As I said before all we need is time."

7. October 20, 1893 Highland Recorder Monterey, VA
Article from Highland Recorder, October 20, 1893

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THE NEWS. to reported The Reading Receiver an amicable were tinderstand.ng the with Joan. have come Speyer to syn icate for Electric the extension wires of the £2,500,000 a $300,000 fire in Allentown, at Atcrossing caused the United States Court, issued an lanta, Pa. Ga., In Judge date Newmati of sale for has the Marietta of order fix ng Georgia the Railroad for the in 20th Georand North road has 100 miles and 110 fof the Georgia an roof November. gia $750,00 miles Th's in Tennesses. The The 8800,- price fixed for is the Tennessee division. Buffalo was blown off 000 of a raiiroad station killing in three boys and the inand the walls fell, Philadelphia Catholic $2),000 juring seven Church men.- of the Nativity The was storm partially new destroyed. Loss and Hillsboro tivers were In along the was Indian unusually severe. unroofed. Towns The Florida, flooded and many badly Houses damaged:- John Ed: motive orange Schrecker crop was was murdered in was Pittsburg robbery. by The ward Merchant's Sloan. The Savings voluntary Bank, of liquidation, Providence for R.I., has goue into the supreme court and has its permission petitioned to wind by the depreciation affairs. his action of which of precipitated OD some securities, bank was interest was unWestern been defaulted, and the cash to meet the had to turn its assets into of the demands able Action was depositors. begun Railway against Company, Duluth, in and Northern that the road in unable to pay .conMesaba Duluth, insolvent, which and it was alleged Shipley & its debts. is plaintiffs are Mortis, Mathaus F. BoBtractors, The of Fungarian Faribault. physician, Conn., who a month was Inch, an in Bridgeport, taken ago, lodged was in released. jail $10,000, Bozinch's brought body physician by was Joseph inin a suit for who Alleged the criminally nsKyrszanski, jured him to that extent A by courier from the at saulting his town wife. of Ilan, Mexico, conflict arrived between mountain with news of police authorGuadalajara men and the eight mob of lawless in the death of outa which resulted The were ities, of the mob and police. wounded members were not killed or -The failures driven into the and cKim were laws who mountains. Jr., an- in H. Sisson, Exchange, nounced of E. on the Consolidated Lumber ComThe New York. The Ketebum in Chicago. pany are assets voluntarily assigned estimated at 45 Gottscbalk, took Edward sheriff 000, while of the the company liabilities amount a New York to $250,00 possess- pawnbroker, Liabilities of his failed, place. and the Welluhn about and $100,000. Bertha lon of Franz of The trial the murder of the husband June, in Eschert, latter, for William Eschert, The last jury found Sheboygan, the Wis., ended. murderi in the second Franz Welluhn guilty of acquitted. and Bertha was of Brockton, James by legree, Hayes, a resident footpads while out Mass., was attacked beaten and robbed. riding, and terribly a church choir leader, Mrs. Cranford. of Hollidaysburg Leslie Lots, Pa., eloped Two with a freight trains Rail- 01 Both are married. Lorain and Wheeling of Bridgeport, road the Cleveland, collided LWO miles engines west and several damaging both The amount of No one Jacob Arnold, cars Ohio, defalcation badly. of Cashier injured. Lockport, N. Y., of Bank, of trouble between the will Merchants' reach $100,000. Company The and its machinists,at backBig Four the company the Indianapolis, settled, every down and did not was agreeing to reinstate actually parrecent discharged ing man who riots. Frederick him Vogel, ticipate aged in forty-one, the whose suicide wife left at his months ago, committed The grand jury in Paterson, New Haven, H. some home of the Superior Court N. of Dr. William Ct., retrue bill against him with the of Ansonia, malpractice. Pulford, ported murder a of Nellie Nesbitt appropriately charging by celebrated Connecticut Day was George H. Knight, deat the World's Fair, of Mrs. Lady Managers, State Board Address. runWAS of the interesting train an livering While a an Northern Pacific hour, two miles ning at twenty New Rockford, miles N. D., hunters, the rear car, left loaded south of with a party of broken thirty rail, and turned on its side. to New the track, owing to Twenty a men were Rockford. injured, over all of whom were taken at Lewiston, Peter Pearson, postmaster of Blount, S. D., shot the miles then himself on thirty killed his northwest wife and Jealously was the prairie and near that place. They leave six ebilcause of shooting. destroyed $500,000 worth Are City, Ia.-Mrs. business dren.- property in Sioux suicide in Paterson, Maltera committed dwelling, in Provid- and Kate fire in the Joseph Daly family, ence, N. R. resulted I., occupied in the by death and serious oi Harry another injuries Daly, years old, and seventeen from,the Joe. flames At a to meeting Mrs. Federation, Daly of the in Cincinna- Innesfail were son, Branch of the Irish adopted protesting and ti, resolutions the actions, of John to Redmond the policy of against their adherence Trust ComThe stock of has asserting Gladstone. Louis, with Mercantile a capital its affairs The reasons pany of St. decided to wind up given the $1,000,00 and go out of business. financial depression the and comare the present rates of risks, which high in at extremely pany did not feel justified Hardwood assuming. Company, liabilities The Hyndman has failed. The princiHyndman, Pa., assets $21,000. The pal are stockholders $60,000, and reside in Brooklyn. THE MAFIA AT WORK.

8. October 26, 1893 The Providence News Providence, RI
Article from The Providence News, October 26, 1893

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Trustees of Merchants Savings Bank Allowed to Wind Up Its Business. PROMISE DOLLAR FOR DOLLAR Hot Arguments by the Various CounselThe Bank's Investments Mostly Western-A Dividend of Ten Per Cent. in Six Months Promised. A hearing was given before Justices Matteson, Stiness and Tillinghast of the Supreme court today on the petition of the Merchants' Savings bank of this city for permission to wind up its business under the statute. Since the notice of the bank's suspension two weeks ago there has been some very earnest and very heated discussion as to the advisability ofallowing the bank to take advantage of the statute which provides that the depositors shall be considered after all other debts have been discharged. Numerous counsel were present this morning, representing the various depositors. There were Cooke & Angell, J. Erastus Lester, Comstock and G rdner,and many of the depositors themselves There were many and confi cting opin ions as to the best way to seitle the diffi culty. J. Erastus L ster, who represents the interests of several depositors, was willing to compromise on three rec ivers to be chosen from the present management of the bank. Several other depositors concurred in this idea. Treasurer Angell's Testimony. John W. Angell, treasurer of the bank, was put on the stand and gave his testimony as to the condition of the bank and the reasonableness of his request for permission to wind up its affairs. All but two trustees have signed thi petition. The assets, Mr. Angell testified, are amply sufficient to pay off all depositors dollar for dollar, if time were given to dispose of securities at & reasonable price. If sacrificed by a receiver the obligations cannot be met. The bank is willing to have a restriction set, say two or three years. The refusal of a receiv r at the present time does not neccessarily throw the depositors upon the mercy of the management. If at any time there should be reason to question the methods of the trustees the court could compel the acceptance of a receiver. A Victim of the Panic. Six months ago the Merchants Savings bank was as sound a financial institution as could be found in the state of Roode Island. The trouble began to brew with the beginning of the monetary panic. The ninety days law was seized upon by the depositors and notice was served to call in $130,000. The bank could not meet its obligations when the ninety days expired. It made strenuous efforts to dispose of its mortgages but with ill success. The run continued until $125,000 had been called out and the officials could go no further. Then the crash came and the bank applied for permission to wind up its business. How the Institution Stands. The liabilities of the bank amount to $1,207,601.95 Its bonds cover $562,018.M rt. gage investment aggregates $254,742.82 in sums ranging from $500 to $15,000. Of these $149,917.62 is in Western investments. Real estate investments amount to $63,912,67. The Securities are Western. Nearly all the bank's money is invested in Western enterprises. Only $250.000 is inv stel east of the Mississippi. Most of the secur ties are said to be good, but cannot, under the present financial stress, meet heir obligations. Two only, have failed, SO far. Would Soon Pay Dividends, Mr. Angell stated that if the court would allow the present management to continue in charge it would be en irely possible that the bank could pay ten per cent. in six m onths. Every loan is secured by good collateral and only a continu tion of the present financial depression wou d prevent the bank from eventually liquidating. Wants a List of Depositors. J. Erastus Lester asked that a list of depositors be furnished that all might be notified of th exact condition of the bank. He sta ed that he had asked this of the trustees of the bank, but his request had not been complied with. The total number caught in the crash is said to be 1,950. Trustees' Petition Granted. E. C. Mowry represented the bank and held out valiantly for the rejec ion of a receiver. He characterized the whole argument as a "love feast" and expressed the direct apprehension of but would happen if a rec-iver were appointed. "It would be a general signal for depositors to rush in and wreck their own in erests," be declared. "Where the carcass is, there the buzzards gather.' The court, after consultation, decided that the rustees are competent to wind up the business and 80 empowered them.

9. August 8, 1894 The Portland Daily Press Portland, ME
Article from The Portland Daily Press, August 8, 1894

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Must Reduce Capital Stock. Providence, August 7.-The Comptroller of Currency has notified the officers of the Lime Rock National bank of this city, that they must either call in assessment or reduce their capital stock. This bank was closely associated with the suspended Merchants' Savings bank, and has a capital of $500,000 in $50 shares. Its last dividend was declared this year. The directors will soon meet to take action. This is the first National bank here to get into trouble. Its ( fficers say the depreciation of investments caused by the hard times is the sole cause.

10. March 22, 1895 Pawtucket Tribune Pawtucket, RI
Article from Pawtucket Tribune, March 22, 1895

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Depositors Are Dissatisfied. PROVIDENCE, March 22.-A meeting of the depositors of the Merchants' Savings bank has been called for the purpose of appointing a receiver. The bank has been in liquidation since Oct. 1, 1893, and depositors are dissatisfied with the conduct of affairs.