19778. Providence Trust Company (Providence, RI)

Bank Information

Episode Type
Run → Suspension → Reopening
Bank Type
trust company
Start Date
October 24, 1907
Location
Providence, Rhode Island (41.824, -71.413)

Metadata

Model
gpt-5-mini
Short Digest
74fc82e4

Response Measures

Capital injected, Full suspension

Other: Receiver appointed; reorganization with issuance of new stock and claims released.

Description

Newspapers report a run (on the Union Trust Company/related institutions) and the Providence Trust Company 'fails to open' Oct 25, 1907 with a receiver appointed; the institution was declared solvent and ordered to reopen by the Rhode Island Superior Court on Mar 14, 1908. Cause tied to runs and money-stringency affecting local trusts/banks.

Events (3)
1. October 24, 1907 Run
Cause
Local Banks
Cause Details
Run occurred on the Union Trust Company the day before; stringency in the money market prompted withdrawals from related trust companies.
Measures
Bank posted notice it would not open; later a receiver was appointed.
Newspaper Excerpt
Posted on the doors of the Union Trust Company, on which there was a run yesterday
Source
newspapers
2. October 25, 1907 Suspension
Cause
Local Banks
Cause Details
Bank closed its doors citing stringency in the money market after runs on related trust companies; receiver appointed.
Newspaper Excerpt
Providence Trust Company Fails to Open Its Doors...This bank will not open today owing to stringency in the money market. Cornelius A. Sweetland was appointed receiver for the trust company.
Source
newspapers
3. March 14, 1908 Reopening
Newspaper Excerpt
PROVIDENCE TRUST CO. TO REOPEN. Declared Solvent by the Rhode Island Superior Court. ... Chief Justice Sweetland declared that the bank was solvent and announced that at a later hearing a date would be fixed for a reopening
Source
newspapers

Newspaper Articles (2)
1. October 25, 1907 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, October 25, 1907

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Article Text

AT OTHER POINTS. Providence Trust Company Fails to Open Its Doors. Providence, R. I., Oct. 25.-Posted on the doors of the Union Trust Company, on which there was a run yesterday, this morning was the following: "This bank will not open today owing to stringency in the money market." Cornelius A. Sweetland was appointed receiver for the trust company. Up to a late hour last night the officers of the company expected to open today, but subsequent consultations brought a decision that in view of the light money market the interests of depositors would be conserved by closing. The company was organized in 1894 with a capital of $500,000. It conducts several branches in the state. According to its statement June 29, the bank has resources aggregating $28,238.000. Its liabilities included, besides the capital stock, a surplus of $2,250,000; undivided profits, $23,000, and deposits of $25.465,000. The New England Trust Company posted notice today requiring ninety days' notice of withdrawal of deposits.

2. March 15, 1908 New-York Tribune New York, NY
Article from New-York Tribune, March 15, 1908

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Article Text

PROVIDENCE TRUST CO. TO REOPEN. Declared Solvent by the Rhode Island Superior Court. Providence, March 14.-The Union Trust Company, which suspended last October, will be reopened for business, according to a decree of Presiding Justice William H. Sweetland in the Superior Court to-day, when the case came up after many postponements upon the question of appointment of a permanent receiver. Chief Justice Sweetland declared that the bank was solvent and announced that at a later hearing a date would be fixed for a reopening The receivers and a committee of depositors who since December 28 have been at work on a plan for the reorganization of the institution reported that about 96 1/2 per cent of the claims against it had been released. Out of a total of more than $19,000,000 in deposits $18,431,085 was released by 16,250 depositors, while the issue of 10,000 shares of new stock in the reorganized institution was oversubscribed.