19779. Rhode Island Central Bank (Providence, RI)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
October 3, 1857
Location
Providence, Rhode Island (41.824, -71.413)

Metadata

Model
gpt-5-mini
Short Digest
e5bef4ea

Response Measures

None

Description

Newspapers in Oct 1857 report the Rhode Island Central Bank was temporarily enjoined on application of the Bank Commissioners (court action). Subsequent pieces (late 1857–1860) state it passed into hands of a receiver and remained in receivership; no contemporary article describes a depositor run. Cause of suspension is government_action (injunction/commissioners' complaint) tied to alleged mismanagement and large out‑of‑state circulation of the bank's notes. Dates: injunction reported 1857-10-03; receivership reported by early 1858 and repeatedly referenced through 1860. OCR errors in some articles corrected (e.g., enjoined/injunction).

Events (2)
1. October 3, 1857 Suspension
Cause
Government Action
Cause Details
Temporarily enjoined by court on application of the State Bank Commissioners amid concern over management and large out‑of‑state circulation of its bills.
Newspaper Excerpt
The Rhode Island Central Bank has been temporarily enjoined on application of the Bank Commissioners.
Source
newspapers
2. January 21, 1858 Receivership
Newspaper Excerpt
the Rhode Island Central Bank, which has passed into the hands of a receiver, they show: ... compared with their condition ... omiting the Rhode Island Central Bank, which has passed into the hands of & receiver, they show: (article dated 1858-01-21).
Source
newspapers

Newspaper Articles (10)
1. October 4, 1857 Nashville Union and American Nashville, TN
Article from Nashville Union and American, October 4, 1857

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BY TELEGRAPH. FOREIGN-PER STEAMER ARABIA. NEW YORK, Oct. 2.-Cotton, middling qualities improved 1. Sales Saturday estimated at 6000 bales, closing quiet but steady. Middling Orleans 9 5-16; Mobile 91; Upland 91. Stock in port 312,500 bales, of which 21,9000 bales are American.New Orleans tres ordenaire at Havre 126. Sales of the week 18,000. Breadstuffs quiet; flour advancing; provisions declining. Manchester advices favorable. Bullion decreased 278,000 pounds. American securities unchanged; more buyers than sellers. London, Sept. 19.-By Telegraph.-The dissatisfaction with Indian news strengthens the belief that a loan must be affected. The discount market is extremely brisk. Wm. Summerville, silk manufacturer at Manchester, has failed. Reported failures at New York: Swift, Robinson & Co.; Pomell, Ramsdell & Co.; Brummel & Roysters, P. Chonteau; Hutchings, Tiffany & Co. At Boston: Sharons, Pond & Co. A Minnesota despatch announces the arrest of the Fairbault land warrant thieves and the recovery of all the warrants except five. PHILADELPHIA, Oct. 3.-The Reading railroad bonds went to protest yesterday. NEW YORK, Oct. 3.-Clark, Dodge & Co., Bankers have suspended. E. W. Clark & Co., say that the above suspension will not interfere with their business. The stockholders of the Erie railroad met last evening and passed a resolution appointing a committee of one hundred to solicit subscriptions to bonds or loans to the company; $175,000 was subscribed. PITTSBURG, Oct. 3.-A meeting of merchants at noon justify the suspension of the Pennsylvania Banks, and ask the Governor to extend Legislature aid to mitigate the penalties till resumption. NEW YORK, Oct. 3.-Money irregular but a better feeling exists. Notes were generally met promptly. Gage, Sloan & Dalton and Ely Brown & McConnel have failed. Cotton dull; Flour active; Wheat declining Corn mixed 70a71c.; Pork dull; Beef and Bacon heavy; Lard 12}a14{c; Oats quiet; Tallow 10}allc; Sugar and Coffee dull. At the close of business, a more cheerful aspect prevailed. PROVIDENCE, Oct. 3.-The Rhode Island Central Bank has been temporarily enjoined on application of the Bank Commissioners. Their assets are believed to abundant. SPRINGFIELD, Oct. 3.-The trot between Flora Temple in harness and Lancet under saddle, was won by Flora in three straight heats. The last mile in 2:32. BOSTON, Oct. 3.-Financially, the day passed better than anticipated. Clark & Co., Bankers, and S. Frothingham & Co., Commission Dry Goods Merchauts, have failed. A few smaller failures have al o occurred. The business community was more cheerful at the close. ST. LOUIS, Oct. 3.-About sixty Missourians are encamped at Sugar Creek. Linn county, Kansas, for the purpose of voting. The Free State men have sent to Lawrence for arms to protect themselvos and the polls. CINCINNATI, Oct. 3.-No important failures.-" No first class paper protested. Bussness closed much more favorably than antic pated.

2. October 5, 1857 Daily Nashville Patriot Nashville, TN
Article from Daily Nashville Patriot, October 5, 1857

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BY TELEGRAPH. BY THE NATIONAL LINE. [Reports Furnished by the Associated Press.] FOREIGN NEWS PER STEAMER arabia. NEW YORK, Oct. 2.-Cotton-Midaling qualities improved 1. Sales of Saturday estimated at 6,000 bales, closing quiet but steady. Middling Orleans 9 5-16; Mobile 91; upland 9J. Stock in port 312,500 bales, of which 219,000 are American. New Orleans tres ordinaire at Havre 126. Sales of the week 18,000. Breadstuffs quiet. Flour advancing. Provisions declining. Manchester advices favorable. Bullion decreased 278,000 pounds. American securities unchanged; more buyers than sellers. LONDON, Sept. 19--By telegraph.--The dissatisfaction with Indian news strengthens the belief that a loan must be effected. The discount market is extremely brisk. Wm. Summerville, silk manufacturer at Manchester, has failed. Reported failuresat New York: Swift, Robertson & Co.; Powell, Ramsdell & Co.; Brummel & Roysters; P. Chontean; Hutchings, Tiffany & Co. At Boston: Sharrons, Pond & Co. A Minnesota despatch announces the arrest of the Fairbault land warrant thieves, and the recovery of all the warrants except five. PHILADELPHIA, Oct. 3.-The Reading Railroad bonds went to protest yesterday. New YORK, Oct, 3.-Clark, Dodge & Co., bankers, have suspended. E. W. Clark & Co., say that the above suspen tion will not interfere with their business. The Stockholders of the Erie Railroad met last evening and passed a resolution appointing a committee of one hundred to solicit subscriptions to bonds or loans to the Company. 175,000 was subscribed. PITTEBURG, Oct. 3.-A meeting of merchants at noon justify the suspension of the Pennsylvania banks, and ask the Governor to extend legislative aid, and to mitigate the penalties till resumption. NEW YORK, Oct. 3.-Money irregular; but a better feeling exists. Notes were generally met promptly. Gage, Sloan & Dalton, and Ely, Bowen & McConnell have failed. NEW YORK, Oct. 3.-Cotton dull. Flour active. Wheat declining. Mixed corn 70,71. Pork dull. Beefand bacon heavy. Lard 124a144. [Oils quiet. Tallow 10±a11. Sugar and coffee dull at the close. Of business, a more cheerful aspect prevailed. PROVIDENCE, Oct. 3.-The Rhode Island Central Bank has been temporarily enjo ned on application of the bank commissioners. Their assets are believed to be abundant. SPRINGFIELD, Oct. 3.-The trot between Flora Temple in harness, and Lancet under saddle, was won by Flora in three straight heats. The last mile in 2:32. BOSTON, Oct. -Financially the day passed bet. ter than anticipated. Clark & Co., Bankers, and S Frothingham & Co, commission dry goods merchants have failed, and a few smaller failures have also ocurred. The business community was more cheerful at the close. ST. LOUIS, Oct. 3 -About sixty Missourians are encamped at Sugar Creek, Linn county, Kansas, for the purpose of voting. The Free State men have sent to Lawrence for arms to protect themselv 8 and the polls. E. W. Clark & Co., bankers, have failed. CINCINNATI, Oct. 3.-No important failures. No first class paper protested Business closed much morefavorably than was anticipated.

3. October 6, 1857 Evening Star Washington, DC
Article from Evening Star, October 6, 1857

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The Financial Crisis, &c. CUMBERLAND. Md., Oct. 5.-Considerable ex. citement was created here this morning by the announcement that the Mineral Bank had assigned and closed its doors. This institution suspended specie payment some days ago, and had in circulation quite a large amount of paper in Western Maryland, parts of Virginia and Ohio, and other points west. It sustained a good reputation heretofore. The impression prevails that it has become involved with the coal companies. BOSTON, Oct. 5 -Our money market. as far as the street is concerned, is unchanged. The banks have made liberal discounts, and the public contidence is grad ially becoming restored. The banks have paid their semi-annual dividends, which are about the average of former years. But few transactions took place to-day in stocks, railroads showing the least depression. Bank shares were pressed, but there were no buyers. There are rumors of heavy failures current on the street, but only two firms, with but small liabilities, are known to be suspended. The managers of the New England house of Wells, Fargo & Co. waived their right, to-day, to the usual grace on seconds of drafts received per steamer Star of the West; also the 60 days' notice on the duplicate receipts of the treasure lost by thesteamer Central America. The notes of the Weare Bank, New Hampshire. were thrown out to-day. PROVIDENCE, Oct. 5.-The Rhode Island Central Bank was temporarily enjoined on Saturday, on application of the Bank Commissioners Their assetsare believed to be considerably above their liabilities. CINCINNATI, Oct. 5 - Messrs. Dunlevy, Drake & Co., brokers, have suspended. Sr. LOUIS, Oct. 5.-Messrs. James H. Lucas & Co., bankers, of this city, have suspended. LOUISVILLE, Oct. 5-A publication on Friday, signed by Guthrie and other prominent citizens, was made, assuring the public, upon the deposition of Culver, that he was safe. Culver. however, assigned this morning. NEW ORLEANS, Oct. 3.-Exchanges are still unsettled. The heavy payments of our banks have been satisfactorily met The crisis here is past and the skies are brightening. Messrs. Kennet, Dix & Co., commission merchants, have failed.

4. October 7, 1857 The Burlington Weekly Hawk-Eye Burlington, IA
Article from The Burlington Weekly Hawk-Eye, October 7, 1857

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Boston, Oct. 3. Sparrow & Co., dry goods, and Poud & Co., stove dealers, have failed. The money market to-day has been stringent, but through a spirit of accommodation and aid from the Banks, the merchants have stood the test throughout. There are few failures to report. The only ones of note, however, are S. Forthingham, Jr., & Co., Commission dry goods merchants, and Sweetzer, Gookin & Co., dry goods jobbers, both large concerns, and J. W. Clarke & Co., bankers. Bank stock is selling low. Many of our merchants took up their notes to-day falling due on Monday. The workmen of Chickering & Co., piano forte makers, held a meeting to-day and voted that they were able and willing to go without their weekly pay till matters eased up. There are reports reflecting upon other conoerns, and a few minor failures are noted. The failure of Tierrell & Hersey, of South Weymouth, Mass., is announced. Liabilities, $700,000 to $1,000,000. New York, Oct. 3. Swift, Ransom & Co., bankers, have suspended. Powell, Ramsdell & Co., forwarders, have failed. Providence, Oct. 3. The Rhode Island Central Bank is temporarily enjoined to-day on application of the bank commissioners. Its assets are believed to be considerably above its liablilities. Herkimer, N. Y., Oct. 3. The Cashier of the Agricultural Bank of this place, has been held to bail on the charge of embezziement and perjury. St. Louis, Oct. 3. The Quindaro (Kansas) Chindowan of Oct. 1st says: About 60 Missourians encamped on Sugar Creek, Lian county, Kansas, for the purpose of voting at the election. The Free State men in that section sent to Lawrence for an army to defand themselves and suffrages. G. W. Clark & Co., bankers, closed to-day. The firm of Choteau, Harrison & Valle, irom merchants, suspended yesterday. By their suspension over eight hundred persons have been thrown out of employment. They were the owners of the Iron Mountain. Springfield, Mass., Oct. 3. The trot between Flora Temple and Lancet commenced at 2 o'clock this afternoon, Henry Fuller of this village, Elijah Simmons of Albamy, and Peter Dubois of New York, acting as judges. Flora was in harness, and Lancet under the saddle. Flora had the pole, and won ia three straight brats-time 2.39t, 2.32 and 2.32. Lancet was hardly a length behind, either time. There were 80,000 or 100,000 people present. Cincinnati, Oct. 3. The results of the day in the money markets is more favorable then was expected. Not one important failure. s good deal of third and fourth claim paper was protected, but nene of the first and second class houses. The entire business community is surprised at the result, as a large number of failures were feared.

5. October 15, 1857 The Weekly Pioneer and Democrat Saint Paul, MN
Article from The Weekly Pioneer and Democrat, October 15, 1857

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LATE NEWS. Financial Affairs. PHILADELPHIA, Oct 2.-The papers an nounce that the Reading R. R. Co., were unable to meet their payments yesterday and suffered their notes to be protested. This is a blue day for stocks. There were no sales: for Reading 10 were bid. The Pennsylvania Bank will not go into opera tion until Monday next. NEW YORK. Oct. 3.-Messrs. Clark Dodge & Co., bankers. have suspended.The Parrel Bank of Newburg is thrown ou to-day. The departure of the California Mai steamer is postponed until the 7th. The St Louis will take the place of Star of the West. BOSTON, Oct. 3.-Messrs. J. W. Clarl & Co., bankers, suspended this morning. PHILADELPHIA, Oct. 3.-Messrs. R. W Clark & Co., bankers. suspended paymen this morning. CINCINNATI, Oct. 3.-The result of the day in the money market is more favorable than was expected : not one importan failure. A good deal of 3d and 4th clas paper was protested, but none of the 1st and 2d class houses. The community is sur prised at the result, as a large number o failures were feared. PROVIDENCE, Oct. 3.-The Rhode Island Central Bank is temporarily enjoined to-day in application of the Bank Commissioners Its assets are believed considerably above its liabilities. BOSTON, Oct. The money market to day has suingent. commodation and aid from the Banks, the merchants have stood the test. There are some few failures to report the only ones of note. however, are L. Froth ingham, Jr. & Co., commission and dry goods merchants. and Sweetser, Gookin & Co., dry goods jobbers, both large concerns and J. W. Clark & Co., bankers. Bank stock is selling low. Many of oui merchants took up their notes to-day falling due on Monday. The workmen of Chickering & Co., piano forte makers, held a meeting to-day, and voted that they were able and willing to go without their weekly pay until matters eased up. There are reports reflecting upor other concerns. and a few minor failure are reported. Sr. LOUIS, Oct. 3.-E. W. Clark & Brothers, bankers. closed to day. WASHINGTON, Oct. 1. 1857. The War Department. to-day received intelligence that the Fourth Artillery. from Florida. has reached Kansas. Four compa nies more were expected the next day. By the 2d inst., the despatch says, upwards of a thousand troops would be in the Territory to be distributed in various election precinets, as Governor Walker might deem proper. Lewis Cass, Jr., Minister to Rome, has not resigned. as some of the papers allege.

6. October 28, 1857 The New York Herald New York, NY
Article from The New York Herald, October 28, 1857

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RHODE ISLAND. MONRY AND BUSINESS. From the Providence Journal, Oct 26 The INDOB dulness that we have constantly reported prevalls in all departments of business. There are hardly any transactions in money except in the banis, and the receipts of the backs are largely anticipated by reaewals The extent to which the renewal of foreign acceptances has been carried in alli & matter of embarrassment, and tee general opinion 18, that houses which meet all their other engsgements as malurity ought not to ask for & renewal, in full, of those that they owe here, but should psy a portion, and should divide with the Providence people he less upon our own currency occasioned by these very accommodal one. No bank should take advantage of the depreciation of Its own bills by selling at a premium iss funds in those places where its bills are ml a discount; bot Providence trade-what little of 16 remains-ought not to be put to the exseme of a premium on New York funds by reason of the accoun modation excended by the baues to New York merchants. We hour of numarous twills and mechanical establish. ments that have been running on short time, but which have now stopped entirely, throwing out of employment a great many people. No ore is willing to enter into new engagements, or to truat his property to the ceances of 0000mercial credit; and with the prospest of a add greater de. cline in th, raw material, nobody wisbes to pile up goodsRHODE ISLAND CENTRAL BANK. [From the Providence Journal, Ust. 26] Some 01 the papers are commenwing upon the statement of the Rhode Island Central Bank, which shows $7 87 specie and $886,702 otr mission. The bank is under tem. perary injustion. which will probably be made perpetual. Its assets are believed to be good, and they are largely be. yond ILe liabilities to the public. This bank, although It in owned by people out of the State, and is therefore liable to ste objection that we have DO often urged, is in the bance of bonorable and responsible men. who have themselves suffe ed, and who excect to suffer mill more, f on their concection with it. In ordinary times we mid have no bestistion in pronounsing he bills of this bank good. We atill think they are. The circulation, we un deratand, has already been largely reduced.

7. January 21, 1858 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, January 21, 1858

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Another meeting of the stockholders of the Boston and New-York Central Railroad was held at Boston at which the committee appointed to propose some way to relieve the corporation from its present financial difficulties reported. They recommend first, the creation of a first-class 7 P cent preferred stock, to the amount of $900,000, which shall be appropriated to the payment of the Norfolk County Bonds, to the payment of land damages, to extending the road to Southbridge, and to complete the furnishing of the road; second, the reation of a second-class 6 P cent preferred stock, to be applied to the payment of the Boston and NewYork Central Bonds, and to the liquidation of the Pickering contract; and third, the creation of a 6 P cent preferred stock, sufficient to meet all other claims. After a long debate the report was recommitted, and the meeting adjourned until to-morrow. From The Providence Journal, 19th. The advancing prices of eotton affords little encouragement to starting mills, and will probably check the movement in that direction. It is desirable to keep the machinery moving a little, and it is especially desirable to furnish at least partial employment for the help; but to pay cash for cotton, as it is necessary in order to buy it at the best advantage, and for supplies and labor, and then to pile up the goods in a market already glutted, and only relieved by occasional sales at auction at a reduction of from 25 to 40 P cent below the fair prices, makes a hard business. The manufacturers must come to a realizing sense of the fact that they have made more goods than the country can take at remunerating prices and with prompt payment. We publish the statement in full of the condition of the Rhode Island Banks out of Providence on the 11th, the day of the last return. Compared with their condition on the 28th of September, and omiting the Rhode Island Central Bank, which has passed into the hands of & receiver, they show:

8. February 17, 1860 Alexandria Gazette Alexandria, VA
Article from Alexandria Gazette, February 17, 1860

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NO. 41, MISCELLANEOUS READING. A FAIR HIT. The bit of correspondence subjoined, between the Receiver of the Rhode Island Central Bank and a bill-holder of that institution in Missouri, of the name Buck, is too racy to be lost. The Receiver was ap. pointed by a decree of the Rhode Island Supreme Court, under a proceeding against the bank upon the complaint of the Bank Commissioners, "for 80 managing its concerns that the public, or those having funda in its custody, were in danger of being defrauded." In the judicial investigation then had, it appeared that in 1856 the bank had fallen into the hands of certain Western speculators residing in Missouri and Illinois, who, have bought up, or obtained the control of all the stock, and endeavored, through its instrumentality, to supply their neighbors in the West with "a circulating medium." Upon a capital consisting solely of their own notes, they issued and put off in the State of Missouri and elsewhere, bills of the bank to the amount of about $400,000; SO that when in September, 1857, the mat ter was brought to the attention of the Court, and the bank enjoined, the assets of the bank, to meet this large circulation, consisted principally of the notes of three firms for about $436,000, both at St. Louis, Mis souri, and of a firm in Joliet, Illinois, for about $139,000. Pending the investigation, the circulation of the bank was reduced about one half; but the prospect of paying the outstanding bills of the bank, depends upon the collection of these Western "billsreceivable," which the Receiver has put in suit. His polite and caustic reply to Buck, of Savannah, Missouri, has therefore, in the fullest sense, the severity of truth. SAVANNAH MISSOURI. SIR: Enclosed please find two dollar bill on East Greenwich branch of Central Bank, Rhode Island, and you will send me amount of what the bill is worth in postage stamps, if it is only six cents. I have no hope of getting a cent, as you d-d Yankees are not in the habit of paying when you can help it. Yours, truly, JAMES W. Buck. Savannah, Andrew county, Missouri. To JAMES CLARKE, Receiver. PROVIDENCE, (R.I.) JANUARY, 1860. DEAR SIR: Your polite note, enclosing a two dollar bill of the Rhode Island Central Bank, is received, and the same is placed on file. The principal assets of the bank consist of certain promissory notes of citizens of Missouri and Illinois, which are now in suit. Whenever these citizens of your highly respectable State, and of the State of Illinois, see fit to pay these obligations, I shall be enabled to send you a handsome dividend upon, if not the whole amount of your bill. In the meanwhile, believe me, with the highest respect and esteem. Your very obedient servant, J. M. CLARKE. Receiver of R. I. Central Bank Mr. JAMES W. Buck, Savannah Missouri.

9. February 24, 1860 The Press and Tribune Chicago, IL
Article from The Press and Tribune, February 24, 1860

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A Shearer Shorn. [From the 1 oston Atlas.) In 1857 the Rhode Island Central Bank was put into the hands of :1 receiver, upon the complaint of the Bank Commissioners. It was found that the bank had issued $400,000 in bills, which had been put off in Illinois and Missouri. The principal assets of 11 e bark with which to meet this large circulation consisted of the notes of three firms-two in St. Louis for $250,000, and one in Joliet, Illinois, for $189,000. These & 113 receivable" has been in suit, and the payment of on standing bills depends upon their collection. With this explanation the following racy correspondence will be appreciated : SAVANSAH, Miss u:, Dec. 1859. SIR: Enclosed please End a two dollar bill on East Greenwich branch of Central Bank, Rhode Island, and you will send me the amount of what the bi 1 is worth in postage stamps, if it is only FLI cents. I have no hope of getting a cent, as you Yankees are not in the habit of paying when you can helo it. JAMES W Beck. Yours truly. Savannah. Andrew Co., Missouri. To JAMES CLARKE, Receiver. Prov DENCE. (R. I.) January. 1860. DEAR Sm: Your polite note, enclosing a two dollar onli of the Rhode Island Central Bank. is received, and the same is placed 011 file. The principal assets of the hank consist of certain promissory notes of citizens of Missouri and IIIInois, which are now in suit. Whenever these citizens of your bighly respectable State, and of the State of ILinois, see fit to pay th se obligations, I sh ill be enabled to send you a hand. some dividend upon it, if not the whole amount of your bill. In the meanwhile, believe me, with the highest respect and esteem, Your very obsdient servant, J. M CLARKE, Receiver of R. I. Central Bank. Mr. JAMES W. Bros, Savannah, Missouri.

10. May 3, 1860 St. Charles City Republican Intelligencer Charles City, Saint Charles City, IA
Article from St. Charles City Republican Intelligencer, May 3, 1860

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In 1857 the Rhode Island Central Bank was put into the hands of a receiver, upon the complaint of the Bank Commissioners It was found that the bank had issued $400,000 in bills, which had been put off in Missouri. The principal assets of the bank with which to meet this large circulation consisted of the notes of three firms-two in St. Louis for $486,000, and one in Joliet, IiI., for $139,000. These "bills receivable" have been in suit, and the payment of outstanding bills depends upon their collection. With this explanation, the following correspondence will be ap. preciated : SAVANNAH, Missouri. SIR: Inclosed please find a two dollar bill on East Greenwich branch of Central Bank, Rhode Island, and you will send me the amount of what the bill is worth in postage stamps, if it is only six cents. I have no hope of Yankees getting a cent, as you are not in the habit of paying when you can help it. Yours truly, JAMES W. BUCK. Savannah, Andrew county, Mo. To James Clarke, Receiver. PROVIDENCE, R. I., January, 1860. DEAR SIR : Your polite note, inclosing a two dollar bill of the Rhode Island Central Bank, is received, and the same is placed on file. The principal assets of the bank consist of certain promissory notes of citizens of Missouri and Illinois, which are now in suit. Whenever these citizens of your highly respectable state, and of the state of Illinois, see fit to pay these obligations, I shall be enabled to pay you a handsome dividend upon it, if not the whole amount of your bill. In the meanwhile, believe me, with the highest respect and esteem, Your very obedient servant, J. M. CLARK, Receiver of R. I. Central Bank. 6 Mr. James W. Buck, Savannah, Mo.