Westminster Bank - Providence, RI

Bank Information

Episode Type: Suspension → Closure
Bank Type: state
Start Date: December 25, 1854
Location: Providence, Rhode Island (41.824, -71.413)

Metadata

Model: gpt-5-mini
Short Digest: 2743383c

Response Measures

None

Description

Article (New-York Daily Tribune, 1854-12-25) reports that the Banks of Providence have taken the bills receivable of the Westminster Bank and are redeeming its circulation; it states that when the notes are all in, it will be then decided whether the Bank goes on or not, indicating the bank was effectively suspended and likely to close. No explicit depositor run is described. Bank charter type not stated; no clear State/National/Trust identifier, so set to unknown.

Events (1)

1. December 25, 1854 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Other Providence banks took Westminster Bank's bills receivable and are redeeming its circulation, implying insolvency or bad assets leading to suspension/possible closure.
Newspaper Excerpt: An arrangement has been made by which the Banks of Providence have taken the Bills Receivable of the Westminster Bank, and are redeeming its circulation. When the notes are all in, it will be then decided whether the Bank goes on or not.
Source: newspapers

Newspaper Articles (1)

1. December 25, 1854 New-York Daily Tribune New York, NY

Article from New-York Daily Tribune, December 25, 1854

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Article Text

of the public debt of Illinois is 418,000, which is about $100,000 larger than ine payment last year. The dividend will probably be 25 or 30 P cent. Mr. Earl P. Mason has been made President of the Areade Bank, of Providence, vice Mr. Hill, resigned. An arrangement has been made by which the Banks of Providence have taken the Bills Receivable of the Westminster Bank, and are redeeming its circulation. When the notes are all in, it will be then decided whether the Bank goes on or not. Under the General Law of Rhode Island every stockholder in a Bank is liable for its entire indebtedness, which gives the public great confidence in these institutions. We hear to-day, and an officer of one of the ships is the authority, that Mr. Collins has sold the three remaining ships of his line, and that they are to pass into British bands. Our information from Washington of the unfavorable prospect for the continuance of the extra allowance to this line gives some probability to the story. It is understood that the ships will-continue to run between New-York and Liverpool. The Cotton market, in consequence of the small stock, is strong. There is not, probably, 1,000 bales in the market for sale, and in consequence of the difficulty of negotiating on New York at Charleston, Savannah, &c, the supplies coming forward are light. Flour has again advanced 121 @ 25c. Corn is very high $1 P bush., and the quantity taken for shipment is consequently limited. The foreign demand for Provisions for the armies in the East is large, and the English and French Governments are making large contracts for Beef and Pork. A vessel is leading at this port with Provisions for the Crimea direct. We shall have a good market this winter for all the Provisions we can spare. Pork and Lard pay a large profit, and on hogs bought at the West at present prices. The wants of France have induced the Government to give almost free trade in Provisions. The decree of Oct. 5, 1854, is as follows: From this date, until it is other vise ordered, the duty on salt provisions is fixed at 50 centimes P 100 kil50 logrames, a reduction from 33 francs P 220 15 to centimes, that is from $6 30 P 220 15 to 9 cents-50 centimes equal to 9 cents; 100 killogrames equal to 220 lb. The duty on Lard has been reduced from 30 francs to 10 francs P 100 killogrames, or 220 lb. The further advices from Charleston do not yet bring the tremendous developments predicted in the dispatches alladed to yesterday, but there is evidently a good deal of apprehension felt thare that a crisis 18 at hand. One cotton failure, not of great importance, had taken place, and 1 leading house is talked of, but the report not generally believed. The Banks of Augusta were discrediting nearly all the Charleston Banks, and one of the Columbia Banks had suspended in consequence of its connection with Mr. Dulin, who failed in Charleston some days ago. Another arrival from California is due. It is the Aspinwail boat, and will probably increase our stock of gold nearly a million and a half. The suspended Joint Stock Bank at Buffalo has been sued as a foreign corporation, and injunctions issued, holding all the debts due the Bank for the benefit of the bill-holders. This attaches the assets of Hiram Johnson's banking-house. We present this week one of the most inexplicable Bank-Statements which has been published since the weekly statements were made, and one which will disappoint every one. The specie reserve, it will be seen, notwithstanding the large disbursements from the Sub-Treasury and Assay Office, (some $2,600,000 since Saturday morning last, more than has been paid in,) and notwithstanding the cessation of specie shipments, shows an increase of only $15,000. The various estimates had been from half-a-million to a million-and-a-half. A portion of the missing gold-that belonging to the Savings Banks-instead of being deposited in some Bank, has, we ascertain, been locked up in the Savings vaults, where it does not count in the Bank-Statement; but this accounts for but a moderate amount. The amount sent to Boston, Philadelphia and Baltimore, must have been much larger than was estimated, and hoarding of gold by the publie must be going on to a considerable extent. With all these suppositions, however, the result still seems in credible, that the absorption of speciehas been such that the amount in Bank should show only an increase of $15,000. The comparative statement is as follows: Circulation Leans, &c. Specie. Deposita. 18 $80,946,664 Dec. $11,471.841 $61,567,098 $7,261,111 23... Dec. 53,958,027 11,486,880 80,860,591 6,924,667 Decrease $86,073 Inc. $15,089 Dec $836,444D The circulation, it will be seen, continues to be forced in. The decrease since 1st Sept. last has been $1,370,000, and about $2,000,000 since this time last leens l lewer. The non-