Mechanics Savings Bank - Westerly, RI

Bank Information

Episode Type: Suspension → Closure
Bank Type: savings bank
Start Date: January 1, 1901*
Location: Westerly, Rhode Island (41.378, -71.827)

Metadata

Model: gpt-5-mini
Short Digest: ca6450b1

Response Measures

None

Description

Article reports the bank was closed by the courts in 1901 for unwise investments (permanent closure/receivership). In 1926 depositors were receiving payments from liquidation (not a reopening of the bank as a going concern). No run is described.

Events (2)

1. January 1, 1901* Suspension

Cause: Bank Specific Adverse Info
Cause Details: Closed by the courts in 1901 for unwise investments; insolvency due to bad investments.
Newspaper Excerpt: Back in 1901 ... it was shocked when the doors of the Mechanics Savings bank ... were closed.
Source: newspapers

2. December 10, 1926 Receivership

Newspaper Excerpt: A bank which was closed by the courts in 1901 for unwise investments will begin payments today to its depositors which will raise the total they have received to 140 per cent with more to come.
Source: newspapers

Newspaper Articles (1)

1. December 10, 1926 The Albert Lea Tribune Albert Lea, MN

Article from The Albert Lea Tribune, December 10, 1926

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Article Text

Bank Closed in 1901 Paying Depositors Westerly, R. L., Dec. (AP) A bank which was closed by the courts in 1901 for "unwise investments" will begin payments today to its depositors which will raise the total they have received to 140 per cent with more to come. Back in 1901 when this little town had fewer than 8,000 residents it was shocked when the doors of the Mechanics Savings bank, founded in 1840 were closed. There were 1,900 savings accounts, one to every fourth person of the population, and the leading business men of the community were the directors.