Nashua Savings Bank (Nashua, NH)

Episode Information

Episode UID
3451991191117
Episode Type
Suspension → Closure
Bank Type
savings
Bank ID
345199119 hash
Start Date
January 1, 1893*
Location
Nashua, New Hampshire (42.765, -71.468)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
ab593f771e6f5d53

Response Measures

None

Description

An injunction was obtained and articles state the bank 'has closed' and 'will probably never resume business.'

Events (3)
1. January 1, 1893* Run
Cause
Macro News
Cause Details
Run occurred during the Panic of 1893/general financial panic leading to heavy withdrawals
Newspaper Excerpt
The bank had a hard run in the summer of 1893
Source
newspapers
2. March 28, 1895 Suspension
Cause
Bank Specific Adverse Info
Cause Details
Heavy losses on western farm mortgages and inability to collect interest/notes left little cash to meet depositor demands; directors closed rather than sacrifice securities.
Newspaper Excerpt
The Nashua savings bank... has closed its doors, and will probably never resume business.
Source
newspapers
3. March 30, 1895 Other
Newspaper Excerpt
They applied for an injunction, which was granted by Judge Carpenter. The bank was enjoined ... unable to meet them without selling its securities at a sacrifice.
Source
newspapers

Newspaper Articles (3)
1. March 30, 1895 Spirit of the Age Woodstock, VT
Article from Spirit of the Age, March 30, 1895

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Article Text

CLOSED ITS DOORS. Nashua Savings Bank Can't Meet Demands. Injunction Secured Rather Than Sacrifice Assets. Has Deposits of $2,700,000 and Considerable Western Security. With 82,700,000 in deposits and a record of 41 years as a leading bank there, the Nashua, N. H. savings bank has closed. The feeling is intense, for no other bank in the city, and but three in the state had more depositors. It was essentially the poor man's bank, and for two score years all believed in it. Western investments is the cause ascribed for the bank's financial difficulties. The officers struggled since the panic of 1893, but matters grew worse, and the inevitable result followed. On April 1 a large number of withdrawals become due. The bank could not meet them without sacrifleing valuable securities and so decided to close. The directors held a meeting and George Andrews went to Concord and laid the case before the bank commissioners. They applied for an injunction, which was granted by Judge Carpenter. The bank was enjoined for the reason that the demand made by its depositors is such that it is unable to meet them without selling its securities at a sacrifice. Since Jan. 1 the bank has paid to its depositors over $150,000, and notices of withdrawals for the month of April aggregate nearly $100,000 more. The bank had already borrowed $90,000 to meet the demands.hoping that they would not continue. The bank had a hard run in the summer of 1893, but several men came forward and saved it. Two causes led to bad trust in the institution. The notices of withdrawals were not lived up to, the bank not always of late honbring the legal notices. Then in January of this year it was discovered that the bank had been paying only three per cent interest for a year when depositors thought theold four per cent rate was still in force. Then the statement of January last was far from satisfactory. It showed continued losses since the one issued six months before, and included $45,000 more on real estate under foreclosure than the previous one. It believed that the assets are sufflcient to pay the depositors in full. if time is allowed to convert them to the best advantage and losses do not occur. 1

2. April 4, 1895 The Coconino Weekly Sun Flagstaff, AZ
Article from The Coconino Weekly Sun, April 4, 1895

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Article Text

A SAVINGS BANK SUSPENDS. The Oldest Financial Institution of New Hampshire Closes Its Doors. NASHUA, N. H., March 28. - The Nashua savings bank, for forty-one years the pride of New Hampshire, regarded as safe and sound as the rock of Gibraltar, has closed its doors, and will probably never resume business. The institution has $2,700,000 in deposit, and its depositors outnumber those of any other bank in the state. Its depositors were mainly poor people, and the excitement last night among the mill help over the announcemennt of the suspension was intense. The bank was heavily loaded with western farm mortgages, and it barely struggled through the panic of 1893, when a run was made on it. The past six months' losses on real estate under foreclosure were $45,000, and inability to collect interest and notes on western holdings, followed by the demands of depositors, has left it with little available cash and quick assets.

3. January 26, 1904 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, January 26, 1904

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Article Text

Nashua Company, the first defalcation in the city occurred at Indian Head National Bank in 1895, when Cashier Frank MeKean fled to Buenos Ayres leaving a shortage well up in the vicinity of $100.000. McKean's wrongdoing ,however, had no effect on the Indian Head Bank, as it is one of the strongest financial institutions in New Hampshire. During the troublesome times of 1893 and 1894, the Mechanics' Savings Bank and the Nashua Savings Bank of this city failed owing depositors large amounts. In 1897. the Security Trust Co. of this city, and Grand Forks, N. D., was placed in the hands of assignees and was wound up. About the same time the Globe Savings Bank of Chicago, of which Charles Spaulding .formerly of Nashua, was president, failed. Of the $200,000 capital, Nashua people held $100,000 and their losses through this crash were considerable. The affairs of the New Hampshire Banking Co., of Nashua were SO affected that it went into the hands of an assignee. Nashua investors were heavily interested in the Sioux City National Bank and the Union Stock Yards Bank of Sioux City, Iowa, and during the panic of 1893. heavy assessments were levied on the stockholders. Nashua people lost similarly through the failure of the Omaha Exchange Bank of Omaha. Neb., and through the closing of various other Western concerns. In all it is estimated that within 10 years citizens of Nashua have lost fully $2,000,000 through the embarrassment of banking institutions.