Spencer Trask & Company - Providence, RI

Episode Information

Episode UID: 4306271691124
Episode Type: Suspension → Reopening
Bank Type: private
Bank ID: 430627169 hash
Start Date: August 24, 1893
Location: Providence, Rhode Island (41.824, -71.413)

Metadata

Model: gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest: 8b6dfc5a841506b9

Response Measures

None

Description

Article describes a temporary embarrassment and negotiations; eventual reopening is hoped but not confirmed.

Events (1)

1. August 24, 1893 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Firm temporarily embarrassed, negotiating with creditors; asked depositors to hold checks pending arrangements.
Newspaper Excerpt: the firm ... had failed. Mr. Clark, the local manager, said it was true the firm was temporarily embar:ass:d, but he hoped matters could be arranged satisfactorily so that business would be resumed.
Source: newspapers

Newspaper Articles (1)

1. August 24, 1893 The Providence News Providence, RI

Article from The Providence News, August 24, 1893

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Article Text

Spencer Trask & Co. Obliged to Creditors for Consideration. HOPE TO BE ABLE TO CONTINUEThere Being No Communication with New York Today, It Was Not Possible 10 Get News from There Regarding the Firm's Condition. It was announced this morning that the firm of Spencer Trask & Company, Lankers and brokers, who have an office in this city and branches in New York, Boston and e:sewhere had failed. Mr. Clark, the local manager, said it was true the firm was temporarily embar:ass:d, but he hoped matters could be arranged satisfactorily so that business would be resumed. The report that the firm had failed to meet checks drawn upon it by its customers was not true. What had been done was simply to ask d positors to take care of their checks for the present. Negotiati ns between the firm and its creditors were in progress, and if they resulted as hoped for the suspension would be of short duration. When asked as to the immediate cause of the difficulty Mr. Clark said he could not give it, as be had not been advised from the home office in New York. He seemed very hopeful, however, and said that everything depended upon the success of the negotiations with the firm's customers. Mr. John W. Vernon, cashier of the Merchants National bank through which Messrs. Spencer, Trask & Co., did business, said that the firm owed his bauk nothing. As to 'the present condition of affairs he said that as he understood them the firm was negotiating with its creditors but had not failed. If those negotiations were successful business would be resumed. It not a suspension would follow. He had no doubt the firm would do the wisest and best thing under the circumstances and that the interests of its customers would be protected. The first notification the local branch had of the trouble was a notification to decline to cash checks. It was claimed however that there was 1.0 suspension but a mere temporary embarrassment which would in all probability be speedily overcome. Hal there been a suspension it was said the announcement of the fact would have been made on the exchange and all contracts closed out under the rules. Among business men generally the impression seems to prevail that the firm will again be in a position to contine business as usual.