Article Text
The Providence Savings Bank, R. L, suspended January 31. The Mercantile Savings Bank, Boston, Mass., suspended on the 5th.
Providence Institution For Savings (Providence, RI)
Episode Information
- Episode UID
57003670939- Episode Type
- Run Only
- Bank Type
- savings
- Bank ID
-
5700367routing - Routing Number
57-0036- Start Date
- March 15, 1878
- 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
93d4dfcaf1697801
Response Measures
None
Description
One article names the Providence Institution for Savings as subject of a run; another mentions a suspension of a similarly named Providence Savings Bank that may be a different institution.
Events (1)
1.
March 15, 1878
Run
- Cause
- Bank Specific Adverse Info
- Cause Details
- Impression that savings banks were unsound due to large mortgage investments and perceived poor management
- Measures
- The banks undertook to wear out the run (i.e., resist withdrawals and wait it out).
- Newspaper Excerpt
- A heavy run began on the 15th on the Dime Savings bank, Boston... and extended to ... the Providence Savings bank
- Source
- newspapers
Newspaper Articles (3)
Click image to open full size in new tab
Click image to open full size in new tab
Article Text
The Newburyport, Mass., five cent savings bank suspended on the 14th. A heavy run began on the 15th on the Dime Savings bank, Boston, Mass., and extended to the FrankJin Savings bank, the Providence Savings bank, and the Suffolk Savings bank. The Franklin bank required sixty-days notice; the other banks undertook to wear out the run.
Click image to open full size in new tab
Article Text
The old and wealthy city of Providence, R. I.. is agitated at present by a run upon savings banks. The Mechanics' Savings Bank and the Providence Institution for Savings each hold over six millions of dollars. and against them the run has been chiefly directed. It seems impossible to remove the impression that these institutions are unsound and ill managed. In accordance with the usual custom of New England savings banks, their deposits are largely invested in mortgages. Indeed. the high rate of interest paid to depositors has made it necessary for the banks to seek some other investment than United States bonds and other high-class securities bearing low interest. The result is that the Mechanics' Savings Bank has not less than $5,000,000 in mortgages. the foreclosure of which would cause widespread ruin and distress.