State Bank (Providence, RI)

Episode Information

Episode Type
Run → Suspension → Closure
Start Date
August 4, 1893
Location
Providence, Rhode Island (41.824, -71.413)
Bank Type
trust

Metadata

Episode ID
Bank ID
City ID
441219851
Model
gpt-5-mini
Short Digest

Notes

Suspension on Aug 4, 1893 followed by eventual liquidation (listed in auditor's report for Nov. 16, 1893).

Events (3)
1. August 4, 1893 Run
Cause
Macro News
Cause Details
Stringency of the money market and sudden large withdrawals of deposits.
Measures
No specific rescue measures reported prior to suspension; unable to obtain liquidity to meet clearing house balance.
Newspaper Excerpt
attributed it simply to sudden withdrawals of large amounts by depositors.
Source
newspapers
2. August 4, 1893 Suspension
Cause
Macro News
Cause Details
Unable to meet clearing-house balance due to market stringency and withdrawals; bank closed its doors (suspended).
Newspaper Excerpt
was unable to meet its balance at the Providence Clearing House to-day and closed its doors.
Source
newspapers
3. November 16, 1893 Receivership
Newspaper Excerpt
one, the State Bank of Providence, in liquidation. The standing ... is given at the close of business on Thursday, Nov. 16, 1893.
Source
newspapers

Newspaper Articles (10)
1. August 4, 1893 The Providence News Providence, RI
Article from The Providence News, August 4, 1893

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Article Text

ONLY A LITTLEONE The State Bank Closed Its Doors This Morning. NO OTHERS AFFECTED. It Was the Smallest Bank in the City of Providence. DID SMALL DISCOUNT BUSINESS. Every Other Bank Solvent and There is Absolutely No Cause For Alarm-A Number Have Been Expecting It For Some Time-Officials Reticent and Refuse to Make Any Statement-But Little Excitement Caused by News of the Suspension. The State bank of this city closed its doors today. The cause of the suspension is unknown as the officers refuse at present to make any statement. The bank was incorporated in 1850 and has a capital stock of $77,225 The president of the institution is James B. An old: cashier, Henry B. Dea ; director<, S. W. Peckham, J. 15. Ar.oid. Henry B. Dean, B. F. Arauld, Hiram Kendall. The report submitted to the state audi or last : ovember sh wed the ollowing condition; Total amount of resources. $ 36,794 23 : total amount of liabilities, $386,794 23 ; par value of shares, #25; amount of last dividend, $1,544.50; rate per ce t of last dividend, 2 per cent, six months; reserved profi N a. time of last dividend, $14,863.44; debts di.e and not paid, $17 686.14. What Mr. Vernon Says. It was rumored thatt e State bank had applied to the Merchants National bank for assistance's Ithatit beea give ). Mr. J. W. Vernon, cashier of the Merchants' bank, when asked if this was the :act said it was LO The State bank had not asked for a toa I an me had been made from this insutution. ..... Vernon went on to any that The State bank was a small institution and has Leen remarksoly managed. He bad heard only a lew minutes before of its suspension and attributed it simply to sudden withdrawals of jarge amounts by depositors. The bank was probably unable to get the ready money with which to meet the checks drawn upon it and was therefore obliged to close its doors. Mr. Vernon said ne felt confident the depositors would receive dollar for dollar. nether the tank would resumeer not ne could no t say. He did not believe the supension would have any III effect on other institutions. Will Not Affect Other Institutions. The suspension of the State bank will have no material effect on the other banking institutions in this city. At the Commercial national bank the cashier expressed no uneasiness and declared that he shock would not affect the Commercial in any sense. The officers in the Globe National na k feel no uneasiness, and at the American the same feeling of security is manifest. In fact, a hasty trip about the several banks failed to reveal any fee ing of inseeurity from the suspension : The bank has always been considered a weak bank, and or years has not been regarded as particularly sound, or able to withstand a run. Its suspension is not caused directly by the financial stringency and was liable to take place at any time. Its suspension cannot in any way affect financial operations in this city and is unimportant from any point of view. There is not the sligniest reason for any alarm or feeling of insecurity on the part of the public.

2. August 5, 1893 New-York Tribune New York, NY
Article from New-York Tribune, August 5, 1893

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Article Text

MORE BANKS SUSPEND. THE MONETARY STRINGENCY WORKING DISASTERS IN MANY STATES. Providence, R. I., Aug. 4.-The State Bank of this city was unable to meet its balance at the Providence Clearing House to-day and closed its doors. It is not a National bank, and It has a paid-up capital of $77,000. The suspension is probably only temporary and is due to the stringency of the money market and the withdrawal of deposits. The bank was one of the oldest of the State banks, and was instituted in 1850. It has not been regarded as sound. The report of the State Auditor in November, 1892, shows 1ts deposits to be $238,000. The officials say this afternoon that the bank will undoubtedly go into liquidation. It has many time-loans out. Lebanon, Penn., Aug. 4.-The Lebanon Trust and Safe Deposit Bank failed to open its doors this morning. This announcement was made: "This bank closed by order of the directors." The bank is a State institution with a capital of $50,000. The inability to collect outstanding accounts, the general tightness of the money market and personal litigation of the president, Robert H. Coleman, locking up its securities and enjoining It from disposing of them, have compelled this step. Muncie, Ind., Aug. 4.-The Citizens' National Bank, one of the oldest and soundest banks in this city, suspended business this morning. Withdrawals of deposits and inability to realize on paper are the causes. President Kerwood says that the assets are as two to one. Three other banks in this city are preparing for the worst, as the people are greatly excited over the failure. San Antonio, Tex., Aug. 4.-The Texas National Bank failed to open its doors this morning, and is now in the hands of a United States bank examiner. It is the smållest bank in the city; capital stock $100,000. The liabilities are small. The last statement shows only $76,000 deposits. The closing caused no excitement, and no runs on other banks. Colby, Wis., Aug. 4.-The Exchange Bank of Colby closed its doors this morning. The bank had a capital of $50,000, and owes depositors about $30,000. Baraboo, Wis., Aug. 4.-The Baraboo Savings Bank made an assignment here yesterday. R. B. Gripp was appointed assignee. Mankato, Minn., Aug. 4.-The First National Bank closed its doors at noon. The bank is solvent and depositors will be paid in full. At 1 :30 o'clock the National Citizens' Bank closed Its doors and hung out the following resolutions adopted at a meeting of the directors, held just previously "Owing to the suspension of the First National Bank of this city and present stringency in the money market, it is resolved to suspend payment until the present excitement subsides." Fifteen minutes later the Mankato National Bank closed its doors and exhibited the following statement: "Owing to the closing of the First National and National Citizens' banks. of this city, this bank is temporarily closed. The bank is perfectly solvent and all depositors are safe." The National Citizens' Bank has $90,000 in cash and the Mankato National has $55,000. The capital of the First National Bank is $150,000, and J. A. Willard is president. The capital stock of the National Citizens' is $100,000, John F. Meagher, president. The Mankato National Bank has $100,000, and John H. Ray is president. The only other bank in the city is.a savings bank, and was Trecently organized.

3. August 5, 1893 Morning Journal and Courier New Haven, CT
Article from Morning Journal and Courier, August 5, 1893

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MORE BANKS SUSPEND. The National German American Bank of St. Paul Failed to Open Its Doors and the State Bank of Providence Unable to Meet the Clearing House Balance. ST. PAUL, Miun, Aug. 4.-The National German American bank failed to open its doors this morning and announced a temporary suspension subsequent upon a steady decline of withdrawals for the past month. State, county and city funds are secured by bonds given by various wealthy business men outside the bank. According to statements by the officers and directors of the bank, the bank has $4,000,000 of good commercial paper, a banking house and property worth at least $500,000 and other assets which will make $500,000 more, making a total of $5,000,000 to pay a deposit account of $2,261,000. The bank could go on again in ninety days if the comptroller thought it best, even if the stockholders had to pay an assessment of 10 per cent. PPOVIDENCE, Aug. 4.-The State bank of this city was unable to meet its balance at the Providence clearing house to-day and suspended payment and closed its doors. It is not a national bank and it has a paid-up capital of $77,000. The suspension is probably only temporary and is due to the stringency of the money market and the withdrawal of deposits. The bank was one of the oldest of the state banks and was instituted in 1850. It has not been regarded as sound. The report of the state auditor in November, 1892, shows its deposits to be $238,000. The officials say this afternoon that the bank will undoubtedly go into liquidation. It has many time loans out.

4. August 5, 1893 The Providence News Providence, RI
Article from The Providence News, August 5, 1893

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Article Text

# NOT UNSOUND. The suspension of the State bank yesterday, while in part due to the prevailing stringency in the money market, in no way affects the banking interests of the city. The institution was a small one, doing a limited business, and was unable at short notice to realize on its securities in time to meet the demands of its depositors. There is the best of reason for believing that every depositor will be paid in full. The bank has been managed carefully and conservatively, and the closing of its doors does not indicate unsoundness, but inability to turn its valuable securities into cash, to meet sudden and unusually large demands for currency. As The News has several times remarked the banking institutions of this city are safe and sound. There is no reason for uneasiness on the part of depositors. Their interests are being and will be carefully guarded. So long as they take the sensible view that in times of uncertainty confidence is the best safeguard against disaster, there will be little danger of a run or of the ills which generally attend it.

5. August 5, 1893 The Providence News Providence, RI
Article from The Providence News, August 5, 1893

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PANIC OR NO PANIC. Despite the favorable signs that general business may be expected to improve and that the worst of the financial stringency may be over, it is evident that this city is trembling upon the verge of a thoroughly causeless and senseless panic. The suspension of the State bank yesterday caused very great apprehension, not that other banks will close their doors, but that the public will persist in misunderstanding the causes of the suspension and its real significance, and will begin to manifest greater distrust. Nothing is more certain than that the Providence banks are prepared to meet all demands that can be made upon them, unless it be the thorough foolishness of those depositors who may withdraw their funds. The bank vaults of this city are stuffed with currency to meet any demands that may be made. The most senseless thing a person

6. August 5, 1893 Rock Island Daily Argus Rock Island, IL
Article from Rock Island Daily Argus, August 5, 1893

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Probably Only Temporary. PROVIDENCE, Aug. 5.-The State bank of this city was unable to meet its balance at the Providence Clearing house and closed its doors. T re suspension is probably only temporary and is due to the stringency of the money market and the withdrawal of deposits. The bank was one of the oldest of the state banks. It has not been regarded as sound.

7. August 6, 1893 New-York Tribune New York, NY
Article from New-York Tribune, August 6, 1893

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BUSINESS IN PROVIDENCE. COTTON MILLS CLOSING DOWN-RUN ON A BANK -TO CELEBRATE LABOR DAY. Providence, R. I., Aug. 5 (Special).-The industrial situation in Rhode Island is gradually growing worse. and beginning with this week a very large number of people will be out of employment temporarily. The Clyde Print Works in Warwick shut down several days ago. This is the largest print works in the country and employed a large number of people. The great cotton mills of B. B. & R. Knight. located in various villages in the town of Warwick, shut down to-night and will not start up again until the business prospects are brighter. These mills employ thousands of people, and there is consequently considerable uneasiness Zelt among them as to the future. The banks of Providence are generally supposed to be on a firm foundation. Their property is invested largely in real estate mortgages on Rhode Island property, and in first-class bonds and securitles. The fact that many people are out of work, added to the fear that the epidemic of bank failures will extend to this section, has induced many people to withdraw their deposits from savings banks. The result has been that all the larger banks, with one exception, are enforcing the ninety-day rule. In cases of extreme necessity, depositors are allowed to draw sums not exceeding $100 without notice. In this case they are obliged to take checks instead of currency. The exception noted above is the Providence Institution for Savings. That is the largest and strongest bank in the State, having at the last report 31,053 depositors. Many of its depositors are Poles, Itallans and other foreigners, who are easily frightened in times like this. These people have started a run of considerable proportions upon this bank, and their money is being paid to them as fast as they call for it. The run is a senseless one, and will result in the bank declining to take deposits from persons closing their accounts at this time. The State Bank failed on Friday. This is one of er banks of the city, being chartered in May, the 1850. It is a small institution, its entire resources amounting to $336,794. according to the last report of the bank commissioner. It held at that time about $200,000 in deposits. The descendants of Joseph Williams, who was a son of Roger Williams, the founder of Rhode Island. held a reunion at Roger Williams Park on Thursday. The occasion was made very informal, the only business of importance being the appointment of the committee to arrange for future reunions. On this committee are Professor Alonzo Williams. of Brown University, and Bowen R. Church, leader of the American Band. The Central Labor Union have made arrangements 'for a Labor Day demonstration at Rocky Point on September 4. It is proposed to have a large street parade in Providence in the morning, with speaking and sports at Rocky Point. The new electric railway, running from Market Square through East Providence to Crescent, Park, was opened this week, and has been carrying large numbers of passengers. The Continental Steamboat Company, which has hitherto had the monopoly of the Crescent Park business. has reduced its fares, so that the trip costs only ten cents where package tickets are purchased. By the electric road the fare is twenty cents. A lively competition is promised. The city is to erect a building at Roger Williams Park, to be used as a museum, at the expense of $40,000. The motive for this building was given by the fact that John Steere, a wealthy Californian and a former resident of this city, bequeathed to the city of Providence a very fine collection of stuffed birds and animals, upon condition that a suitable museum should be erected for them in Roger Williams Park B. B. & R. Knight, who are the owners of the village of River Point. located on the Pawtuxet River, have begun the construction of a system of sewers, to take care of sewage from the tenements and factories in that village, so that the Pawtuxet water, which is used by the people of Providence for drinking purposes. win no longer be contaminated from that source.

8. August 10, 1893 Connecticut Western News North Canaan, Salisbury, Canaan, CT
Article from Connecticut Western News, August 10, 1893

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Oldest Bank In Providence Suspends. PROVIDENCE, Aug. 5. - -The State bank of this city closed its doors. It is not a national bank. and it has a paid up capital of $77,000. The bank was one of the oldest of the state banks and was instituted in 1850.

9. August 15, 1893 The Progressive Farmer Raleigh, Winston-Salem, Winston, NC
Article from The Progressive Farmer, August 15, 1893

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of the German-American Bank. It is said the bank will re-open for business in about fifteen days. Its b lls receivable exceed its deposits more than $2,000,000. MILWAUKEE, Aug. 4.-The Exchange Bank of Colby, Wis., and the Baraboo Savings of Baraboo have failed. R B Gripp has been appointed assignee of the Baraboo bank, but no statement has been made. The Exchange Bank of Colby has a capital of $50,000. It 0 ves depositors about $30,000. MUNICE Aug. A - The Citizens' Na tional Bank failed this morning. Its capital is $200,000, but no statement of the liabilities has been made. There were runs on the Farmers' National. Merchants' National Bank and the Delaware National Bank, but it is believed they will be able to continue in business. PROVIDENCE, Aug. 4. -The State Bank of this city was unable to meet its balance at the Providence Clearing House to day and closed its doors. It is not a national bank. It has a paid up capital of $77,000. The suspension is due to the stringency of the money market and the withdrawal of deposits. The bank was one of the oldest of the State banks, and was instituted in 1850. It has not been regarded as sound. The report of the State Auditor in November, 1892, shows its depos ts to be $238,900. SAN ANTONIO, Aug. 4 -The Texas National Bank failed to open its doors this morning and is now in the hands of a United States bank examiner. It is the smallest bank in the city, having a capital stock of $100,000. The liabili tiies are small. The last statement shows only $76,000 deposits. The closing caused no E xcitement and no runs on other banks. LEBANON, Pa.. Aug 4 -The Lebanon Trust and Safe Deposit Bank failed to open its doors this morning. The announcement was, "This bank closed by order of the directors." The bank is a State institution with a capital of $50,000. Inability to collect outstanding accounts, the general tightness of the money market and personal litigation of the president, Robert H. Coleman, locking up securities and enjoining it from disposing of them, have compelled this step. It is stated upon the authority of counsel that the result of this litigation cannot but be favorable to Mr. Coleman in the end, when the securities will be released, leaving ample assets to pay all claims. It is believed that the suspension is but temporary and that all depositors will be paid in full. It will have but little if any effect upon the other banks.

10. February 13, 1894 The Providence News Providence, RI
Article from The Providence News, February 13, 1894

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STATE AUDITOR'S REPORT. — The Annual Statement of the Condition of the State Banks. The annual statement of the State Auditor of the condition of the State banks, institutions for savings, secretaries and treasurers of the various trust companies, and treasurer of the Home Investment Company, will be submitted to the General Assembly. The standing of the respective institutions is given at the close of business on Thursday, Nov. 16, 1893. Five State banks have reported in good standing, and one, the State Bank of Providence, in liquidation. They all declared a semi-annual dividend, the average rate being 2 7-12 per cent. Thirty-five institutions for savings, four of which are in liquidation, report in the aggregate $69,053,724.14 in deposits, a decrease from the previous year of $853,268.43; number of depositors, 130,610, a decrease of 11,882. The decrease in deposits and 11,491 of the decrease in number of depositors may be attributed to the receivers of the Franklin Institution for Savings, Cranston and Union Banks declaring their final dividends. When comparing the statements of each of the several institutions, with those of the year previous, the deposits of 12 are found to have decreased $1,311,314.23 and number of depositors 2142, 23 to have gained in deposits $1,407,559.34 and in depositors 1751, which shows an increase in deposits of $96,245.11 and a decrease in number of depositors of 391. The annual increase in the aggregate amount of deposits is less by $3,534,590 than that reported in 1892, and the falling off is undoubtedly due to the financial panic which swept over the country during the year. The total resources of the35 savings banks are $73,072,097.59. Twenty-one institutions declared semiannual and 10 annual dividends which amounted to $1,554,292.09, the average rate being 4 11-31. The amount loaned on mortgage in this State is $22,450,679.66, an increase of $726,271.74; in other States $5,681,228.38, a decrease of $43,179.54. The amount loaned on personal security is $3,907,799.27 a decrease from last year of $1,257,699.59. Eight trust companies report resources amounting to $22,086,328.44, a decrease during the year of $328,124.16. Mortgages on real estate in this State $1,031,423.07. In other States, $1,720,520.44; loaned on personal security, $6,691,020.47, a decrease of $1,576,413.54.