Thomaston Savings Bank - Thomaston, ME

Bank Information

Episode Type: Suspension → Reopening
Bank Type: savings bank
Start Date: December 1, 1878*
Location: Thomaston, Maine (44.079, -69.182)

Metadata

Model: gpt-5-mini
Short Digest: e2a06a90df91c202

Response Measures

None

Description

Article (Portland Daily Press, 1878-12-16) reports Thomaston Savings Bank was one of 13 savings banks that have had their deposit accounts reduced by decree of court under the 1877 Savings Bank Act; losses for Thomaston estimated about 20%. This is a court-ordered reduction (government action) to avoid dissolution rather than a depositor run; bank is implied to continue (law prevented dissolution). Date of decree not specified in the article; publication date used as context. OCR appears fine.

Events (1)

1. December 1, 1878* Suspension

Cause: Government Action
Cause Details: Court decree under section 36 of the 1877 Savings Bank Act reducing deposit accounts pro rata; Thomaston losses estimated about 20%.
Newspaper Excerpt: the Thomaston ... will be about twenty per cent. and have had their deposit accounts reduced by decree of court, under the provision of section thirty-six of the act ... approved February 9, 1877.
Source: newspapers

Newspaper Articles (1)

1. December 16, 1878 The Portland Daily Press Portland, ME

Article from The Portland Daily Press, December 16, 1878

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Article Text

THIRTEEN OF THE FIFTY-NINE SAVINGS BANKS NOW Thirteen of the fifty-nine savings banks now doing business, have had their deposit accounts reduced by decree of court, under the provision of section thirty-six of the act to revise and consolidate the laws relating to savings banks, approved February 9, 1877. They are Brunswick Savings Institution, Thomaston, Orone, Camden, Bangor, Androscoggin County, Pembroke, Calais, Skowhegan, Bridgton, Auburn, Dexter, and Franklin County Banks. It is believed that ultimately there will be no loss to depositors in the Auburn and Bangor banks; that the losses in the others will range from two to ten per cent., except the Thomaston which will be about twenty per cent. The losses in these banks, with one exception, are comparatively small, and are all the result of shrinkages that could not be foreseen, many of which are temporary. The Examiner strongly condemns the efforts which have been made to bring Savings as well as National banks into disrepute and says this effort has contributed very much to strengthen the ruinous and senseless panic of the past year, which for a time threatened the stability of our savings institutions. The banks that have been compelled to apply to the courts have been brought to this largely by this panic. So far from the assertions as to the rottenness of our savings institutions, which contributed to this panic, being true, the savings banks have with rare exceptions been well managed and prudently conducted. Their capital has suffered much less depreciation than a like amount of capital invested by the best business men of the country, since the inauguration of our civil war. The Examiner says that the result of the law of 1877, authorizing the court to reduce accounts of depositors, so as to divide losses pro rata among them has been beneficial to all concerned and the law has prevented much evil that might have resulted from runs upon the banks. The Supreme court having ruled in the matter of the Newport Savings bank that under section 36 of the Savings bank act, if the point was taken and proved that a bank had exceeded its powers or failed to comply with any of the conditions or restrictions of the act the petition must be denied, the Examiner suggests that the section be so amended that the court be empowered to reduce the deposit account, and thereby avoid a dissolution of the bank, if the loss did not arise from dishonesty on the part of the managers of the bank. The deposits and profits of the fifty-nine banks doing business on the 4th day of November last, were $23,173,112.22. The assets, as compared with 1877, are as follows: Assets. 1817. 1878.