8031. West Boston Savings Bank (Boston, MA)

Bank Information

Episode Type: Run → Suspension → Closure
Bank Type: savings bank
Start Date: January 11, 1876
Location: Boston, Massachusetts (42.358, -71.060)

Metadata

Model: gpt-5-mini
Short Digest: 7a3aecec

Response Measures

Full suspension, Books examined

Other: Court injunction restraining receipts and payments; trustees and Bank Commissioner agreed to temporary suspension pending investigation.

Description

Articles (Jan 11-13, 1876) report a multi-month light run that escalated, and the Massachusetts courts (Superior/Supreme Court injunction) restrained the bank from receiving or paying deposits on Jan 11. Cause was heavy depreciation of real-estate and securities (bank-specific adverse information), and reporting implies the bank failed (largest savings-bank failure in region) with no clear reopening reported. No explicit receivership mention in these items, but permanent closure is implied.

Events (2)

1. January 11, 1876 Suspension

Cause: Bank Specific Adverse Info
Cause Details: Court injunction/stop ordered because depreciation of real estate and personal securities impaired the bank's capital; insufficient surplus to cover shrinkage. Suspension ordered to await investigation of affairs by court and Bank Commissioner and trustees agreed to temporary suspension in interest of depositors.
Newspaper Excerpt: The West Boston Savings Bank has been restrained from receiving or paying deposits, or transacting other business. Owing to the shrinkage on real estate and personal securities the capital of the bank has been impaired.
Source: newspapers

2. January 12, 1876 Run

Cause: Bank Specific Adverse Info
Cause Details: There had been a light run for the past three months which increased; driven by shrinkage/depreciation in real-estate and other securities held by the bank.
Measures: Board of Trustees limited payments from Home Savings Bank to $50 per month (precautionary measure cited in context); West Boston was restrained by court from paying or receiving deposits.
Newspaper Excerpt: The feeling among some holder of bank books, caused by the suspension of the West Boston Savings Bank, caused another call on the Home Savings Bank to-day.
Source: newspapers

Newspaper Articles (9)

1. January 12, 1876 The Wheeling Daily Intelligencer Wheeling, WV

Article from The Wheeling Daily Intelligencer, January 12, 1876

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3 Minor Telegrams. TOPEKA, January 11-The Legislature met to-day, and the House elected Mr. Benidex as temporary chairman. 1 DES MOINES, January 11.-The Senate convened and effected a permanent or1 ganization. In the House Geir, (Rep.) was elected Speaker. GRAND RAPIDS, January 11.-A boiler fo a steam wood sawing machine exploded this evening, killing William Franz and severely bruising James Bellogh and e scalding another man whose name is unknown. SAN FRANCISCO, January 11.-A dispatch from Sacramento says it is reported that a land grab has been unearthed, by which the State is loser to an enormous amount. Sr. JOSEPH, Mo., January 11.-The officera of the Hannibal & St. Joseph Rail1 road deny the report telegraphed a few days ago that proceedings are to be commenced to place that road in the hands of a receiver. FRANKLIN, LA., January 11.-A call has been issned by the President of this Parish to the Executive Committee for a meeting of the citizens of the Parish of St. 8 Mary on Saturday, January 15th, for the purpose of ratifying the proceedings of , the Democratic Conservative Convention 1 held in New Orleans on the 5th inst. f BOSTON, January 11.-The West Boston Savings Bank has been restrained from receiving or paying deposits, or transactI ing other business. Owing to the shrink1 age on real estate and personal securities t the capital of the bank has been impair3 ed. The depositors are not liable to serious loss.

2. January 12, 1876 New-York Tribune New York, NY

Article from New-York Tribune, January 12, 1876

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A BOSTON SAVINGS BANK CLOSED. [BY TELEGRAPH TO THE TRIBUNE. I BOSTON, Jan. 11.-The stoppage of the West Beston Savings Bank by order of the Supreme Court, to await an investigation of its affairs, was announced yesterday. It appears that there has been a light run upon its funds for the past three months, which has increased to each an extent lately that in the interest of the depositors a temporary suspension was decided upon by the Bank Commissioner and the trustees as the best thing to be done under the circumstances. It is the old story-a general depreciation of value in its real estate and other securities, with no sufficient surplus on hand to cover the shrinkage. In the days of its prosperity, its earning were paid out in dividends, with nothing or not enough saved to meet the mischances which are always likely to overtake any business. To the credit of its managers it 18 to be said that the bank has been economically managed, and that nothing fraudulent or dishonest is suspected. The bank has $3,250,000 of deposits, $2,000,000 loaned on real estate, $300,000 on personal security. and $700,000 on bank stock.

3. January 13, 1876 The Sun New York, NY

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A Run on a Boston Savings Bank. BOSTON, Jan. 12.-The feeling among some holder of bank books, caused by the suspension of the West Boston Savings Bank, caused another call on the Home Savings Bank to-day, though by no means to the extent of the former one. At 11 o'clock there were perhaps one hundred and fifty persons in the banking room ID Masonic Temple, waiting their turn to draw. Some few were making deposits. The Board of Trustees held a meeting this morning, and resolved that until further notice no pay ment of more than $50 per month shall be made to any depositor except in the mode required by the laws of the bank.

4. January 13, 1876 The New Orleans Bulletin New Orleans, LA

Article from The New Orleans Bulletin, January 13, 1876

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GENERAL NEWS. INDIANAPOLIS, Jan. 11.-The trial of Alfred M. McGriff commenced in the United Sates District Court yesterday, and is still on. All of the parties under indistment have put in their appearance, with the exception of J. W. Bingham, who is delayed by the death of his brother. COLUMBUS, O., Jan. 11.-In the House today a resolution declaring against any division of the school funds in the interest of any particular religious sect was unanimously adopted. FRANKFORT, Jan. 12.-The Legislature voted seperately for Senator. Beck is ahead fitteen in the Senate ; Williams is ahead two in the House. There were many complimentary and dodging votes. A joint session will be held to-dav. SAN FRANCISCO, Jan. 12.-A dispatch from Sacramento says a land grab scheme has been unearthed whereby the State loses enormously. Roger Johnson, for many years Grand Secretary of the Odd Fellows, died to-day at Santa Rosa. PROVIDENCE, R. I, Jan 15.-There was some disorder in Lonsda'e yesterday, growing out of an attempt to compel mill operatives to turn out because of a reduction of wages. A detachment of Providence police quieted the disturbance. The trouble was renewed to-day, and the police were again sent to the village. PORTLAND, Me., Jan. 12.- A Thomaston dispatch Says the Jefferson Borden mutineers have received a cable dispatch, dated Jan. 10, 1876, as follows: "To George Milier and Tom Smith, mutineers of Jefferson Bordon, Marine State Prison : Get a reprieve and I can save you. Signed, " BENJ. P. HAWES, Mate of Jefferson Borden." BOSTON, Jan. 12. - The uneasy feeling among some holders of bank books, created by the suspension of the West Boston Savings Bank, caused another call on the Home Savings Bank to-day, though by no means to the extent of the former one. Sr. LOUIS, Jan. 12.-Ata large meeting of merchants on "Change to-day a resolution was unanimously adopted tendering to the respective executive committees of the Democratic and Republican parties the free use of their grand hall for the purpose of holding their National Conventions this year. CINCINNATI, Jan. 12.-A Frankfort special says two ballots were taken to-day for Senator without an election. The last vote stood: Beck 40, Williams 35, Leslie 27, Stevenson 19, Bradley 15. TROY, N. Y., Jan. 12.-Dr. o. F. Cobb, a West Troy physician, has been sent to the penitentiary for six months and fined fifty dollars for indecently disposing of the remains of two dead infants. JACKSON, J n. 11.-The Democratic caucus nominated Powers & Barksdale, of the Jackson Clarion, State printers. The Legislature will elect State printer on the 17th and United States Senator on the 18th. PHILADELPHIA, Jin. 12.-The Republicans of this city are anxious to have the National Convention held here, and for this purpose a committee started for Washington at noon today.

5. January 13, 1876 The New York Herald New York, NY

Article from The New York Herald, January 13, 1876

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The Michigan Central Railroad Company report its earnings and expenses for the month of November, 1875, as follows:$587,269 Gross earnings 393,661 Operating expenses 67 2-10 per cent $193,598 Net earnings The gross earnings for same time in 1874 (operating expenses not reported) having been $654,206 there is a decrease in gross earnings of $66,937. The foregoing is a curious commentary upon the recent report of a competing road, wherein it was claimed that the operating expenses of the last three months had been reduced to 61 8-10 per cent of gross earnings against over 76 per cent for the previous nine months. The failure of the West Boston Savings Bank has caused some anxiety among depositors in other Boston savings banks, as indicated by a slight run to-day upon the Home Savings Bank. The Board of Trustees of the latter institution held a meeting this morning and resolved that until further notice no payment of more than $50 per month shall be made to any depositor, except in the mode required by the laws of the bank. An elderly gentleman of moderate means visited the Stock Exchange to-day in search of the "broker" who a few weeks since promised him a "brown stone front if he would lay in a little Union Pacific and Pacific Mail" at 79 and 41 respectively. The gentleman expressed himself as anxious to learn the optnion of that "broker" as to the future prices of Lake Shore and Northwest stocks. The rumor that the Governor of Wisconsin in his Message to the Legislature would recommend the repeal of the "Potterlaw" was to-day industriously circulated among the habitués of the Stock Exchange. As the Message will probably be delivered to-morrow (Thursday). the truth or falsity of the rumor will soon be known. Another rumor was in circulation to the effect that the coal companies of Pennsylvania have not yet been able to come to an agreement for the continuance of the combination which has maintained the price of coal for the past three years. Messrs. Mitchell, Green & Stevens, dry goods, of Bos. ton, are reported failed. Messrs. Easton & Milne, bankers, of Fall River, who suspended last week, have been advised by a creditors' committee to go into voluntary bankruptcy. It is thought that the unsecured creditors will realize only 15 to 20 per cent. The Commissioners of the District of Columbia ask the House to appropriate $242,779 currency, in addision to the $40,000 on hand for the payment of the February interest on the 3.65 bonds, to avert a default in the payment of interest. They propose a bill transferring the management of the bonded debt of the District to the Treasury Department. The Committee of Ways and Means have decided not to consider the financial question until the subject shall be more fully presented. Bills are already before them touching the resumption of specie payment, &c., and more are expected.

6. January 14, 1876 The Portland Daily Press Portland, ME

Article from The Portland Daily Press, January 14, 1876

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the new consolidation.--The Mississippi legislature, Jan. 10, expunged the resolution endorsing Gen. Sheridan passed at its last session by a vote of 97 to 7.-The Overland Monthly has suspended publication.--The old frigate Macedonian captured by Commodore on Cenexhibition Decatur at in Philadelphia 1812, will probably during be the placed tennial exhibition.--T examination at Sin Francisco of Capt. Sawyer on a charge of wrecking the ship Orpheus, resnlted in his discharge. Stokes is said to be growing blind. The St. Albans Ross boy is nobody but Jimmy Blanchard.- The banks of Louisville have organized a clearing house with a capital of nearly $9,000,000.--The Erie railroad has arranged to transport the survivors of the shipwrecked steamer Deutschland from New York to their respective destinations in the West free of charge.- committee of the Penn-ylvania legislature has framed a report that the Reading Railroad is guilty of conspiracy with other companies to control the coal trade, but the question involved is considered one within the scope of the courts rather than the Legislature. Geo. Augustus Sala is very ill and his recovery is doubtful.--The Massachusetts Superior Court has enjoined the West B ston Savings Bank from receiving or paying deposits as there is little or no surplus. Depositors are not liable to serious loss.-Geo. Watts and Z. K. Pangborne sued the Jersey City Evening Journal for $100,000 for libel and the jory returned a verdict for $55.-The Massachusetts Supreme Court has rendered decision dismissing the petition of a minority of stockholders of Franklin Telegraph Co. for the dissolution of the Company. FOREIGN. The Herzegovinian insurgents have been defeated in two battles, but the Turkish victories have borne no fruit yet. Hard times are reported in the Dominion. There is great suffering and actual starvation in Montreal. Mr. Avery, American Minister to China, is dead, A Vienna despatch says it is reported that the Montenegrin Minister of War intends to purchase rifles in Vienna, Telegrams from Servia state the manufacture of arms as very active. The Roumanian government is hastening the completion of its armament by contracts with foreign firms. The great statue of Christopher Columbus, designed for the City of Mexico, has arrived at Vera Cruz. Owing to the great size of the to over mountains pedestal, ox carts. it had It is too be hauled large to pass the through by the tunnels of the railroad between Vera Cruz and the city of Mexico. A report is current in Bosnia and Dalmatia that 40,000 Austrian troops will very shortly occupy Bosnia. In Vienna official circles assurances are constantly given that no occupation of Turkish provinces is intended even if the Porte rejects Count Andrassy's proposals. If the insurgents refuse to lay down their arms when the great powers require them to, Aus. tria will simply discontinue the subsidy which she now gives to refugees from the revolted districts. The Belgrave cotton mills near Oldham, Lancashire, Eng., containing 50,000 spindles, were burned Saturday. Loss $250,000. The German government has invited other maritime states to an international conference to devise a common mode of inquiry into shipwrecks and other disasters to shipping. The Spanish government has ordered from Herr Krupps' foundry at Essein, six 11 inch breech loading steel cannon, with 600 rounds of ammunition, for delivery in Cuba at the earliest moment. The contract has been made at the special request of Gen. Jovellar. The Pall Mall Gazette's telegram from Berlin contains the following: The semi-official journals having expressed the opinion that the ultramontane opposition to the government is abating, the Germania (ultramontane) declares the assumption is unfounded-that submission to the state, in the sense demanded by Prussia, is contrary to the fundamental principles of the church, and can never be accorded. French merchants complain that not enough space at the Centennial exbibition for the display of mining and metallurgy is allowed. Raouf Pacha has been appointed Governor General of Crete. Ali Pachi, formerly Ambassador at Paris, has been appointed Governor General at Herzegovina. Sir John Hawley Glover has been appointed Governor General of Newfoundland. A ministerial crisis is reported in France. Leon Say and Dufaure have left the cabinet, and Wallon's resignation is expected. Buffet is accused of opposing by governmental means the candidature of Say for the Senate. Hence the quarrel. These resignations eliminate the liberal element from the cabinet. Tweed is reported to be living in Montreal. On the other hand the people of Swansbord, N. C., have been excited by the landing there of a party from a steam yacht, all well armed. and one resembling Tweed. They soon left.

7. January 14, 1876 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, January 14, 1876

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Increase of Movement of Curroncy to the Country. Business at the Banks Quieter--New York Exchange Weak. The Produce Markets Irregular---Provisions Easter---Large Receipts of Hogs. Wheat Exoited and Nervous, with Cash Lots at & Premium-Corn Dull. FINANCIAL. The amount of new business done by the banks was very light. The principal local borrowers now are the provision-men and packers. The other parties ou the Board of Trade have little need for bank accommodaBlone, The effect of the weather is already seen in the Increase of country orders for currency, Lut it has not had any other perceptible effect on local finances. There is a freer movement of country products to planket, but this has not yet assumed suilicient proportions to euable the country banks to repay the loats they have had of the city. This keepe the funds of the loan market more fully employed than would otherwise be the care in the quiet which marks all the city interests. Most of the city banks have ample resources for the accommodation of all the decirable borrowers that apply. Rates of discount at the tanks are 8@10 per cent. On the strent business shows some improvelment. Rates are 8@13 per cent. Now York exchange continues work. Sales were made between tanks at 50c premium for $1,000. There were mura orders from the country for currency, but their total was not very large. The clearings were $1,000,000. BAVINGS-BANK ITEMER The failure of the West Boston Sivings Bank is the largest that has occurred in the recent aerica of NAVinga-bank failures. In the report of the Margachumetia Savings-Bank Commissioner for 1374 11, deposits were stated at 93,166,843.13. There has been for some time lack a run, though not. a severe one, upon the bank, and it lian nually placed its affrira in the hands of the courts. No dis. honesty la known to have existed in its management. Its loss un real cash wete theu $2,072,752.04 on Lauk stock, $302,007.15. and on personal security, $431,103. The depreciation in the real catato ou whice the bank and to heavily WAH the main cause of its It La n serious defect of the Margachuactts ur. to which Gov. Clailin calle.I attention, that 11 comp the bather to loan so heavily on real catale. The is, that the more the State meddles with the savings banks the worse off will depositors be. The thing preved to be done is to obtain publicity of managencia and baluenate machinery to punish frauda, Let depositors 100% after their own Interests; creist them only to the extent of reding that they are able at all times is Luvertala what is beling done with their money, and If It in iss: or wasted make 1: prima facio evidence of fruu.i. 11 it cause be allowa tunt any col. realment was plactical, Tho returns from the savings banks of ManachuBELLS for last year show that two Isan Lean is hands other gain in the deposits, and that a smaller amount lian been drawn out than in either of the LYO previous years. The following L the exhibit: Total Deposits for Withdraw-

8. January 17, 1876 Chicago Daily Tribune Chicago, IL

Article from Chicago Daily Tribune, January 17, 1876

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Much scandal has arison in Boston in con. neotion with the recent suspension of the West Boston Savings Bank, growing out of tho fact that the President of the Bank, FRANKLIN HAVEN, was meroly a figure-hend, having consented to lend his name to inspire confidence. Mr. HAVEN had no moneyo.l interest in the bank, and, when it failed, knew no more of its condition than a man in Green. land. Notwithstanding this fact, the moral sense of the community will hold Mr. HAVEN responsible. He lent the use of his name to inspire confidence. The depositors put their money in the bank upon the strength of his indorsement. They did not know he had lont his name. They did not know he was igno. rant of the condition of the bank. They did not know but that he was the actual manager of the bank, and, judging from his success in business and his high standing in tho businesa community, concluded that the affairs of the bank were safo in his hands. The Inw cannot hold Mr. HAVEN responsible, but morally the community will hold him guilty of crime, and as responsible for the losses as if he had given a note for the three millions which have been lost by the confidence ho inspired.

9. January 19, 1876 Daily Kennebec Journal Augusta, ME

Article from Daily Kennebec Journal, January 19, 1876

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LETTER FROM BOSTON. BOSTON, Jan., 1876. To the Editor of the Kennebec Journal: The groanings of our citizens are resounding on all sides, in consequence of the hard times-such ones-old business men say-as never were known before, in all the financial crises and panics they can recollect. Failures, depression in business circles and insecure banks, combine to bring about a state of affairs, which has anything but a happy outlook. Only week before last, there were seventy failures. An injunction has been put upon the West Boston Bank, and of course, depositors are anxious to know whether or not they are going to be sufferers. The officers are now busy trying to straighten affairs, in which there seems to have been no dishonesty, only a sort of negligence on the part of the managers, shrinkage in real estate, mortgages, etc., and the fact that a larger dividend than was advisable has been paid and caused the present difficulty. It is now anticipated, that no one will meet with a great loss-perhaps only a year's interest. In consequence of the trouble with the West End Bank, there was quite a run on the Home Savings Bank, but no serious difficulty is anticipated therefrom. Those who are familiar with banking interests, say that nearly all banks have met with some losses. Perhaps when all become bankrupt, and business is once more resumed on a solid basis, the good old fashioned principles of strict integrity adopted, and mammoth enterprises with no capital abandoned, we may hope for prosperity again. How can the times be otherwise than they are? The causes are myriad that have helped create such a stagnation, and the lesson may well be learned with profit. Last week occurred the deaths of several well known people. First, Dr. S. G. Howe, so long and so well known, in connection with the Perkins Institute for the blind. in South Boston. He was also identified with that other institution for the instruction of idiotic and feeble-minded youth. His loss is not only a loss to his own country, but the world as well. It is only after such men leave us, that we realize their worth, or appreciate the beauty of their lives; his was certainly fuller of romance and more suggestive of chivalry than the lives of mer usually are in this matter of fact prosaic age. He was the latest survivor of that Phil-