Chelsea Savings Bank - Chelsea, MA

Bank Information

Episode Type: Run Only
Bank Type: savings bank
Start Date: August 17, 1906
Location: Chelsea, Massachusetts (42.392, -71.033)

Metadata

Model: gpt-5-mini
Short Digest: d491cd3b

Response Measures

None

Description

Article (Aug 17, 1906) reports failure/closing of the First National Bank of Chelsea by the comptroller, which produced small runs on the Chelsea Savings that morning. No suspension or closure of Chelsea Savings is reported, only small withdrawals.

Events (1)

1. August 17, 1906 Run

Cause: Local Banks
Cause Details: Failure and closing of the First National Bank of Chelsea triggered small runs on Chelsea Savings.
Newspaper Excerpt: The failure of the First National was responsible for small runs on the Chelsea Savings and Co-operative provident banks this morning.
Source: newspapers

Newspaper Articles (1)

1. August 24, 1906 Watertown Weekly Leader Watertown, WI

Article from Watertown Weekly Leader, August 24, 1906

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Article Text

CHELSEA BANK GOES DOWN. Massachusetts Institution Short on Cash -Trouble Avoided. BOSTON, Mass., Aug. 17.-The First National Bank of Chelsea did not open for business this morning, orders having been issued by the comptroller of the currency to close the institution. The First National was incorporated as a national bank in 1864. It has a capital of $100,000 and carries deposits of several million dollars. The bank examiner said it was doubtful if the bank ever would be reopened for business. Beyond this he had nothing to say. The Winnisimet National bank of Chelsea has offered to pay depositors of the First National bank 50 per cent. of their accounts. The remaining banks will not be directly affected. It is said that the difficulty at the bank was brought about by a steady transfer of large accounts to Boston banks. It has been learned also that the First National was heavily involved in real estate to the extent of about $500,000. The failure of the First National was responsible for small runs on the Chelsea Savings and Co-operative provident banks this morning. President Hinckley of the bank is seriously ill and it is said he cannot rerecover. Excessive loans to officers and directors of the bank is a rumored cause for the failure.