8105. Greenfield Savings Bank (Greenfield, MA)

Bank Information

Episode Type
Suspension → Reopening
Bank Type
savings bank
Start Date
February 1, 1909
Location
Greenfield, Massachusetts (42.588, -72.600)

Metadata

Model
gpt-5-mini
Short Digest
2a1b0f0a

Response Measures

None

Description

The bank was closed by court order and the state Savings Bank Commissioner took charge (government action) to eliminate unproductive assets and supervise reorganization. Multiple articles (Feb 1–9, 1909) describe a temporary injunction and then a permanent injunction suspending payments; contemporaneous reporting expresses hope the institution will be nursed back and reopened. No run is described. Later (1911) litigation over bad loans is reported, but the sources here do not clearly document a final receivership or confirmed reopening, so I classify as suspension_reopening based on explicit statements in 1909 that the plan was to carry on business under the commissioner and eventually reopen.

Events (2)
1. February 1, 1909 Suspension
Cause
Government Action
Cause Details
Temporary injunction issued by the Massachusetts Supreme Judicial Court at the request of the Savings Bank Commissioner (Pierre Jay) because the bank's assets (bad real estate transactions/unproductive assets) could not be readily realized upon; payment of dividends suspended and officers restrained from receiving or paying funds pending reorganization.
Newspaper Excerpt
Greenfield, Mass., Feb. 1.-Pierre Jay, Massachusetts state bank inspector today closed the Greenfield Savings Bank which has deposits of about $2,000,000. ... Justice Sheldon of that court issued a temporary injunction restraining the bank from doing business.
Source
newspapers
2. February 9, 1909 Suspension
Cause
Government Action
Cause Details
Permanent injunction by the Supreme Judicial Court confirming the earlier suspension; business to be continued under supervision of the commissioner with hope of reopening.
Newspaper Excerpt
Supreme court Judge Sheldon today made permanent the injunction restraining the officers of the suspended Greenfield Savings bank from paying or receiving funds of depositors.
Source
newspapers

Newspaper Articles (9)
1. February 1, 1909 The Bridgeport Evening Farmer Bridgeport, CT
Article from The Bridgeport Evening Farmer, February 1, 1909

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Article Text

CLOSE BANK TO PROTECT ITS DEPOSITORS / Greenfield, Mass., Savings Institution Suspends Business on Order of Court. (Special from United Press.) Greenfield, Mass., Feb. 1.-Pierre Jay, Massachusetts state bank inspector today closed the Greenfield Savings Bank which has deposits of about $2,000,000. No reason is yet definitely known but it is said bad real estate transactions have involved the bank. Crowds gathered in the street in front of the bank to read the notice of suspension. As in all savings banks, most of the depositors are poor, many of them women. Following the posting of the notice President Robert Abercromble, gave out the following statement to the public: "I urgently advise all depositors of the Greenfield Savings Bank not to dispose of their deposit books at a discount because after a short suspension of dividends which I concede will not be over two or three years the bank will open again and resume business. Those who then desire to dispose of their books may do so at 'heir full present value. (Signed) Robert Abercrombie, President." The closing down of the bank was the direct result of action taken today in the Supreme court in Boston. Justice Sheldon of that court issued a temporary injunction restraining the bank from doing business on the grounds that it would be hazardous for the depositors for the bank to keep on receiving deposits. Bank Commissioner Jay asked for the injunction. He told the court that he had found that the assets of the bank could not be readily realized upon. The Greenfield Savings Bank opened for business and was incorporated March 19, 1869. Robert Abercrombie is president and William F. Aiken, brother of Chief Justice of the Massachusetts Superior Court is treasurer.

2. February 2, 1909 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, February 2, 1909

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Article Text

Commissioner Takes the Charge of Savings Bank At Greenfield, Mass., and Will Nurse Its Resources Until the Institution Is Again on Firm Financial Footing. Boston, Feb. 1.-By an order of the supreme judicial court today closing the Greenfield Savings Bank of Greenf.els, Mass., and suspending the payment of further dividends, it is hoped to eliminate the unproductive assets of the bank and eventually throw open the doors of the institution to its 7000 depositors who have entrusted nearly $3,000,000 to its keeping. The bank is one of the largest savings institutions in the Connecticut valley and its closing today at the request of the savings bank commissioner, Pierre Jay, came unexpectedly to the thousands of depositors, many of whom are mill hands and working people. Instead of asking for a receiver, Commissioner Jay requested that a course similar to that adopted in adjusting the finances of the Marblehead Savings Bank, five years ago, be pursued. This permits the trustees to carry on the business of the bank under. the supervision of the bank commissioner. to lend money to needy depositors and gradually to nurse the bank back to a healthy condition, which in the case of the Marblehead institution occupied about three years. The court today issued a temporary injunction and on Feb. 9 will take up the question of making it permanent when the plan of the commissioner will be presented to the court for approval. The deposits on Jan. 31 amounted to $2,838,075, of which $1,198,277 has been loaned on real estate. The bank also has in its possession real estate valued at $222,950 and real estate by foreclosure valued at $125,892. The bank also has among its assets $110,000 in street railway bonds. In a statement issued from Greenfield, President Abercrombie earnestly advised all depositers not to dispose of their books at a sacrifice, as he anticipates that the bank will resume business in two or three years, when all books will have their full face value.

3. February 2, 1909 Norwich Bulletin Norwich, CT
Article from Norwich Bulletin, February 2, 1909

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Article Text

GREENFIELD SAVINGS BANK CLOSED BY COMMISSIONER Has 7,000 Depositors, Many of Whom Are Working People. Boston, Feb. 1.-By an order of the supreme judicial court today, closing the Greenfield Savings bank of Greenfield, and suspending the payment of further dividends, it is hoped to eliminate the unproductive assets of the bank, and eventually throw open the doors of the institution to its 7,000 depositors who have entrusted nearly three million dollars to its keeping. The bank is one of the largest savings institutions in the Connecticut valley, and its closing today, at the request of the savings bank commissioner, Pierre Jay, came unexpectedly to the depositors, many of whom are mill hands and other working people. Instead of asking for a receiver, Commissioner Jay requested that a course similar to that adopted in adjusting the finances of the Marblehead Savings bank five years ago, be pursued. This permits the trustees to carry on the business of the bank under the supervision of the bank commissioner. to lend money to needy depositors, and to gradually nurse the bank back to a healthy condition.

4. February 2, 1909 New-York Tribune New York, NY
Article from New-York Tribune, February 2, 1909

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Article Text

BAY STATE SAVINGS BANK CLOSED. Greenfield Institution Expected to Eliminate inproductive Assets and Resume Business. Boston, Feb. 1.-By an order of the Supreme Judicial Court to-day closing the Greenfield Savings Bank, of Greenfield, and suspending the payment of further dividends, it is hoped to eliminate the unproductive assets of the bank and eventually throw open the doors of the institution to its seven thousand depositors, who have intrusted nearly $3,000,000 to its keeping. The bank is one of the largest savings institutions in the Connecticut Valley, and its closing today, at the request of Pierre Jay, Savings Bank Commissioner, came unexpectedly to the depositors, many of whom are millhands and working people. Instead of asking for a receiver, Commissioner Jay requested that a course similar to that adopted in adjusting the finances of the Marblehead Savings Bank, five years ago, be pursued. This permits the trustees to carry on the business of the bank under the supervision of the Bank Commissioner, to lend money to needy depositors and gradually to nurse the bank back to a healthy condition, which, in the case of the Marblehead institution, occupied about three years. The court to-day issued a temporary injunction and on February 9 will take up the question of making It permanent.

5. February 2, 1909 The Montgomery Advertiser Montgomery, AL
Article from The Montgomery Advertiser, February 2, 1909

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Article Text

SAVINGS BANK CLOSED. Court Decides on Method to Eliminate Unproductive Assets. Boston, Mass., Feb, 1,-By an order of the Supreme Judicial Court today, closing the Greenfield Savings Bank of Greenfield, and suspending the payment of further dividends, It is hoped to eliminate the unproductive assets of the bank, and eventually throw open the doors of the institution to its 7,000 depositors, who have entrusted nearly three million dollars to its keeping. The bank is one of the largest savings institutions in the Connecticut Valley, and its closing today at the request of Savings Bank Commissioner Pierre Jay came unexpectedly to the depositors, many of whom are mill hands. The court issued a temporary injunction. and on February 9 will take up the question of making it permanent.

6. February 9, 1909 The Barre Daily Times Barre, VT
Article from The Barre Daily Times, February 9, 1909

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Article Text

PERMANENTLY ENJOINED. Officers of Greenfield Bank Can't Receive or Pay Out Funds. Boston, Feb. 9.-Supreme court Judge Sheldon today made permanent the injunction restraining the officers of the suspended Greenfield Savings bank from paying or receiving funds of depositors. The business will - be continued, and it is hoped in a few months the bank will re-open, settling with the 6,779 depositors in full.

7. February 10, 1909 The Bennington Evening Banner Bennington, VT
Article from The Bennington Evening Banner, February 10, 1909

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Article Text

FRANK E. HOWE, Editor and Publisher Difference in Banks. Vermonters who borrow money from savings banks on real estate security are often heard to grumble because the bank will only loan them an amount equal to sixty per cent of the value of their property. But, in the words of the clever advertisement writer, there is a reason, and this reason has been emprasized by the recent failure of a Greenfield savings bank, which had deposits of almost three millions and was supposed to be one of the strongest banks in Massachusetts. Since the bank was closed the cause of its troubles have been made public at least in part and the principal cause assigned is the loaning of money on real estate to an amount that proved later to be greater than the value of the property. When payment was defaulted and property was taken under foreclosure it could not be sold for the amount of the loan. It is stated that the bank had in the vicinity of a million and a half loaned on North Adams real estate. Owing to the. business stagnation at North Adams during the past year all property there depreciated in value to a point that made it impossible for the bank to realize on its loans It is probable that the depositors in the bank will not lose their principal but they are likely to lose interest for several years while the bank is in liquidation. In the meantime Vermonters have reason to congratulate themselves that in this state savings banks can loan to an owner of real estate only sixty per cent of the value of his property. This gives a good margin for possible depreciation or accident and protects the depositors absolutely from danger of loss. The Bennington savings bank has not lost a dollar on real estate loans in many years and even during the business depression of the past year it continued to prosper so that at the beginning of the present year it commenced paying four per cent interest on deposits.

8. February 17, 1909 The Abbeville Press and Banner Abbeville, SC
Article from The Abbeville Press and Banner, February 17, 1909

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Article Text

COURT CLOSES A SAVINGS BANK. Order Permits Business to Continue Pending Reorganization. Boston, Mass.-By an order of the Supreme Judicial Court closing the Greenfield Savings Bank, of Greenfield, and suspending the payment of further dividends, it is hoped to eliminate the unproductive assets of the bank and eventually throw open its doors to its 7000 depositors, who have intrusted, nearly $3,000,000 to its keeping. The bank is one of the largest savings institutions in the Connecticut Valley, and its'closing, at the request of the Savings Bank Commissioner, Pierre Jay, came unexpectedly to the depositors, many of whom are mill hands and working people.

9. March 25, 1911 The Barre Daily Times Barre, VT
Article from The Barre Daily Times, March 25, 1911

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Article Text

BANK OFFICIALS SUED. Commission Seeks to Recover $228,000 on Bad Loans. Greenfield, Mass., March 25. On the ground that the respondents, all of whom were members of the finance committee of the Greenfield Savings bank at the time of its suspension in February, 1909. were guilty of neglect of duty, Arthur B. Chapin. savings bank commissioner of Massachusetts, filed a bill of complaint in the supreme court yesterday and caused an attachment to be made of $330.000 against Robert Aberorombie, Levi J. Gunn, Charles R. Lowell, William A. Forbes and S. B. Slate, The bill is a document of about 50 typewritten pages, and was filed by Charles F. Choate, jr., of Boston. in behalf of Bank Commissioner Chapin, who, in turn represents the Greenfield Savings bank. The bill alleges that the respondents failed to observe the statutes and requirements of the banking laws relative to making loans, The bill also asks that the respondents be forced to repay to the bank the money which it is alleged the bank lost as a result of their official negligence. When the bank was enjoined from doing business in February, 1909. it had property valued at about $4,000,000. Since that time $228,000 has been charged off as losses on poor loans made by the respondents or their predecessors. It is alleged that these losses will aggregate half a million dollars. In its specifications the bill of complaint desires that Messrs. Aberorombie and Gunn got from George N. Rich of North Adams inducements and gifts offered by Rich for the purpose of getting an improper loan. The bill also states that this fact did not become known to the complainant until recently and that the Greenfield Savings bank is not informed of the character and amount of such loans.