8731. Houlton Savings Bank (Houlton, ME)

Bank Information

Episode Type
Run Only
Bank Type
savings bank
Start Date
March 9, 1905
Location
Houlton, Maine (46.126, -67.840)

Metadata

Model
gpt-5-mini
Short Digest
7489de85

Response Measures

Accommodated withdrawals, Books examined

Description

A run occurred March 9, 1905 caused by a speaker's remarks/rumor along the New Brunswick line. The bank paid out about $25,000, declined offered assistance, did not suspend or invoke the time limit, and remained open.

Events (1)
1. March 9, 1905 Run
Cause
Rumor Or Misinformation
Cause Details
A speaker at a nearby public meeting advised people their money would be safer in a Woodstock, N.B. savings bank, creating erroneous fears about Houlton's condition and triggering withdrawals.
Measures
Paid out about $25,000 to depositors; declined offers of assistance from First National and Farmers' National; did not invoke statutory time limit.
Newspaper Excerpt
RUN ON BANK. Houlton Savings Bank Pays $25,000 to Depositors. ... paying money to depositors who entertained the erroncous idea that the institution was not in the best condition. ... In consequence of this advice a run developed on the Houlton Savings Bank.
Source
newspapers

Newspaper Articles (2)
1. March 10, 1905 Daily Kennebec Journal Augusta, ME
Article from Daily Kennebec Journal, March 10, 1905

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Article Text

RUN ON BANK. Houlton Savings Bank Pays $25,000 to Depositors. Houlton. Me., March 9.-The officers of the Houlton Savings Bank have been busy during the past few days paying money to depositors who entertained the erroncous idea that the institution was not in the best condition. Some anxiety developed along the New Brunswick boundary line on account of a statement made by a speaker at a public meeting in a nearby town. He advised his hearers that their money would be safer in a Woodstock, N. B., savings bank, which is under government control. than in Houlton. In consequence of this advice a run developed on the Houlton Savings Bank. The First National Bank and the Farmers' National Bank offered to aid the savings institution but the assistance was declined. as the Houlton bank was able to meet the demand without diff:culty. No advantage was taken of the time limit provided by law. The business men were not concerned in the run an some of those who withdrew their accounts decided to again place the money in the bank. The run is now over. In all $25,000 was withdrawn, part of the sum being redeposited.

2. March 16, 1905 The Somerset Reporter Skowhegan, ME
Article from The Somerset Reporter, March 16, 1905

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Article Text

It takes but little to start a run on a banking institution and rumor is better than fact to bring this about. The Houlton Savings Bank, one of the most prosperous institutions of this kind in Maine, was put to much annoyance and depositors to loss by their withdrawal of about $25,000. The trouble in this instance was caused by thoughtless, general remarks by an individual about the uncertainty of banking institutions in a company of men and women when a deposit in the Houlton bank was under consideration. Once a year all savings banks in Maine are submitted to rigid examinations and the result 80 far as this bank is concerned published in a Houlton paper. Citizens of Ároostook interested in Houlton Savings Bank should read this statement when it appears next time and thus be informed of the standing of the bank. This applies with equal force to the published staiements of saving institutions in other towns and cities of Maine.