Central Savings Bank - Detroit, MI

Bank Information

Episode Type: Suspension → Closure
Bank Type: savings bank
Start Date: November 14, 1895
Location: Detroit, Michigan (42.331, -83.046)

Metadata

Model: gpt-5-mini
Short Digest: 2d98e2bd

Response Measures

None

Description

Article (Nov 14, 1895) reports the Central Savings Bank of Detroit is in the hands of a receiver and depositors have been paid 50 cents on the dollar. No run is described; the bank is in receivership (closed). The insolvency is tied to rediscounted/uncollectible paper, but the article indicates a receiver has been appointed, so I classify the suspension cause as government_action (receiver).

Events (3)

1. November 14, 1895 Other

Newspaper Excerpt: The supreme court of Michigan has recently rendered a decision which involves a principle of banking law of general importance... two notes of $5000 each... are nothing more or less than re-discounted paper upon which the receiver must pay dividends
Source: newspapers

2. November 14, 1895 Receivership

Newspaper Excerpt: There is in the neighborhood of $150,000 of such paper outstanding, and as the receiver will be compelled to pay it pro rata with the depositors the latter will not be able to obtain any more dividends for a while, at least. The depositors of the bank have been paid, up to date, 50 cents on the dollar.
Source: newspapers

3. November 14, 1895 Suspension

Cause: Government Action
Cause Details: Bank placed in receivership (receiver George W. Stone) following uncollectible re-discounted paper outstanding (~$150,000).
Newspaper Excerpt: the First National bank of Kalamazoo against George W. Stone, receiver of the Central Savings bank of Detroit.
Source: newspapers

Newspaper Articles (1)

1. November 14, 1895 The Austin Weekly Statesman Austin, TX

Article from The Austin Weekly Statesman, November 14, 1895

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Article Text

# REDISCOUNTED PAPER. The supreme court of Michigan has recently rendered a decision which involves a principle of banking law of general importance. It was in the case of the First National bank of Kalamazoo against George W. Stone, receiver of the Central Savings bank of Detroit. The court held that two notes of $5000 each, turned over with the endorsement of the Central Michigan bank to the Kalamazoo bank upon its request for some good securities, as it had a surplus of funds on hand, are nothing more or less than re-discounted paper upon which the receiver must pay dividends, the givers of the paper not being collectible. There is in the neighborhood of $150,000 of such paper outstanding, and as the receiver will be compelled to pay it pro rata with the depositors the latter will not be able to obtain any more dividends for a while, at least. The depositors of the bank have been paid, up to date, 50 cents on the dollar.