The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-04-27
MECHANICS BANK OF PRovIDENCE-A LONG
RUN STOPPED.

MECHANICS BANK OF PRovIDENCE-A LONG
RUN STOPPED.
[BY TELEGRAPH TO THE HERALD
PROVIDENCE, r. l., April 20. 1878
The run ON the Mechanics Savings Bank, which
has lasted over three months and which has drawn
out of The treasury ST. 500 900, ended to-day,
when tho directors decided enforce the following
provision OF their charter, which forms part OF the
contract with the deposlor:- at e}a steHt
No moncy shall be- withdrawn except ON the
ber and ono weeks notice Of the intenton OF Win.
drawing The same shall oe given to the treasurer In
wrlting. a .56 .ssaaa Nsfaeh@. q
CONDITION or THE RANK. s \. sY..4s.
The soundness OF this bank has boon shown psyond
all question. but the blindness Of the deposit
ore was SO intense that they followed each
other like sheep, and continued to draw
out their money In the face OF the
most positive and most trustworthy assurance that
the bank was all right The bank has bssr vi,-ly
aud cautiously managed, and the wonder IL TIA, Il
the universal shrnkage Of values this insu ,utioa
should have suffered little as to be able nov 10
liabilities. At its last report the bank had 027
Invested 10 MORTGAGES, nearly Al 10 this state.
best TO convert those mortgages ummarily into
money without bringing great distress and rum upon
money on ample security and Quilt houses and en-.
gagged in business upon the understanding
eLce, provided the interest was paid ana the
security maintained. As usual the ost mportunate
depositors those who have large sums Ia bank
which should never have been received. Tho Finance
Committee Of the bank has reported 10 the trustees
stating that they regard the assets Of tho insttuo1
capable Of meeting all obligations "The assets OF
the bank to-day arc fully $32s,0oo more than the
amount OF It's liabilities. Your money was taken By
US IN trust, not 10 be boarded In Vaults bat 10 DO
invested ior you ana or your profit according totur
best judgment II was sacred trust and Tho trvstssG
congratulate themselves that they have % discharged
It's duties ~ that IN passing through this period Of
unexpected depreciation Of all values they have saved
the dcposilors from loss The securities which sbey hold
embrace among other things nearly eleven hundred
mortgages, amounting 70 nearly S5,OO000O. Probably
cloven-twsfths OF this amount ID upon property N
this city. We nave been nearly twsntyfour years ~
every mortgage 10 due, t. will 30 readily seen hun
utterly impossible it would be times like
collect and return It TO the deposipors immediately.
Abiding to tho heavy draw By dspositsrs the esm.
miLtee says:--"We have gone on IN quiet way, col.
lectng and paying, until the close Of BUSINESS yes
than l,aso. oOo D,a the calls svsrass only
$1,000 TO $4,000 : day We could sashS
meet them, and could go on collecting
the last Two days they have reached " $6Q0o
day, with the prospect OF continuing on this ipp
through this .na. perhaps. the following WIN day.
notes, acceptances public stocks. bonds
money and other securities, II must DO APP
parent that We cannot collect money SO
uessing an already distressed community" Tue run
the bank has been foolish one. tor the Institution
10 Of the safest In the State, and n LETT alone
would 60 ON IN prosperity without fear or hindFanea
BANK TO Blk INVESTIGATOR
Governor Van Zsndt upon the application OF the
officers OF the Psscong savings Bank, has appointed
= commission 10 examine the officers oi that ta-
stltution. temporary injunction VIII probably 10
asked