The Providence news. (Providence [R.I.]) 1891-1906, 1897-03-16
Suspension Of Payment
by the Phenix Bank.
Condition of the Bank Dis
covered by New Cashier.
Board Of Directors Decided to En-
force Ninety Days Notice.

The valley villages were thrown into
state of excitement yesterday afternoon
when it was reported that the Phenix
Savings bank had suspened payment. Al
first the report was dscrcditcd, but MS the
day passed the excitement became greater.
The Phenix Savings bank has always
been regarded as solid as the Rock,
Of Gibraltar and the announce
ment that IL had suspended payment ana
taken advantage of the law which allowed
the bank TO claim notice Of ninety days
before the payment of any claims was re-
ceiycd withtastonishment. The first that
was publicly known OF the embarrassment
of the institution was yesterday when one
OF the depositors tried To draw "a small
amount and was Informed that IL would
be necessary To give the ninety days
notice before the money could be with
drawn. 1t did not take long for the news
10 circulate and To the majority OF the
depositors in. the bank it came like thun
derbolt from a clear sky.
At first the report was discredited, but
before night it was evident that there
was some trouble at the bank and by
evening the excitement especially among
the smaller depositors, had increased
until stories Of all kinds We're circulated
and no one seemed to know exactly
''where tbcywcre AT.
y
at first uIisuccessful, but finally it was
ascertained that the embarrassment of
the bank was discovered in the latter part
of last week by George T.. l.. Sheldon, who
was recently appointed cashier in place or
the late Henry ID. Brown who held the
position from the incorporation of the
bank until his decease several weeks ago.
When Mr.. sheldon was appointed cashier
he naturally made a thorough investiga-
tion of the affairs of the bank and much
10 his surprise found that the institution
was not on the solid footing in which IL
was thought. He was first doubtful as to
his own figures, but when he had yeri-
fed his books he Immediately notified
the board of directors The directors were
as much surprised as Mr.. Sheldon, and a
meeting was held at which 10 was found
that Mr.. Sheldon's call was not without
cause. Upon investigation it was found
that many of the securities hell by the
institution had deprecated greatly in
value and IL they were to be placed on the
market on forced sale their face value
could not be realized OH them.
When thorough investigation had
been made it was decided that IL would
be the best policy To claim the ninety day
notice and in consequence the scare COM
menced at once. This morning there was
number of people at the bank awaiting
its opening but they were unable to draw
out their deposits without giving the re-
quired notice.
The bank which was Incorporated by a
number of the most prominent and
wealthy residents of the valley at the
May session of the General Assembly in
1858 has always been considered one of
the best i'm the state and today there are
nearly 1900 depositors, the amount of the
deposits being s4lS, 600. Many of the de-
positors are operatives i'm the valley man
ufactories and the deposits range from
So upward. The bank is also the de-
pository for most of the secret societies in
the valley and in consequence the sus-
pension Of payments, although 1t may he
only temporary, will affect large num-
ber of the residents Of this part of the
state.