The Providence news. (Providence [R.I.]) 1891-1906, 1899-03-29
AN OLO-T|ME BANK.
Mr.. Place Tells About The Mount
Vernon Institution.
why a Plan 10 Wreck II FaI'ed-now Its
Vaults Were Constructed.

y few days ago two gentlemen OF the
old school OF politics sat i'm one or the
Offices at the city Hall and INDUCED
in "reminiscences. From one subject TO
another they drifted until that OF banks
and bankers was taken up. and one OF
them, Raymond q. Place. who for
many years represented the Eighth
ward I'm the Common Council, spoke OF
his experience in the Mt. Vernon bank.
How many Of the residents of Provi-
dence ever heard OF such bank? Sure
ly none of the active middle-aged busl-
ness men OF today can recall it, and
presumably there are but few Of the
old fellows who recall the institution.
The Mt. Vernon bank was one OF the
many state industries which existed in
New England prior 10 the inception or
the national banking system. III was
located I'm South Foster, on that portion
OF the Plainfield pike, then known as
BoWen's Hin.
The bank was organized in 1892 with
capitai OF 100000. which in those days
was considered to be mighty large
sum OF money TO invest In such an en-
terprise. The character OF the business
done in that section of the state was not
such as would warrant the acceptance
OF deposits hence the bank confined
itself strictly to loans on mortgages.
The par value Of the stock was SIG
per share which now seems to be a
queer basis Of valuation. but In those
days SIG meant what $50 does today in
stock transactions. All Of the stock was
subscribed for by the people Of the
town. who paid cash down for IL ana
considered the shares good investments.
bills 10 the face value of 100000 were
put out and no difficulty was expert
enced In keeping the entire capital IN
circulation. so that practically the bank
had Sl20 600 10 do business with.
At times the stock went up 10 SIG.
and transactions at $25 were Of almost
daily occurrence. The first president
was Pardon Holden. and he was sue
| ceeded by Samuel Tillinghast In 1881
the bank was bodily transferred 10 this
city and Henry Whitman, clothier
became the president. Mr.. Whitman
was father of the lawyer Henry A.
Whitman. The first cashier was Peleg
Place. He was succeeded by Charles
NJ. Stone and he, by Raymond @. Place.
i'm 1Sit. who continued i'm that office
until the bank went into liquidation.
which was about 1851. Some New York
capitalists had quietly bought up the
stock until they secured WORKING
majority OF it, intending To wind UP
the bank and obtain the money on hand
and as much more as they could
squeeze .out OF the other holders.
Through their efforts the Mt. Nernon's
doors were permanently closed.
Mr. Place recalls that an attempt
was made by the Suffolk bank manage
men to do" The Mt. Vernon. The lat
ter did a good loaning business in
Providence -lVas sharp eoinpeti-
tor of the big Boston bank. which, as
a sort of clearing house for the state
H.. ,P NJ, ha
states. received their bills and forward
ed them for redemption. one day two
representa- tiVes of the Suffolk started for
South Foster with $40 COO I'm bills of the
Mt. Vernon. intending 10 arrive unan-
nounced and to demand redemption IN
specie. The travel WAS bad and they
did not reach South Foster until after
the bank closed. and turning about,
came part way back TO Providence ana
put up at tavern for the night, Were
they Zealously kept vigil over their
treasure until daybreak.
President Holden got wind of the in
tended descent upon his bank about the
time the Boston bankers left Provi-
denee. and before nightfall got con-
siderable amount OF gold in this city.
which he took out TO his store and
placed under the counter The next
day the Boston gentlemen were at Mr..
Holden's store very early. and asking
when the DHnk WOulu De open, sldttu
their errand Mr.. Holden, processing 10
have more than $4,000 in gold in the
store, proposed TO liquidate there and
then. and began dumping the gold out
on his counter. and at the same time
pretended to desire TO sell To his callers
lot of old gold The bluff worked so
well that the redemption was not in
sisted upon. The representatives or the
suffolk bank went away with their bag
of bills and that threatened wreck OF
the Mt. Vernon was aVerted.
The Mt. Nernons vault was built or
sheet steel. IL had solid ledge for
foundation and was encased i'm massive
blocks OF granite and masonry. Its in
ner door was Of sheet steel. backed with
steel bars and locked by massive key
go big.that IL had To be carried in bag.
The outer door was of wood. painted
black Two attempts to rob the bank
were made. once the outer wooden
door was broken open and once the
steel door was operated upon, but un-
successfully.
Mr.. Place recalled the robbery of the
vault of the Merchants bank i'm 1876,
when Bell. an English afe-breaker.
EOT away with 500 000 IN biIls. Bell
took his booty TO a sail boat which ne
had moored under the Market square
bridge, and i'm which he made his es-
cape. Bell compromised. delivering
up most of the stolen bills upon pay
ment of $50 600. lie was overhauled
later at savannah. where he had put
i'm for supplies. and made to give up
securities valued at $4,000, and then he
sailed away and was not heard from