1919: Savings Bank Suspends; Pays $1.70 on the Dollar

Advance in New York Stocks Bought at Par Made Assets Valuable.

Special Correspondence.

Middletown, Conn., Sept. 30.–The Higganum Savings Bank of Higganum, Conn., announced to-day it would suspend all business as a savings institution and close out depositors accounts at approximately $1.70 on the dollar. The bank was the only one in the state paying 6 per cent interest. The directors say lack of business has caused the bank to close.

Eugene C. Burr, secretary, explained the institution had been fortunate in disposing of its securities, and that stocks in New York banks that had been purchased at par had been sold at several times the original price. In the report to the bank commissioners these had been carried at par value, with the result that the bank itself had a surplus 20 per cent over its deposits. All the stock has been disposed of by the directors and the money obtained has been invested in Liberty bonds. These bonds will be figured in the settlement of depositors accounts.

From The New-York-Tribune (New York, New York), Wednesday, October 1, 1919.

 

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2 thoughts on “1919: Savings Bank Suspends; Pays $1.70 on the Dollar

  1. A bank that actually benefited depositors? This is totally shocking! I never thought such a thing had ever been possible, especially before the Great Depression and increased banking regulation. This post is very illuminating, indeed.

    Like

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