On April 13, 1895, local newspapers announced the death of Oliver H.K. Risley. While he had been suffering with a kidney disease, his death was said to be “a shock to the community”. Risley was 44 at the time and had come to Willimantic from Vernon in 1871 and he was said to have been one of the ablest and most successful financiers in the state. In Willimantic, he became one of the organizers of the Merchant’s Loan and Trust Company. Then, within two years, he was appointed treasurer of the bank. When the bank merged with the First National Bank, Risley became its first cashier. Risley was well-known about town and was highly regarded as a member of several local organizations, a director of the Fair Association and a stockholder in several local businesses. Risley owned “the finest pair of driving horses in the state” and was often mentioned as driving his ”road wagon” (buggy) and challenging others to a race. He did not have a home of his own but kept rooms in the home of Miss Harriet Brainerd, a local milliner, at 80 Maple Avenue. With much pathos, local papers reported on his death and the arrangements for the funeral, during which “the principal places in the city would be closed”. On the day before the funeral, the directors of the First National Bank met and elected a director and cashier to replace Risley. Then, less than a week after the funeral, things started to fall apart and within months, Willimantic’s financial structure was teetering. The first indication of the problems that were to lie ahead came on April 22 when people found a piece of paper attached to the door of the First National Bank. It read, ”Bank closed and in the hands of the National Bank examiner” and was signed by the Examiner, Michael Dooley. Word quickly spread and was shocking to the city since the bank was considered to be one of the soundest institutions in the state. It was felt that no national bank examiner would close a bank unless things had “gone bad”. They had. And so Dooley was ordered to take charge of the bank until an investigation could be done. It was found that Risley, “ conducted the affairs of the bank in his own way and had the confidence of the other directors to an extent that they allowed him to do so without informing them, at least in regard to details involving transactions”.Mr. Culverhouse, who had been selected to replace Risley, began the transition he found “conditions that resulted in the closing of the bank”. The State Comptroller however, said that while stockholders might face liabilities up to the value of their stock, depositors would not be in danger of losing anything. However, the closing of the bank had a serious impact on local businesses since depositors could not access the money needed to conduct their businesses. By April 25, rumors had begun to circulate that forged papers had been found. The bank’s director quickly countered and said that the books had been “methodically kept” and that there was no evidence whatsoever of forgery. But then it was learned that the bank’s “failure” was not unexpected by United States Treasury Department. Examiner Dooley had sent written messages numerous times to the bank complaining of irregular methods, but in each case, Risley wrote back that he had the authority of the directors and that any irregularities mentioned would be remedied. The names of the directors on the replies had been forged. Now a large Willimantic business came into focus. The bank had been carrying large amounts of “paper” for the Natchaug Silk Company and Examiner Dooley felt that should be reduced but he was told that the company was “fully able, financially, to meet all its “paper” held by the bank”.  With Risley’s death, though, Examiner Dooley found that a very large amount of the paper, amounting to $75,000, had been forged. Dooley reported this to Washington and was then instructed to give the bank’s directors the opportunity to make good on the deficit. When they said they were unable to do so, Dooley closed the bank. Dooley was then appointed as receiver for the bank until a suitable local person could be appointed. The State Comptroller then weighed in and said that the bank had been run by Risley since the bank president “is a very old man and unable to assume personal direction of its affairs and the directors, while well-meaning men, relied on Risley for everything”. This week’s photo shows Risley’s sitting room in the 80 Maple Avenue home where he rented several rooms.