The Bolivar bulletin. [volume] (Bolivar, Hardeman County, Tenn.) 1865-1888, 1884-05-29
sUCCUMBED TO PRESSURE.

PrOtracted Run COmpels the Penn Bank
OF Pittsburgh, Pa, to Close Its DOOrs-The
Suspension, by Reason of Solid Backing
Thought to be Only TemPOrary-OtbeF
Banks Feel the Pressure.
PITTSBURGH, PA, May %
Yesterday the doors of the Penn Bank,
one of the largest in the city, were closed,
and notice was given to the public that,
owing to a continued run, the directors
had decided to suspend payment for the
present. The announcement was so un-
expected to the general public that at first
its report was hardly realized. Ina short
time, however, the news spread, and
within half an hour the entrance to the
bank was besieged by anxious de-
pOsitors and others seeking for informa-
ton. The Board of Directors were in
session, but policemen guarded the
doors, and for long time nothing could
be learned save that for five days the
bank had been subjected to a heavy run,
which had reduced its deposits from
100000 to 500, 900. The run was
caused by rumors which were quietly set
afioat three weeks ago. The burden of
these was that the bank had got into
trouble OH oil loans, and that prominent
broker, who has been an enormous
dealer on the market during the
past month, had been allowed to over
draw his accounts $500, 900, and that an
other had overdrawn his account to the
extent of $50, 900. The story was inves-
tigated and found to be untrue, but di-
rectly following its circulation both Oil
Exchanges took their business from the
bank. This was partly a compromise
measure and partly because the bank had
been identified with a number of syndi-
Gates, and not because of any fear that 1T
was insolvent The effect was the same,
however, as if there had been grounds
for fear. Tuesday the bank was assisted
in making its obligations at the
Clearing House by loan of
100000, but this did not improve mat
ters, and although further offers of assist
ance were made the officers declined to
accept them Immediately following the
suspension reports were circulated that
other banks would close their doors
during the day, but not only were none of
these reports verified, but many of the
oldest financiers in the city expressed
themselves as being confident that no.
body would lose dollar by the Penn
Bank suspension. These statements less
ened the excitement. They are borne out
by a statement made by President Riddle,
L
''The Board of Directors met yesterday
afternoon and began an examination into
the affairs of the bank. Their eXsm NINA
tion iustifies them and myself in the
statement that the bank can, as matters
now stand, pay dollar for dollar on de-
pOsits and stock. We have received of
fers of assistance from many sources.
Our largest depOsitors show most graf
flying faith in the bank, its resources and
Ill, 4T,vv inn.
no disposition to cause US any trouble
by hasty action. On the contrary, many
have offered to double the deposits now
held by the bank. Other aid has been of
fered in order that we may resume. AS to
acceptances the board will decide later
As to myself personally, have no fear
about my own deposits and stock, and as
l am the largest depositor and stockhOld-
er / am willing not only to let both stand
where they are, but also willing and
ready to add more to the amount. To
do this l am willing to use any collateral
have"
Mr.. Riddle refused to give any state
ment of liabilities or assets. From an
outside source it was learned that the liza.
Billties would not exceed 81 800, 600, and
that the assets more than cover this The
only question is time to realize.
The bank has been in existence about
nine years. congressman james IL. mop
kins, of the Twenty District, was
its President until two years ago, and is
now member of the Board of Direc-
tors. The present President, VIM. n
Riddle, has been in ill-health for some
time, but remained at the bank all day
| to meet those who came for information
statement of the exact condition OF
affairs will be made to-day. 1t is
stated that a meeting of the bank
officials represented in the Clearing
House will be held, and measures
taken to sustain the Penn Bank, or any
other that may be temporarily en-
| barrassed in the future. Prominent
tinanciers consider this action necessary,
as a means of self-protection.
The meeting of bankers above referred
to was held last evening. statement OF
| the banks condition was submitted. All
| present were convinced of its solveucy,
! and it was agreed to furnish the money
necessary to meet its liabilities. Neces-
| sary fOrmalties will be arranged to-day
and the bank will resume payment to-
morrow morning.