The Montgomery advertiser., 1903-10-22
|PITTSBURG BANK CLOSES Federal National is in Trouble. RAID MADE ON ITS STOCK Securities Fell from 1 IS to 80
 Bid in Two Days. President of Clearing House Am nouuces That There is No Dam ger of Other Institutions
 Going to the Walls.
RAID MADE ON ITS STOCK

Pittsburg, Oct. H.-The doors of the | Federal National Bank were not opened | for business this morning. The following notice was posted in explanation:
 Closed by the authority of the Comp U. B. Cunningham, Receiver"
 Some such action as this has been within the possibilities for the past two days, forecasted by the determined raid made upon the institutions stock on the l Pittsburg Stock Exchange. The positive statement, however, of President J. A. Langftt to the effect that the bank was not in need of money and that its losses would not affect its capital or surplus, did much toward allaying distrust on the part of its depositors, thus preventing run.
 The closing of the bank was decided upon at a meeting of the directors last night, which did not break up until 2 o'clock this morning. At that hour none of the officials would make a statement X and locally the outcome of the meeting was not generally known until the re- ceiver's notice was posted at o'clock.
 Stock Was Hammered.
 The bank is a United States depository and reported on hand September 9, $50,0OO of United States deposits. The stock of
  sharp decline on the Pittsburg Exchange # this week. On Monday 1t sold down from I15 to S5, but was forced up again to 101. All day yesterday it sagged and the clos ing quotations were 80 bid and S5 asked.
 The course of the stock has attracted much attention and numerous adverse reports were in circulation, but they were promptly and fully denied by President J. A, Langtitt. He stated yesterday II hot ha hou ha one possible loss, that of $140,00O, for which 1t held notes on the Eastern Tube # Company of Zanesville, O. This company N is in the hands of a receiver and plan of reorganization Is being worked out, he < said, and the banks loss on that account may be small.
 Stock Exchange Affected Little.
 The closing of the Federal National Bank had apparently but little effect on #the local stock exchange. Trading was 2light but firm, at about yeserday's clos ing No dealings in any of the local bank stocks were recorded during the first hours trading.
 Tn a general way banking officials of 'the city feel confident that the Federal National Banks trouble will be confined to itself, and will not disturb any other financial institution.
 Receiver Cunningham thinks it may be
  statement of the banks condition.
 No Reason for Alarm.
 Robert S. Smith, President of the Union National Bank and President of the Pitts Ihur1 Clearing House Association, said:
 .oThere is not the slightest reason for any alarm, and if people will only keep cool. there will be no trouble. It was as- |sured last night by President Langhtt +bot every depositor would get every dol af The hank has some excellent assets and there saems to be no reason why depositors sbo,Id not get all coming to them. It Is nosshIe that some small country banks which do business through the Federal National may be temporarily embarrassed 'but even at that it will be only tempo rarily.'
 Bankers and brokers are of the opinion that the closing ot the bank until its af- Sa,rs could be adjusted, was the best +hine to do under the circumstances. The #+ait about the banks affairs has been a drag to the market and the belief that inc action of the directors will have a ~ood effect on the situation rather than .an injurious effect.
 Presidents Statement.
 Following is the signed statement or |F. A. Langftt, president of the Federal National Bank: ao,,,, vielded to the combined assaults of it's 'stockholders and depositors and has clos cd its doors until arrangements can De made to discharge all depositors' claims. The question of re-opening will then be decided.
 ..Vhen the business depression came on the stockholders from necessity or fear hogan throwing the stock upon the mar Let The stock issue was large and the market weak. Thereupon disquieting rumors sprang into birth, groundless, ba seless and perhaps in some cases mali cious. These increased the weakness Of tbe stock, and the weakness increased the rumors until our splendid list or deposi. tors took fright and the rapid withdrawal of money began and increased in volume daily until. despite our best efforts to call tn loans and provide funds. the bank could no longer meet the demands upon it and drastic measures became necessary. Our demand loans could not all be collect ed forthwith, and our time notes had not yet matured.
 TWO weeks ago our deposits exceeded Aour million dollars, and until yesterday ,xa had maintained our full legal reserve. I've have had no actual losses. and with one exception our combined probable hosses up to date would not aggregate one-half of one per cent. of our capital. # The eXCepIlOn TeIeTTeu 10 IS our claim against the Eastern Tube Company, which may or may not result in loss. and even if a total loss should there ensue 1t could be paid in full out of our undivided nrofts of $16O, 900 without touching either our capital of $2, 100000 or surplus of $40O, ! 900.
 'The officers and directors have tried their utmost to prevent this climax-this acme of official stupidity and money mad ness. When all other efforts failed to stem the tide, they sought the financial help of associated banks of Pittsburg and received most courteous and kindly sym pathy and advance.
 Depositors We: . Panic-Stricken.
 .'when our doors were closed we had ap- proximately $l 300 900 of deposits to secure while we had on hand cash. time and de mand loans and other good securities
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