The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1903-10-23
FEDERAL NATIONAL BANK
STATEMENT AS TO WHY ITS DOORS
ARE CLOSED.
the President and He Says Not n
DepOsitor Will Lose One Cent-A

Pittsburg. October 21.-Notice was
posted on the doors of the Federal Ma
tional Bank at o'clock this morning
announcing that the institution is
closed by order of the comptroller of
the currency. Following is the signed
statement of J. a. Langfitt, president
Of the Federal National Bank.
The Federal National Bank has
finally yielded to the combined as
saults OF its stockholders and deposi-
tors and has closed it's doors until ar
rangements can be made to discharge
all depositors claims. The question of
re-opening will then be decided.
When the business depression came
on, the stockholders, from necessity
or fear. began throwing the stock up
on the market. The stock issue was
large and the market weak. Thereup-
on dlsquietlng rumors sprang into
birth, grOundleSS, baSeleSS and, per
haps in some cases. malicious. These
increased the weakness of the stock
and the weakness increased the ru
mols, until our splendid list of de-
positOrs took fright and the rapid
withdrawal Of moneys began and in
creased in volume daily, until, despite
our best efforts to call In loans and
provide funds, the bank could no long
er meet the demands upon it and dras-
tic measures became necessary. Our
demand loans could not all be collect
ed forthwith and our time notes had
not yet matured.
Last night, the directors believing
such course to be the proper one un-
deg the circumstances, ordered the
bank to be closed temporarily and
they requested the comptroller of the
currency to take charge.
1.-TWO weeks ago our deposits eX-
ceeded four million dollars and until
yesterday, when the floods came we
had maintained our full legal reserves.
Nobody has defaulted, or suicided, or
absconded. The board of directors
are and have been always loyal to the
bank and in full accord and harmony.
We have had no actual losses and
with one exception, our combined prob
able losses up to date would not ag-
gregate one half of one per cent of
our capital. The exception referred
to 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 he
paid in full out OF our undivided prot
its of S160,0OO without touching either
our capital of s2,000,000, or surplus OF
SiUU,UtU.
when our doors closed we had ap-
$1,9OOW0G of deposits to
secure. which we had on hand in cash.
time and demands loans and other
goods securities worth about $4,6O0,-
0o0 This was our condition. after
having paid out to depOsitOrs in ad-
Gitfon to current receipts and dis
over s2,01O.000 within fif
teen days, in a period of generally
strenuous financial conditions. De-
spite this full and ample security,
available. our depOsitOrs seem
ed almost frenzied in their haste to
get their money lest they should lose
it all.
There is not now and never was
q moment when they. or anv Of them,
were in the slightest danger of losing
a penny"
Washington. October 21.-The acting
Of the currency was ad-
vised last night tfst the Federal Ma
tionaI Bank of Pittsburg would not
open for business this morning. He
~~pointed National Bank
Examiner John B. Cunningham, re-
caiI-a1.