The Birmingham age-herald., 1903-10-22
Raid on the Stock Forced
 Temporary Suspension
OEPOSITORS PANIC- STRICKEN
President Langftt of the Federal Ma tional Says the Institution Can Pay Every Depositor Dollar for
 Dollar-Fears GroundIess.

Pittsburg. October a.-The doors of the Federal National bank were not opened for business this morning. The following notice was posted in explanations
 Closed by the authority of the comp troler of the currency.
 "J B. CUNNINGHAM,
 Receiver"
 Some such action as this has been with in the possibilities for the past two days forecasted by the determined raid made upon the institutions stock on the Pitts burg Stock exchange. The positive state ments, however, of President J. A. Langatt to the effect that the bank was not in need of money and that it's losses would not affect it's capital or surplus did much toward allaying distrust on the part of it's depositors, thus preventing a run.
 The closing of the bank was decided upon at meeting of the directors last night, which did not break up until 3 O clock this morning. At that hour none of the officials would make a statement and locally the outcome of the meeting was not generally known until the re- ceivers notice was posted at o'clock
 Stock Was Forced Down.
 The bank is a United States depository and reported on hand September 9. s50,OOO of United States deposits. The stock of the company has been subjected to a sharp decline on the Pitsburg exchange this week. On Monday 1t sold down from 115 to S5, but was forced up again to 101. All day yesterday it sagged and the closing quotations were 80 bid and 80 asked.
 The course of the stock has attracted much attention and numerous adv vsrse reports were in circulation, but they were promptly and fully denied by President J. A. Langftt. He stated yesterday evening that the bank had suffered only one possible loss that of s140'000. for which 1t held notes on the Eastern Tube company of Zapesville, o. This company is in the bands of a receiver and a plan of reorgan aAatieh is being worlcd os1 he said and the banks loss on that ac- count may be small.
 No Serious Effect.
 The closing of the Federal National Bank had apparently but little effect on the local stock exchange. Trading was light but firm, at about yesterdays closing No dealings in any of the local bank stocks were recorded during the first hours trading.
 In general way banking officials of the city feel confident that the Federal National Banks trouble will be con- fined to itself, and will not disturb any other financial institution.
 Receiver Cunningham thinks it may be two or three days before he can make statement of the banks condition.
 Robert S. Smith, president of the Union National bank and president of the Pitts burg Clearing House association, said:
 There is not the slightest reason for any alarm, and if people will only keep cool, there will be no trouble. l was as- sured last night by President Langfitt that every depositor would get every dol- lar due, and I believe the statement. The bank has some excellent assets, and there seems to be no reason why depositors should not get all coming to them. 1t IS possible that some small country banks which do business through the Federal National may be temporarily embarrassed but even at that it will be only tempor- arily."
 Closing Was Necessary.
 Bankers and brokers are of the opin- ion that the closing of the bank until its affairs could be adjusted was the best thing to do under the circumstances. The talk about the banks affairs has been drap to the market, and the belief that tbe action of the directors will have good effect on the situation rather than an injurious effect.
 Presidents Statement.
 Following is the signed statement or F. A. Langftt, president Of the Federal Nat ional Bank:
 "The Federal National Bank has Il. nalIv yielded to the combined assaults of lie stockholders and depositors and has closed it's doors ur'ii arrangements can ha nade to dis %il1 depostors then oe decided.
 .sWhen the business depression came o, inc stockholders from necessity or fear began throwing the stock upon the market The stock issue was large and inc market weak Thereupon disquieting ru,,ors snrang into birth, groundless. baseless and perhaps Tn some cases man. cious These increased the weakness of Inc stocl< and the weakness increased the s,,r,,ors until our splendid list of deposit tors took fright and the rapid withdrawal of money began and increased in volume daily until despite our best efforts to call Tn ioans and provide funds, the bank could no longer meet the demands upon if and drastic measures became necessary. orr demand loans could not all be collect ed forthwith, and our time notes had not yet matureo'
 Deposits of $4,ooo,ooo
 ..rvo weeks ago our deposits exceed os fo,tr million dollars. and until yester- da,, we had maintained our full legal uasarve We have had no actual losses. .S o,,th one exception our combined ble losses up to date would not az i,,os,ate ne-half of per cent of our capi- tat The exception referred to Is our claim ainst the Eastern Tube company, .,shtnb may or may not result in loss, and a,,an if A total loss should there ensure 1t eo',id he paid in full out of our individual nroets without touching either our capi- tal of s2OO0,00O or surplus of S400 900. '.The officers and directors have tried .hoir utmost to prevent this climax-this aar,e of official stupidity and money mad aese when all other efforts failed to steno the tide, they sought the financial taIr of associated banks of Pittsburg and rsceived most courteous and kindly sym nathy and advance.
 Depositors Panic-Stricken.
 ..Wben our doors closed we had approxi-