Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1913-07-08
NJ 'ADOO EXPECTS
NONORE TROUBLE
SAYS BIG PITTSBURGH FAILURE
ONLY SPORADIC CASE OF
BAD BANKING.
BANKING CONDITIONS Good
Secretary VIII Make II Sweeping Probe
of the Failure of the Big
Institution.

WASHlNGTON July Secretary
McAdoo, IN a statement tonight, de-
clared that the general banking con-
dition in Pittsburgh, as well as in the
entire country, was strong, and that
he expected no further trouble as
result of the failure of the Pittsburgh
First Second National Bank.
THE failure OF the Pittsburgh bank
is simply a sporadic case of unsound
banking and has no other siguiflc-
anCe," the secretary said He added
that the receiyership for this institu-
tlon removed "A long standing sore
spot In the Pittsburgh situation, leaY-
Ing the general condition in that city
sound.
The secretary viii make a sweeping
investigation of the causes of the fail
urc of the big bank and probably will
call upon the department of Justice to
assist the secretary IN uuearthing any
irregularities In connection with the
collapse.
II developed tonight that one fact
which drew the critical attention and
suspicion of the treasury department
to the banks condition, was a dis
crepancy Of nearly two million dollars
between the sworn report TO the com
troller Of the currency as to the banks
condition on June 1, and what should
have been a true copy of this report
published by the bank in the news
papers of Pittsburgh.
Nearly Two Million Difference.
The report of the comptroller
showed assets and liabilities aggre-
eating SS9,s97, 347,lO each, while as
given To the Pittsburgh newspapers for
publication, the report placed these
totals at $3S, S,103,SS6.39, the $l.S93,-
46O.7 difference representing dis
counts OF borrowed money. Officials
declared that this was Illegal.
Reports to the department indicate
that one third of the S3,400 600 capi-
tai stock of the bank has been I'M
paired and that the surplus and prof
its have been wiped out. While de-
tails are lacking, estimates based on
last report to the comptroller OF the
currency. indicate that at this rate the
loss might reach three million dollars.
Secretary McAdOo issued this state
mcnt.
McAdoo's Statement.
"Thc acting comptroller of the cur
renCy took charge Of the First Second
National bank Of Pittsburgh today be-
cause it's directors, at "a meeting held
i'm Pittsburgh yesterday, expressed
their inability 10 make good an i'm
pairment OF its capital and decided
thnt the wise thing for all interests
was for the acting comptroller to take
the situation In hand. The Pittsburgh
Clearing House association which has
has had the matter under cousidera-
tion for several days had in the mean
time. also decided that it was mex
pedient to furnish the AMOUNT Of as
sistauce required to keep the bank
going.
"lhat bank which was handed
down from the last administration has
for some time been a sore spot in the
local situation. and its liquidation be-
came inevitable.
THE Kuhns of Pittsburgh were in
tercstcd in the First-Second National
bank and also in the First National
bank of Mck"esport. The latter also
closed its doors as a result of the form
cr's failure Tho general banking stu
alton IN Pittsburgh is sound and no
further trouble with banks is expected.
Had No Other Course.
"The acting comptroller had no al
formative i'm the circumstances but to
take charge of the l'irst-Sccoud Ma
tioual bank I'm order 10 prevent the
withdrawal of large deposits. which
had already begun. and To secure for
.le small depOsitors equal treatment
with the large ones. Eyerythiug Will
bee done by the acting comptroller to
further promote liquidation Of the
banks assets $50 that the depositors
may bc paid with the least possible
delay.
THE recent reports of the national
banks O. tho comptroller OF the cur
rcucy show "a safe and strong condition
throughout the country Tho failure
Of the Pittsburgh bank is simply a
sporadice case of unsound banking and
has no other Significance
The critical eyes of government ex-
amincrs had been on the First Ma
tional bank Of Pittsburgh for several
years and on the Consolidated First
Second bank ever since the analga-
nation In March. Suspicion was in
creased when 1t was discovered hy the
comptroller of the currency that the
legal reserve Of the institution was de-
ficieut 10y {2.4l5.00O and that the
statement OF the condition " the bank
as presented TO the comptroller and
as published In the newspapers were
al.