The Washington times., 1913-07-07
TWO BANKS ARE
ORDERED CLOSED
Treasury Takes Action to Pro-
tect Small Depositors of
Pittsburgh Institution.
Continued from First Page.)

Continued from First Page.)
will be paid in full.
Action was taken to anticipate a run
on the Pittsburgh bank today. For
close touch with the situation with re-
spect to the F1rst-Second National
Benk. When IL became rumored abroad
that the institution was shaky, Secre-
tary McAdoo stepped into the breach to
see that all deposttors received equal
treatment, and put the institution in the
hands Of the ComptroIler's office. Had
It not been for this action, II was point
ed out. big deposftors, on the inside,
might have rushed in early this morn
ing, Withdrawn their deposits, and then,
In case there was not enough to go
and women earning a small salary and
laying by for a rainy day, would have
been the losers.
The closing of the First-second Ma
tionai ties up over S3o. o.0oo.o 600 in deposits.
The First National Of McKeesport has
nearly three and one-haif million dol
lars on deposit.
It was intimated at the Treasury De-
partment today that forehanded action,
such as that taken in these two in
stances, would be the fixed policy of
the present Administration, Secretary
Government to protect the small de-
posttors, the big interests usually be-
Ing able to take care Of themselves.
Directors of the Pittsburgh bank in
vited the Comptroller's office to take
charge. 1t was declared today. This
since its organization, In March. The
old First National Bank of Pittsburgh
has been under the eye Of the Comp
troiler's office for two years. and last
winter a consolidation OF the First Ma
tional and the Second National, a strong
institution, was arranged, with the be-
lief that the stronger institution would
bolster up and carry the weaker one.
Approval Of the merger was given by
the Comptroller's office during the Taft
Administration. and It was effected on
March II.
When the Comptroller's call on na-
tional banks was issued June last,
the First-Second National Bank showed
conditions that led Acting Comptroller
Of the Treasury Kane Immediately TO
dispatch examiners to make an investi-
CATION. Its condition was caused by the
depreciation OF capital and certain Sc
curities that II carried by approximate
ly 30 per cent. These securities. 1t Is
said. are Wabash coal, water works SC
curities and other issues on which the
bank could not realize. The holding of
SO much Of this paper was characterized
az bad banking by a Treasury official
today.
Both the First-second National
Bank Of Pittsburgh and the First Ma
tional Bank of McKeesport, Pa, are
controlled by thDGnnR family Of Pitts
burgh. wldc1l nelye nnaneial.
the F1rst-z NATIONAL BAnk:
with J. 81 h. is one of the principal
Two hank examiners have been maxi
ing a detailed examination of the Pitts
burg Institution for three weeks. max
ing daily reports. Last week, when
they concluded their work. Acting
Kane went to Pittsburgh
and It was on the final report from
tirl and his two examiners that action
was taken by the Treasury today.
A meeting of the Clearing House As
sociation Of Pittsburgh was held yes
terday IN an attempt to bolster up the
ing TO carry il. but Secretary McAdoo
deemed IL wise to step In and take con-
troll.
Many of the small depositors in the
Pittsburgh institution are foreigners
VIC rking in the mills. and Wild excite
ment was created among them when
II became known that the bank was
closed. Hundreds besieged the doors.
but the police were prepared. and kept
every one moving.
It was stated at the Treasury today
closing Of the First-Second National and
First National Of McKeesport were pure
" local. and that no other financial In
terests were affected. It has no bear
Ing on the general banking situation, 1t |
Is declared |