The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-07-08
SECRETARY NJ AD00
MAKES STATEMENT
DEFuNCr BANK A SORE SPOT
HANDED DOWN FROM LAST
ADMINISTRATION.
SITUATION IS GOOD
MERELY SPORADIC CASE OF IN
SITUATION IS GOO[
MERELY SPORADIC CASE OF IN
SOUND BANKING AND NO
FURTHER TROUBLE IN PITTS
BURG EXPECTED.

WASHINGTON. July 7,-Secretary
Of the Treasury McAdoo late today
Issued tbs following statement on the
closing of the First-Second National
hank Of T'ittshurg. and the First
National hank IF Mckeesport:
THE acting comptroller of the cur
rency took charge of the First second
National bank of Pittshurg today be-
cause its directors In q meeting held
at PirtsourE yesterday expressed their
inability 10 make good an impairment
of its capital and decided that the
wise thing for all interests was for the
acting comptroller 10 take the situa-
ton In hand. The Pittsburg Clearing
House association, which has had the
matter under consideration for sew.
eral DAYS had in the meantime also
decided that 1t was inexpedient to FUR
rish the amount OF assistance required
to keep the bank going.
Sore Spot For Some Time.
This bank. which was handed
DOWN from the last administration. has
for some time been a sore spot in the
local situation and It's liquidation be-
came inevitable.
THE general banking situation In
Pittsburg Is sound and no further
trouble with banks Ia expected.
THE acting comptroller has no al
tentative In the circumstances hut to
take charge of the F1rst-Second Ma
tionai bank in order to prevent the
withdrawal of large accounts which
has already begun and to secure for
the small depositors equal treatment
with the large cases. Everything will
be done by the acting comptroller
to further prompt liquidation of the
banks assets so that the depositors
may he paid with the least possible
delay. psfss4se sssss
Merely Sporadic Case.
THE recent reports of the national
banks to the comptroller Of the cur
rency show sound and strong con-
dHion throughout the country. The
failure of the Pittsburg bank is SIM
ply a sporadic case of unsound bank
ing and has no other significance.
Secretary McAdoo is represented at
Pftsburg in connection with the clos
ing of the Kuhn hanks by Assistant
Secretary of the Treasury Williams
and Deputy Comptroller Kane, FREE
quent reports on the situation in
Pittsburg in the last few days have
been received by Mr.. McAdoo. The
latest report received this afternoon
indicates that one-third OF the bank $
capital of $4,000. 900 is impaired.
Statements DO Not Agree.
The condition of the First Second
National bank has been before the
treasury department as a serious mat
ter ever since the receipt of the state
ment received from the bank on the
call of June 4th, 1t 10 understood
that the statement showed a deficiency
in reserve of s145.000. 1t Is also said
that the statement of Its condition
published by the bank in the Pitts
burg panars differed materially from
the sworn statement furnished the
comptroller of the currency
Conferences with officials OF the
bank were held both in Pittshurg and
in Washington following the receipt of
this statement. Last week Assistant
Secretary Williams and Deputy Comp
troller Kane went 10 Pittshurg 10
make personal examination into the
situation.