The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1914-09-02

The American National Bank closed
its doors yesterday morning as the,
result Of run on the bank by depos-
itors who began to draw out their
money when the bank opened for bUsi-
ness at 9 o'clock.
Late yesterday afternoon the comp
troller Of the currency appointed W.
II. Milton as receiver Of the institu-
ton and he win take charge this morn
ing.
Whether the bank will be opeued
and operated by the receiver or put
through a process Of reorganization
can only be determined after an eN-
animation by the agents of the comp
trcller Of the currency, but It IS gem
orally believed by the business public
that the bank will be found to be per-
fectly solvent and that depositors VIII
all be paid in fun when the affairs
Of the institution are adjusted.
At the hour Of opening yesterday
the bank had cash on hand to the
amount OF $162, 900 and this with the
addition of its exchange and other
cash items represented much more
than the required legal reserve. The
Withdrawals during the morning
amounted to $4,000, and when IL be-
came evident that the run was to b0
continued the only thing the bank
could do, for the protection Of all in
terests. was to close It's doors.
RUN RESULT OF RUMORS. =
The run on the American NationaE
Bank was the direct result of rumora
which had been in circulation for sew
eraI days in reference to the banks
solvency. There seemed to be no
foundation for the rumors and none
- Il -
source, but they proved their efrec4
tiveness to a most remarkable degree.
The rumors were particularly persis-
tent Monday night and by Tuesday
moruing many of the small depositors
Of the bank were at the door waiting
to get their money.
When it appeared that the run was
likely to develop into larger proper
tions, President c. W. Lamar called
a meeting of the directors and after al
canvass Of the situation the following
resolution was passed:
RESOLUTION ADOPTED.
At a meeting of the board Of di-
rectors Of the American National
Bank Of Pensa cola, Florida, held in
the directors room OF said bank in
the city Of Pensacola, at the hour OF
ten o'clock, pursuant to notice duIy
given to each director residing in
the city Of Pensacola, there were
present Messrs. c. w. Lamar, n. /.
Covington, Thos " Hannah, W s.
ROsasco and Frank Reilly. The
president reported to the directors
that, owing to conditions arising
during the course Of business on the
31st day Of August and the early morn
Iag of the first day Of September, fol
lowed by heavy withdrawals, caused
by persistent DANA ginR rumOrs, the re
serve Of the bank was rapidly being
depleted to such an extent as 70 reduce
it below the legal requirement, and
thai the reserve could not be within
d limited time replaced within the
usual course Of business. Upon mo-
tion duly made by II. L. Covington and
seconded by Frank Reilly. it was
RESOLVED, That the American
National Bank Of Pensacola, Florida,
be closed to business and that no fur
ther deposits be received, nor checks,
drafts, moneys or other Of it's assets
be paid out until the further order Of
the comptroller Of the currency and
that the comptroller be duly notified
Immediately by telegraph and that this
announcement be made by the bank
at once"
Following this action BY the direc-
tors the banks doors were closed and
4 notice posted on the door announcing