BANK FAILURE.

Dominion, Volume 6, Issue 1832, 19 August 1913, Page 3

BANK FAILURE.

AMERICAN MONEY CRISIS. Since the panic of 1907, ,no financial event las created - such intense excitement as tho closing on July 7by the order of the Aoting-Controller of Curt rency of the First- and Second National Bank of Pittsburg. The bank has a capital and surplus amounting to X1,200,C00 and doposits aggregating .£6,000,000.

Its suspension was followed 1 by the closing of the First National. Bank of M'Keesport, whic'h has a capital of .£60,000 and a surplus of .£IOO,OOO, and by an application for a receivership on behalf of tho American Waterworks and Guarantee Company, capitalised at .£1,000,000 and controlling companies representing a capital of .£14,600,000. The Guarantee Company in June of, last year doc! ami a dividend of 150 per 'cent.

The bank directors on the day of the closing issued a statement in which they declare -that the Treasury Department after sanctioning a merger with the First and Second National Banks subjected the •merged banks to 'a rigid investigation 'by special examiners who are unable to judge of the values of the property and securities." The difficulties found by the examiners would have, been overcome had more time been allowed. "We are convinced," they say; "that all claims can be paid in full."

According to the .Treasury Department, tliere is a shortage of about sterling. The president of the bank is Mr. W. S. -'Knkn-, Vho is also president of the M'Keesport Bank and vice-presi-' dent of the American Waterworks Guarantee Company, of which his brother, Mr. J. S. Kuhn, is president. Tho brothers are partners in the firm of J. S. and W. S. Kuhn, a largo banking and Stock- Exchange firm. The difficulties of the Pittsburg concerns are attributed mainly to ths- tightness of the money market.