16758. Pittsburg Bank For Savings (Pittsburg, PA)

Bank Information

Episode Type
Run Only
Bank Type
state
Start Date
July 7, 1913
Location
Pittsburg, Pennsylvania (40.441, -79.996)

Metadata

Model
gpt-5-mini
Short Digest
58a61052e2806235

Response Measures

None

Description

A run began on the Pittsburg Bank for Savings after the July 7, 1913 suspension/closing of the First-Second National Bank. The savings bank paid small depositors $50 on demand and required 30/60/90-day notice for larger withdrawals; it remained open and did not suspend in these articles. OCR: 'Pittsburg' spelling retained as in sources.

Events (3)
1. July 7, 1913 Run
Cause
Local Banks
Cause Details
Run was triggered by the closing/suspension of the First-Second National Bank (and allied Kuhn institutions), which caused depositors to withdraw from the savings bank.
Measures
Paid small depositors $50 on demand; required 30/60/90-day notices for larger withdrawals; made millions in cash and quick assets available; police kept order.
Newspaper Excerpt
Following the news of the closing of the First-Second National Bank, a steady run started on the Pittsburg Bank for Savings
Source
newspapers
2. July 8, 1913 Run
Cause
Local Banks
Cause Details
Continued withdrawals tied to fallout from the First-Second National Bank suspension and related Kuhn failures; run persisted into the second day.
Measures
Reported $5,000,000 cash on counter and $5,000,000 more available; continued to pay $50 and enforce notice for larger sums; management changes (Kuhns resigned).
Newspaper Excerpt
When the Pittsburg Bank for Savings opened its doors this morning a crowd of 500 people, mostly women, were waiting to get in.
Source
newspapers
3. July 9, 1913 Run
Cause
Local Banks
Cause Details
Ongoing effect of the First-Second National Bank failure and associated receiverships produced further withdrawals, though the run began to abate.
Measures
Continued paying $50 on demand; all receiving windows and tellers at service; new officers installed and assurances of support from clearing house.
Newspaper Excerpt
The run that was started on Monday upon the closing of the First-Second National Bank was resumed but not in such volume as on the two preceding days.
Source
newspapers

Newspaper Articles (13)
1. July 7, 1913 Atlanta Georgian Atlanta, GA
Article from Atlanta Georgian, July 7, 1913

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Article Text

CLOSING OF BANK INVOLVES 40 MILLIONS One of the Oldest Institutions in Pittsburg Ordered by U. S. Comptroller to Suspend. PITTSBURG, July 7.-The FirstSecond National Bank of Pittsburg, one of the city's oldest banking institutions, closed its doors to-day by direction of the Acting Comptroller of the Currency. The amount involved is said to be between $24,000,000 and $40,000,000. One report is that the amount will reach $200,000,000. The Pittsburg Clearing House had a special meeting last night to consider the impending failure and today another conference was held. Hundreds of depositors, many of them foreigners employed in the great steel mills, flocked to the bank early to-day but a squad of police kept every one moving. The First and Second National Banks combined last March and OCcupied a new 25-story building. A typewritten notice on the doors stated the institution was in the hands of National Bank Examiner Samuel M. Hann and Sheriff Smith. A director of the bank to-day made the following statement: "The officers and directors are a unit in maintaining that a great injustice has been done and that the bank is solvent at this moment. We are also convinced that all claims will be paid in full. If the Treasury Department, operating through the Comptroller of the Currency, had not interfered and had not subjected the bank to a rigid examination by special examiners who were not able to judge values of property and securities in this community, we would have been able to work out to success our problems.' Following the news of the closing of the First-Second National Bank, a steady run started on the Pittsburg Bank for Savings, which also is controlled by the Kuhn interests.

2. July 8, 1913 Evening Times-Republican Marshalltown, IA
Article from Evening Times-Republican, July 8, 1913

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Banking Circles Unaffected. Pittsburgh, July 8.-Financial Pittsburgh showed little outward evidence today of yesterday's crash in banking circles involving the failure of the First-Second National Bank, with $32,000,000 deposits, the First National Bank of McKeesport, an allied institution, and the appointment of receivers for the American Waterworks and Guarantee Company, and for the banking house of J. S. and W. S. Kuhn, incorporated. Nothing unusual was observed about other banks of the city except the Pittsburgh Bank of Savings, another bank controlled by J. S. and W. S. Kuhn. who controlled the majority of stock in the two banks that suspended yesterday. The run on the savings institution. that was started by the failures yesterday, was resumed today, but the same method as adopted yesterday was pursued today. All depositors were paid $50 at once and notice of thirty, sixty and ninety days for larger amounts were required. No Serious Result Anticipated. With the assurance of several millions in cash and quick assets in hand the run on this bank is not looked upon as likely to result seriously, in fact bankers with no connection with the Kuhn interests assert that the bank of savings will weather the situation and make all payments demanded under the conditions imposed, with the result that at the expiration of the time for withdrawal of larger amounts the public's confidence will be restored. About the First-Second bank today large groups of foreigners were gathered, copying from the doors of the foreign banking department the notice posted by the government, which was in sixteen different languages. A meeting for the clearing house association was called for later in the day when a statement is expected regarding the closing of the First-Second National bank. New Officers Elected. J. S. and W. S. Kuhn, today resigned as president and vice president of the Pittsburgh Bank of Savings at which a run is being directed. The followink officers were chosen: W. J. Jones, president; L. M. Plumer, vice president: A. N. Voegtley, secretary and treasurer. Run Subsides. The failure of the First-Second National Bank of Pittsburgh, and the First National Bank of McKeesport, with the subsequent receiverships for the American Waterworks and Guarantee Company and the banking firm of J. and W. S. Kuhn Company, who were dominant factors in the former institutions, it was established by noon today, would have no deleterious effect upon other financial institutions. The run on the Pittsburgh Bank for Savings, a Kuhn institution, which started yesterday, seemed to have abated shortly after the announcement that J. S. and W. S. Kuhn had resigned from the presidency and vice presidency of the bank. Contemplated meeting of the clear-

3. July 8, 1913 Atlanta Georgian Atlanta, GA
Article from Atlanta Georgian, July 8, 1913

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Article Text

Pittsburg Bank Run Starts Second Day PITTSBURG, PA., July 8.-When the Pittsburg Bank for Savings opened its doors this morning a crowd of 500 people, mostly women, were waiting to get in. Policemen kept the crowd in line and there was no disorder. On the bank counters $5,000,000 in cash was stacked before the hour for opening this morning. and officials announced that $5,000,000 more was available.

4. July 8, 1913 Evening Star Washington, DC
Article from Evening Star, July 8, 1913

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Article Text

BANKS DECLINE FEDERAL FUNDS Financial Pittsburgh Shows No Outward Evidence of Big Failure. SAVINGS INSTITUTIONS WILL WEATHER RUN Kuhns Resign as Officers-Inquiry Will Be Started-Bank Mismanaged. PITTSBURGH, July 8.-Financial Pittsburgh showed little outward evidence today of yesterday's crash in banking circles involving the failure of the FirstSecond National Bank with $32,000,000 of deposits, the First National Bank of McKeesport, an allied institution, and the appointment of receivers for the American Water Works and Guarantee Company, the largest concern of Its kind in the country, and for the banking house of J. S. & W. S. Kuhn, Incorporated. J. S. and W. S. Kuhn this morning resigned as president and vice president. respectively, of the Pittsburgh Bank for Savings. The following officers were elected to take charge of the bank: W. J. Jones. president: L. M. Plumer, vice president: A. N. Voegtley, secretary and treasurer.

5. July 9, 1913 Norwich Bulletin Norwich, CT
Article from Norwich Bulletin, July 9, 1913

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Run Starts On a Savings Bank SMALL DEPOSITORS PAID $50 ON DEMAND, PITTSBURG SITUATION Aside from This Run Financial Conditions There Are practically NormalBank Prepared for Any Emergency, Pittsburgh, July 8-To the decisive and sharp cut statement of Secretary of the Treasury McAdoo issued last night is attributed the restoration of almost normal conditions in financial Pittsburgh tonight despite the closing of the First-Second National bank yesterday, an institution that had been accredited one of the strongest in the country. While the situation inwas tense yesterday, and little formation as to posible developments was obtainable the flat statement of facts of the secretary served to develop an overnight optimism that grew in magnitude as today advanced. McKeesport Bank Suspends. The closing of the First-Second was naturally followed by suspension of its affiliated bank the First National of McKeesport and the appointment of receiverships for the banking house of J. S. and W. S. Kuhn, Inc., whose principals were the majority stockholders of both institutions and a like action with the American Waterworks and Guarantee company. an enterprise fathered by the Kuhn interests. Run on Savings Bank. Another Kuhn interest that was affected, the Pittsburgh bank for Savings, suffered somewhat from the complication, a run being started on it yesterday, chiefly by small depositors, This was continued in somewhat appears to abate as the day wore on. apears to abate as the day wore on. Crowds assembled about the bank building and the sidewalk about the building was roped off. The small groups of depositors that entered the bank were promptly paid $50 upon demand as yesterday, and required to give the legal notice of 'thirty, sixty or ninety days, to withdraw other amounts above stated figures. Yesterday $57.00 Owas withdrawn from the bank, while the deposits were $20,000. It is assured the withdrawals were under yesterday's figures. Prepared For Any Emergency. There were reports that a million dollars had been shipped to the Pittsburgh Bank for Savings today from Philadelphia but this was not verified and was discredited by clearing house members who verify the statement of the bank made yesterday that this bank has $5,000,000 in cash and $6,000,000 in quick assets, enabling it to meet any stress or emergency, Resignation of the Kuhns. About noon the announcement was made that J. S. Kuans, president and W. S. Kuhns, vice president, had resigned and that W. J. Jones, the former secretary and treasurer of the bank had been made president, with A. N. Vegtly, former assistant to Mr. Jones, as secretary and treasurer while L. M, Plummer, a director, was made vice president. Several Decline Receivership. Expected statements as to the American Waterworks and Guarantee company were not forthcoming today, the delay being attributed to the delay in the appointment of the fourth receiver, which Judge Orr announced should be a man having no business interests with the Kuhns. Several business men have refused to accept the appointment of receiver.

6. July 9, 1913 The Salt Lake Tribune Salt Lake City, UT
Article from The Salt Lake Tribune, July 9, 1913

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Resignations Tendered. PITTSBURG, July 8.-J. S. and W. S. Kuhn today resigned as president and vice president of the Pittsburg Bank for Savings. at which a run is being directed. The following officers were elected: W. J. Jones. president: L. M. Plumer, vice president: A. N. Voegtley. secretary and treasurer. In the United States district court today Judge Charles P. Orr appointed Fred G. Kay as the fourth receiver for the American Waterworks and Guarantee company W. J. Jones, formerly treasurer of the Pittsburg Bank for Savings. but today made president of the institution, said after his election: "The Kuhns have entirely withdrawn from the bank. As it was they were only the nominal heads of the organization. "There is no question about our bank. We are backed by many Pittsburg banks and we have the support of the clearing house."

7. July 9, 1913 The Salt Lake Tribune Salt Lake City, UT
Article from The Salt Lake Tribune, July 9, 1913

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Savings Bank Suffers. Another Kuhn interest that was affected. the Pittsburg Bank for Savings, suffered somewhat from the complication, a run being started on It yesterday, chiefly by mail depositors. This was continued in somewhat greater magnitude early today, but it appeared to abate as the day wore on. The small groups of depositors that entered the bank were promptly paid $50 upon demand, as yesterday, and required to give the legal notice of thirty, sixty or ninety days to withdraw other amounts above stated figures. Yesterday $57,000 was withdrawn from the bank, while the deposits were $20,000. About noon the announcement was made that J. S. Kuhn, the president, and W. S. Kuhn, the vice president. had resigned, and that W. J. Jones, the former secretary and treasurer of the bank, had been made president of the bank, with A. N. Voegtly, former assistant to Mr. Jones, as secretary and treasurer, while L. M. Plummer, a director, was made vice president.

8. July 9, 1913 The Daily Ardmoreite Ardmore, OK
Article from The Daily Ardmoreite, July 9, 1913

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THOSE SEEKING THEIR DEPOS. ITS THIS MORNING FEWER THAN USUAL. STATEMENT OF KANE Says First National Bank of Pittsburg Should Have Been Closed at the Time of its Merger With the Second National Bank. Pittsburg, Pa., July 9.-When the Pittsburg Bank for Savings opened for business this morning the run, which started Monday upon the closing of the First-Second National bank was resumed but not in such a volume as on the two preceding days. Those who came to deposit found difficulty in being waited on quickly and there were complaints from these. President W. T. Jones, who was elected yesterday, said that it was a demonstration of confidence in the bank.

9. July 9, 1913 Imperial Valley Press El Centro, CA
Article from Imperial Valley Press, July 9, 1913

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Pittsburg Bank Probe Is Planned. WASHINGTON, July 9.-John Skelton Williams, assistant secretary of the treasury, who represented Secretary McAdoo at the closing of the Pittsburg First-Second National bank, today declared that the institution had been "seriously mismanaged and the extent of the mismanagement would be determined by the department of justice." Officials are now giving particular attention to the discrepancy between the sworn report of the bank to the comptroller of the currency on June 4. and the financial statement as published in the Pittsburg newspapers. The report to the comptroller showed nearly $2,000,000 in rediscounts or borrowed money, but that item was omitted from the published statement. The national bank act requires the publication of the statement in the form submitted to the comptroller. Treasury officials reiterated today their confidence that the general banking condition in Pittsburg and the entire country was strong and that the failure of the First-Second National bank simply was the collapse of a weak spot. due, as they phrased it, "to unsound banking." The entire capital and surplus of the First-Second bank amounting to $5 500,000 has probably been wiped out. but officers of the bank have assured the government that depositors will be paid in full or nearly in full. PITTSBURG, July 9.-J. S. and W. S. Kuhn resigned today as president and vice president of the Pittsburg Bank for Savings, at which a run is being directed. The following officers were elected: W. J. Jones, president: L. M. Plumer, vice president; A. N. Voegtley, secretary and treasurer. The First National Bank of McKeesport, controlled by J. S. and W. S. Kuhn. which was closed by the directors yesterday, was formally closed today by order of the comptroller of the curcency at Washington.

10. July 9, 1913 Newark Evening Star and Newark Advertiser Newark, NJ
Article from Newark Evening Star and Newark Advertiser, July 9, 1913

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BANK PROBE TO BE STARTED AT ONCE McAdoo Says Evidence Warrants Prosecution of Defunct Institutions' Managers. WASHINGTON, July 9.-Secretary McAdoo before the close of the day expects to ask Attorney-General McReynolds t₀ investigate alleged irregularities in connection with the closing of the First-Second National Bank of Pittsburgh, and determine whether the National Bank act has been violated. Sufficient facts have been collected by the treasury department, it is said, to warrant immediate intervention by the department of justice. Thomas P. Kane, acting comptroller of the currency, who returned today from Pittsburgh, where he closed the First-Second National Bank. declared that the First National Bank of that city should have been "cleaned up or closed up" at the time of its merger with the Second National Bank several months ago. The merger was authorized by Lawrence O. Murray, former comptroller of the currency. At that time, Mr. Kane declared today, the First National's capital was badly impaired and the bank was notified last December that its impaired capital must be restored. The comptroller added that the condition of the bank had been long well known in banking circles in Pittsburgh, New York and elsewhere. Details of the causes which induced the treasury department to close the bank Monday morning became known today, with the return of Comptroller Kane. He declared that information concerning the government's surveillance of the bank leaked out and one big depositor withdrew $200,000 last Saturday. Government officials then learned that other big depositors contemplated making heavy withdrawals Monday. To prevent the large depositors from gaining the advantage of saving their deposits at the expense of little depositors who were not aware of the circumstances, the government refused to let the bank open. PITTSBURGH, July 9.-When the Pittsburgh Bank for Savings opened for business this morning the run that was started on Monday upon the closing of the doors of the FirstSecond National Bank was resumed but not in such volume as the two preceding days. Police regulations continued to be maintained and all the receiving windows were thrown open for the use of those desiring to withdraw money from the bank. Those who came to deposit found much difficulty in being waited on quickly, and complaints from these, President W. J. Jones, who was elected yesterday, said were a demonstration of the confidence in the bank.

11. July 9, 1913 Atlanta Georgian Atlanta, GA
Article from Atlanta Georgian, July 9, 1913

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RUN ON BANK CONTINUES. PITTSBURG, July 9.-Another heavy run started to-day when the Pittsburg Bank for Savings opened its doors. Police held the crowd of at least 500 back, permitting one person at a time to enter the bank.

12. July 9, 1913 The Fairmont West Virginian Fairmont, WV
Article from The Fairmont West Virginian, July 9, 1913

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Finance Blow In Pittsburgh Passes Over CONFIDENCE RESTORED WHEN SAVINGS BANK CUSTOMERS MAKE DEPOSITS. (BY ASSOCIATED PRESS) PITTSBURGH, Pa., July 9.-When the Pittsburgh Bank for Savings open ed for business this morning the run that was started on Monday upon the closing of the First-Second National bank was resumed but not in such volume as the two preceding days. Po. lice regulations continued to be maintained and all the receiving windows, were thrown open for the use of those desiring to withdraw money from the bank. Those who came to deposit found difficulty in being waited on quickly and no complaints were made which W. J. Jones, president, who was elected yesterday said this was a demonstration of the confidence in the bank. He further announced that all tellers were at the service of those desiring to withdraw and as little inconvenience as possible would be caused. He again reiterated the former declaration of the members of the bank's officials that the bank was prepared to meet the most exacting situation.

13. July 11, 1913 Northern Wisconsin Advertiser Wabeno, WI
Article from Northern Wisconsin Advertiser, July 11, 1913

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U. S. MAY PROBE BANK FAILURES First-Second National of Pittsburgh Suspends. REPORT SHOWS DISCREPANCY Receivers Are Appointed for $73,000,000 Waterworks Company Controlled by the Kuhns - McAdoo Reassures Financiers. Pittsburgh, Pa., July 9.-As a result of the suspension of the First-Second National bank of Pittsburgh Monday, one of the largest institutions in the country, of which W. S. Kuhn is president, the government may start criminal prosecution. The bank had more than $30,000,000 in deposits. The circumstances on which the probable prosecutions are based is the discrepancy of nearly $2,000,000 between the sworn report to the comptroller of the currency as to the bank's condition on June 4 and what should have been a true copy of this report published in the Pittsburgh newspapers. The report to the comptroller showed assets and liabilities aggregating $39,997,347.10 each, while as given to the Pittsburgh newspapers for publication the report placed these totals at $38,103,886.39. the $1,893,460.71 difference representir g rediscounts or borrowed money. Officials declare that this was illegal. The closing of the First-Second bank was followed by action in rapid series against various other interests with which the Kuhns are identified. During the day there was a run on the Pittsburgh Bank for Savings, a large institution, of which J. S. Kuhn is president. Then came the closing of the First National bank of McKeesport, an adjacent city, which is closely allied to the First-Second of Pittsburgh. Soon afterwards a receiver was appointed for the banking house of J. S. & W. S. Kuhn, incorporated. Greatest of all disasters in this tremendous financial crash, however, was the receivership for the American Waterworks and Guarantee company, the largest concern of its kind in the country. of which J. S. Kuhn is president. This corporation controls waterworks plants in about eighty cities and towns in the United States. and the capital stock of the various controlled companies approximates $73,000,000. The one consoling feature of the sitnation was a reassuring statement sent out from Washington by Secretary of the Treasury McAdoo, in which the declared that the general banking condition in Pitsburgh, as well as in the entire country, was strong and sound, and that he expected no further trouble as a result of the failure. The secretary will, it is said, make a sweeping investigation of the causes of the failure of the big bank and probably will call upon the department of justice to assist the treasury in unearthing any possible irregularities in connection with the collapse. The closing of the First-Second National bank was ordered by Deputy *Comptroller of the Currency T. P. Kane after every effort had been made to meet the government requirements 18 to legal reserve.