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Banking Department Causes Local Institution to Suspend Business
The Miners and Merchants Bank failed to open its doors for business, Monday morning. Instead, business callers at the bank doors o'clock met the following blunt statement staring them in the face:
NOTICE OF POSSESSION Peter G. Cameron, secretary banking of the Commonwealth of Pennsylvania, in possession of the business and property of the Miners and Merchants Bank of This action under act the assembly, etc. (Signed) SWIGART, Chief Examiner.
Camerone's Statement to Press Secretary Cameron was called up Harrisburg by Johnstown newspaand gave statement relative the situation, which not wholly true, and does not state the real facts: His statement, as printed the Johnstown paper, was lows: the soft coal ducing district of the state, where that industry has been stagnant for number of years. Many of the depositors of the bank have been compelled for some time to resort to their savings to enable them to live. As consequence of the lack of work and the necessity of the depositors living upon their accumulated savings the fairs of the bank have reached condition which renders it the duty of the secretary of banking to take possession of the institution in order that the assets may be conserved and liquidated for the benefit of all the depositors." The suspension was not due to lack work. Work has been better in during the past year or two than in of the coal towns of this region. Depositors have been quietly withdrawing their savings, but not necessarily "to enable them to Conditions have never been that bad in There have been other causes. Frozen Assets Cause "Frozen the fatal disease that has wiped out thousands of banks in this land in the last seven or eight years, and would wipe out thousands of others here in Pennsylvania and elsewhere the banking department would compel them to call in their loans and liquidate their assets, the chief contributing cause of the local failure. The deflation in real estate values in the past six years forced the bank to take over many properties on which it held mortgages for loans made in more prosperous times, when values were more than double what they are now. In the last called statement of the bank publishfour weeks the value of ago, real estate held given as over Petty jealousies, too, and lack of operation in the community prior to and following the merger of the two local banks several years ago, played no small part in bringing about the present distressing calamity to the community. Special Deputy Secretary of Banking George Taylor is now in charge of force of aminers have been busy since Monday morning in going through the books and records to sift out the real condition of affairs. Deputy Taylor would out no statement whatever cerning affairs of the bank when of terviewed yesterday, referring all quirers to Secretary Cameron Harrisburg. is stated, however, that depositors will be notified at once present their books for pass audit within the next few days. The bank will be either open the last of this or farthest the first of next week for that purpose. Some more the definite announcement as to conditions and outlook will be forthcoming in few days. Of course there are all sorts of and reports as what will done, but nobody outside of the small number work in the bank knows anything about as yet. people have taken the shock of the failure calmly and philosophically. past There has been no storming of the doors nor wild excitement, such read about in other places when such misfortunes strike. The only sensible thing for people to do now remain calm, and await the come, hoping for the best. Cameron Hopes for Best In long distance conversation with Secretary Cameron in Harrisburg, this filed morning, he the repeated to Journal that the bank had been taken over No the department in order to the assets for the benefit of the positors. He said they are hopeful that there will be enough to pay out they but added that owing the
