19356. 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: 4d07bb71

Response Measures

Accommodated withdrawals, Partial suspension, Books examined

Description

A run occurred on the Pittsburg Bank for Savings beginning when the First-Second National Bank was closed (early July 1913). The savings bank paid small depositors $50 on demand and required 30/60/90-day notices for larger withdrawals. The run subsided within a few days and the bank remained open; there is no evidence the savings bank suspended or closed.

Events (1)

1. July 7, 1913 Run

Cause: Local Banks
Cause Details: Run was triggered by the closing of the First-Second National Bank of Pittsburgh (and allied First National Bank of McKeesport) and related Kuhn failures/receiverships.
Measures: Small depositors paid $50 on demand; larger withdrawals required thirty, sixty or ninety days' notice; officers resigned and new officers installed to reassure public.
Newspaper Excerpt: Also during the day a run was made on the Pittsburgh Bank for Savings, a large institution.
Source: newspapers

Newspaper Articles (12)

1. July 7, 1913 Santa Fe New Mexican Santa Fe., Santa Fe, NM

Article from Santa Fe New Mexican, July 7, 1913

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TWO BIG BANKS SHUT THEIR DOORS PITTSBURG AND M'KEESPORT INSTITUETIONS ARE CLOSED-OTHER BANKS AND ALLIED INTERESTS MAY BE AFFECTED-RECEIVERS NAMED. MANY WATER WORKS COMPANIES AFFECTED Pittsburgh, Pa., July 7.-A series of financial difficulties occupied the Pittsburgh district today. The FirstSecond National bank, one of the largest banks in the country, failed to open its doors. Within a short time the First National bank of McKeesport, an adjoining city, closed and during the afternoon receivers were appointed for the American Waterworks and Guarantee company, one of the largest of its kind in the United States and for the banking house of J. S. and W. S. Kuhn, incorporated. Also during the day, a run was made on the Pittsburgh bank for savings, a large institution. The troubles were due to financial difficulties confronting the Kuhn interests of this city. It is said the embarrassment is only temporary and that there is no immediate cause for alarm. Heavy investments in waterworks' propositions, coal and oil lands, interurban railway compaof nies, together with the financing of a skyscraper bank and office building P are given as some of the causes leadai ing up to today's suspensions. b The trouble first made its appearance in the First-Second National bank. It is said the government has been investigating conditions for the past month or since June 4 last, when the last statement was made. An alre leged deficiency of $2,145,000 in the legal reserve of the bank and the subdi sequent examination brought matters gl to a climax. N Several thousand persons congrein gated about the First-Second NationF1 al bank at noon. A squad of police in was necessary to keep the great pc crowd moving. di

2. July 7, 1913 Las Vegas Optic Las Vegas, NM

Article from Las Vegas Optic, July 7, 1913

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LEGAL RESERVE WAS SHORT SHORTAGE OF $2,145,000 CAUSES GOVERNMENT TO TAKE IMMEDIATE ACTION ALLIED BANK ALSO CLOSES AMERICAN WATER WORKS, CON CONTROLLED BY BANKERS, GOES INTO RECEIVERSHIP Pittsburgh, Pa., July 7-A series of difficulties occupied Pittsburgh to day. The First-Second National bank, one of the largest banks in the country, failed to open its doors. Within a short time the First National bank of McKeesport, an adjoining city, closed and during the afternoon receivers were appointed for the Amer ican Water Works and Guarantee company, one of the largest companies of its kind in the United States and for the banking house of J.S. and W. S. Kuhn, incorporated. Also during the day a run was made on the Pittsburgh Bank for Savings, a large institution. The troubles were due to federal government confronting the Kuhn interests of this city. It is said the embarrassment is only temporary and that there is no immediate cause for alarm. Heavy investments in water works propositions and lands and interurban railway companies, together with the financing of a sky scraper bank and fice building, are given as some of the causes leading up to today's suspensions. The trouble first made its appearance in the First-Second National bank. It is said the government has been investigating conditions for the past month or since June 4 last, when the 'last statement was made. An alleged deficiency of $2,145,000 in the legal reserve of the bank and the subsequent examination brought matters to a climax. Several thousand persons congregated about the First-Second National bank at noon. A squad of police was necessary to keep the great crowd 19. moving. The Frist Second National Ban's of Pittsburgh, the second larg est in the city and one of the largest in the country, was closed today by order of the comptroiler of the currency. The First National bank of McKeesport, Pa., an allied institution, also closed its doors. W. S. Kuhn and J. S. Kuhn own the controlling interests in both banks and their closing led to persistent reports a receiver would be asked for for the American Water Works and Guarantee company, the largest concern of its kind in the country, with which the Kuhns are prominently identified. This concern controls over 80 water works plants in the United States. The legai reserve of the First-Second National Bank of Pittsburgh was deficient by $2,145,000 on June 4, the the last call by the comptroller date of of the currency. This brought the situation to a climax. The First-Second National bank is a recent concern of the First and Second National banks of Pittsburgh and had deposits of more than $30.The suspension 000,000. of the on insti- the tution precipitated a run Pittsburgh bank for savings of which J. S. Kuhn is president. Differences of long standing with the treasury department concerning the character and value of certain assets of the former First National bank of Pittsburgh, which was merged with the Second National bank last March under the title of the National culminated First-Second burgh, today Bank in the of Pitts closing of the bank by order of Deputy Comptroller of the Currency T. P Kane. The First National bank of Mc Keesport, Pa., has closed its doors Secretary McAdeo was so advised to day. J. Kuhn, a brother of W.

3. July 8, 1913 The Washington Times Washington, DC

Article from The Washington Times, July 8, 1913

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counts nearly $2,000,000 greater than were shown in the published report. There is a divergence of poinion as to whether such rediscounts are full liabilities, partial liabilities, or liabilities at all, the law making no express provision. The question has always, it is said, been one of judgment in banking circles, some holding that a bank was responsible for bills receivable sold, until they were collected, as the bank would have to make good if the original debtor did not. Others hold that they are not a liabilities until collection fails and the bank has to make good. The presen banking laws have been under fire for several years. Many attempts have been made to revise the laws, but agitation lapsed with the passing of the monetary commissions. Officials of the Wilson Administration are convinced by recent event sthat Immediate action on th ebanking laws is necessary. Secretary McAdoo has been studying them with a view to recommending changes for several weeks. No Penalty. Another feature of the law that is attacke is that it provides no penalty for excessive loans, unless here is a loss therefrom, when the directors are held liable and must make good. Reassuring words as to the condition of Pittsburgh banking was sent out today. The run on the Pittsburgh Bank for Savings continued today, but this bank is believed by Treasury officials to be solvent. A crowd around it kept the police busy, it is reported. J. S. Kuhn and W. S. Kuhn have resigned as president and vice president, respectively, of this bank, W. J. Jones, secretary-treasurer of the institution, being made president, and A. N. Voeghtley being made secretary-treasurer. Lawrence O. Murray, former Comptroller of the Currency, and now president of the United States Trust Company, of this city, has been out of the city for the past week, and is not expected to return for several days. No statement from him in regard to his repotred approval of the formation of the First-Second National Bank of Pittsburgh, therefore, could be had today.

4. 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-

5. July 8, 1913 Evening Star Washington, DC

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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.

6. July 8, 1913 The Birmingham Age-Herald Birmingham, AL

Article from The Birmingham Age-Herald, July 8, 1913

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Three Leading Banks of Pennsylvania Forced Into Hands of Receivers Continued From Page One) bedside of his wife, who is ill at Prides Crossing, Mass. Differences of long standing with the treasury department concerning the character and value of certain assets of the former First National bank of Pittsburg, which was merged with the Second National bank of Pittsburg last March under the title of the FirstSecond National bank of Pittsburg, culminated this morning in the closing of the institution by order of Deputy Comptroller of the Currency T. P. Kane. Officials in Conference Directors and officers of the institution were in conference yesterday and last night with special bank examiners. Early this morning notices were posted on the bank doors that it had been ordered closed. The Pittsburg Clearing House association has taken charge of the situation and announces generally that no further trouble is expected. None of the officials of the bank would make a statement this morning announcing that affairs were in the hands of the government officials. Pittsburg witnessed a series of financial difficulties today that began when the First-Second National bank failed to open its doors. Within a short time the First National bank of McKeesport closed and during the afternoon receivers were appointed for the American Waterworks and Guarantee company, one of the largest concerns of its kind in the United States, and for the banking firm of J. S. and W. S. Kuhn, incorporated. A run was made on the Pittsburg Bank for Savings, another large institution. This was among the day's events. Financial difficulties confronting/ the Kuhn interests of Pittsburg was the cause of the trouble. No Cause for Alarm It is said the embarrassment is only temporary and that there is no immediate cause for alarm. Heavy investments in waterworks properties, coal and timber lands and interurban railway companies, together with the financing of an office building are given as some of the causes leading up to the suspensions. An alleged deficit of $2,145,000 in the legal reserve of the First-Second National bank and the subsequent examination brought matters to a elimax. Attorneys today appeared before Judge C. P. Orr in the federal court and asked for receivers for the American Waterworks and Guarantee company and also for the firm of J. S. and W. S. Kuhn; incorporated. For the for, mer these were appointed: J. S. Kuhn, W. K. Kuhn, J. H. Purdy and Samuel J. Bailey, a bank official of this city. For the Kuhn company was ap-

7. 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.

8. July 9, 1913 Evening Star Washington, DC

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PITTSBURGH BANK RUN LESSENS IN VOLUME Depositors Still Seek Money, But Number Desiring Funds Is Not So Great Today. PITTSBURGH, Pa., July 9.-When the Pittsburgh Bank for Savings opened for business this morning the run that was started Monday upon the closing of the doors of the First-Second 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 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 that as little inconvenience as possible would be caused. He again reiterated former declarations of the bank's officials that the bank was prepared to meet the most exacting situation. PITTSBURGH, Pa., July 9.-To the decisive and sharp-cut statement of Secretary of the Treasury McAdoo, issued Monday night, is attributed the restoration of almost normal conditions in financial Pittsburgh, despite the closing of the doors of the First-Second National Bank, an institution that had been accredited one of the strongest in the country.

9. 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.

10. July 10, 1913 The Wheeling Intelligencer Wheeling, WV

Article from The Wheeling Intelligencer, July 10, 1913

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Conditions Normal. PITTSBURGH July 9.-Conditions in financial circles at the closing hour today had. to all appearances, reached normal. The run on the Pittsburgh bank for savings, which was started by the closing of the First-Second National on Monday, had entirely sub sided early in the afternoon. after a resumption of the run this morning had caused some slight anxiety. Further developments of affairs of the First-Second National were not looked for until Receiver C. C. Murray had had an opportunity to organize his force necessary in the liquidation of the institution. It was not expected that depositors would receive any dividend before the expiration of two months The First National Bank of McKeesport is expected to reopen within a week after a reorganization of its officers and directorate with the elimination of the Kuhn interests. which held the majority of the stock of the First-Second National bank. Other Receiverships. Application was granted by Federal Judge C. P. Orr to-day for receiver ships for six subsidiary companies of the American Water Works and Guarantee Company The companies are the United Coal. The Somerset (Continued on Page Nine.)

11. July 11, 1913 The Odanah Star Ashland, WI

Article from The Odanah Star, 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 representing 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 situation was a reassuring statement sent out from Washington by Secretary of the Treasury McAdoo, in which he 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 as to legal reserve.

12. July 11, 1913 Milford Chronicle Milford, DE

Article from Milford Chronicle, July 11, 1913

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2 BANKS CLOSE THEIR DOORS The First-Second in Pittsburgh Sbut by Comptroller. OTHERS ARE DRAGGED DOWN The First National, of McKeesport Also Closed and Receivers Askec For Big Water Company. The First-Second National bank, o Pittsburgh, Pa. the second largest it :the city, was closed by order O. the comptroller of the currency. The First National bank, of McKeesport, P1, as callied institution, also closed its doors W. S. Kuhn and J.S. Kuhn own the controlling interests in both banks and their closing led to pers.stent re ports that other concerns in which the two men are interested were in trou bie. These were in part verified when application for a receiver for the American Water Works and Guaranty company was filed in the federal court This is the largest concern of its kind in the country, controlling more than forty water works plants The Kuhns b are prominently identified with it. The attorneys who appeared before I Judge C. P. Orr in the federal court it to ask for receivers for the American Water Works and Guarantee company t also asked for receivers for the bank e ing firm of J. S. & W. S. Kuhn, Inc vi (For the former these were appointed c J.S.Kuhn, W. S. Kuhn, J. H. Purdy general manager of the company, and Samuel Bailey, Jr., a bank official of S Pittsburgh. For the Kuhn firm was appointed J.K. Du. who is treasurer in Bonds of $50,000 were ordered filed P for each receiver ST J. S. Be W. S. Kuhn & Co. have at branch offices in Philadelphia, Chicago al :New York and representatives in Bo3 ton apó London. a The legal reserve of the First-Sec ni and National bank, according to a dis patch from Washington, was deficient at by $2,145,000 June 4, the date of the th last call by the comptroller of the cur steacy. This brought the situa icn to Ca in climax. te Differences of long standing with the Bt treasury department concerning the lic character and value of certain ast Ha of the former First National bank for which was merged with the Second Fa National bank last March, entered in 34 to the situation. Ha The Pittsburgh Clearing House as sociation has taken charge of the sit the nation generally and announces that wo tao further trouble is expected. the The suspension of the First-Second pit National and the First National bank to of JicKeesport, caused considerable excitement. The following notice was au posted on the doors of the First Sec gas and bank: "Payment of all items ma mi turing here will be received. C. C. ro Murray, receiver." par As word of the suspension became =generally known depositors of the an Pittsburgh Bank for Saving, a few tin blocks away, started a run on tha in he stitution. J. S. Kuhn is president o: Lin this bank. gan Several thousand persons congre and gated about the First-Second National 7 bank A squad of police was necessary ing to keep the great crowd moving gat The failure of the first-Second Na vet tional bank ties up deposits aggregati One Eng approximately $30.000,000. of