First National Bank (Canton, PA)

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Episode Information

Episode UID
250501435
Episode Type
Run Only
Bank Type
national
Bank ID
25050 national
Charter Number
2505
Start Date
July 13, 1919
Location
Canton, Pennsylvania (41.656, -76.853)

Metadata

Model
gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
Short Digest
9e1d858c54fe2f80

Response Measures

None

Other: Bank pursued legal action: obtained a temporary injunction restraining the Comptroller from circulating reports and contacting depositors (suit in equity to enjoin Comptroller Williams).

Description

1919 items allege a run caused by Comptroller disclosures; separate 1933 statewide bank holiday also appears in articles but is unrelated to the 1919 run.

Events (3)
1. February 16, 1881 Chartered
Source
historical_nic
2. July 13, 1919 Run
Cause
Rumor Or Misinformation
Cause Details
Alleged divulgence/circulation of damaging reports/letters by the Comptroller of the Currency that damaged the bank's credit and precipitated withdrawals.
Measures
Sought temporary injunction in federal court to restrain Comptroller from circulating damaging reports.
Newspaper Excerpt
the Comptroller ... caused a run upon the bank that had been difficult to weather ... withdrawals by depositors of $100,000 were made.
Source
newspapers
3. March 4, 1933 Suspension
Cause
Government Action
Cause Details
Statewide bank holiday declared by Governor Pinchot (part of nationwide emergency banking moratoria).
Newspaper Excerpt
I hereby declare a bank holiday throughout Pennsylvania on Saturday, March 4, 1933 ... mandatory two-day holiday for all Pennsylvania banks.
Source
newspapers

Newspaper Articles (6)
1. July 13, 1919 The Washington Times Washington, DC
Article from The Washington Times, July 13, 1919

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Article Text

MOVE TO ABOLISH COMPTROLLER'S JOB Fight Will Be Made In Congress Against Office Held By J. S. Williams. Sequels to the bitter fight before the Senate Banking and Currency Committee against the nomination of John Skelton Williams as Comptroller of the Currency will be enacted in determined efforts on the floors of both houses of Congress to abolish the office of comptroller. Whether the Senate committee succeeds in getting the scalp of John Skelton Williams or merely succeeds in holding up his nomination indefinitely, Senator Calder of New York, it is understood, intends to press his resolution demanding the abolishment of the office of the Comptroller of the Currency as unnecessáry. This resolution and one of similar nature offered in the House by Congressman McFadden of Pennsylvania already are before the Banking and Currency Committees of the two houses. With sentiment in the committee said to be strongly in favor of them, it will not require great effort, it is believed, to, bring them up on the fioor. Virtual Impeachment. Another resolution by Congressman McFadden, virtually calling for the impeachment of Mr. Williams, also is before the House. Mr. McFadden declined to comment on either resolution today, in view of the fact that he is to be a witness before the Senate committee. That the fight against Mr. Williams has become nation-wide among the banking institutions is evident from the mass of communications pouring into the office of the committee. A banker from San Fráncisco, whose name is withheld, claiming that Mr. Williams had endeavored to discipline him for personal reasons by using the power of his office, is the latest person who seeks to be & witness. Congressman McFadden. who is a member on the House Banking and Currency Committee, will charge that Comptroller Williams sought to destroy the bank of which he is president for the reason that he demanded the Comptroller's impeachment on the floor of the House during the last session. Alleges Same Tactics. He declares that Mr. Williams used the same methods against his institution, the First National Bank of Canton, Pa., that he used against the Riggs National Bank of this city. Congressman MeFadden says he is prepared to show the committee that the power of the Comptroller of the Currency was used in an attempt to destroy his bank for no other reason than that he had exercised his rights as a member of Congress to disclose the methods employed by Mr. Williams to further his own personal ends A suit in equity against Comptroller Williams, brought by Congressman McFadden on behalf of the First National Bank is pending before the District Court of the United States for the middle district of Pennsylvania A temporary injunction, restraining Mr. Williams from persecution of the bank, has been ordered by the judge of that court. The application for the injunction sets forth that Comptroller Williams, among other things, be restrained from "disclosing to the officers, directors, agents, stockholders, or employes of the Farmers' National Bank of Canton, Pa., any information with respect to the private business or affairs of the complainant or its officers." Enjoin Comptroller. It seeks further, besides preventing imposition of fines for failure to produce reports and statements, as called for in the Riggs Bank case, to enjoin the Comptroller from "using the powers of the office of the Comptroller of the Currency over the complainant, for the private and personal purposes of the defendant, without reference to the proper duties and functions of the said office and in particular for the purpose of impairing or destroying the credit and reputation of the camplainant and its president and its and his property and business." Congressman McFadden charges that immediately after he made his speech in the House against Mr. Williams, the Comptroller conducted such a publicity campaign against him, impugning the standing of his bank, that it caused a run on the institution. As a result of this run, withdrawals by depositors of $100,000 were made. Mr. Williams deliberately sought, he claims, to put the bank into the hands of a receiver and turn it over to the Farmers' National Bank, a rival institution. Poole to Testify. When the Senate Banking and Currency Committee meets tomorrow, John Poole, president of the Federal National Bank of Washington, is expected to be the first witness. Another witness, A. E. Jones, of the

2. July 20, 1919 New-York Tribune New York, NY
Article from New-York Tribune, July 20, 1919

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Article Text

place to Mr. McFadden and all the papers and other evidence he may haye. # Williams Enters Denial "Meanwhile, it is fair that I be allowed to inform the public that I had not the slightest financial interest in the Arlington Hotel transaction, directly or indirectly. Secretary McAdoo in March, 1918, wrote Representative Pou, of North Carolina, on this matter, giving him the facts. The law firm of Williams & Mullen, of Richmond, Va., of which my brother-in-law, Lewis C. Williams, is a member, has been counsel for Winston & Co. for the last five years or more. They are large contractors who controlled the Arlington property. I do not know what legal fees or compensations Williams & Mullen may have received for their services in the Arlington Hotel transaction. Whatever they may have charged was for their professional services, in which I had no participation. That is all the foundation I can imagine for McFadden's insinuations, which I denounce again as absolutely false and which have all the appearance of being dictated by intense malice. "Those who have given attention to this matter will recall that a Pennsylvania bank, of which Mr. McFadden is president, has come under my official notice in an unpleasant way and that I have expressed, both officially and publicly, the opinion that Mr. McFadden is responsible for whatever unfortunate conditions might exist." Mr. McFadden indicated that the Controller's activities In connection with the First National Bank of Canton, Penn., of which he was president, would furnish the grounds for one of his impeachment charges. # Courts To Be Appealed To A temporary injunction to restrain the Controller from using his authority in such a way as to interfere with the business of the bank is now pending in the United States District Court of the Middle District of Pennsylvania, he said. By divulging the condition of the bank to the public, and by writing letters detrimental to its credit, Mr. McFadden said, the Controller had caused a run upon the bank that had been difficult to weather. The injunction sought would restrain the Controller from asking further information regarding the bank's condition.

3. July 20, 1919 New-York Tribune New York, NY
Article from New-York Tribune, July 20, 1919

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Article Text

place to Mr. McFadden and all the papers and other evidence he may haye. # Williams Enters Denial "Meanwhile, it is fair that I be allowed to inform the public that I had not the slightest financial interest in the Arlington Hotel transaction, directly or indirectly. Secretary McAdoo in March, 1918, wrote Representative Pou, of North Carolina, on this matter, giving him the facts. The law firm of Williams & Mullen, of Richmond, Va., of which my brother-in-law, Lewis C. Williams, is a member, has been counsel for Winston & Co. for the last five years or more. They are large contractors who controlled the Arlington property. I do not know what legal fees or compensations Williams & Mullen may have received for their services in the Arlington Hotel transaction. Whatever they may have charged was for their professional services, in which I had no participation. That is all the foundation I can imagine for McFadden's insinuations, which I denounce again as absolutely false and which have all the appearance of being dictated by intense malice. "Those who have given attention to this matter will recall that a Pennsylvania bank, of which Mr. McFadden is president, has come under my official notice in an unpleasant way and that I have expressed, both officially and publicly, the opinion that Mr. McFadden is responsible for whatever unfortunate conditions might exist." Mr. McFadden indicated that the Controller's activities In connection with the First National Bank of Canton, Penn., of which he was president, would furnish the grounds for one of his impeachment charges. # Courts To Be Appealed To A temporary injunction to restrain the Controller from using his authority in such a way as to interfere with the business of the bank is now pending in the United States District Court of the Middle District of Pennsylvania, he said. By divulging the condition of the bank to the public, and by writing letters detrimental to its credit, Mr. McFadden said, the Controller had caused a run upon the bank that had been difficult to weather. The injunction sought would restrain the Controller from asking further information regarding the bank's condition.

4. July 20, 1919 The Washington Times Washington, DC
Article from The Washington Times, July 20, 1919

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# Wants Witnesses Produced. Congressman Royal C. Johnson moved that the committee go into executive session. Mr. Pou objected, saying that he was "perfectly willing for any charges Mr. McFadden has to make to be made publicly." Mr. Pou held that Mr. McFadden should produce witnesses and evidence to make out a prima facie case before action was had on the resolution. Mr. McFadden is president of the First National Bank, of Canton, Pa. He told newspaper men that he sought last winter to have an investigation of Mr. Williams' official conduct. "I introduced a resolution similar to the one now under consideration," Mr. McFadden said, "and almost immediately Mr. Williams began a conspiracy to start a run on my bank. "He sent letters throughout my district to my depositors, and he wrote many others asking for information. But that I had funds to meet all outstanding obligations he would have succeeded in ruining me." Mr. McFadden applied to the Federal court of the Third district of Pennsylvania and was granted a temporary restraining order against Mr. Williams' circulating reports that were damaging to his bank. "The final briefs on which I expect to have the order made permanent were filed only last week," Mr. McFadden said. He says he is determined to demand impeachment of Mr. Williams should he be confirmed for renomination by the Senate. "What course will you take if the Senate fails to confirm the nomination?" he was asked. "I am not familiar with the law along that line, but I will look into it thoroughly and will be guided by a course of action that will insure prosecution," he answered. Mr. McFadden said he had four distinct charges to make against Mr. Williams which affect his official con-

5. March 4, 1933 Evening Star Washington, DC
Article from Evening Star, March 4, 1933

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# EARLY U. S. ACTION # PLANNED ON BANKS New York and Illinois Declare Holidays-Only Four States Unrestricted. (Continued From First Page.) Connecticut took similar action, bring- ing to 43 the list of States in which restrictions on withdrawals are opera- tive in some form or another. Only Montana, Colorado, North Da- kota and South Carolina remained without restrictions at noon today. Delaware's banks were open, but the State Legislature has already taken emergency action. These developments had brought from Representative Rainey, the next Speaker of the House, the prediction that "an extra session of Congress will be called at the earliest possible time." He said he felt that early next week, possibly Tuesday, would not be too soon. Pre- viously Rainey had told House mem- bers-elect to remain in Washington. Others at the Capitol said the session probably would begin Wednesday. The Federal Reserve Bank of New York was closed with all other bank- ing institutions of that State. The Federal Reserve Bank at Philadelphia also closed, under a holiday declared throughout Pennsylvania by Gov. Pin- chot. Later in the day the Minne- apolis Federal Reserve Bank suspended business. The closing of the New York Federal Reserve Bank meant the tying up of its huge gold reserve for the period of the holiday against withdrawal by either domestic or foreign agencies. In discussing the banking relief pro- gram, Senator Robinson said: "We do not know just when it will be completed, but it will be expedited all possible. The details can not be announced right now but you may be assured there will be no delay." Wagner Plans Action, Previously Senator Wagner, Demo- crat, of New York, had told newspaper men he would carry immediately to Democratic leaders an appeal for imme- diate emergency banking moves. In- formed at his hotel here of banking moratoria in New York and Illinois. Wagner said he would appeal this morn- ing to Democratic leaders to begin working out a program and some time this afternoon would call on Mr. Roose- velt with the same objective. A bank holiday, he said, "is the only thing to do" to meet the emergency of the banks themselves, but he added quick steps are necessary to enable them to reopen and continue opera- tions. Harvey Couch, Democratic member of the Reconstruction Finance Corpoга- tion, was the first White House caller this morning. He said after a brief conference with President Hoover he had discussed "matters incident to the banking situation," but declined to give details. Couch conferred last night with President-elect Roosevelt. Officials in Conferences. High officials both of the outgoing Republican and incoming Democratic administrations were in conference most of the night. Secretary of the Treasury Mills said afterward the Hoover administration would have no statement, but that governors of the Federal Reserve banks in Chicago and New York would have announcements. Demands Impossible. The hours between midnight and dawn saw banking officials in many States struggling with the problem, made acute by the flurrying of nervous- ness on the part of depositors. As a statement by the New York Clearing House Committee put it: "The unthinking attempt of the pub- lic to convert over $40,000,000,000 of deposits into currency at one time is, on its face, impossible." The statement added that the condi- tion clearing house banks is such that "they could, through the facilities of the Federal Reserve Bank, pay on de- mand every dollar of their deposits," but that withdrawals throughout the country as a whole have increased so that a "halt" is necessary "to enable the proper authorities to consider and adopt remedies to meet this situation, not for New York primarily, but for the Nation as a whole." Only a few States remained today in which restrictions on withdrawals had not been invoked. No Holiday in Virginla. In Virginia, Gov. Pollard said no general banking holidays would be de- clared because the State's laws already protect the banks and their depositors. In Maryland, the General Assembly early today approved the emergency banking legislation without a dissenting vote in either House. Gov. Ritchie signed it this morning, but said that the banking institutions of the State will not reopen Monday. The resources of the Reconstruction Finance Corporation earlier had been made available to hard-pressed, but solvent banks in States that have imposed moratoria on withdrawals. This was one of a number of de- velopments yesterday that included introduction of legislation to allow postal savings checking accounts and to confer upon the incoming admin- istration sweeping authority to main- tain the security of deposits. Reconstruction Corporation officials said their policy called for lending in- stitutions if the loans were well secured enough money to pay the percentage of deposits that could be withdrawn, provided the banks did not have the funds immediately available. It was emphasized this was not a new departure, but was simply the ap- plication of regulations decided upon for individual instances in the past to a situation spread into a number of States. Pinchot's Statement. Gov. Pinchot of Pennsylvania here for the inauguration issued the follow- ing statement: "Because of the declaration of a bank holiday in New York, Illinois and most of the other States, similar action in Pennsylvania has become unavoidable. "Were our banks to remain open, the demands upon them would impose an impossible burden. "Therefore, upon specific recom- mendation of Gov. Norris of the Phila- delphia Federal Reserve Bank, I hereby declare a bank holiday throughout Pennsylvania on Saturady, March 4, 1933, and Monday, March 6, 1933." Exchange Statement. A statement issued by the Govern- ing Committee of the New York Stock Exchange said: "The Governing Committee at a meeting held this morning in order to give full effect to the banking holiday declared by the Governor of the State of New York directed: "First, that the exchange be closed during such holiday: "Second, that members and firms registered on the exchange be pro- hibited from making any contracts for the purchase or sale or the borrowing or lending of any securities, and also from permitting their offices or facili- ties to be used for the purpose of mak- ing or carrying out any such contracts; "Third, that all deliveries be suspend- ed on all member contracts, except on such contracts as may be cleared by or settled through the Stock Clearing Corporation, and that in such cases deliveries shall be made as the Stock Clearing Corporation shall direct

6. March 4, 1933 The Daily Courier Connellsville, PA
Article from The Daily Courier, March 4, 1933

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GOVERNOR ORDERS TWO-DAY HOLIDAY FOR STATE BANKS By International Nows Service. PHILADELPHIA, March 4.-Governor Gifford Pinchot. from his temporary residence at Washington, D. C., today proclaimed mandatory twoday hollday for all Pennsylvania banks. The proclamation issued at 8:30 this morning through Dr. William D. Gordon, State Secretary of Banking, directs all banks in the Commonwealth to remain closed Saturday and Monday. George W. Norris, governor of the Federal Reserve Bank in Philadelphia at whose behest leading Philadelphia financiers assembled in the early Lours the morning to consider decisive action, said the step was made necessary by the growing list state bank holidays. Although it was believed Penneylvania banks could have remained open under the emergency legislation passed by the Legislature last Monday, of holidays by the governors of New York and Illinois and several other states early today precipitated the crisis, Norris explained. "Because of the declaration of bank holiday in New York, Illinois and other states similar action in Pennsylvania has become unavoidable," the Governor declared in his "Were our banks to remain open the demands on them would impose an impossible burden." "Therefore, on the specific recommendation of Governor George W. Norris of the Philadelphia Reserve Bank, hereby declare bank hollday throughout for Saturday, March 5, and Monday, March 6," the proclamation concluded.