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VETERAN BANK IN LEAVENWORTH IS PERIL Gossip Worries First National, But Confidence Conquers. LEAVENWORTH. KAS., Feb. 19. -(Special)-The First National bank, one of the oldest financial in" stitutions in the state, was "saying it with flowers" Friday. Carnations were being given customers in appreciation of the town's confidence in the soundness of the bank. For several days rumors had been spread over the city concerning the bank's standing. A gossipy woman, it was said, had been busy calling First National depositors that the bank "was shaky." Efforts to trace the woman have been unavailing, but authorities believe the word was being spread by persons fused loan at the institution. Thursday pension checks reached the Soldiers' home. In the course of the afternoon about 200 persons congregated in the First National, some of them to cash their checks, some to make deposits and others to make withdrawals Half Million Rushed. The "voice on the wire" got busy again. The word was spread that there was a "run" on the bank. Officers of the bank learned of the rumor being spread. They called the Federal Reserve bank of Kansas City. George H. Hamilton, governor of the reserve bank, was informed of the situation. "We will send you half a million dollars right away," he told them. In few minutes an armored federal reserve truck was en route to the First National bank with $500,000 in cash. The spectacle of a truck load of money being unloaded and taken into the First National awed the crowd. But they were to have another surprise. "Any person not having confidence in this institution will be given every opportunity to withdraw his deposits,' a bank officer announced. "We are ready to pay off every dollar. Furthermore, we will remain open as long as anyone is in the bank for that purpose." Stays Open Overtime. At 7 o'clock Thursday night, four hours past the usual closing time, the bank closed. Friday business men and all of the financial institutions in Leavenworth joined in voicing confidence in the First National. From the Federal Reserve bank of Kansas City came this message from Governor Hamilton: 'Examiners report that your bank is in excellent condition and there is no just cause for any alarm on the part of depositors. We are ready to send you million dollars, and more if needed." Citizens of Leavenworth were being handed circulars signed by officers of all the financial institutions of Leavenworth. The circular read: "To the People of Leavenworth: "We, the undersigned financial institutions of Leavenworth, deplore the malicious rumors being circulated concerning the safety of money deposited in the First National bank of this city. Confident as to Bank. "We firmly believe the First National bank is in sound condition and we urge the people not to withdraw their funds. "Furthermore, we will refuse to accept for deposit any money which we believe has been withdrawn from the First National bank. "Signed by officers"Manufacturers State bank. "Leavenworth National bank. "Leavenworth Savings and Trust company. "Army National bank "Citizens Mutual Building and Loan association. "Leavenworth Mutual Building, Loan and Savings association. The Chamber of Commerce and other civic organizations also expressed word of confidence in the First National. As result most of those who withdrew deposits from the bank Thursday appeared at the bank Friday and redeposited their money. And as they left the bank, an officer of the institution met them at the door, said "thank you," and carnations.
