First National Bank (Portsmouth, VA)

Article Text

Bank Absorbs

American National Becomes City's Largest Banking Institution by Purchase

Purchase of the assets of the First National Bank the American National Bank and assumption by the latter the liability the depositors the former, effective today, makes the American National Bank largest financial instituresources of over six millions dollars. Announcement the purchase the First National by American National made this morning, following series conferences directors of the American National officers directors the First National, which have been der several Today all business of the First National Bank was being transacted expeditiously the Na. sional deposits being cepted, all drafts paid, and counts maintained the same effacy customers the latter institution during its eventful existence Physical Assets The physical assets the First National following request the directors the First National steps taken to protect depositors institution. The action after thorough and careful the and affairs the First National officers the National conjunction examiner. The solvency the First National Bank question, its only trouble being shortage cash, due unusual during week. The Bank antaking over the affairs of the First National, that felt its protect the deposithe First National, and assuming responsibility solely this spirit. Enlarge Quarters Absorbtion the First National will that the American Bank and steps this end will be taken the National today. Just what has decided but presumed doors the American National Bank building be utilized conducting the business of the bank in its enlarged scope. The officers of the American National Bank, has been the fastest growing bank Portsmouth its H. Parker, president: George Parrish, Edward Allen, assistant cashier; Riddick, asFrench, assistsistant cashier; cashier. The directors: H. Parker, Parrish, B. Hawks, R. BarTrotclay, Sol Fass, Hanvey, Hall, Sykes, Dorin, Cross, George Ivins, Dr. Vernon Parker, W. Hargroves, Taylor Hart and HayCarney, cock.

Article Text

Grand Refuses Closed Portsmouth Jury To Recess; To Take Bank Taken Over tant Cases Now By American Nat'l however.

Chief Justice Overrules Order Of Circuit Judge, Ordering Inquiry

Birmingham, July 15 county emerged victorious today the first conflict record between inquisibody presiding circuit with the cause state banks this district withthe the investiJudge Rusgrand elected Chief Justice Anderson the Alabama supreme court, resulting order McElroy "reconvene this jury for the consideration grave and matter involving perhaps violations criminal laws.

The was issued by Judge McElroy Charles attorney for ings Bank had pleaded the grounds that sufficient had not elapsed for compilation reports closed banks demanded by the grand poena. Over the Attorney General McCall and County Solicitor George Bailes, Judge Elroy Rice Wilkinson established pediency' and ordered recess August

Eighth Bank Closes

Merchants Bank of Melbourne did not open Bank the comptroleir which was posted the window. count open for business Monday morning. This was the eighth which closed last in Florida. Four others failed on May

To Assume Responsibility For Remaining Assets

Portsmouth, July 15 American National Bank, effective this morning has purchased the assets and assumed liabilities the the First National Bank PortsFrank Lawrence, the former was shortly midnight which had been under several The Bank the the State Bank which recently was closed state examiners and the cashier which. George was arrested charge defaulting its funds. The closure the State Bank resultparent bank which was although the bank's ready supply cash was materially reduced. The physical assets of the First National the can National early this der that business of both banks could conducted without any delay made that the directors of the First National had quested over he the First protection depositors. thorough and careful examination affairs by officers of the American National. National Bank Armheim. solvency of the First National was demonstrated beyond question only trouble being shortage cash unusual withdrawals during the last American National Bank taking the affairs the First felt was duty protect he and solely purely and this spirit.

Article Text

Portsmouth Bank Change Announced

PORTSMOUTH. Va., July 16.-(A) The American National bank has pur. chased the assets and assumed the hability to the depositors of the First National bank of Portsmouth. it was announced by Frank D. Lawrence, president of the former institution The announcement was made shortly after midnight after " series of conferences which had been under way for seevral The First National bank was the parent institution of the State Bank of of Portsmouth, which recently was closed by state bank examiners and the cashier of which, George Larkin, was arrested on charge defaulting with approximat $120,000 of its funds The closure of the State bank resulted in "run" on the parent bank. which was withstood. although the bank's ready supply of cash was materially reduced

Article Text

National Bank Of Portsmouth Hands Changes

American National Bank Purchases The Assets Of Solvent Institution

American National Bank. effective this has purchased the the First National Frank Lawrence president The announcewas made shortly midnight after series which had been under way for several days. National Bank was State Bank Portsmouth, recently was examiners and the cashier George ing approximately funds closure the State bank resulted on the parent which was though bank's ready supply was materially reduced The physical the First National American early this morning that business be conducted without any delay. Announcement was made that the directors of the First National had quested the American National the assets the First National, the protection its depositors. After thorough careful examcondition affairs the First by officers American National Examiner National was demonstrated only trouble shortage due unusual withdrawals during last American National Bank taking the First announced felt was protect the the purely this

Article Text

Tell Reason For Sale Bank Assets

Directors of First National Relate Sale To Stockholders.

Statement has been sent the directors the First tional Bank stockholders that outlining which prompted the the First National Bank to the American National Bank of Portsmouth which has all liabilities the First National Bank except as to stockholders capital stock of the First National Bank was $300,000 value. Many holders of this stock however, paid as high $210 per share with its this reason the large surplus assets the time such purchase. Just much the stockholders of the National will receive this stockholdings somewhat blematic. Some have estimated the stock may pay out value, but optomistic viewpoint. Every means will forward by the of the American National Bank save cent possible for the stockholders the First National. But for action of the erican Bank taking affairs of the First over tional the the of the First Bank holders might have been called upon under banking much again the par value their First National Bank stockholdings. Statement Directors The following the statement of First National directors the stockholders of that Bank institution: To the Stockholders of the First National Bank of Portsmouth, Virginia. Your Board of Directors has sold the American National Bank, Va., all of the assets and the American your Bank has all of liabilities the desire of the Board Directors to make full and plete statement of what, their made the above action opinion, necessary. wish to that First, say your institution thoroughly solvent, and its the first solvency thoughts bringing about its liquidation. On Tuesday, July positors of the State Portsmouth made that stitution, which cared for until closing time, but its depleted extent unwise to open for business Wednesday help be sceured. held Tuesday night, at which all the banks of of the city were present. This lasted four o'clock the ing morning. of tressed bank was thoroughly cussed, the consensus opinion that not be had without thorough investigation of the assets State Bank, which impossible before the opening hour Chief Examiner Banks Virginia was communicated and posted on door the State Bank and its branch that closed. The representatives of the bank the the seriousness the and the probabilities of your and sibly on other banks, entered into that beginning at nine each would avail itself the sixty day notice clause the pass books savings positors, and signed an agreement effect. When the doors of your bank opened Wednesday morning there was long line depositors waiting. Within few minutes (Continued Page

Article Text

HOW TO SAFEGUARD BANKING

Better examination of State banks is one of the great immediate needs of the State of Virginia. Only through lack of adequate examination by the State Department of banking and insurance can we understand how a defalcation of $120,000 may occur in a city like Portsmouth, Va., where just such a situation has developed. Just how a cashier of this State bank could conceal and "get by with such a defalcation in the face of periodic examination we cannot conceive, sure that such a large shortage could not have developed in a short period time. Unquestionably this large aggregate of funds had been accumulated through long period of time and a series of peculations for stock gambling or some other such unlaw purpose. Yet a man who was trusted and doubtless well remunerated for his work and responsibility appear to be who has SO grossly abused a high trust. When such tartling disclosures a run on the Lank by lenesitors begin this COOD exhausts the availai le supply cash, with the that the bank its depositors and must close its doors and suspend operations. Happily in this instance the parent bank of this State institution, although able to withstand a run upon it also, found its business SO crippled that it has sold its assets to the American National bank, which also assumes the First National liabilities. The transaction is practically the absorption of the First National by the American National, thus safeguarding the depositors and stockholders of the First National, which passes out It was clearly to the interest of the American National a strong solvent institution, to take over the capital, business ano liabilities of the First National in order to restore and sustain confidence in banks generally and thereby reassure its own depositors and stockholders. The relation of banks is SO involved with the affairs and interests of other banks that the defalcation and failure of one inevitably creates a distrust and suspicion on the part of some of the solvency and safety of banks generally hence we wonder why the safe strong banks will permit a small and weaker one to go to the wall either through shrinkage in the value of as sets the dishonesty of trusted officials when by bolstering the weak, even insolvent bank it may restore public confidence in all the banks of a community. It is the business of banks to lend money. and it is probably true that even the soundest and most solvent banks have their assets and capital loaned to such an extent that a sustained and persistent "run on the bank" by depositors cannot be withstood un less the bank whose funds are being rapidly withdrawn can borrow sufficient money to meet all demands. That would stop a run and allay any vague, unfounded public distrust even of the weaker banks in the community. The American National's purchase of the assets of the First is clearly to the interest of the American, as well a: of the bank absorbed. The real basis of all business is the maintenance of public confidence in all the banks of the community and the country. In the light of such experiences as that in Ports mouth even an idle rumor may embarrass sound institutions. Hence the wisdom of the suggestion that banks have their de posits insured, thus eliminating the possibility of loss. This would cost the bank: large sums of money, but the costs of insurance of deposits would naturally be passed on to the depositors themselves by the banking institutions ,but this would safeguard depositors and protect stockholders and all banks, which is desideratum worthy to be thoughtfully considered. The insurance companies in such a situation would themselves maintain a vigilant supervision of bank operations which would effectually safeguard all banks. Such a problem would have to be worked out carefully by th bankers and the insurance companies assuming the risk. The immediately available remedy lies in making State and private bank inspection SO thorough that it would not be possible for a dishonest bank or official to pile up such large and disastrous defalcations as to wreck the bank in which they are trusted officials. The good, safe and strong banks suffer with the weaker institutions in times of stress and the sway of suspicion; hence their interest in abating dishonest and unsound banking. Not infrequently tragedy follows in the wake of dishonesty, for the exposed defaulter kills himself rather than face shame and punishment. Hopewell has sound, strong and safe banks and it is worth a great deal to them and to the community to scrutinize all banking operations and invite thorough and frequent inspections by competent examiners. It might be wise also for such banks to create no subsidiaries in the small towns and the country wherein such rigid examination and supervision are lacking.

The Japanese are about to pose in the role of peace-maker while the Chinese aspire to be the pace-maker.

"Let's run over to Charles City" will soon mean something to Hopewell people.

They do not call the head of the prohibition enforcement commission Wicked-Sham any more, unless it is a typographical error.

The State and local primaries are but two weeks from this Tuesday. Then the candidates may take a vacation.

"Autoists warned of drinking water" according to a headline in a Richmond paper. Also of driving while drunk.

The soviets must fight far from base, and the great handicap they have is to maintain their communications and line of retreat.

Article Text

COURT APPROVES MOVE TO COLLECT FUNDS DUE BANK

Authorizes Receiver Lawrence To Proceed With Action Against Debtors

Second report of Lawrence, reBank which 10, last, and ordered Judge Court Hustings, yesterday. The also enan order authorizing Mr. rence as in his be collect certain due the bank. The and draft mitted to Monday by Bangel and for the receiver, for his terday afternoon. First of the receiver August 12. and that time $40,900 the First National approximately $60,000. the report filed made steps the collateral so rehad taken. Mr the Court that has audit the defunct filed four mentary the report, which the bank's condition ledger; 1929, shown by the general the by the and receipts receiver September 30, last. shows the number of and The report shows that the total liabilities of the bank which by ital stock; $16,514 profits contingently guaranteed by the Assets the bank include, the report shows, loans amounting to and bonds amounting to $25,The serious will be by the deposiMr. and is account of the alleged shortage the cashier. Report of Receiver Following copy of the Parker: by Messrs. Bangel report and "Virginia: In the Court of Hustings for State tion in Bank chancery. Portsmouth, corporaReceiver's Report undersigned, Frank D. Lawthe State appointed of Portsmouth, the above by on the day reports the that since his such receiver has made complete the affairs the said State audit Bank and files herewith the bank the ledger, as July 1:' showing the true condition of the said closed by the audit Frank marked statement the receipts the date to September 20, marked "Your the depositers with the of clerical made the audit the books bank and has, therefore, not employed do this work date the receivership the thousand deposits amounted which said exhibit is filed herewith hereof. "The liabilities the bank shown Exhibit amount $616,057.94 Of this amount.