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EXCHANGE BANK READY TO MAKE FIRST PAYMENT
More Than $1,200,000 Will Be Put In Circulation.
MANY WILL BENEFIT
Closed Institutions in Washington, Pa., McKeesport Also to Pay Dividends.
More than $1,200,000 additional funds will go into general circulation in Pittsburgh within the next few weeks as the result of an announcement of a 33 1/2 per cent dividend to be paid depositors of the closed Exchange National Bank. Approximately 5,000 persons will benefit as this will be the first dividend to be paid by the bank.
Robert R. Gordon, receiver, said Saturday he had been authorized to pay the dividend by the comptroller of the currency at Washington. The checks are now in preparation and will be ready for distribution in the near future.
Bank of Pittsburgh Pays.
Approximately $2,700,000 will have been disbursed to 13,000 depositors of the Bank of Pittsburgh by the end of the current week as a second dividend of 10 per cent. Distribution of checks started Saturday and will continue all week. The Bank of Pittsburgh by then will have paid out 60 per cent.
William D. Gordon, state secretary of banking, announced the Pittsburgh American Bank and Trust Company will pay 10 per cent to 10,000 depositors Wednesday, amounting to $198,342.
A total of 35,000 depositors will get $1,078,991 in Washington, Pa., today, the first payments by two closed banks there.
A first payment of 10 per cent today to 3,390 depositors of the Pennsylvania Deposit Bank, McKeesport, will release $113,227.
Only One Exception.
With the disbursement of the announced payments by the downtown Pittsburgh banks, depositors in all closed institutions in that area will have received dividends with the exception of the Monongahela National Bank. That institution has been in a position to pay 33 1-3 per cent or more for some time, but due to the numerous plans of reorganization that have been presented to the comptroller of the currency, disbursement has been held up.
All the details for the opening of the new bank in Homewood have been arranged. According to J. C. Chaplin, president, Second District Realization Corporation, agreements and orders have been received from the secretary of banking at Harrisburg, and September 7 is the day on which the Homewood Bank at Pittsburgh will open for business. Directors and officers have been approved and the financial statement will make this bank a strong liquid institution, Chaplin declared.
Chaplin also lauded Secretary of Banking Gordon for the manner in which he has handled the closed banks in the state and the early distributions to depositors.
The percentage of deposits taken over from the closed Homewood Peoples Bank will be immediately available through the Homewood Bank at Pittsburgh, which has purchased and will occupy the banking room of the Homewood Peoples Bank.