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SOUTHERN NATIONAL FOUNDER PART OF FEDERAL RESERVE HERITAGE

 LUMBERTON, N.C., July 1 /PRNewswire/ -- The Federal Reserve System is celebrating its 80th anniversary this year and Southern National Bank, the first North Carolina bank to join the Federal Reserve, can be proud of the fact that its founder played a key role in the passing of the Federal Reserve Act in December 1913.
 Angus McLean, who started the Bank of Lumberton (Southern National Bank) in 1897, won appointment as assistant secretary of the treasury under the Woodrow Wilson administration in 1912 after serving as presidential campaign manager for Wilson in North Carolina. Among his first priorities after arriving in Washington, D.C., was to lobby for the creation of a new monetary system.
 The country had not had a central banking institution since the liquidation of the second Bank of the United States in 1836 during Andrew Jackson's presidency. Bankers knew they needed a new system.
 "Banks were having a difficult time, and the country needed a central bank to be the world's economic leader," says Hector MacLean, Angus McLean's son and chairman of Southern National from 1955 to 1990.
 McLean lobbied tirelessly with William Gibbs McAdoo, secretary of the treasury, who would later become the first chairman of the Federal Reserve System. "They were plowing new ground," MacLean said. "It was the greatest piece of financial legislation ever passed."
 While in Washington, McLean continued to serve as chief executive officer of the Bank of Lumberton. It surprised no one when McLean's bank was the first in North Carolina to receive membership into the Federal Reserve System. The bank, only 17 years old, was nationally chartered in September 1914 and changed its name to the National Bank of Lumberton.
 The Federal Reserve Act, which Wilson signed into law on Dec. 23, 1913, brought order out of the chaos by establishing a system of 12 Federal Reserve banks responsible for managing the flow of money in their own region. The Bank of Lumberton joined the Reserve through the Federal Reserve Bank of Richmond.
 McLean, who also chaired the War Finance Committee during World War I, would go on to become governor of North Carolina in 1925. His greatest accomplishment was the landmark executive budget act, which made North Carolina the first state required by law to have a balanced budget. It has since been copied by nearly every state in the union and made a part of the North Carolina Constitution.
 Southern National, which is celebrating its 96th anniversary this month, today operates 158 offices in 84 cities and communities in North Carolina and South Carolina and has assets of $5.2 billion.
 -0- 7/1/93
 /FOOTNOTE: Please note that the spelling of Hector MacLean's last name is different from that of his father's. The National Bank of Lumberton changed its name to Southern National Bank in 1959.
 /CONTACT: Bob Denham, Public Relations, Southern National Corporation, 919-773-7363/
 (SNB)


CO: Southern National Corporation ST: North Carolina IN: FIN SU:

CM -- CH003 -- 7520 07/01/93 08:11 EDT
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Date:Jul 1, 1993
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