The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1920-09-27
fremont Trust and Fidelity
Trust Invoke 80 Days
Notice for Withdrawal
BIG RUNS STARTED
THIS MORNING
P0nzi Crash Clearly Reflected In Tenn.
pOrary Closing of Five Boston Insti.
tutiOns - None of Them Members OF
Federal Reserve System.

BOSTON, Sept. 27-Several hundred
persons had gathered outside the offices
of the fremont Trust CO. when the
doors were opened at S45 a. m, Is min
utes before the usual hour and lines
quickly formed before the several paying
tellers' windows. After withdrawal had
been going on steadily for nearly an hour
with the crowd const ntIy increasing the
bank officials ANNOUNCED that the law
permitting a bank to require 80 days
notice for withdrawal from the savings
department would be invoked forthwith
for the protection of the depostors >
The regulation would be withdrawn 'as
soon as the public Gained itself it was
announced. We have plenty OF money
TO pay everybody officials said. 'aud
were prepared to do so this morning, but
the crowd became SO. large that it was
impossible to handle them and we in
voked the law for the protection of the
| depositors, not for our own protection.
Upon opening for business today the
/ Fidelity Trust Co served notice on de-
positors that it would take advantage OF
the law permitting them to require 90
days notice of withdrawal from the saw
/ ings department. 1t was stated at the
4 bank that this was done upon the drec
1 ton of the bank commissioner. At the
4 office of the latter it was sand that the
/ taking of this action was optional with
i the bank.
/ The run on the fremont Trust Co
was participated in by hundreds and
/ the proportions of the crowd became SO
4 great that police We're called to keep the
crowd in order The bank tried for an
| hour TO meet the claims against IL aad
hand to pay all, but the crush became SC
great that Vice President SIMON Swll
announced that the 9O-day notice woulc
be required
At the Fidelity Trust Co. which ais
has offices in the downtown district tux
run was in smaller volume but the Law
| was called upon. 1t was stated, to al
low the public to recover from the pre-
/ vailing unrest.
/ There has been run on the Dorchester
Trust Co. for several days and the lnVo
cation of the law stopped it..
| The virtual suspension OF paymen
| temporarily by the savings deposits o
these three banks follows the closing Q
five banking institutions III this cit,
! within the past two months by Banl
/ Commissioner Allen. in no case wa
the bank a member OF the federal re
4 State officials say that the Ponzi cIas)
was clearly reflected in the troubles o
the several banks which had been unde
a run by depositors. In each case, es
cept that of the Hanover Trust and u
small afaliated private banks, it has bee
indicated that the banks were solven
but lacked ready cash to meet the d'
mands of alarmed depositors. At a
three of the banks which suspended pay
ments in their savings deposits 1t was al
nounced that business in the commercl
denartments would continue as usual.
Goyqrnor Coolidge conferred wit
state Treasurer James Jackson an
: Rank Commissioners Allen regarding tn
! banking situation today. The ON
! statement issued at the conclusion OF tn
conference was by the governor, wn
I'D ..Some time ago ] advised all bi
hanks in Boston that plans should ;
5 worked out through which there woui
d be cooperation among all the banks.
o clearing house committee IS now workln
out details of such a plan.