Fitzgerald leader enterprise and press. (Fitzgerald, Ben Hill County, Ga.) 1921-1964, 1926-12-30
HIGH PRAISE ACCORDED
FEDERAL RESERVE BANK
SAVED MANY INSTITUTIONS IN
DISTRESS DURING YEAR
PREVENTED RUNS

for its timely and enectlVe aiu re-
Gently in preventing runs on banks IN
Athens and Elberton was given by
bank officials of the two Georgia CT
ties in statements made public.
Rushing currency in large sums to
both cities, by registered mail, special
messenger and transfer to its near
est member banks, the Atlanta Fed
efal Bank, it was shown, soon restor-
ed business conditions and deposits,
which had been withdrawn, began
pouring back into solvent institutions
which otherwise would have been
forced to close their doors.
Alleged defalcation of an employe
of savings bank in Athens-whlch
deficit promptly was made good by
officers and directors-precipitated
a wave of financial hysteria in that
city The bank run at Elberton was
occasioned by the closing of three
banks in the county.
In addition to sending currency to
it's member bank, the First National
Bank of Elberton, the Federal Re-
serve Bank of Atlanta had one OF its
representatives, who was in the vi
cinity, to remain at this bank and as
sure depositors that there was no
cause for alarm. Printed badges
bearing the inscription, 81 made a
Deposit in the First National Bank
today" were furnished many de-
positors by the Elberton Bank as an
effective means of restoring conf f,
dence.
Big Sums Shipped
1.-The Federal Reserve Bank of At !
Athens to the Citizens and Southern |
lanta very promptly shipped into
Bank, as we'll as to the National Bank
of Athens, and through it's connec-
lions, Ito the Athens Savings Bank,
sufficient currency to pay off all Gus
toners demanding their deposits,
said r. V. Watterson, cashier of the
Citizens and Southern Bank of Ath-
ems. "By having these large re-
serves the public was treasured as to
the soundness Of such organizations
as the Citizens and Southern Bank.
During the past fortnight the Cit
liens and Southern Bank in Athens,
it's connections with the Fed
eral Reserve Bank, has been carry
ing unusually large reserves, and has
over a quarter of mil
lion dollars to the smaller banks in
the territory which were having heavy
runs, and due to this prompt and eff
ficient service, we have succeeded in
keeping number of good institu-
lions from closing their doors"
Advantage of Accessibility
John White Morton, president of
he National Bank of Athens, declar-
I'd that the advantage in the Federal
Reserve Bank in Atlanta is situa-
lion like that recently in Athens is
is accessibility
1.-THE banks in small communities
10 not like to carry actual cash be-
yond their usual needs and in Athens,
20 illustrate, all we had to do was to
telephone the Federal Reserve Bank
in Atlanta what we wanted and it
had funds in Athens on the first
train. The Atlanta bank could have
put money in Athens in three hours
time by auto, if necessary, and of
fered to do so.
Besides this the Federal Reserve
Bank of Atlanta as government
agency is able to handle situations of
this kind at once for it's member
banks while, on the other hand, con-
siderable red tape and time would be
consumed in dealing direct with
if it could be done at
all, and non-member banks where
they no doubt could arrange with
their correspondents to care for such
an emergency, of necessity could not
handle it so expeditiously as mem
Der bank with the Federal Reserve
Bank of Atlanta"
Major H. P Hunter, cashier of the
First National Bank of Elberton, said
that the prompt and thorough action
OF the Federal Reserve Bank of At
lanta, in supplying funds and station
ing one of its representatives in his
bank, entirely restored confidence.
We were inconstant touch by tele- !
phone and telegraph with the Federal
bank in Atlanta, with its unlimited
funds and great reservoir of credit"
said Major Hunter. "This taken with
the strength and solidarity of our
bank brought order out of seeming
chaos in remarkably short time
in fact, deposits which had previously
been withdrawn, poured back to such
an extent that for the time being it
became necessary to increase our
clerical force"
Billions Handled by System
The Federal Reserve Bank, of At
lanta, of which NJ. B. Wellborn is gov
ernor, covers the sixth federal dis
trict in the states of Georgia, Ala