The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1930-12-13
Bankers Lied About
Condition; Was Bad
for M O n t h S
Continued from Page one)

involved in real estate deals, and
this means liquidation" will be an
extremely slow process. The big
talk about millions being rushed to
the depositors was another lie to keep
up the hope of the depositors.
The closing of this important New
York Bank is having deep effect
throughout the country. The Jour
nal of Commerce reports that bank
ers reported fairly meavy withdraw
ais of deposits from the interior. 1t
is reported that in various sections
Of the country demand for currency
has increased"
A large number of banks are try
ing to make profit out of the misery
Of the hundreds of thousands of
workers who had deposits in the
Bank of the United States. They
offer loans up to SO per cent of the
deposits at per cent interest. The
depositors are supposed to present
authenticated" proof of their &C
counts. But since the banks are
closed authenticated" proof is i'm
possible to obtain. Furthermore, the
fact that they will not lend more
than SO per cent means they do not
get more than half of what they put
into the bank. The idea of charging
5 per cent is good racket for the
banks.
Editorially most of the capitalist
papers are silent on this bank clos
ing. At first they tried to kill the
news completely, but this was i'm
possible as the bank had 100000 de-
positors and the reports of the clos
ing spread like wildfire throughout
the city and throughout the coun-
try.
The closing of the bank took place
in the face of the tremendous efforts
of the leading Wall Street bankers
to prevent it. Many of them had
worked for three days and nights to
bolster up the lettering institution.
In fact, the Journal of Commerce re-
ports one representative of an i'm
portant banking firm" as saying on
Tuesday:
1.-THE bank won't be allowed to fail
A bank suspension in New York is
an impossibility and would be pre-
vented"
In short, the present economic
crisis in the United States is so Sc
we're and drastic that what leading
bankers thought an "impossibility" is
now fact.
That there will be considerable de-
laying in clearing up the wreck is
admitted in a story by the N. Y.
Telegram, which says:
Many of its assets cannot be con-
verified into cash without considerable
delay, and liquidation therefore
would be a matter of months"
This means that the 100000 de-
positors will not get cent of their
money for months, and perhaps
longer. What proportion of their
deposits they will get will not be
known until this time.
That almost every other bank in
the United States is worried over this
happening is admitted by the Journal
of Commerce. This Wall Street pa
per, very close to banking circles,
says:
Because of the possibility that the
closing of the Bank of the United
States might have impaired the con-
fidence of some of the depositors of
ether banks, particularly in the sec
tons of the city having many for
eign residents, the banks prepared for
possible emergencies by heavy ship
ments of currency to the branches. 4"
Those on the inside knew that the
Bank of the United States was in
a rotten condition months ago. 1t
was this that led to the attempted
merger. The bank was too unsound
to permit of the merger, and it was
in too shaky condition for the en-
tire host of Wall Street bankers to
save it.
The working-clas depositors, most
of whom have not over 5000 in the
bank-their entire life's savings
must be organized on the demand of
immediate payment of their full de-
posits.