The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1931-06-26
Friday, June 70, 1881.
FUNDAMENTALLY SOUND"
Rnwbells. N. D.. Tribune. Farmers Paper

BOwbells, n. D., Tribune, Farmers Paper
"Chicago June 12-UP-The Illinois State Bank
of Evanston was closed today by the state audi
tors office due to depleted reserves. 1t was the
28tb bank suspension of the week in the Chicago
area and the second in the suburbs.
''The institution capitalization 100000 and
its deposits at the time of its last statement a
mounted to $65O000, making it one OF the small
est banks to be affected.
EThe Garfield State Bank with deposits of ST.
$4,000, was closed yesterday
The above bulletin sent out by the United Press
explr,ns itseE E-tttv we'll j Will notice. tho,
that the Evanston bank had deposits of $6oOOOO,
and that it one of the SMALLEST banks to
''be affected" You'll notice further, that the
Garfield State Bank, with deposit account OF
nearly $8,OOOOO0 was closed on Thursday OF last
week Yet in spite of the fact that TWENTY
SIX banks closed in Chicago and vicinity In HALF
A WEEK and two more very large banks went
couple of days later, making % cDoSings IN one
week, the president of one of the large surviving
institutions issues the following statement to the
press:
"Chicago-Chicago's banking system disorder
ed this week by % cloSingS and three mergers
rs in good condition, Melvin A. Traylor, president
of the First National Bank and one of the nations
leading financiers, told the United Press today.
"'Public confidence is being restored Traylor
said. Financial interests are working TO restore
the small neighbOrhood institutions which have
closed.
"'All of the closed banks were small ones. They
banking picture, although their closing must, Of
course, be greatly regretted
The closed banks were small ones" A bank
with eight million dollars deposit is a "small'
bark The unpaid c4Vl: employees of :ht city OF
Chicago may not agree with Mr.. Traylor But
that Is beside the point. The whole truth is that
the financial system is breaking Gown and the
thousands of depositors the ones who suffer.
But though the people who lose their money may
get share of it back and, in some cases, even
considerable portion of it, that modern" way of
lquidating the small banks is certainly the wrong
way, even for the monster banking institutions.
Yet Mr.. TraylOr seems to think this wholesale
closing fortunate, if the following statement
also given the United Press, means what It says:
The recent mergers have helped greatly the
entire banking situation, Traylor said. Even the
closing of the smaller banks aid to some
extent.
institutions and their removal from the field leaves
the entire structure in a stronger position
The banking structure is in a stronger position
than it ever was, if this fnancier is right. The
big fish have swallowed the little ones, and the
big fish feel just fine. They are Gin stronger Po-
sition" to keep on preying on their species.
The system is NOT in stronger position. It
is weakened it not possibly survive as It
now exists The few large banks will In q few
years own ali the wealth and the people will all
he paupers if this system is not changed very soon
The people, through their own government, must
own and control ALL the money. Private banking
MUST GO.
SMALL BANK DOOMED
The small bank owned and operated by few
individuals has no chance to survive. 1t can not
possibly make sufficient profit to keep on operat
ing and pay its way. It is not a matter of what
we would like to have but what the system force.