The Waterbury Democrat., 1931-12-23
Local Banks Will
 Take Speedy Action
lContinued From Page 1I

tarily, the sanditz & Traurig Bank | officials declated but matters are now in the hands of State Bank Commissioner Basset.
 Charles Kazemekas of Kazeme- kas & Company, Inc, private bank CTS of the Brooklyn section, stated early this afternoon that his bank s doors had not yet closed. He ad- mitted, though, that a meeting of the officials of the bank would take place sometime this afternoon" to discuss the situation.
 According to reports, both the Sanditz and Traurig and Kazeme- kas banks deposited much of their funds with the Merchants Trust company and were, therefore greatly affected by the suspension of business at the latter institu- ton.
 Pnyrolls Cared For
 Despite the closing of the Mer- chants Trust company, the city's payroll was taken care of to-day as in the past. The city's deposits are scattered through several local banks. No concern over the safety of the municipal deposits in the Merchants Trust company was ex- pressed to-day at the City Hall.
 The Chamber of Commerce and the mayors office were both kept busy to-day answering queries on the closing of the bank. In both places persons asking information were infromed that as far as could be ascertained there was nothing to worry about.
 The city's deposits in the Mer- chants Trust company total about $230, coo. However, the net de- poslt is approximately $130,000 In view of the fact that the city has an outstanding loan of $120,000 from the same bank.
 Public Await Results
 Tho conference of banks led to the statement that if the public would remain unmoved by the in- cident and awaited results they would discover that their conf- dence in the ability and integrity of the banks of Waterbury would not be misplaced. Lewis s. Reed, who Is very familiar with banking conditions here and throughout the state, was very confident that Waterburlans would act wisely in this emergency. He was also the authority for the statement that some of the largest banks of the country have pledged their sup- port and would rush thousands of dollars here to meet any unusual demand.
 As a safeguard for both the banks and depositors notices of the 90-day clause were promptly posted in savings banks. We are trying to make 1t plain to the peo- pie" remarked Wilbur P. Bryan of the Colonial Trust company thai money withdrawn at time liko l this becomes "hoarded money" ard retires from circulation. It works to the disadvantage of all | concerned"
 Thousands of depositors of The Merchants Trust company must now await developments. They have the assurance of the direc- tors. who include many of Water- bury's most successful business men, that they will not suffer any loss. President Henry Weyand has announced that the condition of the bank would be made known to the public within 0 few days and a statement published. He also as- sures everyone that their interests will be protected.
 In addition to the wild reports circulated, there were stories told of persons being unable to cash checks to buy gifts, pay rent, doc- tor bills, insurance premiums and for other purposes. Some told of unusual deposits being made only yesterday with the intention of having them paid out in checks.
 The Merchants Trust Company was organized November 2S, 1910, with a capital of $100,000. It's de- posits at the end of the first year of its existence were $150,000. In 1917 the deposits were over $2,- 000,0 and it's surplus S88,000. At the annual meeting the bank showed the results of excellent pro- gress during the ensuing 13 years. The first quarters of the bank were at 142 Grand street and a number of years ago the institution moved to the present location on Bank street.
 A year or so ago new land ad- joining the County court house on Jenvanworth street was bought by