The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1931-07-17

companies, building and loan asso-
Citations are failing daily. In Wis
consin, Iowa, and Minnesota, in the
richest sections Of the state banks
close every day in increasing num-
bers as the people withdraw their
deposits. There are heavy with
drawals from the big banks in the
large cities as the European panic
makes itself felt in America. Mill
ionaires are withdrawing money
and hiding it for fear of the flu
ture.
MinOt Bank Closes
The Citizens Bank, known at the
Pat Ayres bank, at Minot closed
Tuesday. 1t was known as one of
the most carefully managed ana
conservative banks in North Dako-
ia, largely owned by the Ayres
family, who own a large part of
the heart of Minot.
At Scobey one bank colsed Sat
urday and the other Monday. Both
banks were in bad shape. The
bank at Flaxville also closed OF
Monday. The Traders State Bank
at Poplar closed Thursday morn
ing. Tuesday it was reported fol
while that all of the banks OF
the Great Northern branch had
closed but this proved to be but
one of the wild rumors that arc
circulating now everywhere.
Thursday one Of the banks al
Scobey opened again after organ
izing a moratorium, in which al
Of the depositors except the very
small ones converted their demand
accounts into certificates Of de
post with due dates many months
in the future. This was done TO
the purpose of providing a medium
of clearance.
The Flaxville bank also reopene,
on the same basis this morning
Just how successful this schem
will be remains to be seen as it
hardly likely that much new none
will be deposited and there is n
chance to collect any substantial
amounts Of loans for months an
even years to come as the cOuntr
is bankrupt with conditions grow
ing steadily worse.
It was reported in the Grea
Falls Tribune today in an associs
: ted press dispatch under a Plenty
: wood date line that the Farmer
& Merchants State Bank has ais
: re-opened. It is said that l..
/, Olsen sent out the dispatch as h
. is said to be the local AP reporte
: and is VIGOROUSLY irresponsible
and unreliable. However the He
aid reports that plans are bein
made to open the Plentywood ban
if the depositors can be pursuade
2 to convert their checking account
into certificates Of deposit due
: the distant future. But upon il
\ quiry among the depositors no OF
q could be found who had been pro
}: ositioned and the bank. is still
q the hands of the state banking d
e partment awaiting the arrival
J. liquidating agent.
7 The Herald states positively tn
q the bank was solvent when it clio
ed but this appears to be som
4 what exaggerated. It also stat
re that the bank had paid out ov
n. $50, 1000 in Withdrawals the week
/ closed, but that does not seem
v be sustained by the bank stat
II ment published as of June 30 VIII
le the bank only had $4,000
le money on hand and $4,000 Of
,r $4,000 in stocks and bonds pied
70 ed with the county and city
rs guarantees for deposits, and h
10 borrowed $4,000 in June
m which it had put up collater
l. which it naturally would not ha
re done if it had had liquid ass,
70 available.
IN The alleged solvency of the ba
n when it closed is challenged by
charge now made by a number
businessmen that it had not
mitted on its cash letters since
= first of July and many checks hs
CT been returned that had plenty
II time to clear before the bank eli
~ led the night Of July 9th. Ma
OF depositors state that in their bel
many Of the statements of
Herald are very misleading a
wv might profitably to all concern
n be left unsaid.
no 1t is reported that people
en- now making deposits quite univ
he sally with the postal savings ban
be md that lot of money has rece
ID. " been deposited in the Plentyw,
M office. The people are also us
- tba Meet ofFfco ....... - -.