The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-02-27

IunQS Will De kept lIqulu, VIII
have priority of payment over
Iit was announced.
There is no cause for ap-
prehension of depOsitors at
this time, Luther Symons,
state banking commissioner,
declared this morning.
Act to Save Assets
1T is just a case" he said, "of
leaders in the banking business feel
ing they should not allow them
selves to be destroyed by permitting
withdrawal of all their liquid assets
In other words, they did not wish to
be in the position of lock the barn
doors after the horse was stolen"
officials of public utility compa-
MES said business will be conducted
as usual" handling each case indi-
vidually when patrons are unable to
pay their bills. 1t was reported the
utility companies would continue to
accept checks in payment of bills.
Insurance companies were report
ed to be taking steps to protect pol
icyholders unable to meet premium
bills.
Reports were prevalent that the
plan adopted here of restricting
Withdrawals to per cent would be
adopted generally by banks through
out the state. Similar action was
taken today by the six banks in
Shelby county and by the Union
Bank and Trust Company, the only
bank in Kokomo.
Moratorium Held Unlikely
Governor Paul V. McNutt indi-
Gated a general banking moratorium
in Indiana is not likely at this time,
adding that he believes the meth
cd being used here is the best way
of handling the situation at this
time.
The Governor said state officials
will be able to obtain sufficient cash
to meet the state pay roll March l.
The auto license dead line. now set
for Wednesday, had not been eX-
tended early this afternoon.
Conference of city, county and
school officials was held this morn
ing to determine what steps to take
to pay public employees. These Of
ficials arranged another meeting
for this afternoon with clearing
house officials.
Mayor at Meeting
The school city will be faced with
the problem of paying school teach
ers and other employees Wednesday
for the month of February, the pay
roll amounting to approximately
100000.
Those attending the meeting this
morning included Mayor Reginald
II. Sullivan, William Elder, city con-
troller; Hershel M. Tebay, assistant
controller: Julian Wetzel, school
board president; A B. Good, school
business director, and Timothy Sex
ton, county treasurer.
Representatives of stores affiliated
with the Retail Merchants ASSocia-
ton discussed plans for meeting
their pay rolls and other problems
incident to bank action.
Statement Is Issued
Clearing house banks issued the
following statement explaining the
situation:
BY reason of unsettled conditions
in the country, banks of this local
ity during the last few days have
been threatened with unusual with
drawalS by persons boarding or by
persons Withdrawing for other than
usual or business needs.
Such Withdrawals have caused
the indianapolis Clearing House
banks and all other banks of Indi-
annapolis to take action for the pro-
lection of deroSitorS and the public.
Therefore, the following reStric-
tons have been agreed upon by
such banks and are placed on with
drawals of deposits as Of the close
of business Feb. IS, 1888: such re-
StrictionS have been approved by
the bank commissioner of the state
of Indiana and are pursuant to re-
cent federal legislation by congress.
Limited TO Per Cent
Until further notice all balances
as of the close of business Feb. IS
1888, including checking accounts
savings accounts and deposits evil
denced by certificates may not be
drawn against at this time for more
than per cent of the amount
thereof.
Other portions Of balances will
be released from time to time, as
conditions justify.
Deposits made on and after Feb
81, 1888, will be held in cash, liquid
assets or in banks collecting items
and will be separately credited and
held Tor priority Of payment over
deposits made prior to Feb. 81, 1888
These new deposits will be subject
TO check and Withdrawals without
anv restrictions whatsoever