Evening star., 1933-03-05
ILLINOIS CLOSING
SHAKES BUSINESS
Checks Barred in Many Lines
as Friendship and Credit
Come Into Use.
BY the Associated Fress.

BY the Associated Press.
CHICAGO, March 4-Illinois dug
down in its jeans for cash today to pay
its way, while banks shut down for q
three-day holiday decreed by Gov.
Henry Homer.
The drastic order outlawed all checks
and drafts made before today unless
already cleared, and shut down effec-
lively all banking in Chicago, second
financial center Of the country.
Downstate, here and there, bankers
defied the decree and opened for busi-l
ness as usual, declaring themselves
ready to pay the full demands of de-
positors But these were exceptions.
| Gov. Horner remained in close touch
with leading bankers, missing the in
auguration ceremonies at Washington
but preparing to leave Sunday for the
conference Of Governors with President
Roosevelt Monday.
Closing for Three Days.
Terms of the holiday proclamation,
briefly, were:
All banks in Illinois directed to close
Saturday, Monday and Tuesday.
q
seven-day period the banks must set
aside per cent of deposits as of the
close Of business March 3, to be paid
depositors on demand.
During the period March 8 to IS anv
deposits made shall be segregated and
held as in trust, subject to withdrawal in
full If demanded.
Any checks, drafts or other instru-
ments dated prior to March 4 shall not
be honored.
Unless the holiday Is extended. all
restrictions cease at midnight March Is.
The shutdown upon Withdrawals was
expected to have less serious effect in
illinois than in some States where NOR
atorla had come early and with less
warning. In the last fortnight $780,
OOO, GOO had been drained from Chicago
banks alone, while the Federal Reserve
Banks weekly report showed with
| draWals Of s846,515, 900 by 141 banks in
SO leading cities Of the seventh Reserve
district for the week ended March /.
Many corporations in Chicago said
they would be able to pay employees in
cash.
Stop Cashing Checks.
State street merchants announced
they would accept checks in payment
of accounts, but stopped cashing
NAlCCho. Lie OIduQdIO oII 70. OF IL
| diana said it would continue to take
checks on purchases, would cash its
| employees pay checks with the receipts
from its stations. and would pay its OBJ
lgations in checks as usual.
Street car lines confessed they were
bit worried about making change. It
takes $4,000 worth of pennies to change
fares for passengers every dav in Chi
cago and the company has only enough
pennies for two or three DAYS on hand
Stranded travellers couldn't pay hotel
bills or railroad fare with checks unless
| they were old customers and could
prove their credit good. Some hostel
ries, however, accepted Il. o. US"
from regular patrons. and the railroads
said they would carry travellers on cred
| it if individual investigation satisfied
railroad officials they could collect
eventually.
Tickets on Hotel Bills.
The Palmer House even bought rail-
way tickets for its guests and added it
! to the amount of the hotel bill, to BE-
paid at the convenience Of the ma
rooned traveller.
Middle Western fire insurance COM
! panies in 10 States were advised bv
the Western Underwriters Association
not to pay fire losses before the end Of
| the full term of grace stated in policies,
40 or 60 days according to statutes
This was because paralysis Of bank
facilities was expected to stop payment
Of premiums.
Over the line in Hammond Ind a
city that went bankless IA months, two
new banks defied the Indiana morato-
rum and did business at the usual
stand In Chicago the branch of the
Bank Of Montreal was the only one
open. but Withdrawals were not per-
mitted pending advice OF the banks
! attorney.