Evening star., 1933-03-19
Checks Pile Up and New Ac.
counts Increase as In
stitutions Open.
TREASURY is RECEIVING
CONSERVATORS' REPORTS
Effort to Reopen Sound Institutions
Is Pushed in All Parts of
Country.
BY EDWARD C. STONE.


Washington banks. which resumed
fuu functions last Tuesday under
Government licenses, wound up q
period Of amazing activity yesterday
When the weeks business ended.
Officers were kept on duty day and
night and large clerical forces were
required to do vast amount of over
time work in clearing up the mass of
checks which had accumulated during
the Presidents bank holiday
AS the week progressed, the piles of
checks were reduced, after being re-
corded and a great many of them put
through the regular Clearing House
channels. In one large bank it was
stated that the clerks had to work
only to IL O'Clock on Friday night in
stead Of to 4 O'Clock in the morning."
Clearing House Busy.
The Washington Clearing House As
sociation completed brilliant weeks
time work were required to interchange
checks between the local banks and at
the same time handle thousands of
checks on out-of-town banks. The
bank tellers also faced the hardest
proposition they have ever met. It
was their duty not to accept checks on
banks in other parts of the United
States which had not reopened.
AS complete lists as possible were
prepared of the thousands of banks
that had reopened. The tellers had to
take down each out-of-town check and
see if the bank on which it was drawn
was open-an immense task in itself
In this emergency, however, the regu-
lar customers co-Operated to re-
markable degree.
= Tho fret dav of the reoneninu was
the hardest. On that date people at
tempted to do nine days delayed
banking at one time. A great many
new accounts were established, new
depositOrS coming in so rapidly that
extra clerks had to be assigned to the
work. In addition, so-called shoarders
returned a great deal of gold to the
banks, as well as gold certificates,
after they read that boarding re-
ports" had been called for by the Fed,
eral Reserve Bank of Richmond and
the IL other reserve banks. .-~
Other gold was re-deposited by Gus
toners who believed that this money
should be returned to use and not kept
longer in safe deposit boxes. In other
words, they had undergone a complete
change in sentiment toward the bank
ing and economic outlook.
DepositorS in the banks which did not
receive licenses to operate, when the
others were granted theirs, are trying
to find out about the future Of these
banks. These institutions are all in the
hands Of conServators, who are studying
their present status with a view to find
ing out what can be done. AS Govern
u1ent officials. the conservators are max
Ing no statements.
Each conservator will make his report
10 the Treasury, in the meantime con-
serving the assets of the bank for the
benefit of depositors and other credi-
tors. The corlServatorS have all the
powers granted to national bank receiv-
ers They report to the controller of
the currency When the controller has
received full information concerning
banks condition he may terminate
the censorship or order the bank to
close up its affairs.
With requests coming in from all over
the country for permission to reopen
banks, the Treasury officials are
swamped with work. The condition of
each bank has to be considered sepa-
rately. The greatest care Is demanded
said they would not grant a license to
any bank to reopen unless they were
convinced that such bank was capable
of remaining open as q going 1nstitu-
tion'
In cases where banks want the Recon-
Struction Finance Corporation to help
furnish new capital by taking an issue
Sf preferred stock, more time will be
tequired before Treasury officials can
eeach final decision. The Reconstruc-
sion Finance Corporation must first
make its own investigation and recon-
mendations to the controller Of the
currency,