The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-03-06
Bankers Await Next Move
of Roosevelt; Scrip
Plan Discussed.
SAFETY BOXES OPENED
Insurance Men Will Meet
Tuesday; Merchants
Handicapped.

Next move of President
Franklin D. Roosevelt in the
national financial situation
was being awaited by Indian
apolis bankers this afternoon
as all banks ceased operations
in accord with the Presidents
moratorium order.
After meeting this morning to de-
termine on local course of action,
clearing house members adjourned
to await a statement by the Presi-
dent today or Tuesday clarifying his
declaration of Sunday night.
Business is being handicapped by
the banking holiday, merchants
finding themselves confronted with
a flood of currency of large demon
inatons and having a shortage of
smaller change.
Local bankers, at the clearing
house session, discussed issuance of
clearing house certificates in lieu of
cash, but delayed action because of
the uncertainty of what steps will be
taken by the federal government.
Expect National Scrip
1t was understood that several
local banks favored the plan of each
bank issuing its own scrip in place
Of clearing house certificates, but
expected Roosevelt to order a ma
tionaI scrip.
The Presidents proclamation was
interpreted to mean that the secre-
tary of the treasury might grant
individual banks the right to oper-
ate on limited basis, if their state
of liquidity warranted.
Bankers here were watching prep
arationS being made in New York
for issuance of some form of clear
ing house certificates.
The only precedent for issuance of
such certificates was during the
panic of 1907 when banks permitted
withdrawal of $40 a day in the form
of scrip.
Safety Boxes Opened
Chief Mike Morrissey announced
today that until the banking stu
alton is cleared up, two police Of
f1cers will be detailed in each bank
in the city to maintain order.
Insurance men will meet Tuesday
to determine methods of carrying
on business during the bank holi-
day. Harry R. Wilson, president
Of the American Central Life In
surance Company said today.
Wilson said they will discuss the
possibility of a grace period being
extended to holders of life insurance
policies.
Safety deposit boxes were opened
by national banks during the morn
ing.
Indiana banks under state super
vision were authorized by Luther
Symons, state commissioner. to open
safe deposit boxes and real estate
and insurance departments Tuesday.
Many of them were reported to
have opened the safe deposit boxes
before Symons' order. They first
were closed today when the bankers
interpreted the Presidents order
that it covered all phases of bank !
ing business.
The clearing house association
members met Sunday night. short |
time before the moratorium order
was issued, and decided at that time
not to ask Governor Paul v. Nc
Mutt to declare state moratorium.
The banks here had planned to /
open for business this morning.
The clearing house is keeping
in close touch with Washington
events.
Call for Holiday
The Sunday meeting was at
tended by several state officials and
a number of bankers from other In
diana cities. Most of the out-of-
town bankers were insistent in their
demands that the local clearing
house bankers go on record asking
McNutt to declare a three-day
banking holiday in Indiana.
Local bankers, feeling they were
protected amply under the new
state bank law, and that it would
be better to keep the banks open
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