Evening star., 1933-02-28
FIVE STATES BEGIN
BANKING REFORMS
Pennsylvania, Ohio, Arkan-
sas, Delaware and Kentucky
Act in Emergencies.

DETROIT, February % CR.-The
Detroit News today said that compli-
cations have arisen in the plan for
the establishment Of two new banks
in Detroit by Henry and Edsel Ford
which will at least delay the project
and may entail a change on the
previously announced program.
BY the Associated Press.
Banks in Pennsylvania and Ohio
opened for business today fortified by
emergency legislation passed since the
close of business yesterday.
BY resolution passed and signed at
midnight, Pennsylvania banks received
power to regulate Withdrawals, with the
approval Of the State banking secretary.
The restrictions, it was provided, will
not apply to deposits made after bank
invokes the emergency powers. Gov.
Clifford Pinchot declared the reSolu-
ton makes it unnecessary to declare
g moratorium"
THE people of Pennsylvania may
safely draw from their banks the money
said. "Cashing checks for this pur-
pose is not what endangers the banks.
1t is the demand for large sums for
boarding which makes the trouble.
This action is taken to safeguard
the mass of Pennsylvania depositors
from suffering from the needless desire
of hysterical depositors to withdraw
their funds. It should also preclude the
immediate calling of money loans and
the hasty foreclosure of many mortgages
which otherwise would be unavoidable. :"
Ohio Limits Deposits.
Ohio passed two laws giving the
superintendent of banks unprecedented
bowers to control Withdrawals and
slash red tape in liquidation or reopen
ing Of closed banks. The laws provide
protection for new depositors. Several
banks in the State joined the list re-
stricting Withdrawals. bringing the
number taking such action in Ohio to
over 150
Those banks which had imposed the
restriction in advance were given for
NAL approval for their action.
All of the States largest cities except
Toledo were among the threescore
centers where depositors were placed
on a restricted basis. In none was any
unusual excitement noted Toledo banks
were reorganized last Summer.
The cities affected included Cleve-
land, Columbus, Cincinnati, Youngs-
town and Canton as well as Dayton
In some other States, too, moves were
made to strengthen the banking situa-
ton. In Little Rock and North Little
Rock, Ark, banks restricted Withdrawals
to per cent or SIS, depending on
which is the larger. Authority was
given other banks to follow suit.
The Delaware Legislature passed a
sioner to suspend or postpone payment
of accounts by banks if he deems it
necessary.
Ford Banks Sseeded.
Five banks in Covington, KY. across
the river from Cincinnati, decided to
limit Withdrawals to per cent month
In Michigan the bookkeeping task
involved in getting the two new Ford
backed banks in operation was going
ahead, with clerks working in shifts
around the clock in an effort to segre-
gate the 100000 accounts that are
to be transferred to the new banks. 1t
had been hoped the banks would be
opened tomorrow. but the bookkeeping
task may neceSSitate a delay
The new banks will start business
with assets 100 per cent liquid. AS the
slower assets of the old banks are
liquidated, they. too, will be transferred
to the new banks.
Transfer of millions OF dollars from
Federal Reserve vaults and the importa-
tion from Washington and Chicago of
$78,000,000 lent by the Reconstruction
Finance Corporation will precede the
opening of the new banks.