The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1933-03-03
10 STATES
IN ACUTE
BANK CRISIS
Millions of Deposits
Are Being Wiped
Out by Bosses
TOILERs ARE HIT

Demonstrate Mar. &
Robber Band
Sixteen states have been
plunged into the whirlpool of
financial disaster as the bank
holiday that began with the
closing of the banks of the
state of Michigan extends to
all parts Of the country. The
economic crisis has reached a
new stage In its downward plunge
and tens Of millions, possibly billions
of dollars, of depositors are being
wiped out, Many of these are small
depositors whose money has been
used for speculation by the piratical
crew that operates the banking sys-
tenn Of the country. This fact has
caused depositors to try to salvage
their money from the wreckage that
is becoming general-v1th the result
that the robber gang is declaring
holidays" on payments to depositors.
Ford's Michigan Bandit Raid.
Michigan depositors have already
lost 70 per cent of their deposits,
with Henry Ford taking over the two
principal Detroit banks and pairing
down deposits to 10 cents on a dol
lar. Thus, II some family had a
thousand dollars before the Michigan
crash, they now have but 5000, and
can only draw part Of that. The
next downward plunge may easily
wipe out that.
Fourteen States Stop Payment.
From Michigan the financial crisis
has expanded to Ohio, Indiana and
PENNSYLVANIA, where banks have lin
tied demands on their deposits TO
five per cent. California has three
day "hoiday" that will in all prob
ability be extended Just as was the
Maryland holiday Other states
involved in suspension of payments
are, Tennessee, Kentucky, Idaho,
Minnesota, Oklahoma, Mississippi
Alabama, Louisiana, Arizona and
Oregon.
Currency System Breaking Down.
When the financial crisis hit Mich
igan, because of the crisis in the au-
tonobile industry caused by the
narrowing market, the banks were
not able to meet demands, hence the
holiday" was declared. The result
was that Michigan corporations and
individuals with deposits In neigh
boring states began to draw heavily
on their deposits there. This caused
the closing Of the banks in Cleveland
Akron and Dayton, Ohio. and led to
the Ohio state moratorium. This
spread rapidly to'other states and Is
still progressing like creeping paral.
ysis. The banks of the country can
Of course, never pay out to their de-
positors on demand because Of the
enormous amounts outstanding In in
vestmentS.
Today, with the crisis plunging
downward at an accelerated pace, the
banking system breaks, a reflex OF
the disintegration of the capitalist
economic system at the end OF capt.
talist stabiliZation-When production
in all basic industry has sunk back
to the levels Of thirty to fifty years
ago.
The bank holidays" are merely
devices for trying to conceal the
bankruptcy of the banks of sixteen
stotne. morrow more will be in
vOlved and this process will go on
until all are involved. Thousands OF
banks have closed since 1929 because
they could not meet demands of de-
positors for Withdrawals. All the
banks of these sixteen states would
be closed had the same procedure
been followed.
Fight for Immediate Relief.
This financial crisis does not mean
there is no food, or clothing or means
of life in the country. On the con-
trary the warehouses are full to
bursting and food is held away from
the masses because capitalists cannot
make q profit on it. In this situation
more than ever workers and farm
ers must fight for immediate relief
and for unemployment and social in
surance. Fight for food, clothing
and den. nd shelter. The acute fin
ancial crisis and the pillaging Of de-
positors show that the capitalists are
trying to place greater burdens upon
the masses. Make March 4th day
never to be forgotten BY the capitalist
bandits of Americal