Evening star., 1933-03-11
State Institutions to Follow
Similar Method as That
Fixed for Members of Fed
eraI Reserve System.
GRADUAL RESUMPTION
OF BUSINESS is PLAN
Certificates of Soundness to Be
Granted as Quickly as Officials
Can Complete Necessary Check.
Some to Go Out Probably on
Monday.

BY the Associated Press.
Preparations for a gradual re-
openir& Of all sound banks next
week went ahead today under a
presidential order directing the IL
Federal Reserve institutions to
perform the necessary functions.
The immediate objective of the
IL banks was to supply enough
money to meet pay rolls and pro-
vide funds for necessities of life
over the week end. Between times,
the Federal Reserve Banks are to
make advances to permit some
sound member banks to 60 back
to work possibly Monday.
On Licensing System.
The reopenings-State as well as
national banks-are to be on licens-
ing system. Before any institution can
resume unrestricted operations 1t must
have a certificate of soundness, from
the Treasury in the case Of national
banks and from State officials In the
case of State institutions.
Licenses to reopen will be distributed
as rapidly as possible and In the order
in which applications are received and
soundness established. Hence President
Roosevelt and Secretary Woodin ex-
pressed the hope that the fact . bank
remains closed early next week would
not be interpreted by depositors to mean
that the institution was unsound.
In a formal regulation yesterday
Secretary Woodin said:
ANY banking institution may, when
owners consent thereto, pay checks
issued prior to March 6, 1888, and re-
'ceived in due course Of business by the
drawee banking institution by charging
the amount thereof to the accounts o1
the drawers and crediting such amounts
to the accounts of such owners on the
drawee banking institutions"
Woodin's Statement.
In another statement, which was ad-
dressed to the superintendents OF panks
of each State, Mr.. Woodin said:
All banks of the country are now
prohibited under the proclamation OF
March 9 of the President from conduct
ing any banking business, except as
specifically authorized by rule, reguia-
ton or license of the Secretary OF tne
Treasury issued under that procla-
nation.
In view of the passage Of the emer-
gency bank bill by Congress YESTERDAY,
and under the terms OF that Dill, ana
section Of the act OF OCTOBER o. ISiI.
as amended by that bill. the secretary
of the Treasury will be authorized 10
permit any sound bank which Is q mem
Der of the Federal Reserve system,
whether State or national, to reopen
for business as promptly as possible.
ut is the intention Of the Secretary
of the Treasury, however, to permit no
member bank to reopen at any time on on
a full 100 per cent basis unless or until
the Secretary is satisfied that sucn
bank is a sound going institution. any
member bank not clearly within tnls
category will not be opened unless or
until further investigation discloses
that it is a sound going institution, OF
unless or until a reorganization OF some
character will permit the bank TO De
classified as a sound going institution.
Methods for State Banks
ANY member bank not opened l0O
per cent under this procedure WILL pe
permitted to continue to perform only
such specific transactions as are now
authorized or may hereafter be au-
thorized by specific regulation or license
Of the Secretary Of the Treasury.
I'm view Of the fact that neither the
Continued on Page S, Column A.