Evening star., 1933-03-01
TWO MORE STATES
DECLARE HOLIDAYS
Many Banks, However, Re.
main Open in Kentucky
and Tennessee.
By the Associated Press.

By the Associated Press.
The Governors Of Tennessee and Ken-
lucky declared bank holidays in their
respective States today, but the procla-
nations were not mandatory, and many
financial institutions in both Common
wealths gave evidence Of their conf
dence and stability by remaining open
as usual.
The Tennessee holiday was for six
days.
"These temporary holidays" Gov.
McAlister Of Tennessee said, ARE
seemingly becoming general and
which the people of Tennessee
daily have business transactions and
it would be exceedingly unfair for
our citizens and their banks to have to
honor commitments from such terri
tory where cash Is not now immedi-
ately available, with the consequent
disturbance in Tennessee and appre-
hension on the part of the people, which
is wholly unnecessary If proper and
timely action Is taken"
"Days Of Thanksgiving"
In Kentucky Gov. Laffoon acted un-
der the law empowering him to appoint
certain days as days Of thanksgiving.
His proclamation named March /, 2,
and 4 as days of thanksgiving in
the State of Kentucky" Under the
order, no deposited funds are to be paid
out by banks today, and no more than
S per cent is to be paid Thursday, Fri
day and Saturday.
A bill to permit the calling of bank
holidays was passed by the West Vir-
ginia Legislature. A similar measure is
before the Nevada Assembly.
Banks in several cities of Indiana have
followed the example set by some In
dianapolis institutions and placed re-
strictions on Withdrawals.
In Ohio the legislative command to
segregate newly deposited funds in the
200 or more institutions imposing a
restriction on the withdrawal of old de-
posits apparently had struck a respon-
sive chord.
New Accounts Gain.
Bankers generally reported an increase
in new accounts and a tapering off in
withdrawal of the limited funds de-
positors were permitted to take under
the stringent laws enacted Monday
night The popular withdrawal re-
struction was S per cent.
All of the States larger cities and
vast percentage of the smaller centers
luton to the problems arising from the
limited withdrawal orders. But in vir-
tually all, business hastily arranged
some manner of filling its workers pay
envelopes
Some Pennsylvania banks have taken
advantage Of new legislation permitting
limitation of Withdrawals, but the num-
Der Is not large. Gov. Pinchot expressed
the belief that the legislation will obviate
any possibility of Statewide holiday.
Other States Affected.
Substitutes for funds tied up in at
least 40 Arkansas banks that have re-
stricted Withdrawals were being sought
by bankers and business men in more
than half dozen or more cities to keep
up business activity. A mixed commit
tee Of business men and bankers ap-
pointed by the Little Rock Clearing
House Association studied plans for a
system of local currency to facilitate
the transaction of business"
A bill designed to speed reorganiza-
ton of failed State banks was approved
by the Kansas Legislature today as FIVE
State banks, with total deposits Of
81, ,491 900. closed their doors.
The bill provides that closed bank,
its depositors and general creditors may,
In effect, avoid receivership by reor-
ganizing under plans approved by 80
per cent of the general creditors and the
State banking department. Frozen as
sets would be segregated and placed un-
der a trusteeship. If approved, the re-
organization plan would be binding upon
all general creditors
A bill to permit the Governor ito di-
rect the closing of banks and financial
institutions whenever public interest re-
quires" was introduced In the State As
sembly Of Nevada yesterday.