The Waterbury Democrat., 1933-02-27
(By United Press)

tny On1teO Ekenep
 Banking upheavals, ail designed to strengthen public confidence in the nations financial system. .oc- cured owe q widespread area last night and to-day.
 Limitations /of withdrawals of deposits were extended into Cleve- land, other Ohio cities and Indian apolls; Henry Ford, arch-enemy of bankers, was welcomed in Detroit in Q move to re-organize two great financial institutions there; and Charles E. Mitchell, who built the worlds first billion dollar bank, of- fered his resignation as it's chair man and as director and 1t was accepted.
 Some New York financial observ- CTS have ascribed the slump in stocks and bonds of recent trading days in part to the revelation of National City operations, and Mit- chell in his statement of resigna- ton said that he was unwilling that what he called public mis- understanding" of the testimony should react on the institution on his account.
 An echo of many current dis putes over whether banks should go outside the field of direct bank ing operations came in Detroit when Ford, putting up $S.250,000 cash to capitalize reorganization of two important banks. let 1t be known why he had refused to go into 6 .,ool with other wealthy men to provide money for the institu- tions.
 tIIe believed that banks first function was Ito provide q place for safe deposit" spokesman said and he thought that bank loans should be made for productive and not speculative purposes"
 Under an agreement announced during tn, night, Ford will name all the directors for two new banks to take over the First National and the Guardian National banks, since he is providing all the capital for reorganization. Though official federal approval of the re-organ- ization plans had not been an noufced, 1t was made evident that both the comptroller of the cur rency and the Reconstruction Finance Corporation had approved. The It. Y. C. will lend $78,000,00O to help the new banks pay 35 per cent of deposits to depositors in the old institutions if they require 1t.
 Eventually the two new banks will be merged.
 The arrangement iS expected to lead to lifting of the statewide Michigan bank moratorium.
 In Ohio, the following banking developments grew out of week. end conferences, some of which did not reach agreement until the early hours of to-day:
 In Cleveland, all banks except the National City will restrict with drawals from commercial and sav- ings accounts to per cent except on sixty days notice..
 In Dayton, the mayor declared Q three-day complete banking mora torlum, with tho approval of all banks.
 In Akron, banks will permit withdrawals by depositors for normal business needs as deter- mined by average withdrawals over several months.
 In Lima, the first American Trust Company continued a two per cent stricti0n initiated Saturday. The Indianapolis Clearing House Association announced limit of D per cent on withdrawals from all bank accounts, effective with tho start of business to-day, but Gov ernor Paul McNutt reiterated that no statewide moratorium was planned. Maryland, where a moratorium was declared early Saturday effec- tive for three banking days, looked to it's legislature for relief through bill limiting withdrawals by de- positors, expected to be offered to- night.
 Washington found the banking situation almost overshadowing the impending inauguration of Pres ident-elect Roosevelt. The Recon struction Finance Corporation com missionerB were in session for hours yesterday, considering bank crises in many states. The resump-- ton to-day of the examination of Mitchell before tn. senate banking committee seemed likely to pro- vide sensational clashes between the banker and SenatorB who have not concealed fin past sessions their disapproval of his financial philo- sophy.