The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-02-28

Good natured acceptance
of the plan by the public was
reported today by bankers.
1t appeared that the withdrawal
limitation would work far less of
hardship on the average citizen of
Indianapolis than at first antici-
pated.
Through arrangements made at a
conference of city, cbunty, and
school officials with clearing house
officials, pay checks of various
employees will be honored.
The school city will issue pay
checks to teachers and other school
employees this week amounting to
about $4,000
1t was understood that the ma
jority of private corporations have
been given assurance by the banks
that their pay rolls will be met.
No efforts were being made. it
was reported, to obtain large sums
of cash for local banks from out
side sources, to cancel the limitation
VI NAOllO1 dWdlS OIQ6T.
Large Firms Withdraw
This would be merely pouring
sand in rathole," one banker ex-
planned, adding that the only rea-
son for the limitation locally was
to prevent injury to banks by
withdrawal of large sums of cash
by hoarders, thus Gripping local
banks liquid assets.
One cause of the local action. it
was reported, was withdrawal of
large accounts in indianapolis and
Indiana banks by large out-of-s state
corporations, which feared Indiana
would follow the action of Mich
lgan and Maryland in declaring
banking moratoriumS
There is no reason for a bank
ing moratorium in Indiana at this
time and will not be unless it is
brought on by mass hysteria, local
bankers asserted.
There is no shortage Of money
here, it was said, banks of Indian
apolis and other cities, generally
speaking, being in sound financial
condition.
However, it was added, the banks
can not stand the continuous
of steady Withdrawals
by pessimistic depositors.
Postal money order clerks at the
federal building were rushed Mon
day and today, issuing money orders
to cities in Indiana and other
states where temporary banking re-
strictions prevent or make difficult
the cashing of checks.
Luther F. SymonS, state banking
examiner, said reports to the state
banking department indicate more
than one-third of banks in the
state have adopted the 5 per cent
limit.
Complete Report Soon
Symons expects to have a COM
plete report on the situation by this
The state met its regular pay roll
today but employees were cashing
most of their checks at the treas
urerS office. The checks are good
in any bank since the money is
drawn little from each of the state
Muncie bankers announced they
would place no limit on with
drawalS, despite the fact that such
action was being taken in surround
ing counties.
The shortage of cash apparently
has resulted in practically no inter
ference with the normal business
operations in Indianapolis.
Public utility companies and
many other firms, confident that
the limitation will be withdrawn or
modified soon, were accepting
checks from their patrons.
Coupon Books in Groceries
Chain grocery companies were
to assure patrons Of need
ed food by supplying coupon books
for groceries to some firms, to be
distributed in lieu Of cash, or by
other methods.
Western Union and Postal Tele-
graph officials reported heavy de-
mands for money order payments
here Monday and today. particu-
larly for company pay rolls. Both
firms reported they have sufficient
cash available to pay all tele-
graphic money ORDERS.