The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-03-03


tribution to meet pay rolls of
This figure, it was said,
does not include the 5 per cent
of deposits in the banks Sat-
urday, which adds greatly to
the sum of cash available for
immediate circulation.
Added encouragement in the local
financial situation was given with
the announcement by George c.
Calvert, Indianapolis Clearing House
Association manager, that clearings
of the various local banks Thursday
totaled $l,322,000, only 80 per cent
below the average for February.
No Preference, Is Order
kilograms have been received by
national banks here from the
comptroller of the currency adj
vising them not to grant prefer
ences to any class Of depositors, as
such acts of preference might be
regarded as technical acts of in
solvency.
The ruling was interpreted as pre-
venting national banks from loan
ing money with frozen" accounts as
security. This would mean that
only the 5 per cent of balances as
cf Feb. IS, together with subse-
uuent deposits in the new separated
accounts, could be freed by national
banks.
The order is not binding on state
banks, as yet, and several of these
were reported planning to accom-
modate their customers with loans
secured by the frozen accounts.
Passed by Congress
Congress several days ago passed
a resolution authorizing the comp
troller of currency to make national
bank regulations conform with rules
of state banking departments in the
states in which the national bank
ing associations are located.
This action was taken to provide
uniformity of banking rules in To-
calities.
Thus, if a state banking depart
ment 'froze" so per cent of deposits
in state banks to halt runs, the
comptroller of the currency could do
likewise with national banks in that
state.
His powers in each state, under
the resolution, are limited only by
that states banking laws.
Local bankers reported large sums
of new money are being turned into
trade channels.
With a limit on withdrawal OF
funds on deposit prior to this week,
hundreds of visits have been made
to sugar bowl banks and to safety
deposit boxes to obtain cash with
which to operate.
This money has been used to pay
current bills and has added to tho
flow of currency put in circulation
by cashing of nearly $1,OO0,OOO in
public employees pay roll checks this
week.
Utilities were functioning prac-
tically as usual today, after -four
days under the bank limit. Official;
declared business is better than
anticipated.
Practically all larger indianapolis
firms were meeting pay roll demands
in the regular manner.
Several pay rolls had been made
since Monday on a weekly Oh
monthly basis and most firms re-
ported mo inconvenience" from the
partial banking holiday.
1t was reported that a number OF
the larger firms will be able to meet
pay rolls through funds available
under the 5 per cent withdrawal
limitation, augmented by cash
shipped in from outside sources.
Expect Federal Action
Local bankers anticipate addi-
tional action in the near future by
congress and state legislatures to
clear up the national financial prob
lem, as more and more states de-
clared bank holidays or individual
banks restricted Withdrawals.
No forecasts could be obtained
from banks here as to when the
withdrawal limit would be lifted OF
modified.
The situation hinges largely, they
said, on adoption of a uniform policy
nationally.
Order limiting Withdrawals to 5
per cent was promulgated Monday
by members Of the Indianapolis
Clearing House Association and
Immediately was followed by non
member banks.