The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1933-03-16
Currency and
Gold Flows
Into Banks
Merchants National, of This
City, Resumed Regular
Business Wednesday
STATE BANKS DELAYED
Will Be Few Days Before All
In State Can Function
Properly

after his Inauguration brought a
marvellous response from the citi-
zenry of the United States.
Congress within a few hours af-
ter its converting in extraordinary
session Thursday of last week pass
ed a drastic banking bill which pro-
vides, among other things, for the
naturalization of the gold standard,
for the issuance of probably ST.
0O0,000,000 additional money which
will be distributed among the Fed
eral reserve banks of the county.
A provision of the measure put
a penalty up to $4,000 per person
for boarding money, particularly
gold. No gold or gold certificates
can be taken out of the country.
Almost Immediately gold End cur
rency began to come out Of hiding.
This outpouring of money was not
only from large centers Of popula-
ton, but from the rural sections as
well.
1t is quite automatically stated
that few days ago a-farmer resid-
ing in the Sank Centre community
purchased a tract of land at the
cost of $3.50, the entire purchase
being paid in cash in currency of
the larger bills superseded by the
smaller bills some time ago.
When the banking holiday was
first declared it was expected that
it might be possible for the banks
to start doing business as usual not
later than Friday. Because of the
complicated machinery of the law
it was not possible for the treasury
department. to get the machinery
functioning for several days.
government issued
an order opening the Federal Re
serve and some of the larger banks
of the country Monday. Other
groups, particularly in the urban
centers, were opened Tuesday. An
other group was to resume bust
ness Wednesday.
Every National bank in Minneso-
ia resumed business Wednesday
morning. With the opening of each
additional bank there mas been an
outpouring of deposits that has
amazed the bank officials who did
not known tehre was so much gold
and currency at large in their
communities.
The National banks were ordered
opened without examination, but
the State Banks, of whom there
are more than 500 in Minnesota,
must pass the examination test be-
fore they are allowed to resume
business.
The number of qualified examin-
ers in the state department is linn
tied and it will take some little
time for every bank to be examin-
ed. In some instances reorganiza-
ton will be necessary, as the treas
ury department has issued an ord
er that state banks must not carry
any real estate on their books as
assets.
Gov. Floyd 3. Olson wired the
treasury department at Washing
ton several days ago that every
state bank doing business IN Min
nesota was 100 per cent sound.
The First State, of this city, has
not opened as yet. Tuesday Ben
Dubois, vice president of the First
State, went to st. Paul, on order
from the state banking department,
for a conference. This conference
was attended by representatives of
ali State Banks in Minnesota. Mr..
Dubois returned Wednesday. He
made the following statement to
the Herald:
There seems to be at present, con-
siderable confusion between the
regulations adopted by the National
Banking systems and the depart
ment which is under State supervis-
ion. 1t will probably take a few
days to straighten this matter out"
The residents of the Sank Cen
ire community have every faith in
their banks, and are certain that
the First State Bank will also be
functioning in its regular order in
a short time.