The Waterbury Democrat., 1933-02-27
Banking Situation Looms Up Brighter
 All Over Country
All Changes Made Were for the Good of the Public In Detroit Henry Ford Puts Up Over Eight Million Dollars for Bank Reorganization

Detroit's biggest bankers to-day when he stepped into the city'e financial criais and was accepted as the dictator of two of the Auto- mobile capitals important banks.
 Ford will put $S,260,00O into the First National Bank and The Guardian National Bank to enable them to re-orgafize and reopen under new names, according to plans worked out at Q series of Sunday conferences. Federal. Bank, ing authorities were reliably re ported to have approved the plans, and the new banks may open for business by Wednesday.
 Under the reorganization plans, Ford and his son, Edgel, who was one of the powers in the Guardian bank group, will have complete au- thority over the new banks which will be prepared to pay 35 per cent to depositors including per cent previously authorized. Eventually 1t is planned to merge the two in- stitutiong.
 Members of Ford's organization took pains to emphasize that the reason the Fords had refused 10 cooperate in group attempts to re-organize the banks was that Henry Ford did not agree with the policies of the bankers who had been in control; that his ideas were "so revolutionary that he saw lit- tic hope of having them adopted by a bank board of which he would be but one member; that "he be- lieves the banks first function Is to provide place for safe deposit" and that "bank loans should be made for productive and not spec ulative purposes."
 In these words Ford made clear his triumph in the financial affairs
 The re-organizcd First National Bank will be called The Peoples Nation. Ford will put $6.625,000 cash into 1t as capital, and will have complete control of it's vot- ing stock. The Reconstruction Finance Corporation will lend H $54,O00,00
 The Guardian National will be- come the Manufacturers National Bank. Ford will provide $2,62b.000 capital and the IL. r. c. will lend the new bank $24,000,000, under the planS worked out.
 BY LESLIE D. HARROP
 United Press Stan Corrcspondent)
 Cleveland, Feb 27 -- (U.P.) - Bankers in Cleveland, Akron. Day ton and Lima imposed emergency restrictions upon depositors to-day to prevent serious financial difficult ties resulting from the repcrcus- sions in ohio of the banking mora toria in Michigan and Maryland.
 In Dayton, banks were closed under q thtee-day moratorium.
 Cleveland depositors were unable to withdraw more than per cent of their savings and commercial deposits.
 in Akron, Savings depositors were restricted to per cent with drawals per month and commercial depositors were warned that at- tempts to withdraw more than cus- tomary amounts needed for buB- iness---to be judged by the daily average of the past several months would be refused. Depositors in the First American Trust Company at Lima were re stricted to 2 per cent withdrawals.
 Governor George White, at Co., lumbus. maintained close watch over the situation. He asserted that the difficulties were local and that c statewide moratorium was un- needed. The governor announced that Q bill would be introduced in the state legislature tonight to relieve the tense situation. Its speedy pass- age was anticipated.
 The Cleveland stock exchange governing board was scheduled to meet this morning to decide whe- ther to suspend exchange buBinesS.