Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-03-07
CLEARING HOUSE
STUDIES D. c. PLAN
Limited Business Along
Lines Set by Treasury
Is Permitted.
Continued From First Page.)

severe burden on the local financial
institutions. The moratorium 10 giving
the banks here Q needed opportunity
checks and learn II they had been paid
before all the States went on some
form Of restricted banking.
The difficult bookkeeping situation IS
now being cleared up very rapidly as
the clerks have no interruptions while
commercial accounts cannot be drawn
upon. The banks will soon know the
exact balance Of every customer, II they
do not already. This has been one OF
the most helpful factors resulting from
the Presidents holiday proclamation.
Some depositors were taking so-called
boarded gold" from their safe deposit
boxes. All the banks reported that this
was being done, only enough been taken
out in most cases to meet living ex-
penses.
Now that the banks can pay out no
gold. the only gold available Is In strong
boxes.
Recommends tions Made.
Today's partial reopening Of banks
was based on recommendations made BY
the Executive Committee OF the Clearing
House Association, following modified
regulations by Secretary Woodin, issued
late yesterday, Shortly after 10 o'clock
last night the Clearing House Commit
tee sent these, recommendations to all
banks:
II. That the responsible executive
officers read the inclosed regulations Of
the Secretary Of the Treasury carefully.
-. That safe deposit departments be
opened. beginning March T.. 1888. for
the transaction In that department Of
business In the usual manner.
%. That change be made at tellers'
windows as authorized by the Secre-
tary OF the Treasury
-. That for the accommodation Of
customers, checks drawn on the Treas
urer of the United States be cashed at
tellers' windows.
IS. That your bank accept payments
In cash or any other form acceptable
to 1t on account or in settlement of
obligations payable at or to your bank.
"6. That the facilities Of your bank
be extended to assist in transactions in
volving food or feed products in &C
cordance with the regulation OF the
Secretary of the Treasury.
1T Is important to note that no bank
Is permitted to pass out or permit the
withdrawal for any purpose Of gold or
gold certificates
1t is further recommended that
trust departments be kept open for the
purpose of consultation with, and the
giving Of information to. customers. but
no transactions not permitted under
regulations issued by the Secretary Of
the Treasury shall be carried on by
trust departments.
Real Estate Activities
EYt &c oleo raoo,,p,andad that ho MI
ing institutions having real estate de-
partmentS keep said departments open
for the purpose of the receipt of rents
the care and preservation Of properties
and the transaction of all ordinary real
estate business which does not partake
Of banking nature as prohibited by
the proclamation of the President.
The adoption of these recommended
tons involves. of course. the opening
Of the doors of your bank.
There is inclosed, among the regu-
lations above referred to, one relating
to the acceptance and segregation of
new deposits, which will be payable in
whole or in part, upon demand. 1t is
the view of the Clearing House Com
mittee that the method Of conducting
this business and the setting up Of rec
ords therefore, require careful study be-
fore definite recommendation can be
made as to the time when this service
can be established. The committee
therefore urges each bank to give care
full consideration to the provisions of
this regulation in order that it may be
in position at rs early date as pos
sible to offer this additional service to
the public. The committee believes
that under this regulation 1t Is desir-
able that there be uniformity as far as
possible as to the opening of this serv-
ice As promptly as We can do SO We
will transmit to all banks our recon-
mendations for the commencement and
transaction Of this business.
Your attention again Is called to
the fact that:
"(a) in making change;
"Cb) in cashing checks drawn on the
Treasurer of the United States;
"(c) in assisting in transactions In
voving food or feed products;
I'D in permitting the withdrawal In
whole or in part of new and segregated
deposits; and or
"(e) in any other transactions, your
bank must not pay or permit the with
drawal of any gold or gold certificates.
This Is important!
yours very truly,
III. H. MCKEE.
Chairman"