Evening star., 1933-03-24
DEPOS|T0RS RUSH
NEW DETROIT BANK
$6,567,207 Taken in Within
First Hour as Institution
Begins Operation.
By the Associated Press.

BY the Associated Press.
DETROIT, March 24.-The First
bank created under the new Federal
regulations-the National Bank of De-
troit-opened to receive commercial de-
posits today, and within one hour $6,-
567,207.5l had been deposited. The
largest deposit was $4,000,000 by the
Chrysler Corporation.
With nearly 800 persons jamming the
Lobby of the bank, occupying quarters of
the First National Bank-Detroit, the
opening was gala event. Scores were
in the depositing lines before the bank
opened, and many expressed disap-
pointment when they were informed
or more would be accepted today.
The first deposit was for 1,000, 900
by check presented for General Motors
by NJ L. Prentiss treasurer of the
corporation. The General Electric Co
deposited $500,000 by check, and a
furry was created when four stalwart
guards shouldered their way through
the crowd to deposit money bags con-
tanning S500,000 in cash for the Kroger
Grocery &C.
Called Historic Event.
Addressing the bank staff prior to
the opening, Donaldson Brown, vice
president of General Motors, said:
You are taking part in historic
event, the opening of the first bank
created under the regulations of the
President of the United States"
Smiles, handshaking. greetings to old
customers, attended the opening, as
junior officers and employees of the two
old Eanks-the First National and the
Guardian National Bank of Commerce
retained temporarily for duty, began
accepting deposits.
The new National Bank was char
acterized by Alfred P. Sloan, president
Of General Motors, as "the most liquid
bank in the United States.'
The banks first published statement
bore out his assertion of its liquidity,
for 1t showed assets of SIS, 100000, of
which S24, 1926 900 is cash and $675 900
IS in Federal Reserve bank stock, and
no deposits.
Will Buy Assets.
For tho time, the bank is only &C
cepting deposits, but negotiations are in
progress for purchasing the more liquid
assets OF the imperative First National
Bank-Detroit and Guardian National
Bank of Commerce, which it is designed
to Supplant. Avowed plans are to re-
lease a part of the approximately $780,
100000 deposits in those banks, prob
ably 40 per cent, next week.
Mr.. Sloan's characterization of the
bank as q Detroit institution" appar-
emily was intended to answer criticism
of the one-bank plan. That contro-
versy dared anew last night with Po-
lice Commissioner James K. Watkins
repeating his charge that the city was
being sold out" to Eastern capital and
Rev. Father Charles E. Coughlin de-
Tending the plan as the soundest solu-
tion of the city's financial paralysis" }"
Father Coughlin, who said he spoke
with authorization from Washington.
said Detroit was being given United
States bank" that cannot fail"
Hopes to Withdraw.
In a statement last night, Mr.. Sloan
said he was hopeful that as soon as
the situation was stabilized it would be
possible for General Motors to with
draw, transferring its investment to
others to carry on this particular re-
sponsibility and duty to the commu-
nifty"
Yesterday afternoon, the General
Motors president conferred with Henry
and Edsel Ford at Dearborn. No an
nouncement was made, but it was un-
derstood the Fords were invited to par
ticipate in the capitalization.
James McEvoy, chief Of the G. M. c.
legal staff, will serve as acting presi-
dent of the new bank, which opens in
the quarters of the First National Bank.
at Woodward avenue and Cadillac
square.