White Bluffs spokesman. [volume] (White Bluffs, Wash.) 1907-1938, 1933-03-09
Bank Holiday
Slows Business

dent ROOSeVelJ laSC SuIlody Ol0061Ae w
a halt one Of the greatest financial
panics in the history Of the United
States. The long continued decline OF
all commodity, stock and bond values
was throwing a greater and greater
strain on the credit machinery of the
country and at the time OF the holiday
called in Michigan, to protect the clos
ing of banks there, the country was
ripe for the final panic that this ana
succeeding events started. People IN
both this and foreign countries began
a rush to convert their bank balances
into gold and currency and to hoard
it or to ship it abroad. One state after
another called holidays and enacted
hasty legislation to try to cope with
the situation, until on the day OF the
Inauguration of President Roosevelt,
every state in the union was involved
in holidays declared by the governors
of the states.
AS soon as the inaugural ceremonies
were completed, Pf~sident Roosevelt
began the conferences which resulted
in his calling a national bank holldaS
and placing an embargo on the paying
out or export of gold, silver or gold
certificates, and which closed all bank
inc institutions in the United States
This action was taken to protect the
finances of the country and preserve
it's gold reserves; and the closing OF
the banks was for the purpose OF pre-
venting further Withdrawals and pro-
tecting the assets of the banks for the
benefit of all depositors.
Previous to the calling of the ma
tional holiday Governor Martin OF this
state had called bank holiday ef-
fective from midnight, March 3rd, to
midnight, March 9Th. A few days pre-
vious to the calling of the state hol-
day the legislature had enacted new
legislation which enabled the state SUI
pervisor of banking to authorize a
bank, on application, to cease paying
checks drawn on it but to remain open
and render limited banking service
in accepting news deposits IN trust
\ which the deposition could withdraw OF
check on atfwill. These new deposits
could not be loaned and could be de-
posted in only such depository as the
state supervisor of banking would per-
nit. The supervisor could also permit
limited withdrawal of the old de-
posits if he deemed best.
Prior to the calling of the national
holiday, unusual Withdrawals by de-
positors had forced number OF banks
within the state to avail themselves
of the provisions of this new law. w
j. Kincaid, cashier of the First Bank
of White Bluffs, says that through the
fine cooperation of the people of this
valley it had not been necessary fol
this bank to avail itself OF the proVl'
sions of the new law. The bank, how
ever complied with the holiday de-
clared by Governor Martin, and Cashle
Kincaid says that the bank Will com
ply with the directions issued iron
r time to time by the federal Treasur.
4 Department in working out the IN
volyed banking situation in the coun
try.
On Tuesday the banks began open
ing, to render the banking function
:. authorized by the Secretary OF tn
: Treasury on Monday and Tuesda!
These functions permitted the bank
), to make change for customers, PERM
free access to safety deposit boxes, pa
checks for relief of distress, medics
!, supplies, food and wages and provid
for shipments of food products, but
E all such transactions were prohibite
= from paying out any gold or gold Gel
e tificates.
: Besides this very limited authori,
ID to pay checks drawn against deposl
held by the banks at the time the Pre-
= ident's proclamation was made, a
is banks are authorized to accept ne
IS deposits of cash, checks drawn on tt
es u. S. Treasur/r or other checks whit
l. may be paid These new deposits a
l. kept entirely separate from all 9th
n funds of the bank and considered
I'd trust funds. A new set Of books mu
NSHOo'
and they cannot be loaned and no i
ly terest can be paid on them. The bal
ct is required to keep the full amou
d, of these new deposits available +
rk checking or withdrawal in the for
ed of cash on hand, deposit in the Fe
eral Reserve bank and United Stat
government bonds. These new depos
may be Withdrawn without any I
striction whatever, are absolutely sa
a and will not be involved in any
~ strictions which affect the old deposi
a At the time of going to press no a
y nouncement had been received FRI
80 Washington, D. c.. as to the mann
ire in which old deposits would be
he leased, what new form Of bank legis
lay ton would be proposed to Congr
'eu which convenes today or what form
f.