Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-03-08
CLEARING HOUSE
TO MEET TONIGHT
D. c. Banks Limit Their
Business to Only Five
Items.
CONTINUED From First Page.)

the heavy pay roll Withdrawals, woulc
take vast sums Of money out Of the
banks while not q cent can be paid In
Such q move Is considered unfair Il
the other depositors. At the same time
hope was expressed that in some way
pay rolls may soon be met in order that
the local banks may help normal trade
In every way possible.
Meet Again Tonight.
The Clearing House Association 1:
scheduled to hold another protractec
meeting this evening. Pay rolls ir
other parts of the country are being
held up In the same manner, so that
some practical steps in meeting the
situation must be worked out in q
very short time.
In . statement given out late last
night by the Washington Clearing
House Association, signed by Chairman
H. H. Mckee, 1t was recommended to
the local banks that charge-backs be
made in accordance with the terms OF
the Treasury regulation which says that
Where settlement for checks charged
By drawee institutions to the drawers
accounts on its books on or before
March 4, 1888, is incomplete. settle
ment may be completed where such
settlement does not involve the pay
ment Of money or currency" The reg
ulation was put into effect today.
Local banks also are delivering to
persons entitled thereto properly iden-
titled documents and securities held in
safe-keeping. this action being based
on another recommendation from the
clearing house, after yesterdays Treas
ury regulation on this point.
Trust Departments Busy.
Trust departments in the banks here
are today operating as though the bank
holiday proclaimed by President Roose-
welt did not exist: except that they
cannot pay out or permit the with
drawal of any coin or currency nor
withdraw any trust fiduciary funds or
deposit with any other department Of
the bank.
The clearing house statement sale
on Secretary Woodin's regulation per.
tanning to the exercising Of the usual
banking functions to provide for food
medicine. relief Of distress, pay rolls
and expenditures to maintain employ
ment. This regulation is permissible
only. the recommendation said, and
added Until further study can be
given to its terms by the clearing house
it IS recommended that banks refrain
from permitting withdrawal Of deposits
In accordance with the Presidents banl
holiday proclamation"
The full text Of this regulation, which
the clearing house Is to give further
attention. follows:
ANY national or State banking in
stitution may exercise its usual bank.
ing functions to such extent as it.
situation shall permit and as shall be
absolutely necessary to meet the needs
Of its community for food. medicine
other necessities Of life. for the relic
Of distress, for the payment of usual
salaries and wages, for necessary cur.
rent expenditures for the purpose oil
maintaining employment, and for Other
similar essential purposes: Provided
however. that O every precaution shall
be taken to prevent boarding or the
unnecessary withdrawal of currency;
90 no State banking institution shall
engage in any transaction under this
regulation which Is in violation of State
or Federal law or of any regulation is
sued Hereunder; 60 no national bank
ing association shall engage In any
transaction under this section which i