The Waterbury Democrat., 1934-02-13

QContinued from Page l.) been eloseted with leading bankers of the state who vociferously de- manded relief from silent runs. Particularly distressed was the Union Guardian Trust company, a unit bank of the then mighty Guardian Detroit group. That bank, the governor was told, could not open its doors on the morrow.
 Bewildered bankers in many sections opened their doors and did customery business before the news of the sudden suspension reached them.
 Everywhere was felt an acute scarcity of ready cash. Millionaires whoge checks the day before could have produced tens of thousands of dollars, borrowed lunch money from the maids and buffers. Tele- graph companies and the post office ordered truck loads of cash rushed into the state. Manufact- urerD placed frantic telephone calls to correspondent banks for cash to meet payrolls.
 Milk companies and grocery stores yielded to the demands of the emergency and extended liber- al credit to avoid widespread hun ger.
 In Lansing, at noon, the gover- nor issued g. statement heatedly fndicting Henry Ford, whom he said caused the holiday in refusing to cooperate in sustaining the guar dian group. From the Ford spokes- man at Dearborn came a dignified denial followed few hours later by a retraction from the governor.
 Months later it was to be dis closed that after loaning millions of dollars to the weakened guar dian group the Elder Ford called a halt and refusd a last minute request to subordinate $7,OOO,0OO more of his deposits to allow the group to secure an RFC loan.
 The following day Comstock re- faxed his order sufficiently to allow banks to pay five per cent for emerEency funds. Smiling throngs crowded before tellers' wickets, little realizing that the two big banking structures of Detroit were never again to reopen. In supse- uuent months these banks-the First National and Guardian Ma tional Bank of Commerce-were to be storm center of bitter wrang- ling.
 Slowly the heavy influx of cur rency relieved the strain of the nrsl days. By the end of the week Mich- igan breathed easier; not so the rest of the nation.
 Like the first of arrow of dom- inos Michigan's collapse was to fall upon others and cause theni to fall. The wave of misconn- dence ultimately was to spread SD rapidly and widely that few states were without some banking restrlc. tion when President Rooseveit nrocIaimed a national banking holi- day March 8.
 Mo- keenly and immediately was felt the currency drain in near by Cleveland where scores of De troit firms maintained heavy cash reserves. At the close of the sec- ond week the emergency had been shifted to tn Ohio metropolis. on the following Monday Cleveland banks limited withdrawals. City by city, Ohio fell in line. Then Penn sylvania, then others.
 Never could economies profess sors find a better illustration of the interdependencies of financial interests.
 Today the gloom and despair of one ~ear ago is gone.'
 Factories are operating at the highest volume since the early months of 1880; payrolls have mounted near the peaks of 1929; business volume approaches record levels; few communities are with out adequate bank facilities.
 Manufacturers and merchants alike smile broadly as they an- ticipate the glowing comparison-- 1884 over 1883.
 Senate leaders felt at least one republican committeeman should he O nhand. Senator White. repub- iican, Maine, and member of the committee, was expected in the chamber later in the afternoon.
 MacCracken. held prisoner tn a hotel room by Sergeant-at- Arms .Jurney overnight, was taken to the senate at noon. When the delay developed. 'Jurney. MacCracken and Frank Hogan. MacCracken's coun- sol. went to luncheon,
 -----~--s----=--sr-~~ ~-~-Hs~
 .u, A .fe.,e, SafaUtfpWF NrNUEn