Thursday, Mar. 2, 1933
LOCAL BANK ACTS ON WITHDRAWALS LIMIT
The State Bank of Greentown acting in harmony with most of the banks of the state, imposed a limit on withdrawals Monday morning. The action came as a surprise to the community, but no great stir was created by the announcement locally. Most every one took it as necessary step for protection of depositors over the state, feeling that the limit would soon be taken off. The action of the local bank was forced by the action of the Indianapolis banks who took the lead and orders from banking commission Luther F. Symons, left it to the banks whether they would follow suit.
Large withdrawals from the banks of Indianapolis is given as the cause of the action, which in turn effected the out state banks because of their clearing house connections.
The limit placed on withdrawals is 5 per cent of the deposit as of Saturday, February 25. All deposits made after that date will be handled in the usual manner and may be drawn upon at the option of the depositor. The length of time the limit will be on is not known, but it is not expected be more than a few days.
Some inconvenience has been experienced locally as a large share of the business in Greentown is done by check, which contributed to a shortage of cash in local business circles. However, everybody is taking it as a matter of course, feeling that if it necessary they might just as well go through it now as later. As soon as the proper adjustments are made the limit will be lifted, and that it in no way reflects upon the soundness of the local banking institution.
BANKS OF NATION CLOSED UNTIL FRI.
President Roosevelt’s Proclamation Declaring Four Day Bank Holiday Being Observed.
Expect to Lift restrictions Friday - Issuing of Script Thought To Be Administration Plan.
The State Bank of Greentown failed to open its doors Monday morning in compliance with a proclamation issued by newly inaugurated President Franklin D. Roosevelt and State Bank Commissioner, Luther F. Symons. The President’s proclamation declared a bank holiday from Monday to Friday during which time banks were forbidden to transact any banking business of any nature without consent of the Comptroller.
This order was modified Tuesday to allow banks to open to meet pay rolls and other emergency service on a limited basis, with withdrawals being prohibited.
The local bank complied with the proclamation without comment and await the next move of the national administration in the working out of a plan to stabilize the banking system of the country. The people hereabouts received the news without any antagonistic gestures and are calmly awaiting the outcome of the present national banking emergenck action designed to protect depositors and to safeguard the bank reserves of the nations financial institutions.
The Michigan bank holiday started the holiday plan in the states and the action of the largest financial institutions in New York and Chicago last week brought the situation to a head shortly after President Roosevelt was inaugurated on Saturday. His prompt action in the matter is cause for much confidence on the part of the people.
[transcribed by Lisa A. Stout 2008 February 4]
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