Article Text
LITTLE ORPHAN ANNIE- CLEARING HOUSE SLICES RATES TO MEMBER BANKS NEW YORK, Dec. 26 (A).-The New York Clearing house today announced a further reduction in interest rates which banks may pay on deposits, the third reduction this year Such action had been expected, particularly since the New York Federal Reserve bank reduced its rediscount rate from 2½ to per cent. The new rates become effective The rate on deposits of individuals has been reduced from 1½ to per cent., which compares with 2½ per cent. at the beginning of the year. Rate with member banks may pay on deposits of other banks has been reduced from 1½ to compared to at the start of the year, and on deposits of mutual savings banks to 1½ from 2 and from 3 per cent. at the first of the year. The rate on time deposits. up to six months unchanged per cent compared to 3½ January. This rate was last reduced on June 26. Bank Suspensions. MEMPHIS, Tenn. Dec 26 banks and branches in eleven northeast Mississippi towns were closed today. All were within a radius of about thirty miles, and the situation was described as local one by S. High. president of the People's Bank and Trust company of Tupelo, the largest of the closed banks Others were its two branches at Nettleton and Rienzi. the First National bank and the Corinth State bank. Corinth: the Ittawamba County bank, Fulton: the Bank of Sherman. Sherman: the Bank of Saltillo, Saltillo the Bank of Guntown Guntown: the Bank of Verona, Verona the Bank of Shannon. Shannon. and the Booneville Banking company Booneville All except the First National were state institutions Banking officials of the section expressed the hope most of the institutions would reopen within thirty days. Many attributed the closing to the announcement that the People's bank had shut its doors The People's bank was capitalized at $200,000 and its last statement showed deposits of about $1 700,000. The First National bank at Corinth, was capitalized at $100 000 and its last statement reported deposits of $1,018 710 20. The Corinth State bank. capitalized at $50,000, reported deposits of $288,759 Corinth was left without bank for the time Officials of both banks met to discuss suggestions for reorganization reopening The Corinth Bank and Trust company closed several weeks ago. Mr High said Tupelo. with two banks open for had no fears am informed that the remaining two banks got $400,000 in cold cash from the federal reserve and are ready for any eventuality he W. Sanders. president of the Booneville Banking company, was here last night He said plans for refinancing were nearly complete AUGUSTA Ga. Dec. 26 -The Union Savings bank here failed to open today and a notice posted on the door said had been placed in charge of the state superintendent of banks to conserve assets Gray, the president said the closing was due to withdrawals and the of the bank to collect loans rapidly enough to meet demand for The Union Savings bank on Nov. 26 had deposits of $873.061. with total resources of $1,174,840 It was capitalized at $100,000 RICHMOND Va., Dec. 26 E Bristow state commissioner of insurance and banking announced today the State Bank of Pamplin, in Appomattox suspended this morning pending meeting of depositors tomorrow morning Arkansas Bank Reopens. LITTLE ROCK, Ark., Dec 26 State Bank Commissioner Walter E Taylor announced the Citizens bank at Foreman Little River county. reopened today It suspended Dec 21. for five days. This brought to more than thirty the number of banks reopened in the state since Nov. 17. Since that date nearly 100 banks had closed.
