Article Text
1st National Situation Is Encouraging Cooperative Attitude Federal Authorities Cited; Securities Presented to Government for Liquidation Loans 1400 New Depositors Warning Is Given Not Expect Opening Too Capital Necessary "What is the situation in regard the First National The answer to the question may summarized by the fact that recent weeks. the principal question "Will the has been changed to "When will it open?' The reason for the primary change evidence helpful attitude federal banking authorAt the present time. the First National bank officials here say they are unable to answer much of their problem is in the hands of federal officials. The primary reason the First Na. tional permitted to reopen following the was the "frozen assets. The proportion bank series rigid inspections with the result that securities loans have the case of several large loans. The bank directors have presentthese securities with an application to the reconstruction finance order obtain corporation loans which will put the bank in acceptable cash position to meet bank comptroller standards. An announcement from Albuquerque that farm credit administration money may be obtained by the First National bank at will be followed means of liquidating other loans possible. Even if such securities as have been to the R. are however, comptroller's office has let be known that the First National bank must have new capital, and this also will take time. In addition the attitude of the federal officials, the other feature the fact that 1400 new deposits have up under the "trust which the bank serving as depository. Present deposits $250,000 in addition to money tied up in the bank. This considered remarkable by federal authorities in touch with the First National. While the situation justifies hopefulness, no false should be given, particularly as to how soon the bank will reopen. Every indication that reopening unrestricted basis some time away.
