14-0009Hecht Says Statement of Fish Causes Run on Bank
NEW ORLEANS the Hibernia Bank and Trust Comand the advisory nance today wired Representative Hamilton the Republican in New that his attack on him before the had causbank and millions dollars had been withdrawn.
New Orleans, Feb. 4.-(R)-Representative Hamilton Fish, Republican. New York, was charged Saturday with starting run on the Hibernia Bank and Trust company here by Rudolph S. Hecht, president, through his reof Hecht before the house banking connection with corporation loans to the defunct Union Indemnity company of New Orleans.
Run on Bank Causes 'Wilson Day Holiday'
Orleans, financial involving 000,000 Hibernia Bank and Trust Company tonight the motive for the by the entire by declaring day The the the break relabetween the States puzzled tonight, the there quiet run on that institution.
Huey Long, Rushing Home to 'Save the Nation', Charges New Yorker Caused It All
FOLLOWS 'RUN' ON BANK
Governor Allen Closes All stitutions in Unique 'Wilson Day' Proclamation
NEW ORLEANS, Feb. series of dramatic, all-night conferences to combat New Orleans bankdifficulties was climaxed tonight by Senator Huey "Kingfish" Long's announcement that: to be all "Everything's going Long said he sped here to the banks of New Orleans and thus rest of the banks in the "keep the nation from failing.' Will Reopen Monday
Long stepped of secret con ference, one many in which local banking officials, Gov. O. K. Allen and others have participated since
Friday, to make his announcement. came after Governor Allen halted all banking business in the today with unique holiday proclamation and after announcement that the Hibernia Bank Trust of New Orleans and company had suffered run which led to withdrawel millions. Long said he all Louisiana financial institutions would open for business Monday publicity of 'Ham' Fish (Rep. Hamilton Fish of York) and speech terrible said Long working things out and going be right. the New Orleans banks under all the other banks the country would have gone under
"That's why dropped everything and took up the bank problem."
"Speech Caused Run"
Rep. Fish charged in Friday affairs certain New Orleans financial institutions should He said that they had receivership after they had been granted Reconstruction nance Corporation Fish said believed that Rudolph Hecht. the Hibernia bank should president forced resign from the chairmanship the regional advisory committee of the Hecht with charges that speech caused the run on the Hibernia meantime called Long for conference. The stopped the proceedings issue the following banks are good in New Orleans. the best banks the matter what Fish has to about "He peddles false information all over the And look what hap pened! He ought to be ashamed himself. our banks fail, which isn't likely not now, all the banks in country would fail. The banks all the world would be affected. It would be terrible, horrible, awful. "That's why dropped everything doing when the governor called
"Then he declared today holiday think darn good people chance get their breaths and what this Ham Fish did with his talking. "Anyway the banks are good and going not through by long sight here tonight, but the banks are going open day everything's going to be right."
Click image to open full size in new tab
New Orleans Bank Reports Heavy Run New Orleans, Feb. 6.-(A))-Vaults of the Hibernia Bank and Trust company were stacked with millions from the Reconstruction Finance Corporation and other sources Monday to break a run which the bank's president, Rudolf S. Hecht, said started after Rep. Hamilton Fish, (Rep., N Y.) criticized him before the house
NEW ORLEANS BANK REOPENS, WILL GET $20,000,000 LOAN
R. F. C. Acts to Halt Run—Huey Long Says He ‘Saved the Day.’
NEW ORLEANS, Feb. 6.—(By U. P.)—New Orleans banks opened as usual today after an exciting weekend crisis in which Senator Huey P. (Kingfish) Long cast himself in the role of hero.
Long participated in a series of hurried conferences that brought the promise of a $20,000,000 loan from the Reconstruction Finance Corporation for the $64,000,000 Hibernia Bank and Trust Company on which a run had started last week.
"Yes, sir," the Kingfish said today, "it's a good thing for the people of New Orleans that I was in town. I saved the day."
Gov. O. K. Allen had declared a legal holiday through the state Saturday to give the Hibernia Bank time to negotiate with officials of the R. F. C. Then began the conferences.
Hibernia bank officials sat in a smoke-filled room all day yesterday, awaiting the verdict from representatives of the R. F. C., who were in an adjoining room going over the bank's records.
R.F.C. Stops Run at Louisiana Bank
NEW ORLEANS, La. Feb. 6Emergency action by the Reconstruction Finance Corporation in rushing $20,000,000 to the aid of the Hibernia Bank and Trust Company, of New Orleans, today had halted at million dollar run on the bank and eased an impending threat to numerous Louisiana banking institutions The R. F. C. last night provided the huge sum after Governor O. K. Allen Saturday had proclaimed legal holiday closing all banks and businesses in the state. Banks thruout Louisiana reopened today and officials reported that business had resumed as usual without a sign of panic by de-
The Hibernia Bank & Trust Co. opened its doors at 8 a. m. today, two hours ahead of regular time. An hour later bank officials reported "everything quiet." About 300 persons formed lines in the lobby. Deposits about equalled withdrawals. The crowd was orderly.
Gov. O. K. Allen, Long's successor at Baton Rouge, had declared a legal holiday throughout the state on Saturday to give the Hibernia bank time to negotiate with officials of the R. F. C. Then began the series of conferences in which the Louisiana senator played a prominent part.
Once he dog-trotted three blocks on summons of Hibernia officials, who sat in a smoke-filled room all day, awaiting the verdict from representatives of the R. F. C., who were in an adjoining room poring over the bank's records.
Late last night the tension was eased. Long issued several reassuring statements, declaring there were "enough millions of government money available at the Hibernia now to pay off every depositor without going outside the doors."
Other assurances soon came from E. R. Black, governor of the Federal Reserve bank at Atlanta, from the New Orleans Clearing House Assn., and several other financial leaders.
The R. F. C. offered $20,000,000 under two conditions: First that the bank raise $4,000,000 more locally; second that all depositors with balances of more than $10,000 agree to "freeze" half their deposits until the R. F. C. loan is repaid.
SITUATION OF BANKS IS EASED BY U.S.
Possible Run on Hibernia Bank Averted: Saturday Holiday to Relieve Threat
One of the tensest banking situations in New Orleans in recent years was relieved yesterday and today after the Federal Reserve bank, and state banking and political leaders issued statements and obtained funds which apparently has definitely stopped any danger of a run on the Hibernia Bank and Trust company largest in the South. A 'run by mail' began late last week after Congressman Hamilton Fish of New Orleans demanded in the National House of Representatives an investigation of the dealings between the Reconstruction Finance corporation and such corporations of the Union Indemnity company of New Orleans, favored bonding company of the Long administration. which went into receivership after getting R. F. C. loans. With this demand, Representative Fish asked the resignation of Rudolph S. Hecht, president of the Hibernia bank, from the chairmanship of the regional advisory committee of the R. F. C. The bank and the Union Indemnity had engaged in considerable financial dealings with each other. New Orleans papers Friday did not publish the attack, but other papers in the nation did, and financial leaders in the East and elsewhere, as well as smaller depositors began drawing out their Hibernia accounts with a rapidity which soon made the withdrawals run into millions.
On Saturday, Governor Allen was told to call a legal holiday so as to permit the closure of the bank for the day to avert further runs. He did so, and over the week-end, R. F. C. representatives. other financial leaders, Senator Long and others combined their forces to safeguard the banks. Today it was announced that no further danger even remotely threatened the bank, and that millions of dollars had been placed at its disposal by the Federal Reserve to meet any possible run. Following are the statements issued by E. R. Black, governor of the Atlanta Federal Reserve bank. and the New Orleans Clearing House association. Senator Long also issued a statement. "It is gratifying to know that the unrest in financial circles caused by careless statements relative to the Hibernia Bank and Trust Company have been fully corrected. "Not only have the statements about this bank been withdrawn, but full and adequate steps have been taken to provide, on the security of the bank's assets, ample funds to meet all possible withdrawals.
"E. R. BLACK, "Governor of Federal Reserve Bank, Atlanta." "To the Banking Public Tributary to New Orleans: "We are glad to be able to say to the public that through prompt and efficient cooperation arrangements have been made to stop definitely the threatened run on a member bank, resulting from unwise and unfortunate statements. "There is no occasion for any uneasiness concerning the New Orleans Clearing House banks, and business should be continued in the usual normal way. "The New Orleans Clearing House Association."
New Orleans, Feb. E. R. Black of the Atlanta Federal here to run on the Hibernia Bank and Trust Co. said tonight statement that ample funds had been provided to meet all possible withdrawals. gratifying to know that the unrest in financial circles caused by drawnls."
Greenbacks Cash and Stored in Vaults; Confidence Is Expressed by Officials.
Trust with in from the and other today break run the bank's Rudolf said started after he (Rep. Y..) before the house million dollars cash and against already there were draw their money the stability of Hibernia bank voiced the other banks by Governor of Federal Reserve bank emergency. made Twenty the bank by the Finance ession in Washington day four dollars tional raised by the Hibernin Mr Hecht the bank was allegation Thursday that had the Union demnity from the Finance shortly before hands of the receiver.
Trying to Meet Requirements of Finance Corporation $2,000,000 Loan.
IS SAVED BY HOLIDAY
New Orleans, ficials Hibernia Bank Trust company tonight that directors of the McNary, session Washington today approved the the bank raised positors more the ground the was Bank officials said they believed they could senator and stop on the bank Early bled tonight the officials said had raised quired that the telephone were responding the favorably the The was started after RepreNew of special before the house in made defunct Union Indemnity by the banks were in New Or under Allen he issued suddenly Saturday the the ance between the United issued time action proclamation was lief prepare meet the run the which had suffered the bernia heavy out town by and officials the had been participated in any extent by New Orleans Merchants and industrialists were taken by Saturday's city they had difficulty meeting
R. F. C. Speeds to Rescue Of New Orleans Bank
NEW ORLEANS, Feb. Hibernia Bank & Trust Vaults the stacked with millions from Co., Reconstruction Finance the to other Ruwhich the said started after Hamilton before the Fish Twenty four million dollars in cash stored vaults against already and depositors But they were their just during the bank's now had 62 Hecht years said the his bank precipitated Fish Thursday that had aided the Indemnity obtaining 000 from the shortly before it went Corp., into the hands the receiver.
NEW ORLEANS, Feb. Officials of the Hibernia Bank and Trust company tonight that directors of the ReconstrucFinance approved today loan to the bank provided the bank raised and of $10,000 or to "freeze" 50 per cent agreed their until the corporation's loan was repaid. Bank officials said they believed they could meet the and stop run on the bank.
R.F.C. Stops Run at Louisiana Bank
NEW ORLEANS, La. Feb. 6Emergency action by the Reconstruction Finance Corporation in rushing $20,000,000 to the aid of the Hibernia Bank and Trust Company, of New Orleans, today had halted at million dollar run on the bank and eased an impending threat to numerous Louisiana banking institutions. The R. F. C. last night provided the huge sum after Governor O. K. Allen Saturday had proclaimed a legal holiday closing all banks and businesses in the state. Banks thruout Louisiana reopened today and officials reported that business had resumed as usual without a sign of panic by depositors.
FISH IS ACCUSED OF STARTING RUN AT NEW ORLEANS
Banker Recalls Criticism in Connection With C. New Orleans Banks Closed.
New Orleans, Feb. resentative Hamilton Fish was charged today starting on the Hibernia Bank and Trust comhere by Rudolph Hecht, prespany ident, by recent of Hecht before the House banking committee in connection Reconstruction Finance corporation loans to the defunct Union Indemnity company of New Orleans. an exchange of telegrams, Mr Fish Bank and Trust company. He added that nothing had said flected that he and did wish to do Mr Hecht an injusthe banks in New Orleans in many other parts Louisiana were closed today response issued by Gov len the diploThere has been visible sign Hibernia bank Mr Hecht that Fish's had caused millions dollars York today. Mr Fish said had Hibernia bank nothing said reflected on stability nonsense for the peoOrleans to take my ticism Mr Hecht the credit bank," the New said. the House banking committee Thursday Fish said demand resignation of Mr Hecht from chairmanship the advisand demanded all Reconstruccorporation loans concerns that later failed. In telegram Mr Fish yester Mr said he did not recomcations loans from the Union Indemnity company.
WASHINGTON, Aug. 9.--(AP)--Loans aggregating more than $2,500,000 were authorized for six Louisiana banks during May by the Reconstruction Finance corporation, it is announced by the corporation.
The largest loan was $1,965,480.43 to the Calcasieu National bank in Lake Charles.
Other loans were: Hibernia Bank & Trust Co., of New Orleans (receiver), $266,059.90; Metairie Bank (receiver), Metairie Ridge, $159,715; Commercial Bank and Trust Co.. (receiver), Springhill, $124,794; Citizens Bank & Trust Co., Ruston, $35,000; the First National bank of De Ridder, $15,487.85.
All the loans were at the rate of interest of 4 per cent.
The corporation also authorized a loan of $115,000 to the Arcadia Parish Mortgage corporation, Inc., of Crowley, La., at 4 per cent interest.
A loan of $25,000 was authorized to the Pelican Lake Oyster and Packing Co.. Ltd., Houma, La. This loan was under the emergency relief and construction act of 1932.
The corporation also authorized the subscription for $300,000 of preferred stock in the Louisiana National bank of Baton Rouge, and $25,000 of preferred stock in the First National bank of Delhi.