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Resumption of Full Service Virtually Assured for Monday.
(Continued From Page 1.) this sort from the reserve bank of its district. Meanwhile, on and after Saturday banks of Minneapolis and other northwest cities can borrow in full from the ninth district Federal Reserve bank government obligations. By this exercise of their rediscount privilege, they can do what is tantamount to exchanging their government paper for currency is sued by reserve bank or, if they prefer, receive the reserve bank credit which they can convert into currency later All this sets the wheels in motion for the expansion of the supply. The wheels will turn and rapidly and the program will go forward with when the banks are to rediscount as sets ather than government paper with the reserve banks. The borrowing privilege is avail able to national banks, all of which must be members of the federal reserve system, to state and savings banks and trust companies which have elected become members and also to other banks that are not members but have opened accounts with Federal Reserve bank in Minneapolis or elsewhere, after meeting the requirements of the federal reserve act in respect to liquidity of assets.
Full Service. The strength the financial which now is returned to service in part as of cash and credit for the nation's banks and will to service er when the bank *holiday is ended and the expansion program really gets under way is evidenced by the weekly statements of the Federal Reserve banks. At the close of business Thursday, the 12 reserve banks had total resources of Their rediscounts, in other words loans to other banks, amounted only $1 Cap. Ital totaled 120,000 and surplus funds 000. The Federal Reserve bank of Minneapolis Thursday held total of $14,804,80 of rediscounts or loans to banks its district, Minnesota, the Dakotas, Montana, upper Michigan and northwest Wisconsin. In the postwar deflation year of 1921, its rediscounts exceeded $100,000,000. The other banks are at Bos ton, New York, Philadelphia, Rich. St. Louis, Kansas City, Dallas and San Francisco.
Banks Being Classified.
The commercial and savings banks of the Twin Cities are ready to open for complete banking service Monday morning, when it is expected that the temporary bank suspension will be lifted by presidential procla mation. They very easily could reopen Saturday but welcome the extra 48 bours, which will give them more time to gear their complex machinery for efficient operation after virtual shut-down of week. The privilege of reopening In full. according to rulings of the secretary of the treasury, will be extended only to banks which are in 100 per cent sound condition. Others will be re. stricted, at least for time, to restricted service and limited with. drawals, based accurately on the degree of or eligibility for rediscount of the bonds, notes and other paper Included in its assets. The federal acting on reports furnished by the Federal Reserve banks in Minneapolis and the other cities, classifying all banks and applying standard "measur. ing stick" ascertain beyond question the strength or weakness of each
All Deserving Banks to Share. This applies to all state and sav ings banks as well as to national and other member banks. All deserving banks will be eligible to share in the benefits assured by the new reserve bank which in turn will provide all the currency needed and make possible the termination of the bank holiday. The important stipulation is that the degree of bank's worthiness shall be the fac. tor in determining the help it shall receive. The state banks of Minnesota went ahead rapidly Friday in plans that will permit them to receive assistance from the reserve bank in the form of needed supplies of cash or credit. These will be obtained in most instances through correspond. ent member banks, although some institutions are expected to join the reserve system or open reserve accounts and thus become eligible for loans based on sound collateral. The Minnesota Bankers association has arranged meeting for all bank. ers of the state p. m. Saturday at the Nicollet hotel In Minneapolis. At this the banking ation will be discussed in minute detail and the terms of the new bank relief law analyzed, with
While arranging operating detalls of the reopening plans, the banks of Minneapolis and St. Paul completed the legal formalities necessary before full service can be resumed The treasury department has ruled that each bank must file separate application for permission to resume. When notified from Washington that the application has been approved. the bank can reopen soon as President Roosevelt's proclamation ends the holiday. All larger banks of the Twin Cities and all offiliated banks of the great bank groups with headquarters in Minneapolis have made their formal applications and received the gov. ernment's permission to go ahead on basis of unrestricted service. They now need only the of the proclamation to renew their regular operations. The is true of most banks of Minnerota and the northwest.
Decker Confident
Strong approval of the steps taken by the United States government and the banks to the banking crisis and complete confidence that bank service will soon be on normal and adequate basis in Minneapolis and the northwest were voiced by Edward W. Decker, president of the Northwestern National bank and Northwest Bancorporation, in statement Friday. He "The emergency banking bill passed yesterday gives the control of the banking system of the country and provides the machinery whereby sound banks may open for We are in accord with the provisions of the bill and are co-operating with the President, the federal reserve bank and the secretary of the treasary to the fullest extent. We believe that the situation is in strong and capable hands and are confident of an early resumption of business on normal basis. "The Northwestern National bank and its affiliates are in the position to render the same service as they were before the banking holiday was proclaimed and shall do so as soon as allowed to function fully and normally. In the meantime. we are giving our customers such services as are permitted under the regulations issued by the secretary of the treasury Reopening of the federal reserve banks two in advance of the date for resumption of services by the commercial banks was hailed by bankers Friday as an Ideal from every point of view. The Federal Reserve bank of starting work step ahead of the parade, will be able to get its departments functioning before the flood of business arrives that ending of the bank holiday will release Instant Currency Delivery. Specifically, the reserve bank will be enabled to get currency ready for Instant or shipment to any member bank that may need additional supplies or after the time of reopening Monday The bank also will have to clear its depart ments of the that has been tied up since the holiday began week ago. This includes transit and collection items, which reserve bank handles in huge volume. Every' thing will be ready to handle the deluge of new checks, drafts, transfers of funds and demands for credit and currency that will pour in, start. Monday. The commercial banks of the Twin Cities also will be prepared. Before the reopening date fixed, with practical certainty, for Monday, Minneapolis and St. Paul bankers were determined that no other city's banks should resume 100 per cent service to customers and the public sooner-than they did. Now they are centering only one thing-that the brand of to be offered in the Twin Cities shall be at least equal if not to that which will the bank holi day in any other financial center.
