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EAST TENNESSEE BANK MEETS CHALLENGE OF FALSE CLOSING RUMORS Doors Open as Usual Today; Extra $500,000 Arrives by Plane from Reserve Bank After Gossip Excites Some Depositors. OFFICIALS RE-ASSURE OF STRENGTH Confidence in Old Institution Expressed By Citizens; Group Who Came To Get Money Cheer V.-P. After Talk in Vault. East Tennessee National Bank directors today met unfounded rumors with prompt action when the institution' doors opened as usual this morning and thus averted any serious situation. Scores of had heard that the bank would not persons open and came to draw out money wondered what merit there in such gossip tellers worked quietly but speedily in closing accounts for those who demanded their money. The directors in special session last night decided to put into effect rule observed in many cities requiring 60day notice before withdrawal of savings deposits and a 30-day notice for time certificates. Donaldson, went down to the savings department of the bank this morning to find 50 or more deposiin line to draw out their money. He explained the rule, saying it was for their protection, and assured them all that the bank was in no danger. He was applauded by the depositors, and most of them left without givnotice of withdrawal. By Plane half-million dollars from Reserve Atlanta rived plane this Acting Safety Director Harry and policemen the arrival at McGhee Tyson airport and escorted the bank. Scores who appeared at the to get their money turned again when they saw that others were not out funds after discovering that rumors million and arrive William first said today met and this statement: view of the undue excitecaused in certain Industrial sections of the city thru either malicious uninformed persons circulating untrue ruregard to the financial condition of the East Tennessee National and the East Tennessee Savings Banks, the directors have thought wise to again apply the terms of contract provided Savings and Time Deposits has been done different times heretofore. feel this necessary for the protection of the depositors and the banks, which turn means protection of this community and East Tennessee The rule will not insisted upon where humanitarian other adequate reasons are sented will effect in all the branches of the banks "These banks have served this community more than 60 years with an honorable uninterrupted record and does hesitate to take such action when becomes necessary protect interests of the publie against the results of mallcious and idle gossip. Seek Source Police were looking for the the rumors. There state and providing for spread harmful about and altho out at noon said that would every effort to trace down the source lobby was but orderly after thru the keep the curious and idle the Standing in line before tellers' windows others drew money put their in Many who came draw money out changed their minds when they the bank answering the of gossip Directors of East Tennessee Bank and East Tennes Savings Bank PRESTON URGES FAITH Preston, president Hamilton National Bank asked to today's happenings, urged fidence in the East Tennessee tional Bank. "Citizens Knoxville could greater injury to their than to lose faith in their institutions. They absolutely sound. For generations they have taken care of the needs and largely instrumental in making the city what "There will no return times people hoarding their money and their minds doubt suspicion about everything and everybody. 'Everyone has money in any of Knoxville's banks should where and those who their money hiding should bank, thus the channels of trade and promoting the perity all of us. commend the action taken by the directors the East Tennessee National Bank prevent hasty withdrawals. They worthy the fullest support and confidence. JUDGE DEPOSITS CHECK Judge Grimm of Circuit court like other state officials didn't get his pay check this month. But one came in from source today. He took down and deposited the National Bank with friends in the lobby and his confidence in the bank. PROFESSOR KEEPS CASH IN Prof. Frank Ward, of the economics hearing of the situation East Bank said: "My account with the bank will not be drawn upon except meet current feel that everyone the same the situation would correct itself. WILL FIRE THOSE WHO TAKE FROM Frank Kerr, vice-president and general manager the MahanKerr Motor today told employes any of them would their money bank they would lose their jobs. this for your own said. because it's the emphatic way know of you that the welfare business and the prosperity of all depends keeping our heads and confidence the financial which to us. someone gave million dollars the East Tennessee National Bank There not stronger bank the country only Ignorance that raises question of this FIDELITY WON'T ACCEPT WITHDRAWN woman came into the office Trust this afternoon with she had drawn out the East Tennessee National Bank and quested safety deposit box money "Nothing doing said Harry Price, and counsel the "We are not boxes for such purposes. There too much of this sort thing going our money in East Tennessee National declared "and going to anydrawn This money should stop and put back into the
