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IMPORTANT MEETING HELD
The people of Provo and vicinity been greatly concerned because of the voluntary closing of the Farm ers and Merchants Bank some two weeks ago, but they have not been asleep on the matter in the meantime committee of eleven got together shortly after the bank closed and found from the State Bank Examiner that the institution was in excellent condition at the time of the closing and that the bank had closed by order of its Board of Directors, as means of safeguarding the interests of other depositors against the selfishness those who caused the run on the bank. and was not closed by order of the State officials The then made an examination of securities held by the bank and found them most excellent condition, with siderable cash and ment bonds on hand They found some "frozen assetts" of course, but they are good for normal So the committee got into communication with Senator Reed Smoot, relative help from the forming 000.00 financing corporation, and telegraphed back that help would forthcoming and that he would be pleased to present application from the Bank, in person, to the committee in charge of the Government Corpora
The Provo committee then sent out letters to quite number of the 4800 depositors at the Bank, calling meet ing which was held in the Provo High School auditorium Wednesday night. At this meeting, facts above stated were presented to the depositors. Con ditions relative to other banks which have closed, and bad effects upon all communities that have had the experience of Bank closing, were cited. was shown by reference to closed banks at Moroni, Mt. Pleasant, Rich field. Lehi, American Fork, Ogden and elsewhere that If the Farmers and Merchants Bank remains closed, the depositors can hope for not more than one third returns on their money de posited in the bank, because of the and the length of time heavy expense takes to liquidate the holdings of institution, and the financial such an sacrifices which have to be made to cash in on paper. The depositors were asked to give voice to their sentiments and to state their wishes, after full explanation had been made on both the negative and affirmative of the matter. mo tion was made and unanimously pass ed, with loud applause, giving those who had acted as officials of the bank vote of confidence. Another motion passed unanimously that feisable plan be submitted and the bank reopened with the least possible delay When asked if the same officials would operate under the proposed re organization, chairman Hedquist said that all past officials had been con sulted that to man, they had and agreed to leave that matter wholly in the hands of the depositors, but fur that of them had ther said every one agreed to pay 100% assessment on help get the their stock, need be, to institution going again. So, plan substantially as follows was submitted and accepted without dissenting vote:- Those having say ings deposits to sign agreements to leave their money with the bank at 4% interest. payable semiannually principal to be withdrawn for but no when one third may be one two before the second third years available and three years before final withdrawal may be made. Those having checking accounts al to leave their money with the bank 75% to remain with the bank 4%, for one year from the re-opening of the bank, and the other 25% available Five per cent during the as follows: 10% the second month first month: the third month. However and 10% of the plan that depositors is part If need be, on their certimay of by paying regular ficates to the bank. interest that considerable It was explained of now on deposit must amount money agreements at once and be signed by copies of such agreements were pass and we are safe in ed to all present there will be sufficient that with the re-opensigned up to proceed future. In fact. most ing in the near passed to those the agreements signed before the people present were the The committee in charge was in creased to James Ritchie of Charleston being chosen as representative from Wasatch Country. If the plan succeeds, as believe will, we think the Farmers and Merchants Bank will be one of the strongest institutions of its kind in Southern Utah. This matter of reopening however, very expensive job. much better to keep our banks gothan is to re-open them when ing closed.
