fc3feb91None
Click image to open full size in new tab
BANK AT LURAY IS CLOSED BY DIRECTORS Luray, Oct. night its board of the First National bank Luray, failed open morning with following tice on its doors: closed by of its heard directors, due to market value of bonds and securities and in order to serve its assets the all creditors, signed, Price, president The board consists of leading business the town county follows: Rhodes, merchant, Dr. Brumback, physician and farmer: Buford Mauck, Dr. Grove, and Price, banker and orchardist.
Click image to open full size in new tab
EXPECT EARLY REOPENING OF BANK AT LURAY Luray, Feb. 10 (Special) depositors committee consisting of N. H. Clark, E. E. Grove and J. W. Burgess, in charge of the reopening of the First National Bank of Luray has made settlement with all depositors and old stockholders and the reopening of the institution only matter of clerical work. The depositors say that unless the unforeseen occurs the reorganized First National Bank will open its doors for business some time next week. The bank suspended October 1931 Receiver W. Lynn. who has been in charge for several months, will turn over the business to the reorganized institution.
Click image to open full size in new tab
SANDBAGGING THE BANKERS An insight into the probable cause of the failure of the No gales National Bank in Nogales, and other banks in Arizona, is given in the May "Plain Talk" by Congressman Wright Patman of Texas, the man who forced the resignation of Andrew Mel lon as Secretary of the Treasury. is entitled "Sandthe of for foreign put to of bagging out The the worthless at huge "rigging" story commissions Bankers" the bonds, and market J. tells P. Morgan and other Wall Street international bankers, Currency by and the Comptroller of the his force of bank examiners. A specific case of the wrecking of the First National Bank of Luray Virginia, which was "sandbagged" into calling a of local loans, ruining man nearly number every business in town, and buying $210,000 worth of worthless foreign bonds, is given. Following the "suggestion," which, coming from the Comptroller's office is tantamount to an order, by the bank exami ner that loans be called and the proceeds invested in foreign bonds, high pressure salesmen from Wall Street bond bouses appeared in Luray a few days later. Plain Talk magazine, which is from Washington, D. no words C., published minces in charging Mr. Mellon with causing nine tenths of the present business depression in wrecking so many banks and so many local busi nessesses. The loss from local loans over a period of years has been 1%, Plain Talk says, while the loss from Morgan's foreign bond issues has been from 50% to 75% According to Plain Talk. the condition which exists in Luray, Virginia, and the action of the Comptroller's office with refer. ence to that bank, is general throughout the United States, especially in cities of 50,000 and under. Bank presidents and officials are afraid to complain for fear of by the Congressman reprisals partment, Treasury Patman De. says, as the Comptroller's office has unjust power to close any bank it wants to by alleging that any collateral it has is worthless. Mr. Patman's article urges that the so called Reconstruction Finance Corporation, which he calls the "Two Billion Dollar International Bankers' Dole Cor poration," pay back to every bank which has been swindled in this foreign bond racket. the amount of money it has been swindled out of. He further urges that the Dole Corporation then collect this stupendous sum, which he estimates as in the billions, from those who did the swindling. He declares that the Dole Cor poration can save its face by do. ing that, as it is now being run to make good all the bad loans put out by J. P. Morgan and Company, and cites the Missouri Pacific Railroad deal in proof thereof.