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FORESTALL
Council Proclamation Calls for 15 Day Moratorium On
Business
TO PROTECT DEPOSITORS
Step Taken After Other Banks in Vicinity Close, Spreading False Fear
Closing to forestall run, symptoms of which developed Wednesday, afternoon after the closing of the Mishicot bank, and the closing of seven other banks in the county in the previous ten days, both banks in Two Rivers today went on 15-day holiday under the state banking stabilization law. A proclamation was issued by the city council declaring 15 day business holiday in order prevent "conditions that might seriously affect the social and economic welfare of the city and its people." Council Hears Bank Heads business proceeded very much as usual in the city. There were no crowds about the banks as the news went about the city, and stores remained open. Payroll cash to be distributed this week by the industrial concerns was expected to take up the slack of deposits tied up in the closed banks to considerable degree. The situation was laid before the city council special meeting this morning, at which Henry Wilke, cashier of the Bank of Two Rivers, and Frank Schroeder, cashier of the Two Rivers Savings Banks, told the course events. Wilke reported that he had driven to Madison last night, and laid the local banking situation before Kingston, state banking commissioner, at two hour conference Mr. Kingston, deploring the necessity view of the solvent condition of both banks, advised that in view the circumstances the best course protect the depositors would be embrace the moratorium provisions the law at once, before disastrous run could develop. Examiners To Check Affairs
Examiners from the state banking department will be in the city within the next few days check up both of the banks. When their report mass of depositors will be held which the detailed situation explained, and the depositors will be offered plan of organization approved by the state. It is confidently expected that the banks will be open for new business before the end of the 15-day holiday. The usual course to obtain waivers from depositors, which permit withdrawals of small percentages of deposits over period of six months, while liquidation of Depositors WIll Not Lose Stockholders' liabilities of double the amount of their holdings of bank stocks should protect all depositors, Mr. Wilke told the council. If the banks can be liquidated in an orderly way, nobody but the stockholders will eventually. aim," said Mr. Wilke, while Mr. Schroeder nodded assent, see that the depositors do not lose penny. It was impossible to assure this in any other way than by invoking the law. We had $400,000 cash which could have been brought in to meet the run which was developing, by selling our bonds. But this proved not to be enough we should have been forced to foreclose all mortgages and demand payment of all notes, which would have meant, under present conditions, terrible losses. The end would be that depositors as well would lose heavily, and terrific strain on the city rounding territory. We should have
