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HIGH PRAISE ACCORDED FEDERAL RESERVE BANK SAVED MANY INSTITUTIONS IN DISTRESS DURING YEARPREVENTED RUNS Atlanta, Ga.-High praise for the Federal Reserve Bank, of Atlanta, for its timely and effective aid recently in preventing runs on banks in Athens and Elberton was given by bank officials of the two Georgia cities in statements made public. Rushing currency in large sums to both cities, by registered mail, special messenger and transfer to its nearest member banks, the Atlanta Federal Bank, it was shown, soon restored business conditions and deposits, which had been withdrawn, began pouring back into solvent institutions which otherwise would have been forced to close their doors. Alleged defalcation of an employe of a bank in Athens-which officers deficit a a wave of financial hysteria in that city. The bank run at Elberton was occasioned by the closing of three banks in the county. In addition to sending currency to its member bank, the First National Bank of Elberton, the Federal Reserve Bank of Atlanta had one of its representatives, who was in the vicinity, to remain at this bank and assure depositors that there was no cause for alarm. Printed badges bearing the inscription, "I made a Deposit in the First National Bank today," were furnished many depositors by the Elberton Bank as an effective means of restoring confidence. Big Sums Shipped "The Federal Reserve Bank of AtAthens to the Citizens and Southern lanta very promptly shipped into Bank, as well as to the National Bank of Athens, and through its connections, to the Athens Savings Bank, sufficient currency to pay off all customers demanding their deposits," said R. V. Watterson, cashier of the Citizens and Southern Bank of Athens. "By having these large reserves the public was reassured as to the soundness of such organizations as the Citzens and Southern Bank. "During the past fortnight the Citizens and Southern Bank in Athens, through its connections with the Federal Reserve Bank, has been carrying unusually large reserves, and has distributed over a quarter of a million dollars to the smaller banks in the territory which were having heavy runs, and due to this prompt and efficient service, we have succeeded in keeping a number of good institutions from closing their doors." Advantage of Accessibility John White Morton, president of the National Bank of Athens, declared that the advantage in the Federal Reserve Bank in Atlanta is a situation like that recently in Athens is its accessibility. "The banks in small communities do not like to carry actual cash beyond their usual needs and in Athens, to illustrate, all we had to do was to telephone the Federal Reserve Bank I in Atlanta what we wanted and it had funds in Athens on the first train. The Atlanta bank could have put money in Athens in three hours time by auto, if necessary, and offered to do SO. "Besides this the Federal Reserve Bank of Atlanta as a government agency is able to handle situations of this kind at once for its member banks while, on the other hand, considerable red tape and time would be consumed in dealing direct with Washington, if it could be done at all, and non-member banks where they no doubt could arrange with their correspondents to care for such an emergency, of necessity could not handle it so expeditiously as a member bank with the Federal Reserve Bank of Atlanta." Major H. P. Hunter, cashier of the First National Bank of Elberton, said that the prompt and thorough action of the Federal Reserve Bank of Atlanta, in supplying funds and stationing one of its representatives in his bank, entirely restored confidence. "We were inconstant touch by telephone and telegraph with the Federal bank in Atlanta, with its unlimited funds and great reservoir of credit," said Major Hunter. "This taken with the strength and solidarity of our bank brought order out of seeming chaos in a remarkably short time; in fact, deposits which had previously been withdrawn, poured back to such an extent that for the time being it became necessary to increase our clerical force." Billions Handled by System The Federal Reserve Bank, of Atlants of which M. B. Wellborn is gov-
