Grand Rapids National Bank (Grand Rapids, MI)

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MICHIGAN BANKS ORDERED CLOSED

Proclamation Provides for Eight Day Holiday

Nearly 600 banks the lower peninsula state Michigan ordered Governor Comstock Tuesday morning of the ment the Union Guardian Trust Company of which with large of branch banks tions the state Unable their the bank meet steady demands made on Conferences called with state officials leading of including the heads of the General Motors. Chrysler Ford The former companies while the Ford company deposits excess of and claims have supported the bank with exceeding request made Ford company interests to those of smaller depositors and of Finance Corporation which already made loans the bank This port which they had already the bank Fearing bank panic after conference with leading and and state officials holiday decided upon until adjustments could made whereby all banks of the state would prepared withstand demands usually follow such financial upheaval Much citizens over the and particularly the large cities such Detroit denied made Wednesday ing. permitted withdraw per their relief and that perfected many the banks of again full before expiration of the eightday appreciable effect the Indiana cities by the the Michigan banks Banks of this county had with Michigan local bankers state that they amply able to render full their and depositors that he knew the general banking condition good. that the plan adoptwith approval struction Finance Corporation simply calculated to maintain steadiness an unstable financial situation.

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THE MICHIGAN MORATORIUM

The Governor of Michigan has closed all the banks and trust companies in his State for eight days. It is the same thing, on a larger scale, as has happened in many small towns in the Middle West and West during Shutdowns the course of this depression. It has happened all over Michigan for the same reason, Vs. Runs which appears to us to be a good reason. This reason simply is that the gold standard dollar has been growing more and more un-get-atable. It is better to freeze money in the banks and go on a scrip basis temporarily than to permit bank runs, which might produce bank failures. We think Gov. Comstock of Michigan has acted wisely and with true prudence. As we see it, the Michigan moratorium is another argument for cheapening the dollar so that people can get it more easily to buy goods, pay debts and keep business in motion. President Hoover told us Monday night in solemn tones that if we go off the gold standard we shall have economic disaster. What does he think we're having now, while we still cling to the gold standard?

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Michigan Recovering from State Wide Bank Holiday Order

Nearly 600 banks in the lower peninsula of the state Michigan ordered closed by proclamation of Governor Comstock Tuesday morning because of the embarrassment of the Union Guardian Trust Company of Detroit which with large of branch banks was one of the largest banking institutions in the state. Unable to convert their the bank was able to meet the steady demands made on its reserve. Conferences were called with state officials and with some of the leading industrialists of Detroit. including the heads of the General Motors. Chrysler and Ford Corporations. The two former companies were depositors. while the Ford company had deposits in excess of and claims to have supported the bank with investments exceeding request was made that the Ford company subordinate their interests to those smaller depositors and of the Reconstruction Finance Corporation. which had already made heavy loans to the bank This the Ford company refused to do in view of the heavy investment support which they had already given the bank Fearing general bank panic after conference with leading financiers and government and state officials the proclamation for an holiday was decided upon until could be made whereby all banks of the state would be prepared to withstand demands usually follow such financial upheaval. Much inconvenience was occasioncitizens over the entire state, and particularly in the large cities such Detroit when banking privileges were denied them. Arrangements were made Wednesday morning. however. whereby depositors were permitted to withdraw five per cent of their deposits as emergency relief. and is predicted that will be perfected whereby many of the banks of the state again be in full operation before the expiration of the eightday holiday. Much cash was poured into Michigan from outside sources on Wednesday and Thursday and it appeared Thursday that would available for circulation in than in the during the boom times Many banks were expecting to resume operations by Friday in limited and reported that in view of the expected recovery from the situation that state banking department would leave at discreation of the banks the matter of reopening before the expiration of the holiday set.

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WEEK'S

SURPRISE SHOCKS WELL RESISTED BY PRICES IN GENERAL and

CHARLES F. SPEARE BY Consolidated Leased Journal. Feb. The episodes in our unexpected business life and with all of their implications, could not have failed to produce certain liquidation securities fact that they did not The create an even greater degree of of this that stocks meaning have The liquidated group of values. other the most reother developments the subtract from what be encouraging appeared had The present average being the lowest since Octhe confitober, dence that has taken place since that time rather than conditions. measuring a The world was unprepared statewide banking moratorium in Michithat greeted it Tuesday morning some months been assured was sound the and that that while might be weaknesses in that will have supported, the crisis in last banking was there was distinct shock in the spectacle an entire one state, the country largest having its banking entirely withdrawn order to prewhose assets the extent of over per cent were invested in real the heart of this situation is of investing large banking portions the those paper that are not marketable and, while profitable fair weather. are liability disturbed public sentiment. realized now in many that the value of their banks little and henceforth is with the of The Michigan incident recalls the credited the Fidirectors that no major trouble would be permitted banking This might be supported the while no institution Detroit deposits over 500 banks and aggregating have been for prescribed period. That there on the part Corporaassist instiand that toward deinflation apparent each Report Scanned This the report of committee to the opinions and where the ing in mat in the past ters some promoted the investitransportation keen for if they the would of in the frank has closely follow Salt Lake City and Louis railroad conagain the position of the the bondhave abused their and up deearly must be accepted There for continuto railroads that handicapped ratio embarrasses such propreasonable financial the for the railroad sitsituations must an the market totheir the Reconstruction Finance Corporation to additional railroad practically defaulted price

Firmer Some banking dismarket, with weakness has developed year suggestion fiinapparent exchanges Japan's credit rest quest for greater considerable loans by the the the foreign trade outlook in South republics the inColomCongress Still Lagging during been helpful legisthe fears the would been an institute what are termed and part in the shrinkage now the general not the time to They the betterment of the situinvolved listenrecital of the Insull vandal may have York Stock ago utterly immediate good and distraught people and farm sidetracked Pressuspend congress abruptly Comstock stopped the

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MICHIGAN'S BANKS OPENED TODAY FOR LIMITED BUSINESS gan's banks opened for restricted business today. some of them for the first time since Governor William A. Comstock's emergency closing order ten days ago. Rudolph E. Reichert state banking said that most banks were "doing business in the best possible way," and congratulated the state's bankers on their cooperation during the emergency. He said that most banks were cashing checks that had not already been cleared, on the depository percentage basis laid down in the governor's second proclamation issued Tuesday. Generally, the banks were following the plan under operation for the past week in Detroit, allowing depositors to withdraw 5 per cent of their deposits. In Detroit at the opening hour there were no lineups outside the banks and few instances of unusual numbers of customers inside.

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NEWS

Page. Movie Reel Editorial Movies Markets Winchell Ads Folly Island. Weather Radio Sports 16 Plans started for early pres. the west farm relief proposal. Page The United States general ruling on the proper of assembling to vote repeal. Page The senate banking heard charge the City control the mar ket for its stock. Page Senator assailed he clared control by New York Page The senate did some expense paring and then wiped added Page

Mrs. Theodore Roosevelt belated apology from health officer. Page Senator Thomas Walsh sailed for Cuba to marry sugar grower's Page President Roosevelt appointed Representative Douglas of Arizona as budget director. Page Michigan banks reopened. Page 2.

Dr. Charles urged cational guidance for employed adults. Page The repeal proposal was put Page The city council committee recommended the department personnel cut Page The park board had natural goldfish bowl Birch at Page Presidents of state teachers' col. united against the proposed curtailment of the state sys. tem. Page Northwest Feed Dealers told unregulated trucks affected their business. Knowledge of school subjects was called not the essential of education of girls by Dr. Malcome Mc. Lean. Page Miss Helen Wilson, former resident of Minneapolis, died Tre mezzio, Page 6. Patrick 79. deputy sheriff, fell dead. Page Two suspended Paul policemen were sentenced for larceny. Page

SINCE prohibition went effect several states which were dry have shown wet sentiment. map and story indicate the Page President-elect Roosevelt has decided he'll rely on service agents guard him the inanguration. He told Arlayne Brown, world champion revolver shot. offered that she won't be needed. Page The intelligence that gets marks not the only from educator. Dr. Malcolm college rector the University of urged education that will fit life. Page

The big Japanese drive in Jehol started. Page The Mount Everest plane party from Sicily after five Page WOMEN'S NEWS. Evon Nollette describes garments designed for double duty. Page 13. for Swedish meat balls by Kate Smith. Page 13. Restlessness is Elsie Page 13. Jessie DeBoth presents Sunday dinner menu. Page 13. SPORTS. Mickey shaded Frankie Knauer the six-round of the boxing Page 16. The city high school basketball will wind up today. Page 16 Page 17. Alexandria's quintet was elimi nated by the St. Paul Flyers in the feature of the amateur basketball the Ascen sions, Holy Cross and Belle Plaine also won. Page 17.

MARKETE

Bullish vanished in the Minneapolis pit; Chicago tumbled. Page 18. Stock values slumped to new low averages on large turnover. Page 19. Bonds suffered the worst relapse since the first the 19. Page 19. Dog and lamb trade advanced in South St. Paul: cattle prices mained unchanged. Page

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Moves to Wipe Out Former Guardian Group Holdings for New Capital.

ISSUE COMMON SHARES TO

Subscriptions to Embrace 25 Per Cent of Impounded Deposits.

Following advices from Chicago and Washington the directors of the Grand Rapids National bank Tuesday morning placed before depositors a plan expected to create within few days an entirely new Grand bank, completely wipe out the former Guardian group stockholdings and substitute new capital in the form of common stock provided by subscriptions of 25 per cent of existing impounded deposits in the bank. The bank would thereafter be owned by its own depositors, with additional capital supplied by the Reconstruction Finance corporation. It would open for a complete and unrestricted banking business. Immediate enthusiastic reception of the plan was announced after five meetings with the depositors of the bank and promptly upon securing the necessary subscriptions it was planned to communicate with the RFC for final arrangements. Pointing out the usually fine position in which the plan will place the recapitalized bank, Joseph H. Brewer, president, sketched the situation as follows: "For three years this bank has been regularly off all on loans other instructed by the strictest all examiners, the national banksystem. With each writing off of losses the bank's surplus duced accordingly. Following the last examination just preceding the bank holiday stood with impaired capital of $1,000,000 and surplus. "This position we felt should have entitled the bank to ahead, but subsequent requests have brought insistence that every "doubtful" should off and all depreciation on bonds loss, regardless of probabilities that the loans would be restored sound basis and the bonds would rise in price. Recognizing the great inconcommunity from the lack banking facilities the rather than to for more favorable in this the go length and have offered the wiping out of clared the federal examiners to -and, to-place the bank and take of funds under which depositors themselves, 25 per cent of imto the new stock. would retheir bank. "The has been favorably hoping for reopenthough exact of determined."

Board in Statement. The board directors the Grand Rapids National bank thorized the following statement: last business day governor's proclaimed for all Michigan banks, bank functioning banking customers in Grand Rapids and all of western Michthe regular semi-annual examination bank begun by national bank Feb. 1933, was shown that after charging off all actually determined its capital unimpaired and that had surplus. Like most banks, was carrying ing of made to and ordinarily able their debts. The report included list of bonds on which interest was being paid. but which like all bonds were depreciated value. The bank not borrowed at time from finance and on Feb. was not indebted federal bank Ample funds and assets were on hand which to continue functioning in normal and meet requirements of its customers

Cites "Sound Policy." March the federal government licenses permitting banks that had (Continued on Page 2. Column 5.)

Dance tonight, 949 Division. Admission 15c; check

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GRAND RAPIDS TRUST COMPANY IS REOPENED

Grand Rapids, Mich., March 29. of the Grand Rapids Trust company for regular business under restrictions prohibiting withdrawals for hoarding today eased the strained banking situation here. Two other banks, the Grand Rapids Savings bank and the Grand Rapids National bank, reported reorganization plans virtually complete. They expect to rewithin few days. The savings bank asked Its depositors purchase preferred stock with 20 per cent of their ings, while the national bank will be reorganized with original stockholders surrendering their stock.

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G. R. BANK DIRECTOR NAMED CONSERVATOR

Grand June Burch, director of the Grand Rapids National bank, today was appointed interim conservator the institution to handle its affairs organization of bank on the foundations of the old can be The bank has been doing only limited business since the banking holiday The appointment, made by the

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NEW GRAND RAPIDS BANK CHIEF NAMED

Brewer to Head Institution He Says Probably Will Open August 14.

GRAND RAPIDS, Aug. president of the Grand National announced Friday been and confir National Bank of Grand old His to replace the approved by appointment federal reserve Reconthe er said. of bank will directors elect bank organized to the Grand Rapids National which been doing limited state 14, according to

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URGES BE PRESENTED

G. R. National Conservator Reports 15,358 Depositors Delay Action.

John K. Burch, conservator for the Grand Rapids National bank, announced Friday that while 34 cent been presented in with the 50 per release of pounded deposits, claims of such not yet been For of these depositors the ranged for the bank handle claims, well as the National Bank of Grand Rapids, this and the week. Depositors urged present their claims before the coming week after that claims must presented at the Grand Rapids National bank floor Grand Rapids stead the Bank of Grand Rapids or the branches.

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UHL RECEIVER FOR OLD BANK

Conservatorship Is Terminated by Order of Comptroller of Currency.

TAKES POST IMMEDIATELY

E. prominent Grand Rapids business man and leader in the party in Michigan, late Monday appointed ceiver for the Grand Rapids National by the National Bank of Grand Appointment made by J. T. comptroller Uhl. It marks the termination of of old John received following telegram late Monday from Mr. appointed receiver the Grand Rapids bank ship. Take trust receipt telegram by forwarded to Grand

Awaits Instructions.

He he would over the He probably will the post Wednesday The that the attorney for the The receiver would follow conservative program in liquidating the of the bank in his Mr. Uhl of the late Edwin Uhl, to Geron Page 2. Column 7.)

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Grand Rapids Bank Receiver Is Named

GRAND RAPIDS, Sept. 26 (AP) of the defunct Grand Rapids National bank has been changed to and David Uhl, in circles the bank, the National Bank of Grand Rapids, has been organized take over the assets of the old institution. Uhl will start liquidating frozen sets of the old bank immediately, he said.

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CITY, COUNTY WIN SUIT from First Page.) faith is not urged to be excessive, must While the suit the two to only was paid under protest the City Frank Thomas Vidro all that the county expected collect from the Had the plaintiff the county likely would have been whatever this part the tax that had lected as Frank Peterson, chairman the committee, announced time that those who paid without would have been accorded the same those budget this might have been difficult.

Led by League.

Under of the league tax to City Treasurer Smith under pro test pending outcome the suit. That part of the collection involved in the segregated Smith, was the agent, left the Grand Rapids National bank, which closed the banking holiday and since reorganized. decision the high court Thaddeus B. Appearing for the league case was Attorney Hall. Attorney Souter, attorney when the city and Prosecutor Bartel an assistant, N. Searle, for the county.

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ASKS TRUST FUND CASH BE CLAIMED BY FEB. 1

Those still ve trust funds the Grand Rapids National bank urged by David E. Uhl, receiver for that bank, to draw those funds before Feb. 1934. These trust funds are separate account from the impounded deposits and total many who had trust funds transferr them the National Bank of Grand Rapids or other banks this total remains inactive Mr. Uhl added that if the trust funds are not withdrawn by Feb. can to the National Bank of Grand Rapcrediting them to their respective owners Grand Rapids National bank still has $30,000 deposits which has not the sent dividend rrangement of last August.

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Senate Witness Testifies President Wanted No More Failures

TO GUARDIAN

Edsel Ford Reveals How His

Father Precipitated Banking Holiday In Michigan

By

(Continued from Page represented entertaining that opinion.

Defends Banking System Mr. Leyburn also defended the tional banking system against tee criticism based the fact that although, the record shows, bank examiners frequently criticized the group, action their reports was taken by the Comptroller's office. Senator Couzens (Rep., What your interpretation of his A.-Because he told by the leged higher command. Senator are you from hearsay from your knowledge? from my own knowledge. From my knowledge was told by the higher mand do rock and not any more failures.

Quizzed By Couzens

Senator Couzens asked the witness meant by "the higher command,' and the and the Secrethe Treasury.' the committee's counsel, brought out that, until the 1933 banking was the passed, tional bank examiners without power remove bank officials cause mismanagement. Otherwise, their only power close bank because to take away that necessitated court Mr. adding that the in the act, tion referred teeth in question of power to take away national bank's has been law since Mr. has been resorted to only of Maryland the First National Bank Hagerstown, fourteen fifteen

Banking Act Violated

The Hagerstown bank, he said, "violated section the National Banking looked for more The Comptroller, he powerless other than bring action the Federal court 1921 away the bank's precipitated run on the bank forced receivership. The bank's offered to resign and sell their stock others drawn and that was done, their stock Mr. Leyburn, but the publicity the that recovered shock" later close. other words," continued, sounds good that you anything to with offending bank, but you give medicine the patient." Concerning the true condition of the group banks, Mr. Leyburn. reviewing what happened them since the banking holiday, could talk forhappened them.' unit banks that reopened, had been able to do so only reorganization.

Bank Reorganized

"The Grand Rapids National cember 1932, had in said. been reorganwith RFC aid under fifty Asked what he meant by fifty waiver,' he replied: depositors got cents on the and gamble the The Ionia bank under servator hopes reorganize and RFC aid basis. bank Lansing, said. similar condition, proceeded list the other units the group like fashion. One For

When he got the Union Guardian Trust Company, keystone in the group and the institution where group's collapse began, he said: don't think any attempt has been reopen that bank. matter would take Houdini open dead. the bank. have been made Detroit the Guardian National (biggest the group) others the group because of some Wall Street you know A.-No, think it's wonderful fairy

Government Defended

Mr. Pecora asked if the witness wished before being excused, Mr. Leyburn plied: "Only that the the Treasury and the RFC of being the big, Detroit dark virgin and baby Most of that from some big politicians there they're trying to out of depositors insult the people Michigan." The collapse the Guardian due number things, to follows: mouthful when say that. Then,

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IS SEEKING FURTHER PAYOFF

Grand Rapids National Bank Receiver Confers With C. in Detroit.

David E. Uhl. receiver for the Grand Rapids National bank, in Detroit Friday. understood being made the RFC for of deposits by the local bank.

Ladies' beautiful rectangular and the 182 $1 down. $1 weekly.

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Grand Rapids National bank has $89,000 not withdrawn since the 50 per cent dividend was declared a year ago and $142,000 still unclaimed of the recent 10 per cent payoff. David E. Uhl, receiver for the bank, urges depositors to present their claims.

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BANK RECEIVERS CLOSE OFFICES ELECTION DAY

Receivership offices for the Grand Rapids Savings bank, Grand Rapids National bank, American Home Security bank, GalewoodWyoming bank and East Grand Rapids will be closed all day Tuesday because of the election.