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many of whom had been subsisting IMPROVE entirely their which most cases had taken lifetime and to provide to the merchants definite that BUSINESS would for chandise sold on credit basis pending the payment of dividend the bank. CONDITIONS merchants subscrib- that portion bank accounts Arlington Hts. Chamber which anticipated dividends of Commerce Calls Lo- would be paid. As the organization krew, many details that were uncal Business Men thought in the original idea proper treatment; accounting proTO RELEASE CASH codure had to be established, techFOR nical legal knowledge was neces- and overcome. Would Adopt Plan Worked In So successful was the first MerDesPlaines; Benefits Dechants' Relief association, which had proceeded, with immeasurable positors, Merchants was just about one year ago that Des Plaines. community. found in same position that the people of ton Heights in today. The Dee Plaines State Bank had been closed for approximately nve and the just beginning of extent that and little hold forth any steady work dependable Not only were seares and holiday season approaching, but cold winter months were pronching, bringing them the need for additional clothing and fuel.
The people of Plaines, with their money withheld because bank. unable to establish credit. and the because of decrease in sales due to the bank failure and consequent tightening credit were unable tions would permit. The not leal in had many the tion where further unsecured credit commercial ruin and bankruptey. Something had to be done and None quickly remedy the tion, what that and other bank divide With business life of the town deopardy three in the newspaper lawyer from and the De: Plaine Su. burban Times. result of and subsequent meetings of the chants' Relief association was ated. The purpose of this association WHS to provide relief for the depositors of the defunct to the original association and agreed to accept assignments of peared. These details required time and thought effort to provide sary. But, eventually. through perionce these obstacles were cooperation from Mr. William Busse, Jr. (Receiver for the Des Plaines State Bank), on an anticipated dividend of 20%, that secand association is now in progress working second anticipation In addition to its use in Des Plaines this plan has been suecessfully used in other localities, having been adopted in Waukegan, Joliet, Forest Park, Cragin, and other has been recognized by national trade journThrough experience. provisions have made overcome the that always present project this kind, definite procedure has been established, acpractices simplified. and counting the plan itself revealed in its extreme affording relief not only to the depositor and the local merchant, but to the community well. Briefly the plan offers the folthe depositor: bank otherwise unattainable pending liquidation: releases these deposits when they are needed and provide for the positor power of the extent of the dividend, before that dividend actually declared and paid. saves the depositor 3% dividends for permits the of non-interest bearing funds current expenses, and turn the available eash for investment and income producactivities. the local merchant, the cration this means attainable funds can utilized customers off debts, that credit extended with definite that cash will be received for such credit upon the payment by bank. and that they will no longer be when asked credit of the bank's failure. This plan an added advantage for the independent merchant in that chain tures cannot or will become members of this type In effect, this plan collection assurance for the and provides means whereby cash income can conserved for the replenishing merchandise stocks and the assignments used to reduce obligations to the bank and loFor the community. it creates feeling good-will towards the and reduces the numNOTICE people who would otherwise forced avail themselves of assistance from charitable organFarmers and Both Mr. Laurin, the receiver for Peoples State Bank and Mr. Plew, receiver for the Arlington Salaried People State Bank. have investigated this plan and ngreed to lend their operation whis, if by the
Plan The is simple. The depositor makes assignment of that portion claim against the bank felt will be COVfirst dividend paid. made the relation notifies the bank assignment, which tocords the bank. then with certifythat has made such assignment position to avail of the courtesies extended When desires depositor to purchase, he solects the merchandise and the merchant form which receipt for the goods purchased and authority the of the association transfer, on the records of that the value the purchase from the of the depositor's claim to the account of the merchant from whom the material is bought. After this ceipt is approved by the association secretary, the depositor returns the merchant and exchanges the receipt for the goods he has lected. Upon payment of the dividend the bank, the receiver pays the association the amount of all made, The treasurer the association, in turn, pays the depositor the unused portion his and to the merchant the value the receipts he has accepted, less nominal fee cover the cost of organization and operation the association and the maintenance of its records. That this plan beneficial both the depositor and the merchant evidenced by the fact that merchants are now crating in Des compared originally subonly and that 562 claims have scribing, been assigned by deposialready tors the association tion second dividend payment 10% Execon Systems, with offices The Bank building, Des the State Plaines, now engaged this in desiring ling plan the opportunity of thawing bank funds, and meeting business interests held early next week Wiedeman, general manof that concern, together ager with Mr. Connor, the originator the clearing house plan, will talk the and benefits of this plan, to the local merchants. This begin at conducted the Village hall. local independent merchant urged to be present to hear what has been complished in other what can be accomplished in Arlington Heights, the themselves are willing to put for business Admission to this meeting will be invitation which we understand will be placed in the mails early next week. A meeting called by the Chamber Commerce held last Thursday night at the Village hall.
