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Opinion Split on Bank Situation (Continued from page 1) start a new National Bank here with view of making deposits of both the First National and Peoples Banks available. George Edwards expressed a similar thought Dr. E. L. Meyers declared that the committee which had gone to San Francisco Tuesday apparently had done all it could to solve the bank situation here. He suggested that they be given a chance before any. hasty action be taken by the depositors committee Hugh Baber expressed the same Goldstein replied that the only organized group which had worked on the situation thus far was composed of directors and stockholders and that he had observed that in other instances national banks had been obtained when depositors of defunct institutions got after the authorities. Bevins As Depositor Earle R. Bevins responded that he had been working with the group headed by Attorney Bond ever since an effort had been made to reopen the local banks and that he was only a depositor in both, owning no stock in either and not director of either. He said that he believed every possible effort had been made to start a national bank here but that the federal authorities seemed hard to reach. and were slow in responding to a movement of this sort. What the depositors here need is im mediate action to put money into circulation, Bevins continued. and the state authorities had shown willingness to cooperate in this regard immediately Reopening Feasible Frank M. Moore who also went to San Francisco with Attorney Bond Tuesday remarked that both state and federal banking authorities had been consulted at the meeting and that the most feasible plan was to open the Peoples Bank immediately as a state bank The First National Bank is bound to have a receiver appointed and if we can get the Peoples Bank started as a state bank, that will do away with the expense of receivership for it and you all know that receivership costs a lot of money which will necessarily have to come out of the deposits, Moore said. "There was a federal reserve man present at the meeting and he told us it would be very easy to change from state to national bank if that were desired He fur ther said that no other federal charter would be issued in Chico if a state bank were started here as outlined by Attorney Bond. Moore closed his remarks with statement that the depositors of both banks will be much better off if state bank 18 started here Only Three Directors Attorney Bond observed that Goldstein was in error when he said that only directors and stockholders had worked on the situation thus far He said: As matter of fact there were about 20 men who constituted self-appointed committee that had met with us to attempt to do something for the good of the depositors of the banks and the community In this group there were only three directors SO far as can recall am not bound by either plan as a matter of fact I should prefer a national bank by all means and this state bank plan of ours was only an alternative to get some immediate action to relieve the distress caused by the delay in granting the original petition want to do whatever is best for the community but it is action that we need right now, Bond Goldstein asked why the Sacramento depositors had passed up plan to get state bank capitalized at $500,000 and had organized to secure capitalization of, $1,250,000 with the promise of similar amount from the Reconstruction Finance corporation and the Federal Reserve bank Leave R. C. Alone Lee Richardson said he had been to S. F. several times on this matter and had concluded from what he had learned that it was far better for the depositors if the Reconstruction Finance corporation and the Federal Reserve banks were let entirely alone They demand all the securities and interest at 5 1-2 or six per cent which must be paid before the depositors get anything In replying to Goldstein's question relative to the Sacramento bank. Bond said that the People Bank was capitalized for $100,000 which the 100 per cent assessment to be levied against stockholders and the money otherwise the Reconstruction Fin
