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FORD PUTS HUGE FORTUNE BEHIND 2 DETROIT BANKS Will Establish and Run Both Institutions. [Continued from first page.] creation of two new banks and will match the total necessary capital, which we understand is $8,250,000, with the good brains of those who are willing later to unite these banks into one institution founded on what we think sound banking should be, provided you have confidence in our ability to select the men whom we all believe will merit future public confidence. The institutions so established will be the type of structure that will merit public faith in the ability of industrial Detroit to rehabilitate itself. HENRY FORD, EDSEL FORD." It is understood that Ford will leave his deposits in the old banks, estimated at around $7,000,000. on the same as the other depositors. 78 Million R. F. C. Loans. Under the terms of the Reconstruction Finance corporation loans the First National bank was to have received $54,000,000 and the Guardian National $24,000,000. In subscribing for all the capital stock of the two banks Ford anhis and his desire to take over the liquid assets of both institutions, which enable them to carry on. However. he reserves the right to name his own board of directors there will be no stockholders. The banks will be his own personal property, as he will own every share in them. Alters Banking Situation. Ford's entry into the picture alters banking conditions here materially. It provides new hope and it leaves control in the hands of Detroit man. Although they to comment on the new turn of affairs. bankers of the city evidently greatly pleased. They feel that the financial power of Mr. Ford. fortified with one of the largest stores of liquid cash and securities in the country. would in themselves be all that is necessary to place the city's financial situation on a solid rock foundation. Earlier in the day Walter H. Dunham, president of the Detroit Savings bank, had announced that the bank he heads would resume its clal business, but would be unable to accept checks upon other institutions except subject to final payment. It will operate upon limited withdrawal basis, he said, in so far as the savings deposits are concerned. Mr. Dunham said that withdrawals temporarily will be limited to cases of real necessity, under the terms of the second proclamation issued by Gov. William A. Comstock.
