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Banking Holiday for All Maryland Feb. Albert Ritchie late tonight declared tomorrow legal holiday all banking and financial institutions of Maryland and made Monday and Tuesday in an effort for banks here take against heavy this week. Howard Bruce, chairman of the Baltimore Trust company, said withdrawals totaling made his institution today and the week's withdrawals were $13,000,000.
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Governor Predicts Reopening Next Week After New Law Is Passed Feb. Albert Ritchie late tonight declared tomorrow legal holiday for banking and financial institutions Maryland and also made Monday and Tuesday legal holidays in an effort for banks here take measures against heavy withdrawals this week. Howard Bruce, chairman of the board of the Baltimore Trust pany, withdrawals the amount of made his today and the total withdrawals amounted to $13,000,000. Must Stop Withdrawals Governor Ritchie said in formal statement: attended the meeting of bankevening with the idea doing whatever best the depositors. The interest of those who placed their money the banks must preserved above else. believe there no justification for the withdrawals which have cently been taking place. But protect the property and saving the people the city and state, these large withdrawals should stop. the consensus that bank holiday should declared tomorMonday Tuesday during which times certain legislation for the protection of the depositors and security of the banks could be sented the legislature. The bank holiday cease as soon the legislation passed and expecting that this will done and that the banks will be able to reopen Wednesday, with ample facilities for the needs of the people." The general assembly adjourned today until Monday night
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BANKS IN MARYLAND CLOSED UNTIL MARCH BY RITCHIE'S ORDERS Annapolis, Md., Feb. 24.-Gov. Albert Ritchie late tonight issued proclamation closing all Maryland banks until Wednesday, March The action was to present legislation to the Legislature, Monday, which is aimed to aid the ailing banks. Many Baltimore banks aid from the Reconstruction Finance Corporation, including two banks in Annapolis. About months ago the Baltimore Trust Company was closed after run the bank reduced the deposits the danger point. This situation by Maryland men, who co-operated with Ritchie forming pool of to tied them in the emergency.
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GETS Governor Orders Cessation For Three Not Justifiable, He Says. BALTIMORE Feb. ernor late tonight legal holiday for banking and Maryland and Monday Tuesday legal an for banks take against withdrawals this week. Howard Bruce, chairman the board the Baltimore Trust comsaid withdrawals the amount were made at his institoday the week's Governor Ritchie formal attended the of bankers with the idea doing whatever best for the The interest of who have placed their money the banks must above else. believe there no justification withdrawals recently taking place. But protect the property and savings the the city state, should the that bank holiday be declared tomorrow, Monday and Tuesday during which certain legislation for the tection the depositors and security of the banks could be presented legislature bank holiday will cease legislation has and am that this will and that the banks able reopen on nesday, ample facilities available for needs the people. The Maryland general assembly journed today until Monday night o'clock.
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Maryland Emergency Bank Law Drafted Continued From Page 13 were hampered somewhat in transaction of business. Bank Statement Erroneous BALTIMORE, Feb. 25 (A P.).In the announcement of the Maryland bank holiday last night, statement was made that withdrawals from the Baltimore Trust Company yesterday were $6,000,000. incorrect, and was incorrectly attributed Howard Bruce, the board. Mr Bruce did not make statement. The was announced by the Bank who said it was from all Baltimore banks. The Associated Press is glad to this correction.
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152 BANKS BUSY MARYLAND Restricted Institutions in the State May Be Allowed Greater Discretion BALTIMORE, March 16. - -Three more banks were licensed to reopen today, bringing the total number of institutions now open in the State up to 152. Two of the banks opening today are State institutions, licensed by State Banking Commissioner Ghingher, and one is a Federal Reserve member. Curb May Be Eased Several other licenses may be issued today to other banks, it was indicated, while some banks which were permitted to reopen on a limited withdrawal basis will be allowed to increase this amount to depositors. Reorganization plans of the Baltimore Trust Company and the Union Trust have been practically completed, officials of the institutions said today, and they are now awaiting word from Washington that will permit them to reopen as national banks. May Join Reserve Another reorganization being worked out is that of the Hagerstown Banking and Trust Company which was not licensed to reopen. The Eastern Shore Trust, Company, largest banking institution in the State outside of Baltimore, is also working on plans to become a member of the Federal Reserve System. The company with its 21 branches is now operating on a limited withdrawal program.
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Distribution Ordered thought the act was going to be merely restriction on withdrawals stop run," he said, "and scribbled down section which would have exempted only those receivers' deposits which distribution ready had been ordered by the court." Distribution of the $400,000 among Chesapeake Bank depositors was ordered the day Governor Ritchie "If and when the plan becomes efissued his first proclamation, fective, the sound book value of the gurating the following day the stock acquired will be about first Maryland's bank holidays. per share, without regard to its earnApproximately $85,000 out of the $400.- potentialities, which, in view 000 was in the Union Trust Company the proposed readjustments, should be and like amount in the Baltimore such as to justify valuation subTrust Company, Judge O'Dunne said. stantially in excess of its book value. Mr. Barroll, following Mr. Machen. questioned the constitutionality of the More Reserve Banks bill as whole. It was, he said, an exercise of the State's Authorized To Reopen police power. there not Richmond, Va., March 20 (P)-The state war, but just small panic Federal Reserve Bank of Richmond among few people.' Rawis Upholds Act Mr. Rawls, following Mr. Barroll, at length into legal precedents for the act and upheld its constitutionality. He dwelt especially on those sections pertaining to city, county and deposits, bank county reserve deposits and receivers' funds, sections being the ones on which the plaintiffs' attack has been focused date. Holding that if they be regarded preferential they unconstitutional, Mr. Rawls argued that they should be as priorities not in which event they would be He reasoned that the bank act emergency gives the city, counties and state and other parties the only right withdraw their deposits in advance of other depostors. does not give them the right withdraw their deposits full doing the chances other depositors getting out their posits in full would be lessened, he said. The priorities sections are inoperative. Mr. Rawls continued, with spect banks that have not been permitted to reopen. As the determination of which banks public moneys so forth can be drawn from without endangering payment of other depositors in full, Mr. Rawls said that involved risk but one that would have be taken. Judge Eli Frank. of the Superior Court. and Judge Charles F. Stein, of the City are sitting in the case with Judge O'Dunne the latter's invitation.
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DEPOSITS HEAVY IN REOPENED TRUST FIRMS 2 Big. Baltimore Institutions on Limited Basis Except For New Accounts BALTIMORE, March 22.Heavy deposits were made yesterday when the Union Trust Company and the Baltimore Trust Company reopened on a restricted withdrawal basis. Officials of the Union Trust Company said more than $1,000,000 in new accounts has been received, the money being placed in bailee accounts which are subject to 1.00 per cent withdrawal at any time. New For Old Old depositors of the institutions were informed that 5 per cent of their balances has been placed to their credit in a new account, pending reorganization. Both trust companies announced they will continue their efforts to gain permission to reorganize as national banks. The Eastern Shore Trust Company, largest institution in the Stat: .outside of Baltimore, sent its plan for reorganization into a member of the Federal Reserve System to State Banking Commissioner John J. Ghingher for approval. Test Suit on File A test suit on the validity of the State emergency banking bill, passed by the legislature shortly before the national bank holiday was ordered, continued in circuit court today. The suit was filed on behalf of certain depositors of the Baltimore Trust.
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OTHERS DENIED PRIORITY ON DEPOSITS Baltimore City Loses Out When Tribunal's Decision Fixes Closed Banks' Status ANNAPOLIS, July 8.-No funds in closed banks of Maryland, with the possible exception of State moneys, can be given preferred claim over other deposits, the Court of Appeals has decided in a series of opinions resulting from attacks on the emergency banking act. Restriction of all deposits is within the power of the State, the court decided. No Priority Granted In the opinions written by Chief Judge Carroll T. Bond, it was held that under the new banking act no priority for deposits could be granted Baltimore city, the bank commissioner as receiver for the defunct Chesapeake Bank of Baltimore, individuals having money held in trust, or taxpayers who paid their levy bills to one of the closed banks prior to February 28. The question of priority of State funds, raised in the appeal of the State Roads Commission that its funds in the Union Trust Company be given preference as they are State funds, was not decided. An order for reargument of that point was issued with no date set by the court. City Loses Out Granting of priority to the city over deposits in the Baltimore Trust Company would be "a partial, unequal appropriation of rights and interests of deferred depositors and cannot be supported under the police power of the State or any emergency power and must therefore be held invalid," the court ruled.
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BONDING FIRMS AGREE TO PAY ANNAPOLIS. July 18.-An agreement has been reached with 10 of the 12 surety companies bonding Maryland deposits in the Union Trust Company, Baltimore, under the terms of which a cash payment of $994,000 will be due on the $2,000,000 deposits as soon as the institution begins to operate on its reorganized basis. The bonding company will guarantee to the State another $594,000 on the $2,000,000 for a period of five years. The State also will hold claims of $412,000 against two surety companies in the hands of receivers. Governor Ritchie revealed that similar agreements have been made concerning $574,873 of State funds on deposit in the Baltimore Trust Company.