Guardian National Bank of Commerce (Detroit, 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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Immediate Payment Of by Detroit Banks Is Planned

DETROIT, Feb. ated Detroit News day says that payment 50 cent deposits in the First and the Guardian National Bank of Commerce Detroit is proposed under reorganization plans now being considered, contemplating the ganization Detroit of two new national banks. The Reconstruction Finance Corp., the News says, has been asked to advance in the neighborhood of to place the plans in effect, and further said that aid is expected from the Federal Reserve bank and New York banks. were understood to under way in New York and Washington concerning the plans under consideration, the paper The Guardian National Bank of Commerce the units the Guardian Detroit Union Group, Inc., some 20 banks operating trust companies in Michigan. other of the members the Guardian Group is the Union Guardian Trust Co., in which Governor William Comstock, in declaring banking holiday Michigan declared "acute financial existed. The bank has emergency" seven other units in the Detroit Metropolitan area. Rudolph Reichert, state banking commissioner, said that most banks were "doing business in the best possible and lated the state's bankers on their during the He said that most banks were cashing checks that had not ready been the depository percentage basis laid down the governor's second proclamation issued Tuesday. Generally, the banks were following plan under operation for the past week in Detroit, lowing depositors withdraw 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. Silent Loan Feb. Couzens Vandenberg of Michigan day declined discuss reports the loan to two

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REPORT DETROIT ACTION

Reorganization Plans Two Banks Said Considered.

DETROIT. (AP). The Detroit News says that immediate payment of 50 percent of deposits in the First National-Detroit, and the Guardian National Bank of Commerce in Detroit is proposed under reorganization plans now being considered, contemplating the organization of two new national banks.

The Reconstruction Finance corporation, the News says, has been asked to advance in the neighborhood of $135,000,000 to place the plans in effect, and further said that aid is expected from the federal reserve bank and New York banks.

WASHINGTON. (AP). Senators Couzens and Vandenberg declined to discuss reports that the Reconstruction corporation had made a large loan to two Michigan banks. Neither would officials of the corporation comment.

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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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MICHIGAN STUDIES NEW BANK PLANS

Organization of State Reserve Bank Proposed by Senator Orr.

DETROIT, Feb. plans designed aid in releasing billion and half dollars in bank deposits were under scrutiny in Michigan tonight, while bankers awaited and national legislation for the 530 banks operating restrictions. One plan, calling for the issuance of transferra certificates against the frozen deposits of banks, brought forward by Rudolph E. Reichert, state banking commissioner, who under legislation pending before the state legislature would come the virtual banking dictator Michigan. The other, favoring the organization of state reserve was proposed by State Senator HerOrr, Caro, (Mich.) banker. plans make available at once 50 per cent of all deposits by organizing two take over the liquid assets of the First NationDetroit and the Guardian National Bank of Detroit, the two largest in city, were under cussion. Further it appeared, action tomorrow by the house in Washington on the Couzens giving powers over national banks to the comptroller of the currency. The olution was approve imously day by the house committee. Reichert's plan drew state-wide today. He proposed, in effect, the issuance of ferable which would be acceptable in virtually all purposes the same as currency. They would be issued the total volume of deposits that the banks are unable to pay cash. The only limitation circulation, Reichert said, would be the willingness of creditors to accept certificates on their face value. The certificates, Reichert said, aftbeing employed to pay rent, buy food, and other essentials, could be turned into the banks at full face value in payment of obligations owed to the banks. State Senator Orr, declaring he is proceeding with plan for organization of a state reserve bank, said reof many outstate banks now are held in Detroit institutions. which are withdrawals on the same basis as that of other itors- per cent of the total deposited. Under his reserve funds would be carried in outside In most parts of the state today, banks continued to pay out five per cent to depositors.

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U. S. Moves to Strengthen Banks

NEW TREASURY HEAD TALKS TO MILLS

Woodin Called Into Conference as Federal Aid Is Extended Institutions

MONEY TO BE ADVANCED MICHIGAN ORGANIZATION

Feb. 27. The federal government Monday prepared to exert all available to strengthen weakened links in the country' banking system. William H. Woodin, secretary of the was here conference the outgoing are to act, not the said. With those words he turned aside all queries regarding the banking situations caused Michigan and Maryland to close their banks temporarily and led banks in number of Ohio cities limit withMills Sunday conferChairman Eugene Meyer of the federal reserve board assistance the treasury the banks could Directors the Reconstruction Finance corporation continued their study the They met in two protracted secret sessions Sun- m unusually authoritative sources was reported the R. F. has agreed to the two big Detroit banks reorganized new capital supplied by Henry Ford. said in the same quarter that an additional $40.would advanced by other financial institutions

FORD FINANCES two BANKS Detroit buttressed the lions Henry Monday came the of plans lead Michigan out of the difficulties which in the of statewide banking holiday two The banks whose capital will consist 250,000 furnished by Mr. and his are expected to open for business They be built from the of the First National Bank and the Guardian National Bank of whose depositors be able receive immediately about cent of their Disbursement remaining 70 per cent must await the Continued on Page

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New Detroit Bank Formed With Capital; Aid

WASHINGTON, March formation bank, the National Bank Detroit, capital of twenty-five lions dollars was day by the Corporand Alfred Sloan, dent of the General Motors corSecretarv Woodin approved the The announcement was made treasury, where been for days solution Detroit banking problems. bank will take over part of the assets the First National bank and the Guardian National Bank Commerce Detroit and sume part the deposits. Half of the capital. will be form of subscription the common stock and has paid by General Motors Corporation. The balance has been supplied the United States government through the Reconstruction nance form subscription to the preferred

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Reconstruction Finance Corporation to Supply

March tional bank of Detroit, with capital millions dollars nounced today. by the Reconstruction corporation and Alfred Sloan, president of the General Motors corpora- approved the

The announcement made the toward solution of De the new bank the assets First National bank and the Guardian National Bank of of Detroit and assume part of the deposits, Half of the capital. will be in form of subscription the

The balance has been supplied by the United States through the Reconstruction Finance corporation in the and the joint statement make available bank with ample The statement issued by Jesse Jones, of the Finance that and old and out of legal per cent of their net deposits will be immediately made the the two old This, statement said, will be made quisition the more liquid assets and the GuardNational Bank of Commerce.

Officials of the Grand Rapids Savings bank today attempting to fulfill details of financing program out(Continued

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DETROITERS RUSH BANK TO DEPOSIT THEIR FUNDS

Detroit Mich. March 24 The per cent liquid and 100 fool deposit money on the bank's day turned away savings they that accepting only could deposits ing tellers the Total deposits for the day More than had been posited largest deposit was the deposit was that General The known the Guardian National and General Motors and the finance the tablished under new federal

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MILLIONS TAKEN OF DEPOSITS

Chairman Denies He Was Connected With Houston Withdrawal

Detroit, June 26 (P)-A witness' charge long-standing Wall Street plot to "strangle" Henry Ford lay directly behind the of two national banks in Detroit rested tonight in the records grand jury investigating the city's involved banking afThe charge, the most sensational in two weeks of open testimony, made by Herbert Wilkin, Detroit banker, in detailing his knowledge of affairs leading up to Guardian Naclosing Bank which, tional First National BankDetroit, did reopen after Michigan Street believed deposits had Ford's chance, declared Wilkin, deplete working capital that must broke. think they them was the time finish realized they fooled." But were sadly testimony the witness startled hearers the declaration that $4,000,000 banks from the statewide holiday before February 14. He proclaimed withdrawals those such and the Second Michigan National Bank Houston, asserted many checks He cleared through Detroit Clearing House after heliday had been declared. was the home Houston, Jesse Corin testiHe link the failure National Bank from Guardian which he said the loan drawn, to obtain Houston withdrawals, with the saying the the impression made, Wilkin said Jones with bank, while was received from testifying himself and Jones officials the Houston bank, from that the with the Texas connections with curt answers, Firmly, Wilkin what gave Wall Street termed Harry questioning Harry Keidan, before Judge the one-man jury, which sitting as public who remained on charged that stand assets of the day, National were under-valued Federal bank examiners, charged it for "fellows cooperating the bank back price wanted Most which not Saginaw Bank's stock was bank finally purchased Perry Shorts, director Bank of Detroit, and associates, Wilkins price He offer was $140,000, and, the group went into the offer to $54 bank's for and finally accepted testified. which conferred with Awalt, then comptroller of the curWilkin said Awalt told too all country. Now, they tough in any place except Judge Keidan. can't find any other place," "But they were tough plenty tough," said Wilkin.

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For Closing of Detroit Banks

DETROIT. June standing Street to Henry Ford financially lay directly behind the closing of two national banks in troit tonight rested in the records of grand jury investigating the city's involved banking affairs. The charge. the most sensational in two made by Herbert R. Wilkin. Detroit banker. his knowledge affairs the closing the Guardian National Bank of Comwhich with the First National Bank Detroit. did not reopen after the Michigan banking holiday. Street believed it had chance. up Ford's in the Michigan banks declared Wilkin. deplete his working capital that he must deal with or broke think they realized that here the time to finish what they had started. But they were very sadly fooled. Previously in his testimony the ness had startled his hearers with the declaration that $4,000,000 was removed from the two banks before the state-wide holiday was proclaimed February 14. He said two such with drawals were those James Couzens, wife the Michigan senator. and the Second National bank of Texas. He also asserted that many checks had been cleared through the Detroit

Continued in Page 6, Column 8.

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Wall Street Plot On Ford Charged In Bank Crashes

(Continued from First Page) the Second National Bank of Houston, He also asserted many checks had been cleared through eDetroit ing house the bank holiday had been declared. Houston, he said. was the home town of Jesse H. Jones, chairman of the Reconstruction Finance corporation He proceeded in lin kthe failure of the G' rdian National bank. from which he said the money was withdrawn, to obtain loan with the Houston withdrawals, saying "wher. the withdrawals ere made, got the impression we going get the loan. In testimony, Wilkin said he understood was connected with the Houston bank. but while he was testifying word was received from Jones himself Washington, and from officials of the Houston bank, that the chairman had no connections with the Texas institution Firmly and with answers, Wilkin his story of what he termed "the Wall street plot,' in questioning by Prosecutor Harry S. Toy before Judge Harry Keidan, sitting as one-man jury, which is holding public sessions. Wilkin, who remained the stand all day, charged that the assets of the Second National Bank of Saginaw were undervalued by federal bank examiners, and charged was for the

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Banker Alleges Wall St. "Plot" Against Ford

Heavy Withdrawals Were Made Before Holiday to Tie Up Deposits, Charge

DETROIT June 26-(P)-A witness' charge that long-standing Wall Street plot to "strangle" Henry Ford financially lay directly behind the closing of two national banks in Detroit tonight rested in the records of one-man grand jury investigating the city's involved banking afThe charge, the most sensational in two weeks of open testimony, was made by Herbert R. Wilkin. Detroit banker, in detailing his knowledge of affairs leading up to the closing of the Guardian National Bank of Commerce which, with the First National Bank-Detroit, did not reopen after the Michigan banking holiday "Wall Street believed it had chance, by tying up Ford's deposits in the Michigan banks declared Wilkin to so deplete his working capital that he must deal with them

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Detroit Bank Situation To Be Parley Subject

Detroit, July DeFree Press printed Thursday dispatch from Washington that President Roosevelt has in. structed the Reconstruction Finance corporation solve the banking Detroit and that the way will be paved at meeting Friday in for the of credit facilities throughout the entire "Out of this session, which will be devoted entirely to the Michigan ation," the Free Press said, definite for organization new banks in Detroit, or for the opening the closed First National bank and Guardian National bank of commerce, is expected to emerge."

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BANK RECEIVERS SEEK ASSESSMENTS

DETROIT. ments on the right of federal receivers to collect in the First from National and Guardian National Banks for hearing Tuesday in U. S. district Receivers C. O. Thomas and B. Schram in abey. ance collection pending receipt of instructions from the comptroller of the and also pending disposition of tem restraining collection of the Tuesday's arguments are on that suit.

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Is Judge Assigned to Hear Bank Suit

Carolinan on

Federal Judge Johnson Friday the Chief Justice United States Supreme Court the brought stock tional to prevent double The appointment was recom mended Judge presiding over the Sixth Circuit, which Detroit situated judge needed the case because docket Federal his Hayes he would ready case agreement tween attorneys the stock holders Federal receivers Bank National Commerce Originally for Jan 15. the was delayed for month the motion the who pleaded many being under available take stand in the assessment suit.

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BUILDING IN VIENNA HOUSING FAMILIES SOCIALISTS SHELLED

Austria Government Artillery Smashes Greatest Apartment Edifice in World as Civil War Grips Country; No One Knows How Many Persons Were Killed.

Vienna, Feb. and children were fed to the flames of civil war today as government artillery smashed the Karl Marx apartment building housing 2,000 Socialist families. No one knows how many were killed. The howitzers apparently smashed the third and fourth floors of the greatest apartment building in Europe, the middle arch collapsed. The shelling of the $4,000,000 structure only one corner DEPOSITORS TO of the aspect of Austria today while the forces of Chancellor Engelbert Dollfuss struggled through bloody streets to put BE PAID OFF down the rebellion of the Socialist party. Apparently at least 200 have been killed. 136,000 with $1,000 or Forces of Socialists were in possession of the great munitions plant. forces charged Less in Detroit Guardthe repeatedly desperate attempt take position ian to Get All Men fell. dead and wounded. but there was no time nor opportunity count the Detroit. one The Karl Marx buildday the anniversary Michigan's ing was horrible some momentous bank holiday. veterans fought had seen in notice issued that 136,000 days the World depositors less the Machine blazed from the winGuardian dows the homes laborers at the merce when closed, be paid soldiers sought in through plan believed to found unique banking history. grenades, and tear just ago tomorrow insufficient batter the that Comstock resistance. So they request howitzers. the state's banking associaThe ripped into the ordering bank functions concrete Cement rose suspended eight Before Whole corners of the that period had the building disappeared. holiday had spread Following the artillery attack. up government forces swarmed into the presidential proclamation all banks country. 200 Waive Claims Socialists continued their firing Today's announcement told of comarrangements whereby 200 was against the also larger depositors Guardian Na- tackers. tional waive their claims any share Hand grenades fighting developed in eight cent financed to close the combatants Reconstruction Finance quarters. tion loan, make broke Heavy fighting out (Continued on Page 9. Column 1) again, after hours comparative calm, Floridsdorf factory Man in Critical Socialists, lost fight for Condition Following possession of their captured. Bite by Pet Dog Eleven reported dead in this engagement. same time. defenders Raymond Wheater. 23 years Muskegon Heights, critically the big municipal flat the complex with blood poisoning which developed Schlingerhof, bite by his had been handed an sultation of doctors held afternoon. artillery opened Mr. Wheater. who employed by against the buildings. Field howitmers the Garnaat was suffer- used. minor illness when his dog The held off with ararmy bit was not tillery for hours. The big guns finaltime and were trained into day his fever ascended 106. with machine stationed He the Wheater, corners building former Muskegon Heights police pouring deadly fire into the sergeant. 885 Alberts Field artillery shells great Jean who fragments one corner of fered broken week. building moved hospital his Amelia 1044 socialist nest was home Church. Wood street, who fracture blown Elsewhere, whole hip surface the moved from the hospital to big only an airplane photo capable giving complete The condition Frank Steiner. 508 pockmarked by Amity street, brought For hours, the attackers confined Hackley hospital Saturday themselves machine gun and rifle Clock suffering (Continued on Page 9, Column 3) stroke, reported as

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Filthy Lucre?

Bank Receiver Can't Figure Why He Doesn't Hear From Depositor Who Has $340,000 Coming to Him.

Detroit, March ever C. Schram receiver for the National Bank of Commerce, finds time for little light worrying, he takes up the matter of why with $340,000 coming to him doesn't collect the 60,000 unclaimed acclosed entitled cent that amount any time he wants but he doesn't want least he has shown no interest in thus far.

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Here's a New Worry Facing Bank Receiver

Many With $340,000 on Deposit Not Even Interested in Interest.

Detroit. March Whenever B. C. Schram receiver for the Guardian National Bank of Commerce, finds time for little light worrying. he up the matter with coming Among the 60,000 unclaimed accounts closed bank of The owner is entitled to 68 per cent of that amount any time he wants it. but apparhe want least he has shown no interest in it thus far.