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JUDGE PROVES GOOD "DOCTOR" IN CARING FOR AILING BANKS (Continued From First Page.) and 150 depositors gave notice of withdrawal than 000. The bank was plainly headed toward Judge Lacey suggested that the officials lay the whole before the depositors and ask their co-operation. meeting was called in the high school packed to the doors. That meeting was sensational success. A Crisis Is Overcome. The Milford bank doing busiusual. the National Bank of Rochester. the latter case, another bank had failed, causing on the First National 90-day ban savings withdrawals was on. more than had been filed. crisis was at hand. The bank was actually sound, and again Judge Lacy bold, open. frank attitude to the depositors Again the vholly gratifying In the First National Bank and the Peoples Savings Bank were distress. Judge Lacy called in. He made careful examination, asked the stockholders to put in $150,000 new cash, and then suggested consulting the depositors about the whole thing Let us look into their meeting in the high school Traverse City, with Judge Lacy speaking 'Instead the policy which have been quite the habit among bank. ers the he sitting behind closed doors and going into huddle and thinking things over. and worrying what you thinking. your two banks have decided the best thing to do would be to talk over open meeting Probably not one in six of the banks in Michigan which closed should ever have had do so The stockholders, director and depositors did not get together and work to the end and Their banks were not going to fail Judge Lacy the depositors but it was felt that merger would make for sounder "Now your banks are just like every other bank in this country, he continued bank can stand run; bank keeps enough on hand enable pay out all its deposits one time the United States Government itself could not pay what were asked to do so within any limited period Banking in Primer Form. the same simple avoiding terms, Judge Lacy explained bank's business "One of the great reasons for the depression, he went on to say, "is that there 80 much of the actual withdrawn from that bleeding business and industry white It has exactly the same effect on industry, business and the employment labor as anemia has upon an individual, and just as as anemia "When get into depression and people are out of work and taxes some us are not able to make enough money get along so we have to go to our vings to draw little money now and then That is happening all the United States, and constant drain on the banks. But that is not disastrous as might because when people draw for necessities they pay out and the people whom they pay bring it back to the banks There is nothing very serious about that part "But in depressions we worry about things. We wonder it would not be good idea to get that money when know right where and somebody else gets the same idea. Do you realize what such people are actually doing? They are trying get the every other depositor They theirs Four or five per cent of the depositors of almost any bank Judge Lacy could put that bank in very great danger closing people and the directors and stockholders of these banks all stick together advised Judge Lacy 'and that goes for every this part of the State you act do not any one get you startled you can maintain and sustain your bank in perfectly fine Judge asked the depositors to agree not to withdraw deposits standing to their credit in the two banks in greater than uniform of their spective deposits "as may be fixed the of Michigan in his discretion from time to time the absence of such by then the by the banks. The he explained. would not apply to September "Those made after that date may be withdraw just as freely he said "That would be just as would do normally. You take the money you to the bank put there, and draw it the day if you will.' What Do You Want It For? He asked the further to that the bank could notice withdrawal of deposits the bank prevent the any depositor not agreeing to from taking out his at the of the others Suppose wanted his money than the bankers thought he needed, Judge Lacy asked "We would say,' he replied to his you need this wife has got to to the hospital.' right. as free as water. We have plenty of money for have to pay some fine. suppose some one says when you
