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IOWA'S BANKS BE PERMITTED TO RAISE BAN FRIDAY Will Not Be Allowed to Open Before Under Permission from Treasury. NEED RESERVES TIED UP IN CHICAGO BANKS Use of Clearing House Scrip Will Afford Means for Circulation. Des bank holiday effective until the ban on withdrawals from New York Chicago banks is lifted. Lieut. Gov. N. Kraschel said Monday. reserves of Iowa banks are held by national banks in Chicago and New York," Kraschel said. "Until those reserves are available, Iowa banks that opened would be exposed the dangers of withdrawals, particularly business organizations which might wish obtain money from Iowa deposits for use in other states.' It was indicated that Iowa situation will continue unchanged at least until Friday. earliest when congressional action could lift the Iowa's banking holiday remained despite the terms of President that liquid banks remain open during the holiday given permission by the secretary treasury. Agree To Keep Banks Closed. Lieut. Gov. Kraschel early Monday Iowa banks will not permitted to take advantage that provision the president's proclamation that the state hollday will remain in effect on all Iowa Agreement to the Iowa clamation force reached in telephone between Lieut. Gov. Kraschel and Gov. Clyde Herring, who in Washington. Officials the Iowa Bankers association met here Sunday for discussion of legislation to be considered by the legislature which reconvened Monday following week's recess. Fred Figge of Ossian, president the said the legislation would deal with methods of bank withdrawals after the holidays are suspended. Details of the proposals could not be discussed, Figge as they discussed further with the banking committees Monday. Two Banks Told To Stay Shut. Bank officials discussed the issuance clearing house certificates as provided for in President Roosevelt's Information concerning the certificates, which would be issued under regulations the Chicago Federal Reserve bank, was expected Gov. Kraschel said he had ordered officials two Iowa banks to observe state holiday not to open their banks today had declared they would do. Henry M. Carpenter, president of the Monticello State bank, and Robinson, assistant cashier of the Anita bank Anita, were ordered Mr. Kraschel to open Monday. Must Restrict Openings. Des Moines Reopening of banks the nation must be on restricted payment basis, Andrew, state of banksaid "There no question, he said in formal statement, "that when the banks the country be restricted payment and with use, in many cities, of banking scrip consisting of clearing Such scrip, he asserted, will provide medium for cities in which issued. This scrip, promise pay all the banks in clearing and has behind good assets cover the entire Calling upon public to face (Continued on page column seven