AMERICA’S BANKS

Hokitika Guardian, 24 April 1933, Page 3

AMERICA’S BANKS

THE IIARI CITATION PROCESS

NEW YORK, March 31

According to a semi-official estimate the hanks which cannot reopen contained deposits 1 totalling 4,000,000,003 dollars, being 30 per cent of the United otales total deposits. “Distressingly large,” is. the jidmission. The end of the first week of rehabilitation finds 12,700 banks again doing business, or 72 per cent of the tot it 1 number operating a month ago. Another 1303 may be added in a week, which gives anew total better titan was at first expected.

During the k 9 months since September,. 1930, Jill hank failures in America, involved' a total of 3,375,000,000 dollars. This means that the recent panic, coming'on top of the continued liquidation since 3f.29, reveals a rath r greiiter total of frozen assets than during the .whole ol those two and a half years. .

This situation, as it seems through the l public intelligence, may have a numbing effect on the optimism of Mr .Roosevelt's so-called “new deal.” 3he most interesting fact is that only 3,000,000 dollars of the new currency

•authorised during the bank holiday have, been . actually put into, cireula. tion.

Tlie value of the new notes printejl totalled 2,000,000,000 dollars, and half of these were actually distributed to the banks, but the latter had such an inrush of- deposits that they Jia\c more actual currency than they can use. -So far they have not been forced to borrow from the Federal Reserve Bank.