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Show CONFIDENCE IS REFLECTED IN DEPOSITS ' Springville Banking Compnny I Takes Over Affairs of Monden- hrll Ibtnk; Officials Express j Appreciation. With the opening of the Spring-vine Spring-vine bank Wednesday morning, business in this city took on new life and a general confidence was reflected in the many deposits in that institution as compared with the few withdi awals. During the bonk i?iday plans were outlined whereby the Spring-ville Spring-ville Banking company took over the affairs of the Mendenhall bank. The merger was completed in sufficient suf-ficient time for the patrons of the 'lendcnhall rank to transact their business at the Springville bank so there was no disorder or confusion at the beginning of the new setup. "We are delighted with the manner man-ner in which the people of this "immunity have responded to the new arrangement," said M. O. "fHn.u, picsident of the Spring-.:Ko Spring-.:Ko bark. "We hope to merit their continued support, and we desire o assure all that we shall do even1 thing consistent with good banking principles to serve both i new and old patrons. We are par-I par-I ticularly happy to have been able to take over the affairs of the Mendenhall bank without aiiy trouble or confusion either on the part of the officials of that institution insti-tution or its patrons." Claude G. Salisbury, cashier of the Springville bank, stated that the deposits of Wednesday would far exceed the withdrawals, and he, too, was pleased with the calm and j businesslike attitude ef tho pntronr 1 of both banks. ' "In this merger added strength ! will be given to the banking situa- lion in this city," Mr. Salisbury ; pointed out. "Spiingvillc bank is ! recognized lis one cf the most ': liquid banking institutions in the state, and with the sound business principles as practiced by the officials offi-cials of th's instil ut it n in the prist continued in the future there is ho reason for ?u.y nf our parlona to become alarmed." Other busncso men of Springville expressed the belief that economic conditions have reached rockbot-tom, rockbot-tom, and that with a complete reorganization re-organization of the banking situation situa-tion throughout the country business busi-ness will take an upward trend. THREE PROVO BANKS OPEN Three of the four banks of Pro-vo Pro-vo opened for business Wednesday morning The Provo Commercial one! Savings brink remained closed pending a possible merger with the Farmers and Merchants bank ;of that city, which is being worked l' out under the supervision of John ! A. Malia, state bank commissioner, Slate Senator Dan B. Shields, his private counsel, and officers of the two hanks. In explaining the failure of Ins Provo Commercial and Savmgn bank to receive a license tu reopen this morning, Mr. Malia declared that the state banking department was adhering strictly to the president's presi-dent's proclamation that only sound banks shall be permitted to reopen after the banking holiday j is lifted. Expect Little Drlay j "In my opinion, the situation demands de-mands a consolidation with the Farmers and Merchants bank as the best possible solution. If such a merger is carried out. the depositors depo-sitors of the Provo Commercial and Savings bank need not lose a cent of their deposits," he said. Mr. Malia was hopeful that the consolidation plans would be speeded to permit the normal business of the Provo Commercial and Savings bank to be resumed within a day or two. It was understood under-stood Wednesday afternoon that a tentative agreement had virtually been agreed upon, although the details de-tails still remain to be approved by the stockholders of the two banks. "Our program is one of reconstruction," recon-struction," aaid Mr. Malia. "I am opposed to a ny long period of liquidation, and the uppermost aim of the banking department is the protection of the depositors." Call Special Meeting The broad terms of the consolidation consoli-dation plan were tentatively accepted ac-cepted at a meeting of the representatives repre-sentatives of the two banks, which was in session practically all night. Mr. Malia and Mr. Shields, as well , as Ed. Street of Payson, of the j state banking department staff, remained in Provo throughout the j day, keeping in close touch with ; developments and conferring with officers of both banks. A special meeting of the stock- ! holders of the Provo Commercial : (Continued on Page Four) j BANK MERGER CONTSMPLA TED (Continued from Page One) and Savings bank was to be called possibly Wednesday afternoon, to approve the plans laid down so far. Efforts have been made by the state 'banking department to effect ef-fect a consolidation since last Saturday, Sat-urday, but earlier conferences failed fail-ed to produce agreements on the terms. The exact conditions to be carried out in the merger could not be divulged by the state banking bank-ing commissioner. It was generally general-ly supposed, however, that the plans included provisions for a certain cer-tain amount of new capital to replace re-place inferior assets in the bank. The nine Salt Lake banks which reopened for normal business Tuesday Tues-day reported at the close of the day total deposits of $6,568,498.24, against withdrawals of $2,577,707.39 or a net gain in deposits over withdrawals of $3,990,790.85. The three Ogden banks reported totals for the day as follows: Deposits, De-posits, $1,130,891; withdrawals? $400,479; or a net gain in deposits over withdrawals of $730,412. Every bank in both . cities reported re-ported Jdeposits had greatly exceeded ex-ceeded withdrawals. Licenses for the . 10 federal reserve re-serve member banks of the state, to resume business, including the Farmers and Merchants bank and First Security bank of Provo, were received directly by them shortly before opening today, from Secretary Secre-tary of Treasury Woodin, through the Federal Reserve bank at San Francisco. The same was true of the national nation-al banks located in 11 Utah towns. Licenses to 34 out of the 38 state banks were telegraphed by John A. Malia, state bank commissioner, late Tuesday night, as follows: "This is your license to reopen Wednesday, March 15, 1933, with- ! out restriction, except as to payment pay-ment of gold and gold certificates. Savings withdrawals are subject to pass book contract, and officers of your bank are held, responsible for withdrawal of currency for hoarding hoard-ing purposes in accord with executive execu-tive order of the president. This license may be canceled at any time." |