Salt Lake Telegram | 1933-02-18 | Page 1 | Bank Opening Safety Sought

BANK OPEtn SAFETYSOUGilT Governor of . Michigan on Verge of Receiving Dlc tstoiial . Power i . r Aasselaleg areest DETROIT. Feb. IS With no decision deci-sion promised before Monday, banker bank-er and state administrative officials worked today on a program to lighten th inevitable shock when Michigan's extraordinary banking; holiday ends Thursday. Governor William A. Conurtock. who proclaimed the eight-day "holiday" "holi-day" early last Tuesday, apparently was on the verge of receiving unprecedented unpre-cedented emergency power. Only concurrence by th state bouse of representatives at Lansing was needed to make him a "banking dictator" dicta-tor" for duration of the emergency. Th senate adopted a resolution yesterday yes-terday declaring that "an emergency exists." and the attorney general and supreme court justices ruled that th govcrnoa'a authority It suprtm under un-der such a condition. Th house, which asked mor tim to consider the senate resolution, reconvenes Monday Mon-day night The governor was in conference today to-day with, an advisory committee of bankers. Ho said h believed "we are going to be able to work out a plan which will go into effect without with-out a run on any bank." The state's policy, he said, will be too protect financial institutions which cannot now open their doors without Jeopardising Jeopard-ising assets. TEST COMES THURSDAY Whatever plan Is adopted reopening reopen-ing with only limited withdrawals permitted, complete cessation ot the "holiday" or some new plsn he indicated in-dicated it would be ready by Thursday, Thurs-day, th first business dsy after the moratorium and. The eight-day "holiday" "hol-iday" close Tuesday, but Is followed by Washington's birthday, a legal holiday. Detroit bankers, ' who announced that "real progress" had been made in their conferences in which New York financiers, prominent industrisl-lsta industrisl-lsta and federal reserve representatives representa-tives Joined, would not comment on the state's proposed program. Seventy outstate bsnkers, however, IContinuetf On Pecs Two! BANK OPENING SAFETYSOUGHT (Continue Front Pas One I met In Grsnd Rspids and called upon the governor to continue the moratorium mora-torium In effect until aafeguarding legislstion is enscted. Meanwhile, Detroit banks continued contin-ued open, making 5 per cent of all bank balance available to depositors. At th clos of business yesterday. It was estimated that of the $25,000,000 thus msde available, less thsn $7,000,-000 $7,000,-000 hsd been checked out Most other lower peninsula banks remained closed. Upper peninsuls bsnks, sepsrsted economically and geographically from the rest of the stste, hsve not observed the "holt-dsy." "holt-dsy." They are in a different federal fed-eral reserve district