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Show SPECIAL SESSION OF LEGISLATURE ASKED A special session of the state legislature legis-lature to enact legislation which would enable closed banks to take advantage ad-vantage of the terms of the federal finance reconstruction board's offer was proposed to state officials Thursday Thurs-day by Dr. P. L. Holman of Mt. Pleasant, Plea-sant, as secretary of the Associated Civic Clubs of southern Utah. The mention of the special session came as an alternative to obtaining legislation from congress which would enable the beard or other agency to purchase outright some of the assets of closed state banks, thus placing in circulation funds now tied up in the institutions. "The primray request of the Civic Clubs," said Dr. Hoiman, "is that Governor Dern join with the governors govern-ors of the surrounding states, and those of the west generally, in making mak-ing a survey of the situation; and that the Utah Bank Commissioner join with those of the same other states sta-tes in conducting such survey, to provide pro-vide a method to persuade congress to provide funds to buy outright some of the assets of the defunct banks. "The Associated Civic Clubs will advocate the holding of a special session ses-sion if this plan cannot for some reason rea-son be carried out. The purpose of the session would be to revise the state laws so as to permit the closed Utah banks taking advantage of the finance reconstruction board's loans. The state supreme court, in the Sugar Su-gar Banking case, decided that the law as it is worded at present stands" in the way of pledging of assets of closed banks, when the proceeds of the loan so negotiated would be used in the form of dividends to depositors. deposit-ors. Our action is taken after a survey made by the Civic Clubs of all banks open and closed, in Utah. While the survey is not yet complete, the majority ma-jority of the considerable number of replies received to our questionaire have been favorable." |