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SHALL WE HAVE BANK? The business men of La Grande were noticing a gradual definite improvement in local economic conditions during the late summer and early fall of the past year, when suddenly in October the First National bank closed its doors. Somehow the people of La Grande and surrounding territory have managed to get along in the meantime, but all have suffered, directly or indirectly, from the lack of a bank, and trade has been severely retarded. Everyone realizes that we must have bank, yet some have expressed doubt as to the willingness of the public to support bank; they point out the possibility that people who have seen two bank closings here within the past year will hesitate to trust their money to the care of another bank were organized. Public confidence is the key to the whole situation. Lack of that confidence caused the closing of the First National only seven months after its organization, and it is obvious that any new bank must offer safeguard which will prevent recurrence of such an event. There must be guarantees which will absolutely prevent loss depositors, or the public will not support the new organwas with intense interest, therefore, and with some doubts and misglvings that more than a hundred prominent residents and business men of the county gathered together last of the reorganzation committee for the of considering plan of reopening the tional As the plan was unfolded in all its details by Mr. chairman of the committee which has spent hours in of solution to the problem, and Wright, examiner who has co-operated in every possible way work the plans, the doubts to confidence gave way and endorsement of the program of reorganization, which outlined in the news columns of this issue of the Observer. The plan being approved by business men and by the public general because it is absolutely sound. In fact, is the only logical solution. There is nothing to lose and gain. The stockholders of the previous isaton have sacrificed their interests completely in order to make possible the eliminiation of all undesirable paper from the assets of the new bank; and the plan calls for the raising of $150,000 of new capital and surplus funds, which would give the reopened bank an entirely new management. instead of attempting to get small group of men to scribe the necessary stock, it intended to secure small amounts from large numbers of people, which will prevent any one man or group of men from gaining control, and will encourage greater confidence in the institution because represents entire community. order to make sure that the bank will stay open, and thus guarantee the safety of the depositors' money, the plan for the signing of agreements by all present depositors having more than $100 in the closed bank agreements by which they will consent to withdraw not 20 more than per cent of their deposits at the time the bank reopens, not more than 20 per cent additional before Dec. 15, 1933, and the balance sums of 20 per cent at yearly intervals up to when all will be if the paid depostors desire. However, is entirely that possible improvement in economic conditions and increasing confidence on the part of the people will make possible the removal of all these depositors restrctions long before 1936; the agreement is merely for protection of all depositors from run the bank, and will be means of building up the confidence which so essential. The plan is almost identical with that used in reopening the banks Boise and other Idaho cities recently, and those banks have all experienced actual an increase in deposits since reopening. People will put their money in such banks because they are protected against runs, and are even safer than ordinary banks which have been established for years. Confidence is therefore assured. There is absolutely no danger of loss to depositors because if every last dollar of deposits were to be demanded in 1936, according to the agreements, it could be paid in cash through the liquidation the banks loans in the Now, as to stockholders, the reorganization committee asks every present depositor to buy stock in the reopened bank to the amount of 20 per cent of his deposit, paying for it with the 20 per cent installment which would otherwise not paid until 1936. If depositor will do this every the necessary capital will be easily raised and the bank promptly reopened. And he will be in a much better position than if the bank were to into the hands of the go receivers, for bank receiverships are expensive and seldom net the depositors more than to 40 per cent of their money. It's If community proposition. everyone co-operates and the bank reopens, about $200,000 in cash will be immedately available (all accounts of $100 and less will not be subject to withdrawal restrictions of any kind) and business conditions will materially improve almost over night. Everyone will benefit. Even from the selfish standpoint, it is to the advantage of every depositor to sign the ments and buy stock, because in that way he will get 40