First National Bank (Waco, TX)

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Bankers Prepared To Handle a Rush Extra Forces Gathered for Duty in the Waco Banks When Doors Are Thrown Open CONTINUED FROM PAGE ONE however, want to be bothered by sightseers and those who are impelled by curiosity; and they also urge that customers who have business that can be put off a few days, do put it off. They ask that customers refrain from calling up the banks on telephone to find out what their balances are, because, as the bankers point out, the only reply can be to show the balance on the ledgers at the time of the question, and if checks are outstanding, issued during the past 12 days, they may not be posted before midnight or perhaps the following morning. More Checks Than Usual As the number of checks to be handled, this is a mere estimate. A big day's run at one bank sometimes shows as many as 10,000 checks, and more checks than usual have been written every day during the moratorium, because merchants as a rule demanded checks in the exact amount of purchases, whereas ordinarily people cash checks, get some change, and spend the change instead of writing another check. The only restrictions on the national banks' functions when they reopen will be that they cannot pay out gold, cannot make any unusual deals in foreign exchange, and cannot permit withdrawals of cash for hoarding. If an attempted withdrawal is in such sum as may lead the banks to believe that the customer plans to hoard it, hide it away in a safe deposit box or a sock, or otherwise withdraw it from circulation, the bankers will require the customer to make affidavit as to the purpose for which the withdrawal is made; and if this affidavit shows that it is not for hoarding, the money will be paid. Ordinary withdrawals, evidently not for hoarding but for usual business purposes, will not be questioned. The banks warned Saturday that these affidavits will be strictly required, and they pointed out that making them will further hamper the flow of business; so they ask that depositors refrain from attempting to withdraw funds for such purposes. Checking Up on Gold The Waco banks were in receipt Saturday from the federal reserve bank of orders to report to the federal reserve bank, as soon after March 13 as possible, the names of all persons who withdrew gold or gold certificates from the banks since Feb. 1, and who have not by that time replaced it in the banks. The penalty for failure to replace such gold, the bankers said, is confiscation of the hoarded gold and a fine equal to the amount of the gold so hoarded. This leads the bankers to believe that a considerable amount of such gold will be replaced in the banks Monday, which is March 13 and the last day for its replacement without the report of names. How much gold is hoarded in this vicinity the banks said they could not estimate. They said withdrawals in the period mentioned have not been large, and that several large requests for withdrawal have been refused. Persons who want information about the bank opening or want other information, are asked to telephone officers of the banks, instead of coming to the bank and adding to the crowds in the lobbies. Preparing Statements Statements relative to the bank openings proceeded Saturday from C. B. Schuler, vice president of the Citizens National bank, and Karl Sherman, cashier of the First National bank, named by the Clearing House Saturday morning to attend to these matters. These two officials also expressed the thanks of the Waco banks to the public for the cooperation of the public during the moratorium, pointing out that business, although conducted under difficulties, was conducted nevertheless with a minimum of excitement; and they urged that the public continue in this spirit until the mechanical difficulties in the way of a normal resumption of banking life are surmounted. The bankers asserted that with such cooperation, they can get the rush of necessary business out of the way in a day or two and can proceed in a more orderly fashion. Merchants who for 10 days had been accepting checks or taking signed tickets for all purchases except in the relatively few instances where cash was available, had about reached the end of their rope in many cases, the bankers believed, and they were thankful to see the channels of regular money circulation opened again. Many of them had accumulated a great deal of cash, which the banks had been allowed to hold in vault on memorandum receipt, but not to accept on deposit in any sense. It was difficult for the merchants to put this money back into circulation except by cashing checks, which they have naturally not been doing. Probably $25,000 in weekly payroll cash was released by Waco banks Saturday, as permitted under the moratorium, and this to a large extent relieved the imminent stagnation due to the large accumulations of checks, permitting the wage earners to buy for cash. The First National bank, Citizens National bank, National City bank and Waco State bank expect to be open, the latter under whatever restriction is imposed by the state banking commissioner, James Shaw. If Shaw's proclamation limiting withdrawal to five per cent, and cash withdrawal to $10 per day, is continued in effect, the Waco State bank must observe that limit. It will not apply to the national banks. TEXAS CITIES WHERE BANKS WILL OPEN ON TUESDAY WASHINGTON, March 11.—(AP) A list of clearing-house cities in which some banks will be permitted to reopen Tuesday as announced by the treasury tonight included: Texas—Houston, Fort Worth, El Paso, Galveston, Beaumont, Austin, Wichita Falls, Waco, Port Arthur, Abilene, Corsicana. In opening the new high-powered broadcasting station at Athlone, President de Valera of the Irish Free State gave a talk in Irish and English on the history of Ireland."