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Year Vernon History Deal, Old Has Made Mount Tomorrow,
Roosevelt Inauguration On Day Of Bank Holiday Spurred City's Recovery
Banks and Jobless Most Affected by President's Program to Revive Nation
One year ago tomorrow, Mount Vernon's four banks failed to open their doors for business. Governor Lehman, acting to prevent a devastating financial collapse, had decreed a banking holiday. A shaky public wondered even more where it was all going to end. That afternoon, in rain-spattered Washington, Franklin Delano Roosevelt rode to his inauguration as President of a stricken nation.
The country waited for his and breathed bit easier when they came. fateful, they bespoke the "New Deal. That was to pump new life into the veins of community in the country. has written history in Mount Vernon. Three of the four banks which closed down resumed business soon as President Roosevelt gave the signal. successful end is in sight the struggle to reopen the restricted Mount Vernon Trust Company. 'New Deal' For Idle But more than banks been reshaped in Mount Vernon by the Deal.' To the unemployed, probably the most on that March 1933. has mean actual cash the pocket through multifarious relief CWA, the PWA and the State TERA. Many them have found work NRA codes opened new jobs. Those emMoyed now receive highwages, enjoy shorter hours. The NRA campaign here. climaxed by exuberant street parade the night of October 25. pushed vigorously. That has complished much is evidenced by the numerous occasions when ficial Washington fit commend organization work here and the spirit of those serving under the Blue Eagle. Payroll increases resulting from NRA codes estimated average year here. vey back in December showed payrolls had mounted $21,816 week and that jobs had been creatfor 581 men and women. Funds Poured Into City
Funds have been poured the city through the Civil Works Administration. total of been expended since Nov. 20, 1933, when the great CWA offensive was launched, and the payroll 1,081 who would otherwise be jobless. By contrast. only 450 were being employed under the State relief program year Very especially bank depositors. will remember the March when Roosevelt dramatically took office. Saturday, like today, and the end of week which had been of rumors, reports and gloomy prophecies.
Police Fear Violence
Small groups of depositors clustered about the windows the four banks and read the telegrams from State Banking Broderick. Patrolmen and detectives moved among the crowd listening for any murmurs that might lead hints of violence. Other policemen politely asked the curious to move once they had read the contents of Broderick's message. the morning passed the leading bankers congregated in their rooms. Assurances went forth from all institutions that the holiday would be short one. In the afternoon exchange was up in The Daily Argus to change large bills into small coins and bills that merchants could continue their trade unhampered. Thousands found themselves with only few dollars in their pockets. Hundreds openly boasted that they had withdrawn money some days back and were able to jingle the coins in their pockets. Hundreds rushed safe deposit vaults to replenish their supply of cash. Monday, March banks still closed under further nationbanking holiday decreed by President Roosevelt. was nounced, however, that money for food and the most important cessities of life could be
Banks Start to Open Later. the First National Fleetwood Bank and Eastchester Savings ank opened their doors. Withdrawals in the savings bank. however, were limited to $250 person. The Mount Vernon Trust Company failed to open for complete business. March 24 the bank announced that depositors could withdraw percent of their balances. bank was also permitted to cept "trust accounts" which guaranteed and were set aside from the already restricted accounts. plan of reorganization was. formulated bank officials but was rejected April Superintendent Broderick's office.
Cheney's Aid Obtained
The bank turned for aid to H. Cheney, former Superintendent Banks, and he engaged advisor April 10. Three weeks ter the much discussed plan was announced. The comprised an offer pay the depositors on reopening 55 percent cash, 11.25 percent stock and 33.75 percent certificates of beneficial interest Recovery Fund. It met support stockholders mass in the chester Women's Club May velopments were rapid from that day and the bank applied for membership the Federal System published
27 claiming that the new bank would in assets the opening day. Plan Meets Snag
Agreements from stockholders and depositors did not come in rapidly as had been expected. The plan also called for voluntary contribution three dollars share by every stockholder. there 75,000 shares old stock in the bank, estimated that the stockholders would make total contribution of $225.000 towards the capital of the new bank. Depositors told that 11.25 percent of their available balance would help set up the capital of As the drive to gain signatures of depositors and slowed down, the Chamber of Commerce threw its forces into the campaign and an army of 1,500 volunteers began canvassing the city June 10. This drive was climaxed by mass meeting of 1.000 depositors June 19 at Davis High School. June 21 group of lawyers announced backing for the plan. At the request of the chamber. the board directors of the bank agreed July 13 to permit an impartial committee to investigate its condition.
Bleakley Heads Committee
Supreme Court Justice William Bleakley asked to head the committee. He was reluctant first but finally agreed July help the bank. Unlimited powers were granted Justice Bleakley's Committee of Seven. The Bleakley report approving the plan was made public July also was announced that the Banking Department had fixed August 15 deadline completion of the campaign to obtain consents from depositors and stockholders. Justice Bleakley himself pealed to at Washington Junior High School Auditorium to support plan. The drive gained impetus but August 15 was from its goal. The of Banks granted another extension to October committee of meanwhile, went Albany and urged passage of an act special session the Legislature. The act, known the tenbach Bill was adopted August by both branches the Legislature. with special from Lehman. The act permits bank to reorganize percent of the depositors and 66 2-3 percent of the stockholders approve reorganization plan. The act also binds minority to the plan. Shortly afterwards the plan was and the bank called stockholders' meeting to ratify the reorganization. The plan was adopted by large vote.
Hearing is Held
After the stockholders meeting bank an order from Justice Close calling on stockholders and depositors show cause why the bank should not reopen under the Justice Close fixed January 18 date for public hearing. Justice Close heard arguments for four hours and held special hearings for attorneys claiming preferences on other days. Monday night, January 28, Justice Close announced decision proving the plan. Last Tuesday the Court of peals reversed the Appellate vision and held that receiver's counts were not preferred. The bank, through Mr. Taylor. has already served copies of an order to reopen the bank that must signed by Justice Close before restrictions be lifted the State Banking Department. The order returnable before Justice Close Wednesday. After he signs, the of Banks may fix an opening date unless further court litigation prevents such Today 22,000 depositors are awaiting the next in the drive step the bank.