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Funds Depositors and friends of the Farmers and Merchants State bank jammed the high school ditorium Wednesday evening and after they reached an understanding of the situation rallied to the support of the local bank and signed up their agreements for re-organization of the institution. Wenzel, representing the state banking department outlined the plan for re-organization proposed by the Minnesota Commissioner of Banking and he was followed by George secretary of the Minnesota Bankers association who explained the conditions which brought about the banking situation, the two courses open to the depositors and the possibilities of both. After he had finished speaking, Attorney Thorson who presided, callen upon everyone who wished the bank to re-organize to sign agreement. A large percentage of the depositors of the bank signed their agreements Wednesday evening. Habberstad, president of the bank, announced Thursday afternoon that the response had been extremely encouraging and that many who took their agreements home with them bringing them to the bank signed Thursday. have no doubt about the final outcome," he clared. The plan for re-organization proposed by the commissioner of banks is as follows: Depositors will agree scaling down of 50 of their deposits, checking counts and saving accounts. A trust fund will assets with total face value today of $127,947.94. trustee will be appointed by the District court and this trustee will liquidate these assets. As they are turned into cash dividend will paid the depositors which will be in addition to their original 50 per cent. be entitled to draw out 25 per cent of their scaled down deposits the first year and per cent each of the remaining three years but not more than 10 per cent any one month. Stockholders are required contribute $56,250.67 to the new bank This made up by plus built up by past profits; undivided profits of $11,250; cash bankable paper, $3,500 and cent amounting to $21,500 or total $56,250.67. In addition they liable for 100 per cent assessment. The newly re-organized bank will have total resources $490,114.87 and deposits of The re-organization will into effect only when two thirds of the deposits are signed up. The two thirds then will bind the remaining one third. a depositor also the bank money one offsets the er. Example: If man has 000 on deposit and owes the bank $1,000 one cancels the other. Public funds including those for state, county, schools, and rural will be paid 100 cent. Mr. Susens began by saying he had attended 160 meetings of this kind in Minnesota during the last year and that he was faced with many more meetings during the coming month. This was condition being met by nearly all communities over the state. The same trouble which affectfarming and business, he said has hit the banks. Two and three cent hogs and low priced wheat, and butterfat have raised havoc with the producer but the banks are not responsible for this. few ago when bankers years faced with similar problems (Continued on Page