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NEW YORK BANK (By Associated YORK, Dec. Bank the United States, of the and banking organizations was in the hands of State Banking today, following the flurry of runs yesterday. The has no connection with the United States Government as might imply. The last shows resources of
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Continued From Page One York that they believe it to be for best interests of the depositors of the he take possession of the assets of the stitution that because the emergency, bank in accordance the banking of the state of New York, the hope speedy and satisfacreorganization effected. the reopened. the moneys due to paid at the earliest possible date. All Night Conference "The that the will which the house banks expect render the situation. will take the form loans against the net claims depositors extent such claims properly authenticated. the date the last quarteron 1930, the figures were as "Capital undivided profits Gross deposits Supt Broderick asked for more time before answering questions reporthe up four four nights. Leading officials of the night. H. from joined the conference early the Federal bank took part the sessions. Crowds at Branch Bank Crowds gathered around the branchbank and foot policemen were them in order. About people line Police and detecnight, and this attracted Several hundred depositors gathered about doors Brooklyn branches there disorder. tell home the bank not open until an audit had been pleted. Dec. Louis the House banking committee nounced that because name of the bank which doors New today, he introduce forbidding the "Bank of the United countries the world please be Bank States, which York the the state York, with the explained Congress passed words "United connection bank financial character, but that this not would be quired cover this case.
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BIG BANK IN HANDS OF STATE OFFICIALS New York, Dec. Joseph Broderick the Bank States, institution which had 000. There are 59 branches in New Heavy reported branches the Bronx interests of the and Federal Reworked all night last night in effort aid the aid plan having centered proposed merger which would brought billion dollar bank.
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IN POSSESSION OF BANK NEW YORK. Dec. of banks. today took possession of the Bank of the United States. a New Ing York in State institution. operatYork 5S branches seattered City, throughout September greater York. statement of 24. gave of the bank $254,043,342 the rewith deposits of $202,972,460.
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RUN ON LARGE Head of Gotham Assumes Charge of Giant Firm. New York, Dec. 11 of banks, Josstate today took posseseph A, of the Bank of the United Statsion an institution which deposits of There in New York City. Heavy withdrawals were reported last night at 13 branches in the Bronx and Brooklyn. Leading financial interests of the city including of Morgan Company and Federal Reserve authorities worked all last night in an effort to the bank, the aid plan having centered on proposed merger which would have brought billion dollar bank.
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LOANS MADE AVAILABLE FOR GOTHAM DEPOSITORS New York. Dec. Depositors Bank of United States will able to borrow minimum of 50 cent their "by next Mon day Banking Broderick announced late today. money will be loaned by the 23 member banks of the clearing association authenticated deposit in the Bank of the United States.
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THE NEW YEAR'S CROP OF PROPHETS By HARRY GANNES. making recovery more distant, and weighir (Note: The following article was written bedown even the seasonal upspurts that the cap fore the crash of the Bank of the United talists expect. States. The conclusion of this article is Why Hyde Cried. strengthened by the largest bank failure in Foremost is the growing severity of the agra the United States.) ian crisis. The seven lean years forecast 1 Hyde have basis in fact. The recent action VERY soon the new year's crop of prosperity the Federal Farm Board in cutting America predictions will be harvested. Last year, wheat off of the world market, seals up tremer when the crisis was young the capitalist press dous stocks of wheat in an already overloade fairly oozed with brilliant promises of a happy market, and lays the basis for an explosion. future for American capitalism. Hoover, as is no wonder that Hyde has tears in his ey usual, took the lead. When he failed, they when calling for war against the Soviet Union dragged out old billionaire Andrew Mellon, who relieve the agrarian crisis in the United States had not been discredited. He promised the imThe railroads are in a deep swamp. They a possible and was silent thereafter. decaying SO badly that the railroad exccutiv of the Class 1 railroads, in a petition to Co But new year brings new lies. The leading gress, admit they are faced with the worst cris bosses, ignorant of the fundamental laws of in their history. They plead for special laws capitalist economy, actually believe that by their protect their profits, and to permit them predictions they can stimulate the decaying ortrustify still further. ganism into a semblance of hectic youth. The Building industry is badly off. The dro How Far They Missed. of the year 1930, low as it was, had been art How far they miss the mark can be judged ficially kept from going lower, and, in spite from the following quotation, taken from. the the bosses' efforts, will express itself in word Commercial & Financial Chronicle, written just form during 1931. after the famous stock market crash of 1929. A Glut of Automobiles. To quote Hoover, Lamont, Klein, Barnes, or their The automobile industry is in a really serior ilk, would be taking what the bosses themselves situation, typical of the enormous difficulties later admitted was fakery too thickly spread. American capitalism in the present crisis. b But the Chronicle was a little more serious, an illustration, the present auto plant capacit careful and even pessimistic, But here is what without overstraining, is capable of producir they said on November 23, 1929: 8,000,000 cars a year. This year about 3,500,00 "The most satisfactory feature of the situation cars were produced-and at least a million wer at the moment-and it is a very reassuring feanever sold! Next year the market for automo ture-is that after last month's stock market biles will be still further contracted as the fu panic and upheaval, things are rapidly returneffect of the crisis on the inner market will b ing to the normal." felt more severely in 1931. The world situatio How rapidly they "returned to the normal" is effectively stops any promise of an increase i now economic history. We have the "normal" exports. In 1930 auto exports dropped 60 pe 9,000,000 unemployed; industry at the lowest level cent below 1929. It is no wonder, then, tha in 50 years; the severest world economic crisis Ford, according to the Wall Street Journal, 5 in the history of capitalism, and political crisis going to close his plant indefinitely. The For in many capitalist lands. dealers were loaded up in 1930, and are virtuall chocking with overproduced stock. That the crisis has gotten worse cannot be The Price-Raising Trick. denied by the most rosy-bespectacled capitalist And on this basis the steel industry, which de economist. But they have a new theme-song. pends for over 50 per cent of its orders on build The refrain runs: "The worse it gets the better it is." The National City Bank (December, 1930, ing, autos, and railroads, cannot be expected t Bulletin) hands out this line as follows: show any important advances in 1931. In thi connection the recent maneuver of the Unite "We have to remember in times like these that States icn i raising steel price influences of depression are cumulative and that $1 a ton is interesting. This is done to stimulat it is the usual thing for the outlook to appear business by m~ buyers believe it would b more and more unpromising in proportion as the better to "buy now" as prices might go up stil depression nears its end." further. It was tried before and failed. In Oct This is pretty shrill whistling to keep up the the steel corporation tried the same trick, bu bosses' courage. The very same Bulletin admits the result was a lessening in steel output an that "new complications have not ceased to arise p S dropped tain The copper trust tried th to confuse the outlook and involve new groups in same stunt, pulling prices of copper up from the area of readjustment." And they come to cents a pound to 12 cents. The 12-cent pric the usual note of the capitalists, rooted in their remained on paper. Copper prices are droppin confidence in the indestructability of capitalism daily. that "obviously this sort of thing has to come Now Bonds Go Down! to an end sometime." Very true, indeed, but the A reflection of the deeper extent of the crisis end is not always an economic revival of capiits more complicated nature, is contained in th talism. There is the end in war! There is the transfer of crashes from the stock to the bon end in a protracted course of the economic market. Bonds are guaranteed profit-producin disease. There is the end in revolution! investments. Their movements up and dow Heavy Emphasis on Spring. vary little. Common stock-the bulk of th The major share of the predictions this new paper traded in on the stock market-is base year will promise revival in the Spring. There more on the excess of profits over and abov is nothing original in this. They promised rethat paid on bonds and other fixed indebtedness vival last Spring. In the Spring there is always Early in the crisis bond prices went up. No a certain amount of reawakened economic life, they are going down. This is alarming the capi a jagged upward zig-zag, even in the worst of talists, who see in it a quirk they didn't expect crisis. The bosses hope to fool the masses of This leads the Commercial & Financial Chron unemployed and sorely-beset employed workers icle (Dec. 6, 1930) to exclaim: "It is bad enoug into the belief that this should be taken as an to see stock prices going all to smash, but whe upturn. But an examination of the facts in the bond prices follow the same destructive course basic industries shows there is no basis for a there is reason for the gravest apprehension." major upturn or revival of American capitalism There will be a rabid campaign of lying an in 1931. There will be some of the prophets who, predictions soon. They will not feed the unem to be on the safer side, will shove the "upturn" ployed. They will not reduce the unemploye toward the summer. If this fails, they will folarmy. They will not end the crisis. But the low the usual stunt of shoving it ever into the will fool many workers. It is the duty of ever future. class conscious worker to smash these lies an The fact is, there have been features added to increase the struggle for unemployment insur ance. the present crisis which have complicated it,
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The largest bank suspension that occurred in New York City took place on Friday last when the Bank the United States with offices was closed by the state superintendent of banks had positors and their deposits two weeks $202,972,000 Some two bank examiners going through the books $100,000,000 raised by other banks depositors by lending them money the assets the bank
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DEPOSITORS PAGE THREE) enlisting the sympathy of the public, and the payment deposits full Preparations for demonstration will forward as soon possible that, need be, will be organized and not an haphazard affair. small depositors shall be given preference and be paid in full after the bank be found insolvent. stockholders are required pay their assessments. No evictions shall be permitted when tenants have their money tied up in the Bank of the United States. The of the meeting Seidenberg, the secretary was Greenbaum. Other members of the committee Cohen, Sonenshein. Yellin, Licht Chaipalsky, Tenderson, Silverberg, Latovsky, Levin, Nelson. Tishman, Wallan. Beber. Franklin, Roseman Levin and Kaltov. Boro Park Depositors Meet. On Tuesday night, workerdepositors of the Boro Park branch the Bank of the met at Boro Park Workers Center, 1373 43rd An executive committee of elected to meet with the other positors In Bath Beach tors of the Bath Beach Branch of the Bank of met on Monday night. The sentiment unanimous support the proposition that tremendous mass movement of hundreds of thousands of depositors must developed. committee elected. which will soon meet, to plan broader mass meeting of thousands depositors.
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Kresel Pleads Not Guilty in New York New York, Feb. 11.-(P)-Isidor Kresel, scourge of corruption New York courts, answered an indictment charging felony in general sessions court today. The small, quiet man, who signed last night as of the bench, arose from sick bed and, with seven other associates in the closed Bank of the United States, pleaded not guilty charges resulting from the bank's suspension. Kresel and five of his associates were held for trial in $10,000 ball In the case of Bernard K. Marcus, president, and Saul Singer, vice president, the bond was set $100,000,
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BIG BANKS REQUEST POLICE PROTECTION New York, Dec. 23.-Extra police guards for severalb ranches of the Bank of the United States scattered thruout Manhattan, the Bronx and Brooklyn, were requested today by the state superintendent of banking, Joseph A. Broderick. No explanation was made. It was understood depositors who have applied for loans up to fifty per cent of their deposits will receive loans at these several branches tomorrow. Four men and two women arrested outside the Freeman street branch of the closed bank as leaders in a small crowd of depositors who sought to storm the bank, were convicted of disorderly conduct by Magistrate Flood today. They were given suspended sentences.
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BANKS REQUEST POLICE PROTECTION New York, Dec. lice guards for severalb ranches of the Bank of the United States scattered thruout Manhattan, the Bronx and Brooklyn, were requested today by the state superintendent of banking, Joseph A. Broderick. No explanation was made. It was understood depositors who have applied for loans to up fifty per cent of their deposits will receive loans at these several branches tomorrow. Four men and two women rested outside the Freeman street arbranch of the closed bank as leaders in crowd of depositors who sought storm the bank, disorderly conby Magistrate Flood They were given suspended senten- today.
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Bank Truth; DEPOSITORS To See Mayor Monday; Fight Evictions NEW Monday, at the committee of small depositors of the senting Bank of the United States, organized the United Depositors Committee, will to Mayor Walker, protest against police brutality to depositors, demand that evictions stopped against workers who cannot their because their money has been robbed and demand free public meeting place for meeting the depositors to plan further action. The committee of whose spokes- PAGE
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panic. The figure of 745 bank failures in the first ten months of 1930 was high, but not out of line with those of previous years. Then came November with 236 bank failures. Then came December and the crash of the Bank of the United States in New York City. Deposits in the banks closed for the first 10 months of the year aggregated $311,500,000; de(Continued on Last Page)
REPORTS SLIGHT DROP Assets Shrunk Moderately, Reports Cons. Indemnity & Insurance The failure of the Bank of the United States in New York City caused some shrinkage in the assets of the Consolidated and Insurance Company, according to former State Transit Commissioner John F. Gilchrist, president of the Company, without impairing the company's or its plans make 1931 one of the best years in its hisThis information was given to the directors by Mr. Gilchrist at the annual held in New York, when Gov. Alfred E. Smith and WilF. Kenny were re-elected direcOther re-elected directors in addition to Mr. Gilchrist, were Rolland R. Rasquin, executive George Atwell. elected Harry L. Davis, formerly of Ohio; Henry Meigs Milwaukee; Robert M. FerguCharles F. Zeltner Otto H. Kroeger of York City; James W. Brushwood, George W. Donnan and William Nunlist, of the company; William R. Marquardt, controller.
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The State Commissioner's report on the suspended Bank of the United States, New York, indicates that the assets were so frozen that the directors maintained a skating instructor on the premises at all times.
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The State Commissioner's report on the suspended Bank of the United States, New York, indicates that the assets were so frozen that the directors maintained a skating instructor on the premises at all times.
Probers Told Bank Sought Depositors After State Report By Associated Press. New York, March 3.-Testimony that the Bank of the United States marshaled more than 60,000 new depositors shortly after the state banking department issued an unfavorable report on its condition stirred the Steuer investigation to- Morris White. a director, testified yesterday that high officials had instituted drive for more depositors in February, 1930, and that he himself had recruited 1400 from among his employes in another venture. "This is the most startling testimony yet given, said Deputy Attorney General Max D. Steuer, who is into the reasons for the bank's Attorney General John H. Bennett, Jr., announced that several directors had started an independent movement to recompense depositors 100 cents on the dollar, either by constructive liquidation or by eorganization and reopening of the bank.
Hurley Tenders SECRETARY OF WAR HURLEY went out of his way last night at the Young Republican conference din ner tribute Vice President Curtis. Mr. Hurley saids cannot let such an casion pass without tribute that upstanding and patriotic Charles Curtis." Mrs. Dolly Gann, Vice President Curtis' sister, was among the diners. be right because they have almost as many parties out there they have speak in hyperbole. Only few days ago mayor was elected Minneapolis, in which Walter Newton used to be elected by large majorities. had not originally been planned to have President Hoover receive the youngsters, but he did yesterday afternoon. Robert H. Taft. son of the for mer chief justice, was also speaker at the dinner last night. as was Prof. William Starr Mey. of Princeton. The closing session also was marked with an attack on New York politics by Kingsland Macy, Republican State chairman New York. Macy also urged an investigation the New York State banking system and all the circumstances surrounding the failure of the Bank of the United States.
QUESTIONS ANSWERS How many depositors did the recently failed Bank of the United States in New York City have, and was the amount its had about 400,000 depositors and its liabilities amount to approx$160,000,000. & When was the Edison incanlamp first exhibited? 1879, Edison's laboratory, Menlo Park, Who holds the record for the motor cycle tween Los Angeles and New York? Allen Bedell made the trip and hours. What the original source of the quotation oaks from little acorns grow"? David Everett's "Lines Written School
High Court Upholds U.S. Bank Convictions NEW YORK, May 20 (P)-The appellate division the supreme today upheld the conviction Berhard Marcus, president closed Bank the United States: Saul Singer. executive vice president. and Singer's son, Herbert, an officer in some of the bank's affiliates, on charges of misapplying funds of the Municipal Safe Deposit company, subsidiary of the bank. The Bank of the United States, with 100,000 was closed December 1930, following heavy runs.
What About New York? THAT Gov. Roosevelt is going to make the economic distress of the country the basis of his campaign for the presidency is shown by the speech he made in Columbus savagely attacking the republican regime and laying the responsibility for the depression at the door of the white house. It is campaign thunder for the democrats and Roosevelt does not hesitate to make full use of the TNT which the depression affords. There is much of truth in his attack on the administration for failure to see the course which the country was following in those crazy years of 1928 and 1929. The Mellon idea seemed to be to encourage the speculative orgy which was leading the country to the dizzy heights from which it plunged with such calamitous consequences. But it is unfair to make Hoover personally responsible for this depression. Hindsight is always better than foresight. The truth is that the country was in the grip of a hope psychology just as until lately it has been in the grip of a mob fear. Both were unreasoning, yet both controlled. Even the ablest prognosticators saw no clouds ahead in the early months of 1929 when Pres. Hoover took office. It seems to us however that Candidate Roosevelt lays Gov. Roosevelt open to the same criticism. Most of the evils which he denounces so vigorously had their locale in New York. The international bankers have their offices in New York. Most of the stock emissions which the governor condemns roundly were the products of Wall street stock jobbers. The biggest bank failure in the United States, that of the Bank of the United States, occurred in New York. It was a state bank under the supervision of Gov. Roosevelt's own appointee. The crookedness of apartment house financing and other real estate promotion were carried to finest flower in New York state at a time when the democrats Al Smith and Frank Roosevelt were in power. The remedies which Roosevelt recommends for the nation would apply most fittingly to New York state. Yet he has not urged his own legislature to control the issuance of securities, nor regulation of "exchanges in the business of buying and selling securities", nor "more rigid supervision of banks for the protection of depositors", nor for separation of investment banking from commercial banking. The reforms he proclaims so enthusiastically would apply peculiarly to the state of New York. Yet Gov. Roosevelt has never sought to secure them for his state. The same obscured vision, the same palsy in leadership which Gov. Roosevelt attributes to the republicans in Washington are chargeable to the democrats in New York. The governor made a good speech at Columbus; and we are glad to see him concerned about reforms to end the shocking piracies of New York bankers and others; but most of his chickens come home to roost in his offices at Albany. His Columbus speech was a valiant thrust with his sharpest sword; but the effort left Roosevelt's own vitals unguarded.
Flanked by deputy sheriffs, Bernard K. Marcus (A) and Saul Singer (B), principal officers of the defunct Bank of the United States, New York, are shown as they entered the barred doors of Sing Sing prison at Ossining, N. Y., to serve terms of from three to six years for misapplication of the bank's funds. Depositors who lost their savings in the wrecked bank, crowded the criminal courts building and corridors where Marcus and Singer surrendered for their trip to prison.