BANK CRASH' SEQUELS.

Auckland Star, Volume LXIV, Issue 73, 28 March 1933, Page 7

BANK CRASH' SEQUELS.

FINANCIAL VISTA IN U.S.A. VANCOUVER, March 22. According to a semi-official estimate the banks which cannot reopen contained deposits totalling 4,000,000,000 dollars, being 10 per cent of the United States total deposits. "Distressingly large," is the admission. The end of the first week of rehabilitation finds 12,750 banks again doing business, being 72 per cent of the total number operating a month ago. Another 1000 may be added in a week, which gives a new total better than was at first expected. During the 29 months since September, 1030, all bank failures in America involved a total of 3,375,000,000 dollars, which means that the recent panic, coining on top of the continued liquidation since 1929, reveals a rather greater total of frozen assets than during the whole of those two and a half years. This situation, as it seeps through the public intelligence, may have a numbing effect on the optimism born of President Roosevelt's so-called "new deal." The most interesting fact is that only 3,000,000 dollars of the new currency authorised during the bank holiday has been actually put into circulation. The new notes printed totalled 2,000,000,000 dollars, and half of these were actually distributed to the banks, but the latter had such an inrush of depoaits that they have more actual currency than they can use; and, so far, have not been forced to borrow from the Federal Reserve.