BANK OF U.S.A.

Evening Post, Volume CX, Issue 144, 16 December 1930, Page 11

BANK OF U.S.A.

CLOSING OF BRANCHES

DEPOSITORS LEFT HIGH AND DRY

NEW YOKK, 1-lth December. The closing of sixty branches of the Bank of the United States last week left 400,000 depositors high and dry. Many arc without means to get through Christmas. While there will bo huge losses, the depositors arc expected finally to get four-fifths of their money back, so the State Government has worked out machinery to grant certificates to all depositors, permitting them to borrow from other banks 50 per cent, of their balances at a rate of 5 per' cent.

The largest bank failure anywhere in the country since last year's Wall Street crash occurred on 11th December, with the announcement of suspension of payment by the Bank of the United States. It is not a Federal bank, having only a State charter. Its gross liabilities are approximately 250,----000,000 dollars, however, of which 202,----000,000 aro deposits. The bank is one of the most important in New York. Recently the bank reported total assets to 30th June as 261,741,769 dollars, which compares with 263,113,075 dollars on 27th March. Deposits totalled 211,800,366 dollars, against 211,241,603 dollars in March. Capital, surplus, and undivided profits amount to 42,274,818 dollars, against 41,913/590 dollars formerly.