BANKING SITUATION

New Zealand Herald, Volume LXX, Issue 21453, 29 March 1933, Page 9

BANKING SITUATION

rehabilitation process NEW YORK, March 23 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, or 72 per cent of the total number operating a month ago. Another IUUU may be added in a week, which gives a new total better than was at first exthe 29 months since September, 1930, all bank failures in America involved a total of 3,375,000,000 dollars. This means that the recent panic, coming on top of the continued liquidation since 1929, reveals a rather greater total ot frozen assets than during the whole ot those two and a-half years. This situation, as it seeps through tne public intelligence, may have a numbing effect on the optimism born of Mr. Roosevelt's so-called "new deal." The most interesting fact is that only 3.000,000 do.lars of the new currency authorised during the bank holiday have been actually put into circulation. , . , , The value of the new notes printed totalled 2.000.000,000 dollars, and half ot these were actually distributed to the banks, but the latter had such an inrush of deposits that they have more actual currency than they can use. So far they have not been forced to borrow from the Federal Reserve Bank.