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The Daily Worker
Chicago, Cook County, Illinois
What is this article about?
Report on over 600 U.S. bank closures in first eight months of year totaling $266M deposits, plus 54 in Arkansas and 11 in Kentucky this week. Officials downplay as local, but it's part of broader financial crisis amid depression; workers urged to unite for unemployment insurance.
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DURING the first eight months of this year, over 600 banks, with deposits totaling $266,000,000 closed their doors. Then, this week alone, in two days' time, fifty-four banks closed in Arkansas, eleven in Kentucky, and a scattering in other states.
To this signal of onrushing calamity, Mellon's treasury department and the Federal Reserve officials answer by saying that it is merely "local" and that the Reserve system is "not involved."
This is pure and unadulterated hokum. It is even a lie, as the Journal of Commerce points out in an editorial on Nov. 20, of course in a "gentlemanly" manner, by saying that the facts "are not as represented."
The calamity comes in, because it is plain that the crisis, the evaporation of "value" from billions of dollars "worth" of stocks and bonds, is breaking down all the fancy schemes of the Federal Reserve, and the economic crisis is bringing on a tremendous financial crisis.
Which, in turn, will further react to worsen the general business "depression" and deepen the whole crisis. This, the Journal of Commerce freely declares, in condemning Washington officials for misrepresenting these bank failures as "local" and of no consequence.
For the workers, we urge that they scorn the lies of "prosperity" being "just around the corner," and upon the basis of a long time of still worse depression, unite to fight for unemployment insurance.
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Domestic News Details
Primary Location
United States
Event Date
First Eight Months Of This Year; This Week; Nov. 20
Key Persons
Outcome
over 600 banks closed with deposits totaling $266,000,000; fifty-four banks closed in arkansas; eleven in kentucky; scattering in other states; worsening general business depression and deepening crisis
Event Details
During the first eight months of this year, over 600 banks with deposits totaling $266,000,000 closed. This week, fifty-four banks closed in Arkansas, eleven in Kentucky, and a scattering in other states. Mellon's treasury department and Federal Reserve officials claim it is merely local and the Reserve system is not involved. The Journal of Commerce editorial on Nov. 20 calls this misrepresentation. The crisis involves evaporation of value from stocks and bonds, breaking down Federal Reserve schemes, leading to a tremendous financial crisis that worsens the depression. Urges workers to scorn prosperity lies and unite for unemployment insurance on basis of worse depression.