Neither is any bank which may turn out not to be in a position for immediate opening. The new law allows the twelve Federal Reserve Banks to issue additional currency on good assets. Therefore, the banks that reopen will be able to meet every legitimate call. The new currency is being sent out by the Bureau of Engraving and Printing in large volume to every part of the country. It is sound currency because it is backed by actual, good assets.
A question you will ask is this: why are all the banks not to be reopened at the same time? The answer is simple. Your government does not intend that the history of the past few years shall be repeated. We do not want and will not have another epidemic of bank failures.
As a result, we start tomorrow, Monday, with the opening of banks in the twelve Federal Reserve Bank cities. These are the banks which, on first examination by the treasury, have already been found to be all right. This will be followed on Tuesday by the return of all functions by banks already found to be sound in cities where there are recognized clearing houses. That means about 250 cities of the United States.
On Wednesday and succeeding days, banks in smaller places all through the country will resume business. This is subject, of course, to the government's physical ability to complete its survey.
