Let me make it clear to you that if your bank does not open the first day you are by no means justified in believing that it will not open. A bank that opens on one of the following days is in exactly the same status as the bank that opens tomorrow.
I know that many people are worrying about state banks not members of the Federal Reserve System. These banks can and will receive assistance from member banks and from the Reconstruction Finance Corporation. These state banks are following the same course as the
national banks, except that they get their licenses to resume business from the state authorities. These authorities have been asked by the Secretary of the Treasury to permit their good banks to open up on the same schedule as the national banks. I am confident that the state banking departments will be as careful as the national government and will follow the same broad policy.
It is possible that when the banks resume a very few people who have not recovered from their fear may try again to withdraw their money. Let me make it clear that the banks will take care of all needs. It is my belief that hoarding during the past week has become an exceedingly unfashionable pastime. It needs no prophet to tell you that when the people find that they can get their money -- and that they can get it when they want it for all legitimate purposes -- their fear will soon be laid. People will again be glad to have their money where it will be safely taken care of and where they can use it conveniently at any time. I can assure you that it is safer to keep your money in a reopened bank than under the mattress.
The success of our whole great national program depends, of course, upon the cooperation of the public. It depends on its intelligent support and use of a reliable system.
Remember that the essential part of the new legislation is that it makes it possible for banks more readily to convert their assets into cash than was the case before. More liberal plans have been made for banks to borrow on these assets at the Reserve Banks. And more liberal plans have also been made for issuing currency on the security of those good assets. This currency is issued only on adequate security -- and every good bank has an abundance of such security.
One more point before I close. There will be, of course, some banks unable to reopen without being reorganized. The new law allows the government to assist in making these reorganizations quickly and effectively.
