Lethbridge Herald, The (Newspaper) - October 15, 1974, Lethbridge, Alberta
October 11, 1t74 THE LETHSRIDOE HERALD 17 Bank failures of 974 unlike those of t- t r f NEW YORK (AP) Ofc differences between 1974 and f iciating over the 1933 .failure in history of the United The failed bank was New States last week, officials York> Franklin National took pains to point out Bank, crippfed by profit problems as it worked its way from a regional Long Island bank tojhe 20th-biggest in the U.S. Franklin was declared in- solvent Tuesday by the U.S. comptroller of the currency. The Federal Deposit In- surance Corp. (FDIC) served as receiver, selling the bank's offices and most of .its assets to European .-'American Bank andvTrust owned by sue of Europe's biggest banks. Franklin -National had billion in deposits at last count before its demise The biggest failure before Franklin's was that of United States National Bank.in San Diego last year, with million in deposits. There was little resemblance to the bank of the when a series of crises were touched off by failures and resulting rushes 'on banks by worried depositors. That eventually led to the government enforced bank holiday of 1933. Of some banks which closed for that holiday, only ever open- ed again. That same year, the FDIC was created to insure smaller depositors against loss in bank failures. In Franklin's 1K74 failure, that insurance wasn't needed. The insolvency ruling was handed down at the end of Franklin's business day Tuesday. Franklin customers simply became European American customers the next morning, and all offices open- ed as usual for a relatively calm business day. SHAREHOLDERS HIT The FDIC took over enough of Franklin by the Federal Reserve System earlier this year. And losses in'the failure appeared likely to fall heaviest on shareholders and creditors of Franklin and the FDIC itself. "It would be a mistake to view this incident as one generally shared by the bank- ing said FDIC chairman Frank Wille. "Franklin's problems were rooted in earnings problems over the years which were ex- aggerated by foreign ex- change losses in May." The Dow Jones industrial average closed Wednesday at 631.02, up 28.39 points, its biggest one-day gain in more than a year and a half. Gains outnumbered declines on the New York Stock Exchange by four to one. The rally continued through -the end of the business week for one of the market's best performances in months. Auto Fire Life Firm Phone 328-1175 College Shopping Mall 'A Complete Insurance Service' LETHBRIDGE HOUSE OF COLOR OLD FASHIONED DAYS BOYS We carry a line of models, plastic wood or metal A complete line of craft kits and supplies Model railroads, sets and accessories Christmas crafts AFX road racing sets, cars and accessories A complete line of Glidden paint, wallpaper, Pratt Lambert paint Doodleart, model rocketry supplies GRUMBACHER ARTIST SUPPLIES College Mall Phone 327-6986 Ask lor ROY or DONATE Your Hobby Craft Centre HEALTH FOOD CENTRE "The Home of Natural Health Remedies" VITAMINS MINERALS HERBS FOOD COSMETICS We also have Magic Flour Mills Bosh Bread Mixer HEALTH FOOD CENTRE Collsgs Mall and Centra VMMgo Mall THE.SHOE MAN OLD FASHIONED DAYS WINTER FOOTWEAR (Broken Lines Only) NOW 50% OFF ALL LEATHER BAGS Regular to NOW NEW FALL WINTER FASHIONS WILL ALSO BE ON DISPLAY COLLEGE MALL INTERNATIONAL FABRICATE INSTITUTE GUARANTEED Suede and leather cleaning ;5 For Fashion that looks Newer... resher V.. Wears Longer... We Dry clean them the professional Way? If you're in a hurry take advantage or our 1 Hour Dry Clean Service Phone 328-2437 College Mall and 112 8th St. South AT BOTH LOCATIONS... 326-7th STREET SOUTH AND COLLEGE MALL low... it tin start if the SHIM Swut SixtoN rands priest M cetts Mtf JscMs. Fall Dresses Sportswear. Hostess wear and sleepwear is on at opening tomorrow for the fashion buys of the season. your Sweet Sixteen Charge Card.... open your own personal fashion account... or use your too! So Shop FALL COATS Assorted new season styles in a variety of fabrics and colours. OUR ORIGINAL PRICES (ON SALE AT BOTH LOCATIONS) JEWELLERY ACCESSORIES Specializing in Gifts Diamonds Repairs Phono32f-f73S LEATHER and BUCKSKIN JACKETS SALE PRICED AT '30 OFF DIM OmUUL PMCES (ONSALEATMTHLOCAT1MS) RABBIT FUR JACKETS SALE PRICED AT '30 OFF (hr prim Mb taMm Mta I SPORTSWEAR SPECIALS UP TO V2 OFF Osr prhoi (n Ml fecstw) DRESSES An assortment of styles priced to dear at OFF UP TO tv prim DcttMt) HOSTESS WEAR AND SLEEPWEAR A WflUMi Ofwy UP TO OFF OBT nplsT prloii (M irii.ol Ml I EVEHINO WJEAR UP TO OFF Oar nftfsr prlM oto Ml I where the credit's all yours.