Please let me make it clear to you that if your bank does not open the first day, you are by no means justifiedin believing that it will not open. A bank that opens on one of the subsequent days is in exactly the same status as the bank that opens tomorrow.I know that many people are worrying about state banks that are not members of the Federal Reserve System. There is no occasion for that worry. These banks can and will receive assistance from member banksand from the Reconstruction Finance Corporation and of course they are under the immediate control of the state banking authorities. These state banks are following the same course as the national banks except thatthey get their licenses to resume business from the state authorities, and 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. And so I am confident that the state banking departments will be as careful as the national government in the policy relating to the opening of banks and will follow the same broad theory.It is possible that when the banks resume a very few people who have not recovered from their fear may again begin withdrawals. Let me make it clear to you that the banks will take care of all needs except of course the hysterical demands of hoarders—and it is my belief that hoarding during the past week has become an exceedingly unfashionable pastime in every part of our nation. It needs no prophet to tell you that when the people find that they can get their money—that they can get it when they want it for all legitimate purposes—the phantom of 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, myfriends, that it is safer to keep your money in a reopened bank than it is to keep it under the mattress.The success of our whole national program depends, of course, on the cooperation of the public—on its intelligent support and its use of a reliable system.Remember that the essential accomplishment 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 provision has been made for banks to borrow on these assets at the reserve banks and more liberal provision has also been
made for issuing currency on the security of these good assets. This currency is not fiat currency. It 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 and even allows the government to subscribe to at least a part of any new capital that may be required.