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X-7346 COPY THE MECHANICS NATIONAL BA.H AMD TRUST CO. 33 M i l l v i l l e , Hew Jersey TO ALL DEPOSITORS: February 13, 1933. During the past few months there has "been an i n c r e a s i n g demand f o r funds from our d e p o s i t o r s , f a r above the usual b u s i n e s s requirements. The withdrawal of d e p o s i t s has exceeded our a b i l i t y to l i q u i d a t e investments without severe l o s s and the general economic condition prevents the immediate c o l l e c t i o n of notes without p o s s i b l e f o r e c l o s u r e and bankruptcy i n some c a s e s . R e a l i z i n g the enormous expense always incurred i n l i q u i d a t i n g a s s e t s of a c l o s e d i n s t i t u t i o n we f e e l that the i n t e r e s t of d e p o s i t o r s and stockholders must be p r o t e c t e d by some plan t o prevent suspending b u s i n e s s and f o r c e d liquidation. The Board of D i r e c t o r s have t h e r e f o r e , t h i s day declared t h a t a r e s t r i c t i o n be placed on withdrawals of any d e p o s i t s as of the c l o s e of business on February 9th with the f o l l o w i n g p r o v i s i o n s : 1 - Vacation Club Funds and School Children's Savings A c c t s . are exempt. 2 - Balances of Time Accounts, Checking Accounts and C e r t i f i c a t e s of D e p o s i t , a t the c l o s e of business on February 9th, 1933, w i l l be subject t o no fu rth er withdrawals. 3 - A p o r t i o n of these balances may be r e l e a s e d from time to time when l i q u i d a t i o n of a s s e t s warrants. 4 - A l l d e p o s i t s made on and a f t e r Feb. 10, 1933, w i l l be subject to check and withdrawal without i n t e r f e r e n c e . 5 - I n t e r e s t on Time Account Balances r e s t r i c t e d w i l l be continued and payment made semi-annually as u s u a l . New Time Accounts w i l l not be r e s t r i c t e d i n any way. 6 - No loans w i l l be made while t h i s p l a n i s i n e f f e c t . The success of t h i s plan depends e n t i r e l y on the f u l l cooperation of a l l d e p o s i t o r s f o r whose b e n e f i t the plan i s designed. Further information regarding your p a r t i c u l a r account and t h e advantages of the plan i n general w i l l be g l a d l y given by any d i r e c t o r , o f f i c e r or employee. We would suggest that you i n d i c a t e your i n t e n t i o n t o cooperate on the form enclosed and mail or l e a v e i t a t the bank at your e a r l i e s t convenience. Yours very t r u l y , THE MECHANICS NATIONAL BANK AND TRUST CO. H. H. MELVIN, President. 4 X-7346 33 THE IBCKalTICS 1IA.TI01JAL BAIIK MD TRUST C01IPA1TY ivilLLVILLS, liEW JERSEY. I approve of the plan to prevent forced l i q u i d a t i o n as o u t l i n e d i n your l e t t e r of February 13th, and "rill cooperate i n the plan submitted, f o r the mutual b e n e f i t of a l l .
@FedFRASER