Abandonment of the whole plan of distribution by the Treasury of savings certificates is threatened by the situation arising out of the failure of the western banks. The banks have blamed the sale of these certificates for withdrawal of deposits from their coffers, weakening their position and causing failure. Officials of the Treasury in charge of the sale of the securities charge a widespread conspiracy among the banks of the country to put an end to such competition for funds as is furnished by the certificates.
Suspension of Sales
Pressure by the Western banks has grown so strong that Secretary of the Treasury Mellon has ordered immediately suspended the sale of savings certificates in the following seventeen states: Arizona, North Dakota, South Dakota, Wisconsin, Montana, Minnesota, ...