Business & Finance: Bankers' Grace

Up to June 16, 1933 U. S. bankers were privileged to borrow from their own banks all that their own banks saw fit to lend. On that date the Banking Act of 1933 went into effect. One of its provisions prohibited bankers from borrowing from their own banks. Another required them to repay all such intramural loans by June 16, 1935. As that date approached last week many a borrowing banker was in a cold sweat. Loans outstanding totaled nearly $90,000,000. Penalty for failure to pay was fixed by the Banking Act at one year...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!