▁One ▁of ▁the ▁most ▁pain ful ▁aspects ▁of ▁the ▁economic ▁crisis ▁before ▁World ▁War ▁I ▁was ▁the ▁r ush ▁by ▁individuals ▁and ▁business es , ▁as ▁they ▁became ▁app reh ensive ▁about ▁the ▁economic ▁future , ▁to ▁the ▁banks ▁to ▁convert ▁their ▁depos its ▁into ▁c ash . ▁A ▁common ▁way ▁to ▁mit ig ate ▁these ▁" bank ▁runs " ▁was ▁to ▁susp end ▁c ash ▁pay ments ▁during ▁cr ises , ▁either ▁by ▁impos ing ▁a ▁maximum ▁daily ▁withdraw al ▁or ▁complete ▁susp ension . ▁ ▁In ▁the ▁S out heast ▁and ▁Mid west , ▁the ▁resulting ▁short age ▁of ▁c ash ▁was ▁so ▁serious ▁that ▁local ▁clear ing h ouses ▁issued ▁emer gency ▁notes ▁against ▁coll ater al ▁p led ged ▁by ▁co oper ating ▁banks ▁so ▁that ▁people ▁could ▁carry ▁on ▁business . ▁Sus p ending ▁c ash ▁pay ments ▁and ▁issu ing ▁clear ing house ▁certific ates ▁were ▁better ▁than ▁allowing ▁a ▁pan ic ▁to ▁continue , ▁but ▁the ▁public ▁wanted ▁a ▁reform ▁that ▁would ▁prevent ▁susp ensions ▁altogether . ▁ ▁Function s ▁The ▁plan ▁proposed ▁by ▁the ▁Mon et ary ▁Commission ▁provided ▁for ▁the ▁establishment ▁of ▁local ▁associations ▁of ▁banks ▁and ▁the ▁grouping ▁of ▁these ▁into ▁regional ▁associations . ▁These ▁were ▁further ▁grouped ▁into ▁a ▁national ▁reserve ▁association ▁with ▁a ▁head ▁office ▁at ▁Washington . ▁Under ▁certain ▁conditions , ▁all ▁banks ▁in ▁the ▁country ▁were ▁to ▁be ▁el ig ible ▁for ▁membership ▁in ▁this ▁central ▁institution . ▁Its ▁functions ▁were ▁to ▁be ▁essentially ▁the ▁same ▁as ▁those ▁performed