FEDERAL DEPOSIT INSURANCE CORPORATION

W A SH IN G T O N . D.C .

Report of Operations

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Federal Reserve Bank of St. Louis
REPORT OF OPERATIONS

F e d e r a l D epo sit I n su r a n c e C o r p o r a tio n ,

Washington, D.C., March SI, 1984.

S ir: Pursuant to the provisions of subsection (r) of section 12B of 

the Federal Reserve Act, as the same is incorporated in section 8 of 

the Banking Act of 1933, the Federal Deposit Insurance Corporation 

has the honor to submit its report with respect to its operations.

The Federal Deposit Insurance Corporation was created by the 

Banking Act of 1933. Since its creation it has been concerned with 

making the insurance provisions of that act effective, and this report 

is concerned with its operations in that connection.

According to the provisions of the law the Comptroller of the 

Currency is designated as a director, and under that designation Mr. 

J. F. T. O'Connor, Comptroller of the Currency, has continuously 

acted as a director. The President appointed as the other directors 

Mr. Walter J. Cummings and Mr. E. G. Bennett. The directors 

organized on September 11, 1933, and elected Mr. Walter J. Cummings chairman of the board. Mr. Cummings served in the capacity 

of chairman of the board until February 1, 1934, at which time his 

resignation became effective and he was succeeded by Mr. Leo T. 

Crowley.

The board of directors of the Corporation, immediately following 

their organization, adopted bylaws to regulate the manner in which 

the general business of the Corporation would be conducted. The 

board appointed the necessary officers and employees to enable the 

Corporation to proceed with the insurance of bank deposits in accordance with the provisions of the act.

In order to obtain funds for operation and to avail itself of the 

provisions of the law providing for its capital, the Corporation in 

September 1933 received $500,000 from the Secretary of the Treasury. 

In November 1933 it received the remainder of the Government's 

contribution to its capital, or $149,500,000, in accordance with the 

provisions of the act which require the Secretary of the Treasury, on 

behalf of the United States, to subscribe to stock of the Corporation in the amount of $150,000,000. On January 3,1934, the Corporation called upon the Federal Reserve banks to subscribe to its class B 

stock under the provision of the act which requires them to subscribe 

to shares of class B stock of the Corporation in an amount equal to

66383—34

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Federal Reserve Bank of St. Louis
2

one half of the surplus of each bank on January 1, 1933, and to accompany the subscription by a certified check payable to the Corporation in an amount equal to one half of such subscription. The call 

was promptly responded to and the Federal Reserve banks subscribed 

and paid for class B stock of the Corporation as shown in the following 

tabulation:

Location of Federal Reserve bank Surplus Jan. 1, Bubseription Amount paid

Atlanta..........

Boston...........

Chicago.........

Cleveland___

Dallas............

Kansas City.. 

Minneapolis.. 

New York— 

Philadelphia .

Richmond___

St. Louis.......

San Francisco

Total...

$10,544,083 

30,460,473 

39,497,033 

28,293,727 

8,718,676 

8,262,653 

7,018,935 

85,058,421 

29,241,767 

11,616,583 

10,186,225 

19,700,657

$5,272,031.50

10.230.236.50

19.748.516.50

14.146.863.50 

4,359,338.00

4.131.276.50

3.509.467.50

42.529.210.50

14.620.883.50

5.808.291.50

6.093.112.50

9.850.328.50

278,599,113 139,299,556.50

$2,636,015.78 

6,115,118.44 

9,874,258.35 

7,073,431.83 

2,179,669.05

2.065.638.15 

1,754,733.82

21,264,605.32 

7,310,441.76 

2,904,145.71 

2,546,556.12

4.925.164.15

69,649,778.48

On January 5, 1934, the directors caused 90 days’ notice of the 

calling of the remaining half of the subscription to be given, the 

notice expiring and the remaining half becoming payable on April 

15, 1934.

At the close of business February 28, 1934, the Corporation had 

invested $108,776,073.38 in securities of the United States Government on which it had earned interest amounting to $417,459.52, 

including interest accrued but not received. At the close of business 

March 31, 1934, investments in securities of the United States Government amounted to $151,773,705.10.

The Corporation had cash amounting to $147,437,983.51 on hand 

and on deposit with the United States Treasurer on February 28, 

1934, as shown by the following statement of cash receipts and disbursements prepared as of that date after elimination of transfers 

of funds between accounts:

CASH R E CE IPTS

Subscription of the Secretary of the Treasury of the United

States to class A capital stock____________________________ $150, 000, 000. 00

Payments by Federal Reserve banks on subscriptions to class

B capital stock______________________________________^____ 69, 649, 778. 48

Assessments paid by banks complying with all requirements 

for admission to membership in the Temporary Federal

Deposit Insurance Fund__________________________________ 38, 837, 795. 11

Interest received____________________________________________ 158, 832. 34

Total____________ ________ 258, 646, 405. 93

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6

DISBURSEMENTS

Securities purchased________________________________________ $108, 776, 073. 38

Accrued interest on securities purchased to date of purchase. - 667, 329. 59

Salaries and traveling and subsistence expenses_______ _____ _ 1, 593, 937. 08

Capital expenditures________________________________________ 44, 750. 37

Other_______________________________________________________ 126, 332. 00

Total____________________________________ _____ ______ 111, 208, 422. 42

Balance, Feb. 28, 1934_________ _____ ________________ 147, 437, 983. 51

In proceeding to effect insurance upon deposits in the banks under 

the provisions of subsection (y) of section 12B, supra, it was unnecessary for the board to take any action with respect to national banks 

and State banks which are members of the Federal Reserve System to 

qualify them for insurance in the Fund, inasmuch as these banks 

were required to participate. State banks which were not members 

of the Federal Reserve System were required to apply for insurance 

in order that the benefits of the act might be extended to them and 

their depositors, and as to such banks examinations were required 

as well as certificates of solvency from the supervising State authorities. By October 1, 1933, examining offices had been established 

in the capital city of practically every State, with a supervising 

examiner in charge. As the need became evident additional examiners 

and assistant examiners were appointed and assigned to territory 

where the need existed.

The following tabulation shows the number of applications received, 

the number of examinations completed, the number of applications 

approved, the number of applications rejected, the number of applications pending, and the number of examiners and assistants employed 

at various dates:

Date

Applications

received

Examinations

completed

Applications

approved

Applications

rejected

Applications

pending

Examiners 

and assistants employed

Oct. 31, 1933............................ 4,058 1,644 431 55 1,158 999

Nov. 10, 1933............... ............ 5, 211 2,597 940 113 1,544 1,167

Nov. 20, 1933______ _____ _ 6,092 3,514 1,613 215 1 ,6 8 6 1,437

Nov. 30, 1933............................ 6,581 4,734 2,445 356 1,933 1,601

Dec. 9, 1933............................... 7,120 6,555 3,734 504 2,317 1,676

Dec. 20, 1933................... .......... 7,671 7,474 5,684 849 941 1,145

Dec. 30, 1933____ ____ _______ 7,834 7,785 6,496 977 312 338

At the close of business December 31, 1933, remittances had been 

received from 12,617 banks reporting 52,746,020 accounts with aggregate insurable deposits of $15,063,185,038, whicli may be further 

classified as follows:

Banks

reporting

Insured

accounts

Insurable

deposits

State banks (not members of Federal Reserve System)........

State banks (members of Federal Reserve System)________

6,754

802

20,205,064 

8, 264,002 

24, 276,954

$6,751,275,709 

2,396,052,877 

National banks_________________- _____________ _________ 5,061 5,915,856,452

Total__________________________________________ 12,617 52,746,020 15,063,185,038

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At the close of business March 31, 1934, 13,870 banks had reported 

55,597,695 accounts with aggregate insurable deposits of $15,700,- 

917,289, as follows:

Banks

reporting

Insured

accounts

Insurable

deposits

State banks (not members of Federal Reserve System )......

State banks (members of Federal Reserve System)________

7,611

934

21,630,656 

8,914,961 

25,052,078

$7,065,723,710

2,563,294.686

National banks_______—____ _ — — . . . - _. . . . . . . __ . . . 6,325 8,071,896,893

Total.................... .......................................................... 13,870 55,597,695 15,700,917,289

The number of insured banks, the number of insured accounts and 

the amount of insured deposits reported by banks complying with 

the requirements for admission to the Temporary Federal Deposit 

Insurance Fund as of March 31, 1934, are shown by classes of banks 

and by States in the exhibits enumerated below and which are appended hereto as a part of this report:

E x h i b i t A.— Statement of membership in the Temporary Federal Deposit 

Insurance Fund—all banks.

E x h i b it B.— Statement of membership in the Temporary Federal Deposit 

Insurance Fund, mutual savings banks (not members of Federal 

Reserve System).

E x h i b i t C.— Statement of membership in the Temporary Federal Deposit 

Insurance Fund, State banks, other than mutual savings banks 

(not members of Federal Reserve System).

E x h i b it D.— Statement of membership in the Temporary Federal Deposit 

Insurance Fund, State banks (not members of Federal Reserve 

System), mutual savings banks and other State banks combined. 

E x h ib i t E .— Statement of membership in the Temporary Federal Deposit 

Insurance Fund, State banks (members of Federal Reserve 

System).

E x h i b i t F.— Statement of membership in the Temporary Federal Deposit 

Insurance Fund— national banks.

The insured banks have been grouped with respect to membership 

in the Federal Reserve System and with respect to National and State 

charters and principal types of banks. The ratio of each group to 

total of banks insured and the ratios of insured accounts and insurable 

deposits to totals insured are shown below:

Banks

reporting

Insured

accounts

Insurable

deposits

State banks (not members of Federal Reserve System):

Mutual savings banks___________ ________________________

""V ....

Percent

1.69

53.19

Percent

15.99

22.92

Percent

28.57

Other than mutual savings banks ............................................. 16.43

Total............................................................................................. 54.88

6.73

88.39

88.91

16.03

45.06

45.00

16.83

88.67

State banks (members of Federal Reserve System)............................

National banks________________________________________________

Total............................................................................................. 100.00 100.00 100.00

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The total deposit liability of banks which are members of the Temporary Federal Deposit Insurance Fund was not available as of the 

same date for all banks. Figures which have been compiled indicate 

that approximately 41 percent of the total deposit liability of all 

banks which are members of the Temporary Federal Deposit Insurance Fund are protected by insurance. The approximate relation of 

insured deposits to the total deposit liability of banks which are

members of the Fund may be stated as follows:

State banks (not members of Federal Reserve System): Pertent

Mutual savings banks_____________________________________________ 69. 59

Other than mutual savings banks__________________________________ 58. 00

All State banks (not members of Federal Reserve System)______________ 64. 86

State banks (members of Federal Reserve System)______________________26. 40

National banks________________________________________________________ 34. 59

Banks becoming members of the Fund are subject to a maximum 

assessment of 1 percent upon the amount of their deposits which are 

eligible for insurance. At the time of application they are assessed 

at the rate of one half of 1 per cent on such amount. One half of this 

assessment is payable at the time of admission to the Fund, the remaining half being subject to call at the discretion of the board of 

directors of the Corporation. To March 31, 1934, banks admitted to 

membership in the Fund had paid to the Corporation the sum of $39,- 

278,361.65. The remaining half of the first assessment is subject to 

call. During the period of the operation of the Fund the banks remain liable to another assessment of one half of 1 percent, from which 

approximately an additional $80,000,000 could be derived, if needed.

In addition to the activities of the directors and of the Corporation 

in making effective the deposit insurance provisions of the Banking 

Act of 1933, consideration was given to those provisions of section 

12B, supra, which express the authority of the Corporation to purchase assets of closed national banks and of closed State banks, members of the Federal Reserve System, and which authorize receivers 

and liquidators of member banks to offer such assets for sale to the 

Corporation or as security for loans from it upon receiving permission 

from the appropriate authorities so to do. The Corporation has received no applications under these provisions of the law. This is 

doubtless due to the activity of the Reconstruction Finance Corporation in this field. ^

Prior to the organization of the board of directors of the Federal 

Deposit Insurance Corporation, the limitation upon the amount 

that the Reconstruction Finance Corporation was authorized to loan 

for the relief of banks in process of liquidation was removed. That 

corporation with its existing field organization had made loans for 

liquidation purposes of approximately $300,000,000.

When the board of directors of the Federal Deposit Insurance 

Corporation was organized the time was very limited for doing the

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Federal Reserve Bank of St. Louis
6

necessary preliminary work incident to the prospective insurance of 

bank deposits by January 1. The directors, therefore, while attending 

scrupulously to the task of accomplishing the insurance of deposits, 

nevertheless devoted considerable time and energy cooperating with 

other agencies of the Government in bringing relief to the depositors 

in closed banks, member and nonmember alike, through the Reconstruction Finance Corporation.

Through the efforts of the deposit liquidation board which was 

appointed on October 17, 1933, and upon which the then chairman of 

the board of this Corporation and the Comptroller of the Currency 

served as members, the amount of deposit liquidation loans from the 

funds of the Reconstruction Finance Corporation had been increased 

on March 24, 1934, to $746,334,000.

In any consideration of the financial operations of the Federal 

Deposit Insurance Corporation, it must be borne in mind that those 

provisions of the law (subsections o, p, and q) which authorize the 

issuance and sale of its obligations are similar to the provisions of the 

Reconstruction Finance Corporation Act but different in one important respect; namely, they contain no provision for a guaranty by the 

Government of such obligations. It is believed that in the absence 

of such a provision difficulty would be experienced in marketing obligations of this Corporation for the purpose of financing any extensive 

operations such as would be entailed in making liquidation purchases 

or loans. The directors, therefore, recommend that the subsections 

above referred to be amended by providing for a guaranty by the 

United States Government of such obligations of the Corporation as 

may be issued with the approval of the Secretary of the Treasury 

and that the Secretary of the Treasury may purchase and sell such 

obligations.

The directors of the Corporation have given careful consideration 

to the problems which seem to be presented in connection with placing 

into effect the permanent insurance features of the law on July 1,1934. 

The results of its consideration have been embodied in a letter to the 

President of the United States in which certain definite proposals for 

legislation are made and explained. This letter together with the 

accompanying proposals were transmitted by the President for the 

consideration of the appropriate committees of Congress. Copies of 

these letters are marked as exhibits “ G ” and “ HX, respectively, and 

are appended to this report and made a part of th& same.

Respectfully,

L e o T . C r o w le y , Chairman.

W a l t e r J. O w en s, Secretary.

T h e P r e sid e n t of t h e S e n a t e .

T h e Sp e a k e r of t h e H ouse of R e p r e s e n t a t iv e s.

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Federal Reserve Bank of St. Louis
E x h i b it A

7

Statement of membership in the Temporary Federal Deposit Insurance Fund—all

banks, Mar. SI, 1984

State Insured

banks

Insured

accounts

Insured

deposits

Alabama....... ............

Arizona...... ................

Arkansas..... ..............

California____ ______

Colorado___________

Connecticut________

Delaware.......... .........

District of Columbia.

Florida_____________

Georgia.......................

Idaho....................... .

Illinois.............. .........

Indiana____ ________

Iowa.............. .............

Kansas_____________

Kentucky__________

Louisiana----------------

Maine______________

Maryland__________

Massachusetts______

Michigan___________

Minnesota__________

Mississippi_________

Missouri.................

Montana....................

Nebraska.._________

Nevada____ ________

New Hampshire____

New Jersey_________

New Mexico...........

New York___...........

North Carolina_____

North Dakota______

Ohio............................

Oklahoma__________

Oregon......................

Pennsylvania_______

Rhode Island_______

South Carolina.........

South Dakota............

Tennessee...................

Texas..........................

Utah................. .........

Vermont___________

Virginia____________

Washington________

West Virginia..........

Wisconsin.................

Wyoming__________

Total_________

199 598,011

15 69,093

206 292,574

257 3,622,253

1 139 391, 251

109 605,430

46 212,193

21 403,172

*142 411,529

255 737,091

61 106,109

*848 2,941,878

4 453 1,070, 456

*473 741,919

» 413 653,701

*383 847,217

* 143 571,304

*85 588,354

183 1,073,647

» 211 1,433,199

*358 1,141,139

*654 1,283,364

* 2 0 2 339,382

1600 1,526,990

121 150,116

* 356 448,900

10 21,861

57 151,527

400 3,153,601

42 66,093

•902 11,495,130

*228 546,473

i 195 149,351

•648 2,870,350

705,532*395

102 423, 752

*1,030 6,016,925

16 341,959

*82 188,539

211 175,060

*314 775,379

•821 1,820,996

60 209,387

*92 339,136

313 1,094,222

*189 664,261

*161 673, 772

*607 1,343,848

62 110,269

$77,863,237 

17,221,214 

49,578,596 

1,155,976,217 

92,752,979 

169,217,152 

56,112,448 

96,843,999 

64,422,029 

109,510,548

23.543.313 

695,820,825 

206,702; 513 

154,275,531 

108,354,230 

148,427,266

88,496,771 

169,638,086 

271,953,514 

467,824,500 

266,463,328 

299,589,384 

60,578,372 

321,221,207 

41,523,852 

96,240,881 

6,724,456 

33,407,437 

869,981,197 

13,543,480 

5,350,356,420 

89,833,217 

32,614,493 

660,776,210 

108,810,567 

90,414,579 

1,594,573,906 

87,337,221 

30,134,704 

32,500,811 

122,085,519 

350,673,991

43.002.313 

121,189,510 

194,970,241 

146,313,708 

101,910,868 

287,622,099

21,988,355

55,597,695 15, 700,917,289

N o t e s .— Number of banks included, not reporting statistics.

1 2 banks. 81 bank. 3 6 banks. < 4 banks. * 7 banks. • 3 banks. 7 68 banks.

E x h ib i t B

Statement of membership in the Tem porary Federal Deposit Insurance Fund— 

mutual savings banks (not members of Federal Reserve System ), M ar. SI, 1984

State Insured

banks

Insured

accounts

Insured

deposits

Delaware__________ _______________ _____________________ 2 90,469 

20,992 

188,972 

351, 349 

196, 755 

510,441 

6,218,779 

156,109 

195 

852,677 

117,149 

183,822 

2,777

$19,186,727 

8,318,078 

73, 222,728 

121, 278,674 

43,986,396 

192,954,329 

3,539,866,065 

63,470, 081 

32,427 

320,027,941 

56,828, 724 

37,134,762 

867, 507

Indiana____ _____ ______ _______________ ____________ ____ 4

Maine____________ ____________________________ _ _______ 22

Maryland....................................................... . _ .................... 12

Minnesota_______________ ______________________ . . . 1

New Jersey............................................................... ......... 23

New York.......................... _____ 135

Ohio.............................................................. ............................... 3

Oregon............................... 1

Pennsylvania_______ ____________________ _______ 7

Vermont_____________________ _______ ______ ___ 19

Washington___________________________ 3

Wisconsin. ___________________ _______ 2

T otal__________________________ ___________________ 234 8,890,486 4,486,174,439

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Federal Reserve Bank of St. Louis
E x h i b i t O

Statement of membership in the Temporary Federal Deposit Insurance Fund—State

bmnks, other than mutual savings banks (not members of Federal Reserve System),

Mar. 81, 1984

8

State Insured

banks

Insured

accounts

Insured

deposits

Alabama.....................

Arizona.......................

Arkansas....................

California...................

Colorado.....................

Connecticut................

Delaware....................

District of Columbia.

Florida. ......................

Georgia.......................

Idaho..........................

Illinois........................

Indiana___ ____ ____

Iowa.

Kentucky............

Louisiana.............

Maine..................

Maryland............

Massachusetts__

Michigan.............

Minnesota...........

Mississippi..........

Missouri..............

Montana.............

Nebraska.............

Nevada................

New Hampshire..

New Jersey_____

New Mexico........

New York............

North Carolina—.

North Dakota___

Ohio.....................

Oklahoma............

Oregon.................

Pennsylvania......

Rhode Island.......

South Carolina...

South Dakota___

Tennessee............

Texas...................

Utah....................

Vermont..............

Virginia...............

Washington.........

West Virginia___

Wisconsin............

Wyoming............

113

3

149 

112 

57 

49 

24 

10 

1 89 

178

27 

i 508 

*326 

>331 

*203 

1 277 

* 114

18 

104 

45 

>215 

425 

» 175 

1 464 

54 

*214

3

4 

99 

16

197 

» 177 

124 

*337 

177 

43 

276

2

1 61 

126 

239 

812

28 

31

160

*91

68

493

168,968

16,510 

l l i 163

582,301 

56,811 

267,861 

64,304 

126,495 

105,953 

175,658 

19,723 

797,307 

561,735 

836,059 

211,900 

864,227 

153,562 

109,836 

832,120 

205,445 

859,014 

835,427 

220,970 

495,328 

35,802 

136, 460 

4,988 

14,836 

710,641 

13, 510 

742,940 

269,718 

51,214 

641,066 

133,510 

103,859 

1,891,186 

12.062 

85,485 

65,054 

810,225 

826,283 

73,186 

122,564 

830,960 

70,549 

179,881 

707,435 

25,079

$ li 453,175 

8,633,410 

18,131,323 

24ft, 217,001 

9,970,107 

63,792,170 

16,790,217 

23, 518,669 

15,828,762 

27,115,759 

3,956,794 

127,853,381 

96,830,074 

68,952,263 

81,727,311 

69,520,460 

27,855,008 

2 i 070,819 

65,491,421 

65,946,826 

61,324,304 

61,649,877 

39,687,733 

83,241,491 

7,225,869 

25,506,922 

1,136,529 

i 595,188 

171,446,072 

2,647,480 

267,222,808 

42,561,127 

7,729,084 

120,841,025 

19,313,846 

11,807,691 

263,807,200 

3,166,166 

14,417,437 

10,066,131 

89,883,887 

61,287,707 

12,572,916 

87,696,289 

61,36i 062 

12,850,674 

2 i 535,764 

132,759,218 

6,449,825

T otal.. 4 7,377 12, 740,170 2,579,549,271

N otes.—N um ber of banks included, not reporting statistics.

* 1 bank. * 2 banks. * 4 banks. 4 22 banks.

E x h ib i t D

Statement of membership in the Temporary Federal Deposit Insurance Fund— State

banks (not members of Federal Reserve System), mutual savings banks, and other

State banks combined, Mar. 81, 1984

State Insured

banks

Insured

accounts

Insured

deposits

Alabama.._____________________________________________ 118 168,968 

16,510 

l l i 163 

682,301 

66,811 

267,861 

15i 773

$ li 453,175 

3,633,410 

18,131,323 

245,217,001 

9,970,107 

63,792,170 

85,976,944

Arizona_______________________________________________ ... 3

Arkansas________________________________________________ 149

California_______________________________________________ 112

Colorado______________________________ __________________ 67

Connecticut_____________________________-____________ __ 49

Delaware................................................................. ............... 26

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Federal Reserve Bank of St. Louis
Statement of membership in the Temporary Federal Deposit Insurance Fund—State

banks (not members of Federal Reserve System), mutual savings banks, and other

State banks combined, Mar. 31, 1984—Continued

9

State Insured

banks

Insured

accounts

Insured

deposits

District of Columbia

Florida......................

Georgia....................

Idaho.........................

Illinois......................

Indiana.-.................

Iowa..........................

Kansas......................

Kentucky..................

Louisiana__________

Maine........................

Maryland.................

Massachusetts..........

Michigan.................

Minnesota..........—.

Mississippi................

Missouri-.................

Montana.................

Nebraska...................

Nevada......................

New Hampshire.......

New Jersey...............

New Mexico..............

New York.................

North Carolina.........

North Dakota...........

Ohio...........................

Oklahoma............

Oregon.......................

Pennsylvania............

Rhode Island............

South Carolina.........

South Dakota...........

Tennessee..................

Texas.........................

Utah..........................

Vermont....................

Virginia.....................

Washington..............

West Virginia---------

Wisconsin.-..............

Wyoming..................

Total................

10 189

178

27 

i 508 

*830 

*331 

•203 

1277 

1114

40 

116 

45 

>215 

426 

>175 

1464 

54 1 2143

4 122

16 

832 

1177 

124 

1840 

177 

44 

2832

161

126

239

312

28 

50

160

194

68

495

29

126,495 

105,953 

175,658 

19,723 

797,307 

582,727 

336,059 

211,900 

864,227 

153,562 

298,808 

683,469 

205,445 

859,014 

532,182 

220,970 

495,328 

35,802 

136,460 

4,988 

14,836 

1,221,082 

13,510 

6,961,719 

269,718 

51,214 

797,175 

133,510 

104,054 

2,243,863 

12,062 

85,485 

65,054 

810,225 

826,283 

73,186 

239,713 

830,960 

254,371 

179,881 

710,212 

25,079

4 7,611 21,630,656

$?3,518,699 

15,828,762 

27# §15,75t 

8,956,794 

127,558,381 

105,148,103 

68,952,268 

81,727,311 

59,52a 460 

27,855,008 

97,293,547 

176,770,095 

55,946,826 

61,324,304 

105,636,273 

89,567,733 

88,241,491 

7,225,869 

25,506,922 

1,136,529 

4,595,188 

864,400,401 

2,647,480 

8,807,088,873 

42,561,127 

7,729,084 

184,811,106 

19,313,845 

11,840,118 

592,835,141 

8,166,166 

14,417,437 

10,066,131 

39,883,887 

51,287,707 

12,672,916 

94,525,013 

51,364,062 

49,985,436 

24,535,764 

133,626,725 

6,449,825

7,065,723,710

N otes.—N um ber of banks included, not reporting statistics.

11 bank. * 2 banks. 1 4 banks. i 22 banks.

E x h i b i t E

Statement of membership in the Temporary Federal Deposit Insurance Fundbanks (members of Federal Reserve System) , Mar. 81, 1984

-State

State Insured

banks

Insured

accounts

Insured

deposits

Alabama___________________________________ ____ ________ 17

H i p

$10,091,665 

6,658,139 

4,438,259 

206,101,049 

7,620,129 

14,017,061 

12,384,391 

24,830,166 

2,341,595 

13,258,385 

8,743,702 

140,229,873 

11,252,647 

21,493,521 

4,417,867 

20,423,390 

6,932,341 

15,473,658 

20,634,069

Arizona_______. . . . ______________ _______________________ 4

Arkansas________________________________________________ 7

California__________________ _____ _______ ________________ 14

Colorado________________________________________________ 5

Connecticut______________________ _______________ _______ 6 89,186 

82,456 

104,864 

9,361 

70,832 

89,010 

606,847 

54,173 

106,194 

28,492 

120,322

Delaware..._____________________________________________ 4

District of Columbia.................................................................... 2

Florida.......................................................................................... 4

Georgia. _______________________________________________ 25

Idaho___________________________________________________ 9

Illinois_________________________ _____ _______________ ___ 68

Indiana__________________________________________________ 5

Iowa_________________________ __________________________ 23

________________________________________________ 12

Kentucky_______________________________________________ 9

Louisiana____________________________________________ —_ 3 26,829

84,493

155,147

Maine_______ ___________________________________________ 6

Maryland.................................................................................. 6

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Federal Reserve Bank of St. Louis
10

Statement of membership in the Temporary Federal Deposit Insurance Fund— State

banks (members of Federal Reserve System), Mar. 81 y 1984— Continued

State Insured

banks

Insured

accounts

Insured

deposits

Massachusetts.......... ............................. .............. . ..................... * 30 248,621 

353,464 

15,548 

2,005 

537,140 

29,654 

8,562

$88,423, 615 

89,383.955 

3,046,943 

554,695 

111, 978,926 

9,169,801 

1,848,602

Michigan . t 63

Minnesota.. ............... . ........................ .................................. 18

Mississippi . .. L . . . 3

Missouri............................. ......... ........................................ 3 49

Montana___________ ______________ _________________ ____ 19

Nebraska...... .............. ................... ........................................... 8

Nevada................................................... ..................................

New Hampshire___ _ ............... ............................ 1 4,142 

683,051 

1,356 

1,974,501 

107, 744

906,762 

199,940,362 

303,165 

805,113,856 

20,116,824

New Jersey.......... ......... ................... ......................................... 51

New Mexico.................. .......................................-____ _______ 2

New York..................................................................... .......... * 111

North Carolina..________ _________ ________________ 10

North Dakota................ .................... ............... .................

Ohio............................................................................ .............. . * 65 983,600

837

226,813,660 

197,998 

1,279,984 

256,597, 592 

63,602,485 

2,930,561 

3,995,618 

3,658, 304 

16,078,916 

14,600,489

Oklahoma............................................ .................................. 1

Oregon____ ___ ________________________ __________ ____ _ 5 5,309 

874,175 

285, 413 

13, 585 

23, 297 

17,852 

89,071 

64,880

Pennsyl vania________________________ _________________ 71

Rhode Island.................. _ . . ............... ........................... 2

South Carolina_________________________ _________________ 4

South Dakota.......................................................................... 22

Tennessee......................... . .................... . . ..................... 4

Texas-............................................ ............... ......................... 1 56

Utah................................ .............................. ........................... 18

Vermont.......................................................................................

Virginia...................... ................ ............................................. 23 127,371 

81, 761 

115,483 

97, 314 

7,712

22,565,078 

19,396, 044 

24,483,279 

24,657,574 

1,407,691

Washington..................................... ................. 29

West Virginia...................................................................... 18

Wisconsin........................ - ........................................ ......... 14

W yoming--.............................. ........... ................. ................ 8

Total.......................................................... ...................... 4 934 8,914,961 2,563,294,686

N otes.- -Number of banks included, not reporting statistics.

12 b^ks. * 4 banks. > 1 bank. 4 11 banks.

E x h i b i t F

Statement of membership in the Temporary Federal Deposit Insurance Fund— 

national banks, Mar. 31, 1934

State Insured

banks

Insured

accounts

Insured

deposits

Alabama..................................................................................... 69 370,031 

26,538 

149,045 

2,402,890 

302,618 

298,383

$53,318,397 

6,929, 665 

27,009,014 

704,658,167 

75, 262,743 

91,407,921

Arizona.... .................... .......................................................... 8

Arkansas.................................................................................. 50

California ................................................................................... 131

Colorado.............. ......................... .................... ........................

i 77

Connecticut.............. .. .. ....... .. - 54

Delaware_________ ____. _ . 16 24, 964 

171, 813 

296, 215- 

490,601 

47,376 

1,637, 724 

433,556 

299,666 

413,309 

362, 668

7,751,108 

48,495,164 

46, 251,672 

68,636,404 

10,842,817 

428,037,571 

90,301,714 

63,829, 747 

72, 209,052 

68,483,416 

54, 709,422 

56,870,881 

74, 549,350 

323,454,059 

115,755? 069 

190,906,168 

20, 435,944 

126,000,790 

25,128,182 

68,885,357 

5,587,927 

27,905,487 

305,640,434 

10,592,835

District of Columbia. __________ ______ ______ __________ 9

Florida....... ...................................... ........................................ 49

Georgia___ _______ ______ 52

Idaho................ .................................................................... . 25

Illinois_________ ______ _______________ a 272

Indiana.................................................................... 1 118

Iowa.............................. ______ ................. * 119

Kansas................. ............... ............................. .........................

Kentucky............................ ...................................................... l%

Louisiana..................... ............................................................... 26- 390,913

Maine......................................................................................... * 39 205,053 

235,031 

979,133 

428,661 

735, 634 

116,407 

494, 522 

84,660 

303, 878 

16,873

Maryland___________________ ___________ _____ _______ 61

Massachusetts............................................... ................ 136

Michigan.......... ............................................ < 80

Minnesota___ ____ ____________ ______________ ____ _____ _ 4 210

Mississippi............................................................ .......... .......... 24

Missouri................................................................... ................. 87

Montana............................................................................... _ 48

Nebraska............................ ...................... ............... ...... i 134

Nevada....................................................................................... 7

New Hampshire...................................... ............................. 52 132, 549 

1,249,468 

51,227

New Jersey..... ............................................................................. 227

New Mexico........ ......... ........................................................... 24

1 2 banks. * 5 banks. * 3 banks. * 1 bank.

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Federal Reserve Bank of St. Louis
11

Statement of membership in the Temporary Federal Deposit Insurance Fund—

national banks, Mar. 81, 1944— Continued

State Insured

banks

Insured

accounts

Insured

deposits

New York_______ _______________________________________ 1459 2,558,910

169.011

$738,153,691 

27,155,206 

24,885,409 

249,651,444 

89,298,724 

77,294,477 

745,141,173 

20,568,570 

12,786,706 

18,439,062 

78,543,328 

283,307,368 

15,828,906 

26,664,497 

121, 041,101 

76,932,228 

52,891,825 

129,337,800 

14,130,839

North Carolina__________________________________________ 41

North Dakota __ _ . - t - - _____ i 71 98,137 

1,089,575 

571,185

Ohio ................................................ ................................ <243

Oklahoma_________________________ ________________ ____ 4 217

Oregon ___________________ __________ ___________ 53 314,389

Pennsylvania - ______________________________________ * 676 2,898,887 

44,484 

89,469 

86,709 

447,302 

1,405,642 

71,321

Rhode Island _ _ ___________________________________ _ 12

South Carolina.................. - _____ ___ ________________ _____ 17

South Dakota . ________ ____ _______________ __________- 63

Tennessee _____ ____ _____________ ____________ ____ ___ 4 71

Texas____________________ _________________ ________ -........ 4453

Utah___ ___________ ______________ ______________________ 14

Vermont. ____________________________________________ 442 99,423

Virginia . ___________ _______ ____ ___________ ________ 1130 635,891

Washington __________________ ____________ _______ __ 66 328,129 

378,406 

536,322 

77,478

West Virginia . _______ ____ ____ _______ ________________ 75

Wisconsin . ________________________ ____ ____ ____ _____ 498

Wyoming................................................ ................................... 25

Total __________________ _______________________ « 5,325 25, 052,078 6, 071, 898,893

N o t e s— N um ber of banks included, not reporting statistics.

* 2 banks. 4 1 bank. 8 6 banks. • 35 banks.

E x h i b i t G

F e b r u a r y 10, 1934.

D e a r M r . P r e s id e n t : I have the honor to submit to you the attached draft 

of a bill embodying certain amendments to the Banking Act of 1933 recommended 

by this board. These recommendations are concurred in by the Secretary of 

the Treasury, the Federal Reserve Board, and the Comptroller of the Currency.

The proposed amendments would do the following things:

1. Extend the life of the Temporary Insurance Fund from June 30, 1934, to 

June 30, 1935, without increasing the limit of liability of the member banks to 

such Fund.

The Temporary Fund provides for subscriptions if necessary up to 1 percent of 

the insurable portion of deposits. This would produce $160,000,000, and the 

board is of the opinion that a greater potential liability should not be imposed 

upon the banks at this particular time. The mutual savings banks have approximately 25 percent of the insured deposits of the entire country, and it is important 

for the stability of the situation that these institutions remain in the Temporary 

Insurance Fund until a better opportunity may be had for working out a permanent plan of insurance in which they may join. It is believed that increasing 

the potential liability of the Temporary Fund would result in many, if not practically all, of the mutual savings banks withdrawing.

2. Postpone the inauguration of the Permanent Insurance plan from July 1, 

1934, to July 1, 1935.

This deferment is considered necessary in order to provide more time for additional legislation required in some States, to study the operations of the Temporary Fund as a basis for recommendations of changes, if any, that should be had 

in the Permanent Fund, and to provide adequate time to properly prepare for 

the operation of the Permanent Plan.

3. Clarify the right of the Corporation to act as receiver under the Temporary 

Fund.

4. Provide for the guaranty by the United States Government of such obligation of the Corporation issued with the approval of the Secretary of the Treasury, 

provide that the Treasury may purchase and sell such obligations, that the Federal Reserve banks may do likewise, and that such obligations may be rediscounted by Federal Reserve member banks with the Federal Reserve banks.

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The obligations as provided under the present law are not guaranteed by the 

United States Government, are not eligible for purchase by the United States 

Treasury, and would be difficult to market. Under the present law such obligations are exempt from all taxation except estate and inheritance taxes. The 

attached amendment would make the guaranteed obligations exempt from all 

taxation except surtaxes, estate, inheritance, and gift taxes.

5. Provide that banks not giving notice of withdrawal 30 days prior to July 1, 

1934, continue in the Fund for the extended period, and give the board power to 

regulate the terms which withdrawing members must meet.

The legal counsel of the Federal Reserve Board and of this Corporation are of 

the opinion that all Federal Reserve member banks must automatically continue 

with the Temporary Fund for the extended period.

6. Provide that capital notes or debentures of the character sold by banks to 

the Reconstruction Finance Corporation, and which are subordinated to the 

claims of depositors and all other creditors, shall be considered as a part of the 

capital structure of such institutions.

The enclosed statement attached to the proposed bill briefly summarizes the 

purposes of the suggested amendments. All issues in connection with the Permanent Plan have been purposely avoided, confining the legislation here proposed 

to what are deemed essential in extending the life of the Temporary Fund for 

another year. In the event Congress will not extend the Temporary Fund as 

herein recommended, some revision of the Permanent Plan must be had during 

the present session of Congress in order to avoid considerable confusion and 

possibly serious developments in making the Permanent Plan operative July 1, 

1934.

Respectfully submitted. ^ (Signed) E. G. B e n n e t t ,

EGB-VB. Acting Chairman.

The P r e s id e n t ,

The White House.

E x h i b i t H

F e b r u a r y 14, 1934.

M y D e a r S e n a t o r : I am transmitting herewith the letter of Hon. E. G. Bennett, acting chairman of the Federal Deposit Insurance Corporation, together 

with a proposed bill to amend the Federal Reserve Act, as amended, so as to 

extend for 1 year from July 1, 1934, the present plan of insurance of bank deposits 

up to $2,500, which became operative on January 1, 1934.

The Corporation reports that approximately 99 percent of the banks have complied with the provisions of the law and, as a result, 97 percent of their depositors, 

some 50 million in number, are insured to the full amount of their deposits. This 

would indicate that insurance of bank deposits throughout the country has 

become a reality and that we can now afford to advance toward the more complete accomplishment of the aims of Congress in light of such further experience 

as a year's extension of the present insurance will afford.

I, therefore, bespeak the earnest attention of your cimmittee to the proposals 

and recommendations of the Federal Deposit Insurance Corporation.

Very sincerely yours, (Signed) F r a n k l in D . R o o s e v e l t .

Hon. D u n c a n U. F l e t c h e r ,

Chairman, Committee on Banking and Currency,

United States Senate, Washingtont D.C.

(An identical letter was addressed to the Hon. Henry B. Steagall, chairman of 

the Committee on Banking and Currency of the House of Representatives.)

U .S . COVCKNHKNT PRINTING OFFICE i i » » 4

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