The Washington times., 1924-08-21
District Banks Safe and Sound,
But All Local Banking Insti-
tutiOns Should Be Under
the Controller
By BILL PRICE.


The recent closing the Of small private bank
ing institutions the District them under the super
vision or control Controller Of the Currency
the going and successful banking institutions and
panes Washington clearly demonstrates the vital need
the passage by Congress of law that places EVERY BANK
ING INSTITUTION of this city under the Controller
The little banks which found it Improbable to continue
located points where the volume Of business su
cient and doubtless managed by honest but skilled
in the business Of banking organized under what
known common law trust agreements They private
banks pure and simple entirely beyond any official control
The closing Of these banks will entail serious if any,
losses to deposors The losses will mainly fall upon stock
holders Their closing in way involves the strong banking
institutions the District those with sufficient capital
to protect both deposOrs and stockholders Never
the banking establishments Of this city in better shape
or safer for the public to do business with There will be
Joss Of public confidence in them To the contrary failure
Of the little banks unreguaed by proper Governmental super
vision points all the strongly to the wisdom Of fully
Trusting those institutions which either directly under
he national banking act thereby being supervised by the
Controller OF the Currency or willingly submit to the urisdc
zion Of that official
There banking institutions in Washington which
may not be under Governmental supervision but they
become successful through plenty capital competent u
management, and the confidence Of the public.
da 1s neg % Of the Rsb 4 against mn in
RlCT doing banking business should be placed under
Jurisdiction of the Controller Of the Currency, subject
Auent examinations and to orders from his office whenever
Judgment Of the officials Of that office conditions
the taking Of certain steps.
The District Of Columbia Bankers Association has been in
duced One before the Banking and Currency Com
tee Of the House. This committee under the pressure of
pher legislation has given time to the needs of the District
going to show that the District cannot depend upon its
town council for necessary legislation.
Investment bankers in the District have earnestly sought
The passage by Congress Of blue sky laws District
TO protect the people Of this city from fraudulent investment
concerns that here in large numbers Many of them
not be founded upon purpose to deraud and mepresen
but large numbers along that are SO purely
theoretical and speculative be absolutely dangerous to do
business with
The passage by the Maryland legislature Of new law
placing those types OF under State regulation
control drove fully fifty Of them into the District where
they today operating various financial schemes the safety
and wisdom of which do not have the stamp approval Of
careful banking or investment houses
This District appears to be oft picking for all sorts
OF wild cat that have been chartered in other States
and present the most glowing prospects to unsuspectng
vestor who in the great majority of instances lose
thing they put in.
There be question that the people of this city should
be thoroughly saeguarded by laws that do interfere
with legitimate banking investment These laws would
OF place banking institutions in the hands of the Con-
the District every stock selling alleged investment selling
that not presenting fair and square proposition
each to be passed by capable authorities appointed
that purpose.
and those who undertake banking business which, honestly
conducted does not happen to thrive There u.s. however
The relation that the public uniformed financial matters
should be fully protected whether is in money deposited
for safe keeping in buying stocks investment securities
Until do get the legislation we should have don't lose
regulated and soundy established This city and does
feel proud Of them and their soundnes proud Of the able
men who direct their Their policies conserva-
live their prosperity intertwned with the prosperity the
entire community.