The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-02-18
BANK CRASHES
IN STATE LAID
TO POLITICS
Senator Holmes Turns Fire
on Durham and Bowen
in Accusation.
NEGLECT is AsSAILED
Farmers With No Training
in Business Blamed
! for Disasters.

Political dictation and not the
trend of the times has caused the
epidemic Of bank failures in IN
diana, Senator G. Oliver Holmes,
Gary, former president of the IN
diana Bankers Association, charged
on the senate floor today. He &C
cused Republican district chair
man and a Democratic senator as
partially to blame for the situation.
The senator named is Andrew E.
Durham, Greencastle, and the
chairman, Edward Bowen, Delphi,
of the Ninth district.
Previous to the charges by
Holmes, Durham had taken the
floor to oppose passage of one Of
HclYneS' banking bills which would
place appointment of bank receiv-
ers in the hands of the banking
commissioner.
Durham expressed the opinion
that there would be nothing wrong
with banking in Indiana if the
"Statehouse bunch" would clay off"
the bankers.
lbaHkeFS A1e DsdHaou
Durham thinks there is nothing
wrong with banking in indiana be-
cause he has a couple of friends en-
gagged in the private banking busi-
ness" Holmes declared. "But he is
absolutely wrong. There is much
the matter with banking in Indi-
ana, and the main thing is in the
persons who are allowed to run
banks. The fault is not with the
times.
"I believe that in many cases of
failure the directors are crimlnally
liable, for they are unfit for the po-
sitions which they hold"
At this point Durham asked why
they were not sent to the peniten-
tiary.
They should be sent to the peni-
tentiary," Holmes agreed, and then
countered with, "the reason they
are not is because of political inter-
ference"
"One of the great troubles with
banking is the fact that the Ninth
district Republican chairman and
Senator Durham have dictated eV-
ery banking measure in this legls-
lature during the last ten years"
he declared, growing heated and
turning directly on Durham.
Warns of Dis ster
"Thaf, is one of the things that
has brought our banks into dis
grace. I warn you, gentlemen OF
the senate, that unless we get some
relief from this situation, our banks
will continue to fail.
Banking is a highly technical
business, but in the small towns it
is run by farmers who made profit
selling butter and eggs, with no un-
derstanding of the banking business.
Many banks are absolutely dictated
to by farmer borrowers. Because of
this. the public has right TO lose
confidence in them. Tt is up to the
state to perform its riehtful function
in this matter and afford protection
to all"
Durham asked if it was not a fact
that no one had lost a dollar by a
private bank failure since 1907.
Holmes said he didn't know, but
doubted it.
Measure Is Passed
The bill passed the senate with
so ayes and II noes.
Originally it provided that re-
quest for receiver to be appointed
for bank by a court was entirely
up to the banking commissioner,
but an amendment was added
which gives Is per. cent of the
stockholders or depositors the right
to petition the attorney general for
receivership action fifteen days
after they have been refused such
relief by the commissioner.