Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-14

well give serious consideration to meas
ures designed to strengthen our entire
banking structure"
X X X
THE proposal that all commercial
banking be nationalized, leaving savings
banks and non-commercial trust COM
pany activities to the States" accord
ing to the Newark Evening News. sis
destined to beget controversy and arouse
opposition. Nevertheless it looks in the
right direction. A Nation of the finan-
cial, commercial and industrial impor-
lance of the United States cannot con-
tinue to work with 40 banking systems
/ in which there are nearly $4,000 banks
but only 1000 under national control
Under such conditions, Mr. Young
rightly insists. it is not possible to de-
velop sound banking system for the
country as whole. That requires CEN
trail supervision and fixed responsibility
Seriously put forward by a man
whose ability both the Nation and the
world have gagged, the Young program
is one to which the country should give
serious attention. 1t strikes at the root
of a condition which unquestionably
played part in the creation of present
troubles. 1t proposes, in its main
planks, corrections which should help
to avoid the recurrence of those trou-
bles."
Mr.. Young thinks it reflection on
the American people" observes the
Charlotte Observer, that they cannot
get banking system in hand that will
prevent such awful tragedies as have
been witnessed in the past 10 years.
Suggestions of the kind indicate the
extent to which the mind of the finan-
cierS is centered around recent events,
hTy HryIai Ia hTao l.
ing of banks might be checked, and it
is significant that so able a financier as
Mr.. Young can find no remedy outside
that of stricter laws and greater author
lty to enforce sound banking systems in
all institutions. Mr. Young made a
number of other recommendations but
he laid greatest emphasis on establish
ment of conditions that would safeguard
depositors and stockholders from repe-
tition Of these tragedies"
"The objection can be made that Mr..
Young'S proposal would mean further
interference of Government with pri-
vate business" says the Little Rock
Arkansas Democrat, but coming from
such a man cannot be dismissed light
ly." The Milwaukee Sentinel asks "how
all the banks of deposit would be
brought under Federal control" adding.
I'VE fear another constitutional amend
ment." AS to impairment of the rights
of the sovereign States" that paper
holds that the obvious reply is that the
States are giving up their sovereignty
in every direction and in some instances,
as in Arkansas and other States now
crying for drought relief, have come to
the place where they are financially I'M
able to take care of their own, with
their credit and resources exhausted"
Whether Matchmaking all the COM
nercial banking institutions would re-
suit in better banking, as Young be-
lieves," advises the Humboldt Times,
''the bankers of the Nation should be
able to determine, and, if So give their
approval to the proposed change. And
the States, relieved of the necessity OF
general banking laws, would, according
to Youngs reviews, probably develop a
more satisfactory administration of the
fi6uciary and savings institutions within
their respective borders"