Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-30
STATES ARE AIDING
IN CREDIT PLANS
Various Methods Employed to
Strengthen Resources Of
Banking Structure.
by C. b. uPHAM.

State officials have been stimulated
to activity by the proposals advanced
by President Hoover for modifying and
strengthening hank credit and they
have devised variety of methods for
helping to make the plan effective.
Some Of them are designed TO enable
State banks to cooperate directly with
the agencies active in implementing the
plan, while others are independent pro-
posals having the same end In view.
Gilbert Bettman. attorney general of
Ohio. has pointed out to the banks of
that State way in which they can in
crease their liquidity and release con-
siderable quantity of prime bonds for
use in securing cash from the National
Credit Corporation or from other
sources. The banks of Ohio have turned
over to various units of the State gov
eminent bonds as security for public
funds deposited with them.
Realty Mortgages Eligible.
Real estate mortgages are eligible for
use by public repositories as surety for
county and school district funds, and
Mr.. Bettman has suggested that banks
substitute such mortgages for the bonds
thus releasing in hundreds Of banks
securities which. under present condi-
tions. are badly needed"
The Georgia superintendent of banks
has announced that he will speed up
payments Of dividends to depositors In
| closed banks More frequent distribu-
tons that are required by law will be
made, he has promised, and while they
will be for smaller amounts. they viii
help many communities. II the Hoover
plan will permit borrowing against the
unpledged assets Of closed banks. Stunt
Davis believes great deal of suffering
would be relieved and agriculture and
business In many localities would be
stimulated
The North Carolina bank commits
sioner, Quincy p. Hood. has formulated
comprehensive program for more
thorough and adequate supervision of
State banks, which should result in
better bank management. The North
Carolina department win be prepared
TO audit as well as examine, TO make
| account reconcilements. to install
modern and efficient systems of book
keeping and accounting. TO assist ii,
| the appraisal Of assets, and to give In
| struction and assistance in eliminating
violations of law and of good banking
practice Mr.. Hood, prior to becoming
SNAAA COlA4AtAaochOllCks was " SUCCESSFUL
| industrial bank executive
Rules Modified.
Many of the States, notably Pennsyl-
vania, have relieved the strictness of
their rules requiring banks to charge
| on depreciation on bonds, due to lower
market quotations. The controller of
the currency has done likewise for
national banks. The New Hampshire
bank commissioner. Willard ID. Rand,
| commenting on the bond portfolios of
| the savings banks of that State SAYS:
THE present market price Of securities
| does not affect the earning power of
| the banks, since no loss can be sus-
tanned by the bank except through
default of interest, which has occurred
| in very few cases, or as a result of
sales. and no necessity for selling need
| arise"
Other State banking departments are
mapping out constructive programs to
tide banks over a difficult time, and are
making available to the banks and to
the public the fullest measure of credit
possible. The Minnesota commissioner,
j. N. Peyton. was one Of the first to
work out plan for underwriting the
| good assets of closed banks, so that
depositors could be given an immediate
dividend payment. Similar action is
being taken in number of States.
fCopyrignt, 1881