Evening star., 1932-03-26
RELIEF MEASURES
AID BANK RECOVERY
Reserve Board Gives Credit
to Congress Reconstruct
tive Acts.
Ry the Associated Press

By the Associated Press.
The great improvement in the bank
ing situation during the past several
weeks received official notice of the
Federal Reserve Board yesterday and
was attributed to the several recon-
structive acts passed by Congress.
It gave credit particularly to the
Glass-Steagan credit expansion bill,
which enlarged the hexibility of the
Reserve system for emergencies, giving
a measure of responsibility also to the
Reconstruction Finance Corporation.
This agency now has made loans
totaling 1924, 98l.71 which is slightly
less than half the amount subscribed
to it by the Treasury, and nearly IL
per cent of its total authorized resources.
President Hoover, himself. announced
these figures.
587 Banks Aided.
OF the total, $126,894, 900 was dis
tributed among 587 banks and trust
companies; 18 building and loan asso-
Citations have received $2,9l7,000; Is
insurance companies have drawn S.
765 600 while %13 railroads have been
given $46,975,0O0. Joint stock land
banks, mortgage loan companies and
agricultural loans accounted for the
balance.
Lie dSktCSto Va tAIC
expansion law were stressed by the Re-
serve Board in its announcement, which
included definite Interpretation which
precluded using the liberal eligibility
clauses under ordinary circumstances.
The marked decrease in bank failures
during February. even as compared
with the month Immediately preceding,
was the most conspicuous sign of inn
provement pointed TO-. An even greater
decline, not covered by the board in
this statement, is expected to be shown
in the March figures when they are
complete.
lis Bank Suspensions.
The board reported that bank sus-
pensions in February numbered lis and
in January and February numbered
457. Those that failed In February had
deposits of $60,O47 ,000 while those that
closed in the two months had deposits
of $285, ,52l 900. In February 80 banks
with deposits of $11 1886, 900 reopened,
while in the two months 81 banks with
deposits of S22, ,787, 900 reopened.
The board said there had been little
change in the gold reserves of European
countries during the last month except
fer rapid growth of French reserves.
About half of the French increase, 1t
said, was drawn from the United States
and the remainder largely from Eng
land.
The Bank of France, 1t said, had
continued heavy conversions of foreign |
balances into gold.
A succession Of bankers appeared be- |
fore a Senate committee yesterday, |
pressing their contention that the Glass |
banking revision biH would shoot down |
q lot of legitimate business as well as |
the stock speculation it IL intended |
to hit.
Measure Assailed.
Percy H. Johnston, president of the |
Chemical Bank & Trust 90. of New |
York, said he would rather go back to |
farming in Kentucky than operate q |
bank" under it.
Richard 9. Hawes, St. Louis banker |
and brother of the Missouri Senator, |
and c. w. Allendoerfer of Kansas City |
also opposed enactment Of "such far
reachingF legislation on the ground 1t
would delay economic recovery.
Edmund @. Wolfe, president of the |
First National Bank & Trust Co. Of |
Bridgeport, Conn, Joined them in pick |
Ing out sections of the complicated 54- |
page bill which they regarded as de- |
iationary or unduly restrictive on the |
hanks.
The contentious of the witnesses were
sharply challenged by Senator Glass Of
Virginia.