The Daily Alaska empire., 1932-02-23
BANK FAILURES OF 1881 AND
 BOARDING.

Bank failures in the United States reached the greatest total in it's history 1931 with 2290 banks closing, involving deposits of $1759 4S0000 It is necessary to go back to the days of wildcat bank ing before the Civil War to find greater proporonate mortality among the country,s banks Preliminary estimates of deposit recovery indicate that much as 60 cents on the dollar may ultimately be realized by depositors. In this recovery well as in the prevention of further failures the newly organized Reconstruction Finance Corporation will play an important role. Congress indicated much as $500 100000 may be used by directors for the relief of closed banks.
 In the fulfillment of this purpose the corpora ton will succeed largely to the task assumed by the National Credit Corporation organized under private initiative to do for the banks what is now hoped the Government will underwrite The National Credit Corporation long since has passed from the front page but it must be remembered that during it's brief existence it has extended aid to 750 nsti tutions aggregating more than s15000o000 Although it failed Of the complete objective visuazed by optnists namely, the prevention of bank failures, it is certain that failures would have been more numerous had it not been for the efforts it made.
 Secretary of Treasury Ogden l. Mills in ad- dress recently to the American Acceptance Council emphasized two ailments from which the banking structure of the nation is suffering. The number of banks in this country increased from 10000 in 1900 to 30O00 in 1880 Events have demonstrated that this was an excessive growth in bank popula- ton which not even the boom era between 1921 and 1929 could tolerate The violent adjustments taking place ill 193O and 1881 evidenced that fact and lead to the assumption that some attempt will be made without delay to restrict issuance Of bank charters in the future
 The second source of distress is the decline in commodity prices in the last two years. An average Of the United States Bureau of Labor statistics and other reliable sources of information shows decline of S37 per cent in that period Such loss places intolerable burden upon debtors who arc compelled to meet fixed charges on their obliga- tions
 The banking mortality of 1881 is the underlying factor in the nationwide hoardng of money by individuals that is causing the Administration SC much concern. Depositors are only human. Wher they apparently sound banks forced to suspene with losses of staggering to those depositine in them it is natural for them to become fearfu of the stability of even the strongest banks. They have desire to go broke through bank failures The Government is proceeding on logical lines tC end hoarding and bring hoarded funds back into normal channels when it moves as it has done tt reinforce private resources. operating through tht Reconstruction Finance Corporation. If it can con- vince people who have withdrawn their money from banks that they have nothing for the future hcarding will end of itself. Untf such conviction can be brought home to the fearful, boarding will continue