Evening star., 1933-09-27
ACTION ON BANKS
BY 1894 FORECAST
0'Connor Predicts Reopen.
ings, Sale of Assets or
Receiverships.

All banks still in the hands of con-
servators, including those in the Dis
trict Of Columbia. will be either re-
opened through reorganization. con-
solidation, sale of assets under the
Spokane plan, or placed in receiver
ships before January l. it was an
nounced by Controller Of the Cur
rency J. F. T. O'Connor.
Eight of the 13 unlicensed banks
have reopened SO far, and this pro-
nouncement by the controller is the
most definite prediction yet available
as to what will happen to the other
five unlicensed institutions in the Dis
trict of Columbia.
They are the United States Savings
Bank, which is the center of a court
controversy between its president. Col.
Wade H. Cooper, and the Treasury De-
partment: the Franklin National
Bank, the Mount Vernon Savings
Bank, the Industrial Savings Bank
and the Park Savings Bank.
Pronouncement by the controller on
this point was made in an address be-
fore the Advertising Club Of Washing
ton yesterday, when he reviewed the sit
uation throughout the country and
touched on the local situation.
Millions Released.
The work of the controllers Office in
reorganization, consolidation and merger
of banks was well represented in this
city, he said.
Here the reorganization division
worked day and night for months, and
finally merged seven washington banks
into the new Hamilton National Bank
| for which q charter was issued on Sat-
urday, and it opened for business yes
-. Mi HAv. Jn
available for depositors in the old banks
approximately $1,000, 900. I regret sin
cerely that the depositors of the United
States Savings Bank did not also take
advantage of this merger. which would
have made available to them so per
cent of their deposits. However, court
action prevented this happy result. To-
day there is being distributed to the de-
| positors of the Commercial National
Bank over 81 100000. The distribution
of this money in both instances has
been due to cash collected in conserva-
torship on loans. sale of some assets
and loans from the Reconstruction
Finance Corporation. give you these
to the fact that this is what we are
going all over the United States"
The controller outlined briefly plans
of the new Federal Deposit Insurance
Corporation, of which he Is one of three
directors. This corporation is arrang-
| ing for bank guarantee, with tenn
porary insurance for each depositor ur
| to 81 $500 in banks which become men,
bers Of the fund by January l, 1884.
$27o.s47,352 Paid.
Generally speaking, the controller
said depositors in closed national banks
throughout the country were paid $780,
CAT ,352 between March and Septem-
ber %. In q comprehensive review o1
the work of his ofnce, the controller
also pointed out that his department
is directing the work of LAO receiver
ships now. He explained the fallacy
Of expecting the entire deposits o1
banks in receivership to be recovered.
Deposits in unlicensed national banks
aggregated SLOT, 1852 900 on September
Is, when, he said, banks licensed
totaled $40, reorganization plans hac
been approved for 1862, plans were un.
der consideration for 122, no feasible
plan had been submitted by 80 banks
and plans had been disapproved and 9
receiver recommended in the case of 30;
banks.
The new Hamilton National Banl
vas said to have enjoyed a gain in de.
posits on both the first and second day
of its opening, and was the scene ol
activity in all eight of its banking
houses Ofdcials were highly pleasee
at results.