Evening star., 1933-03-26
New Legislation Designed to
Place BuIWarks Under
Present Structure.
RETURN OF CONFIDENCE
FOLLOWS REOPENINGS
Conservators Hasten Efforts to Re-
store Normal Conditions-Clear.
ing House Has Busy Week.
BY EDWARD C. STONE.


Local bankers believe much stronger
banking structure all over the country
will emerge from the recent Nation wide
difficulties. In fact, in the banks which
are now operating 100 per cent under
Government licenses, officials declare
that conditions have already been great
ly strengthened by the flood of returned
deposits. Furthermore, officials say,
there has already been a complete
reversal in sentiment toward the banks
which are now performing normal
operations"
Changes in the country's banking
laws are certain to have beneficial re-
suits, after such long study by congress
sional leaders. Pending banking legis-
lation includes constructive ideas Of
recognized financial leaders. as well as
those of other leaders in the business
world who come in close contact with
the banks.
Clearing House Busy.
The Washington Clearing House As
sociation wound up very busy week
yesterday, officials reporting that all
checks have now been cleared with
banks in other parts Of the country
which are running on complete sched-
ules. Many other checks are still held
up or have been returned to the per-
sons who originally deposited them, in
order that other arrangements may be
made for the payments which these
checks represent.
Banks in the city which have not yet
been granted Government licenses to
resume complete banking functions Put
in hard weeks work in their efforts
to meet all Treasury requirements.
With one or two exceptions, these banks
expect, or hope, to reopen soon.
Conservators. however, can make no
definite statements. As Government
officials they are not permitted to make
any detailed announcements. Further
more, in some instances they must
make further investigations before they
can present their cases to the controller
of the currency for license approval.
Before and during the Nationwide
bank holiday officials of the local Clear
ing House Association held meetings al
most daily. In fact, just before the
bank holiday and. during that period
they met both day and night.
They were in almost constant session
in order to interpret for the benefit of
the local banks all the Treasury rulings
just as soon as issued. A score of these
rulings were forthcoming They related
emergency measures.
In order that all the local banks
might operate on the same basis and
at the same time not misinterpret any
one Of these rulings, the Clearing House
Committee undertook to issue frequent
statements, which were promptly for
warded to each bank. These state
.ments were Of great value and assist
ance to the officers and met a very real
need, infractions of the emergency
banking restrictions being easily avoided.
Leaders in Clearing House.
The Clearing House has now returned
to its ordinary placid operation. except
that Manager Charles E. Bright and
Assistant Manager Silas E. Moore are
still rushed with bookkeeping work
chairman H. H. Mckee, president OF
hhe National Capital Bank. and Secre-
fary Victor B. Deyber, president OF the
Second National Bank, are enjoying the
calmer seas on which they are now
kailing.
In addition to the chairman. the
bther members Of the Clearing House
Committee include Robert v. Fleming
president, Riggs National; George l..
Etarkey. president, National Bank of
Washington: Frank j. Stryker, presl-
dent, Columbia National, and G. +.
Jacobsen, cashier, National Metropoli-
tan. Frank j. Hogan, counsel Tor the
District Bankers Association, also rem
dered an unlimited amount OF extra
legal service at all the special meetngs.