Evening star., 1933-03-27
COLD STOCK GAINS
Elm FIFTH DISTRICT.
More Than $50, 1000, 900 Has
Been Turned in to
Richmond Bank.
BY EDWARD C. STONE.

BY EDWARD C. STONE.
More than s30,o00,00o in gold has
been received by the Federal Reserve
Bank of Richmond since the anti
boarding campaign got under way
about three weeks ago, according to the
latest report from the Reserve Bank.
This amount of gold had arrived up to
March ~ and much more has been
placed in the vaults Of the bank at
Richmond since that date.
The fifth Federal Reserve district has
turned in much more than s3o.o00,o0O
as very large deposits of golo and gold
certificates we're made direct to the
Treasury here in Washington and also
i'm the local banks. The total returned
by so-called hoarders to the Treasury
and the Washington banks has not
been reported, but is known to have
been very substantial amount.
The flow of gold to the Treasury. to
tine local banks and to the Federal Re
serve Bank at Richmond, was given
lively impetus after Gov. George J.
Seay of the Richmond bank sent out a
ltGtcI dShlllS lOl lllC Va OoAih AS
positors who were holding gold IN safe
deposit boxes or elsewhere, and thereby
keeping it out Of circulation.
Later, Gov. Seay sent out second
letter extending the date for return OF
the gold practically to the end Of the
present month. The same information
was requested after that date as had
been originally asked. These letters
were posted in all the banks where they
could easily be seen by depositors and
the substance Of the communications
printed in the financial sections OF the
newspapers.
The grand rush started at once in
the five States in the fifth district and
in the District Of Columbia. Many de-
positors said they were returning gold
to the banks, not because they fear
ed any publicity but because their con-
fidence in the banking situation had
been fully restored.
Reports from the local banks today
indicate that the movement of gold
from boarding" has now practically
stopped Only comparatively small
amounts are being kept out OF circu-
lation The same is no doubt true
throughout the fifth district.
New Bank Moves Suggested.
Two projects which would make the
Federal Reserve Board the controlling
agency over a system OF unified banking
In the United States are under seri-
Gus discussion here, says William H.
Grimes in the Wall Street Journal.
One Of the projects, for Federal in
surance of bank deposits. Is being con-
sidered by influential Senators. 1t is
altogether possible that such machinery
may be incorporated into banking legis-
lation which the present session Of Con-
gress will enact before it adjourns. Such
an enactment would greatly facilitate
If 1t did not force all banks into a
single system.
The second project is to merge with
the Federal Reserve Board the func-
tid1s of the controller Of the cur
rency and to approve that section Of
the Glass banking bill to remove the
Secretary of the Treasury as ex-oficio
member of the board. This would
separate the Reserve Board from the
Treasury, free the Treasury from all
connection with banking control, and
concentrate it in the board.
1t should be emphasized that these
proposals are in the discussion stage
only There is no definite certainty
that either or both will be translated
into action.
The bank deposit insurance or in
identification is an adaptation OF the
liQAidating corporation feature OF the
Glass bill. That measure seeks to set
ups. such corporation with capital,
partly furnished by the Government
ami partly by assessments against the
banks. The Government contribution
wopld be on the theory that it has in
tho past participated in Federal Re-
serve earnings. Purpose OF the corpora
tioh would be to advance funds to ac-
complish quick realization on the assets
of a closed bank. thus mitigating effects
Of a bank failure, the journal says.
Todays Trading on Exchange.
The weeks trading on the Washing
ton Stock Exchange opened today with
tWo 81 900 sales in City & Suburban IS
at 80. During the session Anacostia &
Potomac Railroad SIS figured in a 81 1000
turnover at 43.
In the stock division, 20 shares Of
Lanston Monotype changed hands at
40-and two sales were recorded in Po-
toInac Electric Power 5ia per cent pre-
feHed stock at 10512, the same price
as noted in other recent transactions
Local bankers were quoting today
from the monthly review OF the
Guaranty Trust Co. While the bank
inE crisis is of sufficient magnitude to
require the full cooperation OF every
citizen, it is the type Of national oc-
cuFrence that easily lends itself to ex-
agreration, according to the current
sSle of the Guaranty Survey. published
by the Guaranty Trust Co. OF New
York 1t says:
gWithin the space of six weeks, the
country has passed through a major
financial crisis and achieved measure
of recovery that seems to have created
af
the part Of business men and the public
generally A large share OF the credit
fot this truly notable record must go TO
the Federal administration.
a6uch an abrupt transition from panic
to renewed hope probably has no paral-
lel-in financial history"
Financial District Comment
The First National Bank at Leakes-
vile N. c.. has been licensed to reopen,
according to the Richmond Federal Re-
serve Bank This brings the Fifth Dis
trrt toal Of reopened member banks to
27s out Of 388.
Conservators resumed their work today
In washington banks which are not
running on full time. Several Of these
conservators report encouragement and
progress and expect to reopen soon. The
final decision in every case rests with
Treasury officials, no definite statements
on.reopenings being available.
Col. Wade H. Cooper, president OF the
Commercial National Bank, said today
that Wade H. Ellis chairman Of the re-
cent mass meeting Of depositors, would
name the members OF the Depositors'
Committee in a day or two. 1t will be
recalled that the mass meeting at the
Msyfower Hotel voted in favor Of the
formation Of such committee.
tloyd B. Wilson, president Of the
Chesapeake g. Potomac Telephone Co.,
was recently elected a member Of the
botrd Of directors Of the Security Stor-
age Co.. according to announcement by
President c. A. Aspinwall.