Evening star., 1933-08-12
RULES PREPARED
FOR CAPITAL BANKS
Special Regulations Intended
for Non-Members of
Federal Reserve.
BY HAROLD b. ROGERS.

The controller Of the currency is un-
r-rulations for carrying out section TIA
tc) of the District of Columbia special
bank act of March last, which gives
the controller special jurisdiction over
banks and trust companies in this city
which are not members of the Federal
Reserve System.
As this section becomes effective six
months after enactment, the new regu-
lat;ons will be completed between now
and September 4, and Washington
banks advised in order that the ad-
ninistration of the act may become
operative while giving the local insti-
tut!ons time to conform. Decision is
expected soon.
Whether the regulations will be made
Public has not been decided. but 1t was
considered more likely today that most
of the details would be communicated
directly to the banks in question with
out making the whole matter public.
Explained in Act.
The purposes of this new control are
explained by the act itself as follows:
Each bank and trust company doing
business in the District of Columbia and
not a member of the Federal Reserve
system shall within six months from
the enactment of this section eStaDllSn
and maintain reserves on the same paslS
and subject to the same condltlonS as
may by law now or hereafter be pre-
Scribed for national banks located III
the District of Columbia, except that
such reserves shall be established and
maintained at such agency or agencies
which shall have the approval OF the
controller of the currency; provided,
however, % that the required reserves
carried by such bank or trust company
with an agency or agencies may, unoer
the regulations and subject TO such
penalties as may be prescribed py tne
controller of the currency be checKeo
against and withdrawn by such bank
or trust company for the purposes OF
meeting existing liabilities, and CD that
no such bank or trust company snail
at anv time make new loans or snail
nav any dividends unless and until tne
total reserves required by law shail pe
fully restored
Refunding Plan Drafted.
committee, composed of distributors
of bonds of the National Union Mort
cage Co now is drafting a plan under
which some 5000 owners OF these oonds
will be asked to consent to deposit. by
the company. of approximately S9'ooo,-
900 in bonds held as collateral Tor lts
own issues and which are ahected py
the refunding plan now being conducted
! throughout the country for the bonds
of some 35 mortgage companies secured
by guaranteed mortgages.
Announcement of the formation OF
this committee was made in Baltimore
by John C. Legg, jr., OF Mackuoln,
Goodrich &, Co, who, with Stein Bros.
&, Boyce and Baker, Watts & Co.: are
offering the refunding plan to bond
holders affected by the guarantee OF
the United States Fidelity & Guarantee
CO. or Maryland Casualty Co. The dis
tributors, from various sections OF the
country, have been meeting in Balti-
-,ore for the past two days to work out
tails Of the National Union Mortgage
y. plan.
Personal Mention.
-aseph Sanders, vice president OF the
nk of Commerce & Savings. will en-
tain the staff of the bank at his
MINER home in Southern Maryland
borrow.