Evening star., 1933-09-26
129BANKS REOPEN
IN PAST SIX WEEKS
$398,134,00O Frozen De-
posits Freed Under Roose.
welt Program.
BY the Associated Press.

President Roosevelt's program fol-
rebuilding the Nations banking struc-
ture has resulted during the past six
weeks in the reopening OF l29 inst
tutions and the freeing of 1898, l34, 600
in frozen deposits from 265 banks.
The result is that 14,080 banks are
operating on an unrestricted basiE
with deposits of s3l $3.50, ,275 900. and
2,575, holding deposits Of $l,765, ,669,-
900, are still unlicensed. The reor.
ganization plans of more than 200 have
been approved and they will be per-
mitted to resume operations as soon as
they make required additions to theiE
capital. In the reorganizations many
of the old banks are being absorbed.
This picture of progress was laid
before President Roosevelt at Sunday
nights significant White House con-
ference. Similar reviews of other as
poets of the Chief Executives problem
needed bank credit to N. r. A. indus
tries and raising farm prices we1e
presented by officials In charge Of
those phases.
President Seeks Information.
The President, it was explained yes
terday, was anxious to receive up-to-
the minute information and figures be-
fore leaving for his Hyde Park home
The nature of new move by the ad-
ministration which the conferees In
timated was in prospect, Is still un-
disclosed
The slowness with which credit Il
going to industry was emphasized by
yesterdays weekly Federal Reserve
Board statement summarizing the con-
- Iay1 lie iV,
as of September 20.
Total loans Of $500, 100000 were
reported. S36,o00,00o less than the
figure for the week previous and $7l0.-
100000 less than that of the CORE
spending date in 1882 The banks OF
these cities increased their deposits IN
Reserve Banks by 100000 during the
week, bringing them to a total OF
81, ,883, ,0O0 900.
Treasury officials estimated that re-
serve deposits exceeded legal require
uaents by more than $500 900, 900. This
1t was explained. was idle capital that
could be loaned to industry and ex-
panded to from five to ten times that
amount in credit. This sum now Is
lying in the Reserve systems vaults
drawing no interest. awaiting the call
Of the depositing banks.
Many Bonds Purchased.
During the week ending September
20, the Reserve Banks went into the
open market and purchased $35 ,00o, 600
worth Of Government bonds. This 1t
Is doing Systematically in an effort to
take up bonds held by banks and pro-
vide them instead with Iendable cash
Nevertheless, in the week, holdings OF
Government bonds by the member
banks of these 80 cities alone increased
by S42,00o,000
The figures on bank reopenings are
as Of September %. The last previous
check-up was made on August II.
AS part Of plan to expedite pay
ments to depositors Of banks in re-
ceivership, the Home Owners Loan
Corporation last night announced q
decision by J. F. T. O'Connor, con-
troller Of the currency, relaxing regu-
lations In a manner intended to help
the depositors Of such institutions tc
realize on their frozen mortgage paper
He ruled that receivers might ex-
change such slow assets for bonds OF
the corporation. Such an exchange
heretofore has been specifically pro-
hibited.