Evening star., 1933-04-10
PREPARING REPORT
OF BANKS IN HANDS
OF CONSERVATORS
Survey Is Being Made of
Conditions of 13 Wash
mgton Institutions.
REOPENING TO DEPEND
ON FACTS DISCOVERED
Walter ]. Cummings, Treasury
Official in Charge, Expects
Action in Several Days.

A comprehensive survey of the con-
dition of all 13 Washington banks In
the hands of conServatorS is being pre-
pared by the Office Of the controller OF
the currency for submission to Walter
j. Cummings, executive assistant to the
Secretary of the Treasury, who Is giving
special attention to the problem OF re-
opening these closed banks.
This report, which will be consoli.
dated from the heads of all divisions OF
the controllers Office who know any
thing about the closed banks here, is
expected by Mr.. Cummings "withins
few days." he said this morning.
What can be done to reopen any OF
these banks, Mr. Cummings explained,
will depend upon the facts.
Likely Course.
without referring to any specific
banks by name, Mr.. Cummings ex-
plained that the general situation will
probably resolve itself into considera-
tion first of the banks which may be In
condition to reopen individually.
I'VE may have to reorganize some
leased" said Mr.. Cummings, "and a
primary consideration will be the inter-
ests of the depositors."
Representatives of the controller of
The currency are known to have been
making close examination OF the
banks in the hands of conservators to
determine the value of their assets and
liabilities, and it is a report on this ex-
animation which will first engage the
attention Of Mr.. Cummings.
r. F. C. Loans in Question.
The new executive assistant to the
Secretary of the Treasury will not con-
cern himself, however, he explained,
with any possible loans to be obtained
by the closed local banks from the Re-
construction Finance Corporation. The
Reconstruction Finance Corporation it
self must pass on such loans, he ex-
planned.
Some time probably viii elapse before
any definite word as to the reopening
of any of the local banks will be forth
coming, according to present indica-
tions, but Mr.. Cummings is giving his
close attention to the local situation un-
der specific authority from Secretary of
the Treasury Woodin Mr.. Cummings
appointment was made known Satur-
day afternoon by the Secretary Of the
Treasury, who announced that the new
aide would give his immediate atten-
tion to the District of Columbia situa-
tion.
Mr.. Cummings, however, also is
charged with other responsibilities of
wide scope in administration of the
emergency banking act and appears to
have been given broad authority in his
work. He will receive cooperation
from all branches of the Treasury De-
partment in his new work.
Limited Functions.
Thirteen Washington banks still are
Virtually closed, having failed to receive
licenses from the Secretary of the
Treasury to reopen when the other
banks of the city resumed unrestricted
operations on March IA. These closed
banks, which are in the hands of con-
Eervators, who are officers Of their own
institutions, for the most part have
been authorized to do limited busi-
ness, such as receiving trust funds in
IA "bailee account" for unrestricted
Withdrawal, the making of change and
the acceptance of payment on notes.
Possibility Of merger between some
of the closed banks, which has been
informally discussed for some time, was
given renewed impetus today by Mr..
merger might be among the possibili-
ties for reopening. Details of any
such plan, however. remain to be con-
xidered, he said. There were also indi-
rations that it might be necessary to
uiquidate some of the banks to release
the funds which have been tied up
Since the Presidents banking holiday.
Conservators to Report.
Conservators of the closed banks will
be given opportunity to present their
own plans for reopening, but this will
come along in the course of regular
reports through the Office of the con-
troller of the currency, Mr.. Cummings
indicated. In other words, he has not
called upon the conservators in per-
son to see him in his Office as yet for
consideration of any plan to reopen
The ideas of the conservators, however
Mr.. Cummings said, will be given full
consideration along with the complete
report on the banks themselves COM
ang from the controllers Office.