Evening star., 1933-04-09
|NEW W0OD|N AIDE
moves TO REOPEN
is DISTRICT BANKS
wv. J. Cummings, Appointed
Executive Assistant, Works
on Concrete Plan.
SEEKS TO FREE DEPOSITS
| IN STATE INSTITUTIONS
Treasury Secretary Believes Unde-
scribed Scheme Will Restore
Majority to Solvency.

A program to free millions of dol
lars of frozen deposits in thousands
of unopened State banks assumed
definite proportions last night follow
ing closely upon Secretary Woodin's
announcement of the appointment of
Walter ]. Cummings Of Chicago as his
executive assistant to have direct
charge of this work.
Mr.. Woodin declared that one of the
first questions which Mr.. Cummings
would have to handle would be the re-
opening of the Is Washington banks
now in the hands of conservators.
The new executive assistant has been
at the Treasury Department for about
three weeks engaged on confidential
work connected with the banks, but
it was not until yesterday afternoon
that he emerged from the obscurity
in which he had been working.
Located in commodious Office in
the Treasury Department formerly used
by an assistant secretary. Mr.. Cum
der his direction a substantial staff.
Silent on General Plan.
Asked what his program for OPEN
ing the banks of Washington was. Mr..
Cummings said he could not discuss
the program in detail nor could he
say anything about any individual bank.
Generally speaking, howevef, he said
his policy would be to give primary
consideration to the protection of the
depositors. Study has been given al
ready by Mr.. Cummings to the WASH
ington situation, but the extent of this
consideration was not disclosed.
Likened to State Banks.
Washington may be considered as
having its bank problem more inti-
mately connected with the so-cailed
State bank" situation, because of the
fact that only 3 of the 13 closed
institutions here, in the hands Of con-
SENATORS, are national banks. The
other 10 might fall into the classifica-
ton Of state banks"
While officers and conservators Of
all Is of the closed banks are said to
be working hard ON their problems,
the case Of only three--the Northeast
Savings Bank, the Potomac Savings
Bank and the Industrial Savings Bank.
The Northeast Savings Bank Is work.
ing on plan to strengthen its capital
structure by sale of 10000 shares Of
capital stock at SIS a share, to double
its capital, and to provide about $780,
600 reserve. The Potomac Savings
Bank has applied for charter to be-
come a national bank, and has launch-
ed campaign to sell new capital
stock The Industrial Savings Bank, q
colored institution, also has announced
that it hopes to get a national charter.
At the Park Savings Bank re-
ported shortage Of about 81 900 900 Is
the subject of intensive scrutiny by De-
partment of Justice agents.
The other banks in the hands Of con-
who are officers of their own
banks, are: Federal-American National
Bank and Trust Company Franklin Ma
tional Bank, District National Bank,
Chevy Chase Savings Bank, Mount
Vernon Savings Bank, Woodridge-Lang-
don Savings & Commercial Bank, United
States Savings Bank Washington Saw
ings Bank, and the Seventh Street Saw
ings Bank.
In announcing the appointment Of
Mr.. q Cummings yesterday Secretary
Woodin disclosed he had already worked
cut q concrete plan, subject to local var
iations. He was confident 1t would re-
store to solvency the majority of the
State institutions, but said that prema-
ture announcement of its details would
serve no useful purpose. 1t is this plan
that Cummings will administer.
Fulfllment of Woodin's prophecy
would mean that many thousands of
State institutions again would be in
position to participate in Americas
business functions. No definite figures
are obtainable at the Treasury, however.
as to the exact number, nor the amount
Of deposits involved.
However, at the end of March, 5,837
National and State member banks Of the
Federal Reserve system had reopened
their doors, restoring deposit line Of
about $26, 5000, 100000.
1850 State Banks Reopen.
In addition, 1850 non-member State
Institutions had likewise reopened on a
100 per cent basis, but the amount Of
The deposits was not given.
The latest statement of conditions
for all banks in this country indicated
= total of slightly more than 1900
Of all classes, with de-
posits of approximately $4,000. .000, 900.
In the absence of details. 1t is be-
lieved here that many of the distressed
State banks will be opened ON a fun
time basis through aid furnished BY
the Reconstruction Finance Corpora
lion under the provisions of the
banking act. This aid has
aiken the form of having the corpora
ion match dollar for dollar in private
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