The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-01-12
THE NATIONAL BANKING PUZZLE

L
Senator "KingfSh" Long of Louisiana,
Tuesday, in the United States Senate,
spoke four and one-half hours in opposi-
ton to Senator Glass banking bill. The
"KngfSh" brings the accusation against
the Virginia Senator that he is very friend
" to Wall Street and charges that his bill
is designed to strengthen the strangle-hOld
the big bankers already have on the bust
ness of the United States.
Senator Glass is generally regarded as
the financial and banking expert of the
Senate and in the past has usually rated
as friend of the people. Away back here
in the mountains of North Carolina a large
majority of the people don't know whether
Senator Glass is working for the greatest
good TO the greatest number or for the sole
benefit of the big bankers; and they don't
know any more about the sincerity of Huey
Longs professions of friendship FIR the
people than they know about Senator
Glass honesty oil purpose; and that is just
about the condition of the great majority
OF the people everywhere. The Times-News
cOnfesSeS such dense ignorance Of finances
and banking that it hesitates to express an
opinion. However, there are some things
which are perfectly plain to The Times
them are these:
We are all certain that the present bank
ing system Of the United States is not per-
feet. We have seen it fail; We have known
of its failure in thousands of towns and
cities in the United States in the past three
years. 1t is not satisfactory answer to say
that the people for whom Huey Long AFRO
gates the right TO speak have been respon-
sible for the closing of many of these
banks; that their panic and fear and pre-
cipitate action ruined a number of solvent
banks.
Any system as big and powerful and vi
tai to the welfare Of the country as the
banking system ought to be panic-proof
and so designed and operated that it would
be beyond the reach of mob-frenzy in Il
day or week of extraordinary excitement
in. the financial and business world.
Certainly, lesson which the public
ought to have learned from recent expert
ences is that banks must be financially
strong; and that it is almost impossible for
a small country bank to weather the storm
in period such as the country has been
passing through. The little banks with
$4,000 to $4,000 capital cannot do suf-
ficient business under present conditions to
make banking profitable. In the country
as a whole number of such banks have
voluntarily closed, paying off their depos-
itors and stockholders. In the Carolinas
the number of small banks has been great
ly decreased in this way and by failures
AS convenient and desirable as it may be
to have a bank in every town and village,
it is certain that the small country banks
cannot remain in business in any except a
boom period. They cannot withstand the
strain of, a panic or depression.
The disappearance Of the country town
bank means that many communities are
without banking facilities and that thou
sands of people in these communities will
have to get along without banks. These
people cannot go to more or less distant
cities to do their banking and cannot Sc
cure banking accommodations in the cities.
This condition results in business Difficult
ties and hardships for the residents of small
towns and country communities. Many are
facing such conditions today.
Senator Glass bill is designed to develop