Evening star., 1933-08-20
Every Institution in Nation
Must Be Prepared by
January /.
CONTROLLER DENIES TALK
OF PLANS SPOSTPONEMENT
J. F. 7. 0'Connor Declares Special
Force Will Be Set Up to Rush
Survey Throughout System.
BY HAROLD b. ROGERS.

BY HAROLD b. ROGERS.
Although faced by tremendous task,
the new Federal Deposit Insurance
Corporation, created by the Glass
Steagall act, plans to examine every
bank in the United States including
the District of Columbia, before Janu-
airy /, to prepare for the guarantee of
deposits provided by law.
This is predicted by J. F. T. O'Con-
nor, controller of the currency, who, in
an interview yesterday, said there was
no way under present legislation
whereby the effective date of the new
deposit guarantee could be postponed
either by Congress or by presidential
edict. RumorS of poStponement were
fatty denied by him.
Mr.. OConnor, who is one of the three
members of the board OF directors of
the Federal Deposit Insurance Corpora
ton, expects that the other two
directors will be appointed by President
Roosevelt soon, and the new corpora
tion rapidly set up ready to function.
ready has been prepared by the con-
troller, as member of the board, so
that he now has ready to submit to
the board a comprehensive plan of
operation.
Governs All ID. L. Banks.
All banks in the District of Columbia
come directly under jurisdiction of the
controller of the currency, including
the So-called ''non-member" or State
banks, which are not national banks or
are not members Of the Federal Reserve
System. There now are 20 banks in
the District of Columbia operating 100
per cent, and II unlicensed banks, one
of which is in the hands of a receiver
and IL in the hands of conservators.
Already Washington banking institu-
tions are looking forward to prepar-
ing for the requirements expected of
them by the Government under the
bank guaranty law, and some actually
have begun to put their houses in order
in preparation for the forthcoming ex-
animation by special examiners of the
Federal Deposit Insurance Corporation.
Contrary to much comment among
bank officials. it is planned by Con-
troller O'Connor to set up a complete
peX force Of examiners fef-the- Federal
Deposit Insurance Corporation, and ex-
anime all Of the 10000 banks Of the
United States before January l. This
force will be separated from. and will
act independently of, the examining
forces of the Federal Reserve System,
the Reconstruction Finance Corpora
tion and the controller of the cur
rency.
1,500 Names Available.
A list of more than 1900 available,
experienced men, who are qualified
to become examiners for the new cor
poration, has been compiled by Con-
troller O'Connor, and from this list,
which represents all parts of the coun-
try, he expects the new corporation will
be able tt appoint in short order an
adequate force to complete the exami-
nations in time. All of these candi-
dates for the post have had not less
than five years banking experience, in
addition to other qualifications.
Special forms already have been pro-
posed to facilitate the work of exami-
nation. When these forms have been
finally approved by the corporation they
will be sent to every bank in the coun-
try, and the banks themselves will be
asked to list on these forms every Sc
SO as to simplify the examination
Details of the requirements expected
of a bank to qualify under the ex-
animation have not been disclosed.
Officials are reluctant to disclose such
requirements in advance of their final
adoption by the new corporation yet
to be formed
But in view of the intense interest
in the question, there is reproduced
below brief vital quotation from the
bank act itself which will apply to
both the member banks and nom
member banks, both in this city and
throughout the country, so far as the
immediate and temporary insurance is
concerned:
The corporation shall open on its
books a temporary Federal deposit in
surance fund hereinafter referred to
as the fund.-, which shall become
operative on January l, 1894, unless
the President shall by proclamation fix
an earlier date, and it shall be the
duty of the corporation to insure de-
posits as hereinafter provided until
July /, 1884.
Provisions Outlined.
each member bank licensed before
January l. 1884. by the Secretary of
the Treasury pursuant to the author
ity vested in him by the executive
order of the President issued March
10, 1888, shall, on or before January l.,
1884, become member of the fund.
Each member bank so licensed after
such date, and each State bank, trust
company or mutual savings bank (re-
ferred to in this subsection as State
bank which term shall also include
all banking institutions located in the
District of Columbia) which becomes
a member of the Federal Reserve Sys-
TEN on or after such date, shall, upon
being so licensed or so admitted to
membership, become a member of the
fund, and any State bank which is
not a member of the Federal Reserve
System, with the approval of the
authority having supervision Of such
State bank and certiflcation to the
corporation of such authority that such
State bank is in solvent condition. shall
after examination by. and with the
approval of, the corporation be entitled
to become a member OF the fund and
to the privileges OF this SUBSECTION
upon agreeing to comply With the re-
ouirements thereof and upon paying
to the corporation an amount equal to
the amount that would be required OF
it under this subsection If it were q
member bank. The corporation Is
authorized to prescribe rules and regu..
lations for the further examination OF
such State bank, and to fix the com
pensation of examiners employed 70
make examinations Of State banks;
"Each member of the fund shall nle
with the corporation on or before tne
date of its admission certified state
ment under oath showing, as OF tne
fifteenth day of the month preceding
the month in which 1t was SO aomlt,
ted the number of its depositors ano
the total amount Of its depositS WHICH
are eligible for insurance under TIM TIM
subsection. and shall pay to the cor
poration an amount equal to one-na11
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