Evening star., 1933-09-07
BANK INSURANCE
BOARD IS NAMED

s"e 49, -
Bennett to Serve With
Controller Of Currency.
CONTINUED From Firyt Fsge)
which national and state authorities
had not permitted to reopen.
FAIRNESS Is PLEDGED.
Ceatfsaler Il Custsney Inssrms Anseri-
oAn BankssB u hsessv6at's Prsmise.
CHICAGO. September 7 (G9.-A pledge
from President Roosevelt that the de-
posit insurance provision Of tile bank
ing law would be fairly and Justly ad-
ministered WIS given the American
Bankefs' Association today by J., r. r.
O'Connor. controller Of the currency.
Vigorously he denied what he termed
vicious, unwarfanted and untruthful
propaganda" to the effect that the
small banks and the Independent banker
were 10 b eliminated and said:
The present Administration has dem.
onstrated its policy Of protection for
the little fellow, whether individual or
corporate. At conference with the
President Tuesday afternoon he author
lied me to say 70 you and through you
to the country that the object Of the
insurance provision Of the new hank
act WAS to Insure ~ many non member
banks ~ possible. He discussed the
details Of the act with an amazing
knowledge OF It's provisions. He dis
c,xRanA rna1 va1,anr- arx1pnfnnd ~ 1oina and
liquidating values with flne discrimi-
nation. He said injustice must be
avoided In that sentence the Chief
Executive summarized al his comment
and directions"
Defends Depssit Plan.
While many members Of the associa- |
ton have been outspoken In their OBJ
jections to the deposit insurance plan, |
OConnor defended It. He predicted It
would prove of-Rreat value. and said |
that passage Of the Glass -Steagau bill |
by only six adverse votes In the House |
and unanimously In the Senate wAs EVIL |
dence Of . tremendous popular demand |
for such protection.
O'Connor said the general outline OF
the Federal Deposit Insurance Corpo-
approved by President Roosevelt. The
first task, he continued, would be to ex-
anime approximately 5000 State nom
member banks. Az soon g the corpo-
ration u orRsnised, he added. the con-
troller viii make the following sugses-
tions:
FIRST. that each bank applying for
insurance be furnished with blank
forms to be completed by the bank
setting forth each asset under q
proper heading and giving the amount
Of its deposit liabilities and obligations
to other creditors. This will save much
time and the examiner will then check
the item and appraise the same.
Work to BE Done in States.
Secondly, that an examiner who
knows the values in the particular
State, with necessary assistants, be as
signed to each State capitol to work
with the banking commissioner ana
that all examiners in the State clear
through the examiner at the capitol.
In this way the work will be decentral-
lied. It IL my belief that whenever .
Just IS well as at the National Capital,
it should be done In that State.
Thirdly, that the names Of the
banks insured and their locations be
given simultaneously"
O'Connor offered the following rs
q matter Of opinion"
1T Il my firm opinion that the In
surance features Of the law will save
millions to our people. The high pres
su-e and not too scrupulous salesman
often plants the seed Of suspicion as to
banks solvency In the prospective
purchasers mind. The life savings OF
men and women have been withdrawn
and invested In worthless securities or
erterprises because Of this fear.
when the suspicion becomes . be-
lief, the confidential relation between
the banker and the depositor Is de-
stroyed. The very fact that the honest.
highly trained. conservative banker has
made errors In making investments IS
proof of the gseat danger Of loss by
those not trained in making invest
ments."
The association yesterday drafted it's
deposits and at the same time an
nollnced q policy or cooperation with
national recovery by administering
credit to industry and commerce
within the limits of sound banking"
Five thousand bankers attending the
associations convention adopted reso-
luton demanding postponement of the
deposit guaranty clause in the national
banking act Of 1888, already adopted by
Congress and slated to become law next
January /.
The association suggested in . reso-
luton that a Federal commission be
appointed to consider in relation to one
another "the vastly important problems
of money and banking and central
banking that are pressing fer solution
and settlement"
1T IS clearly true" the resolution
said, that this Nation cannot in
definitely continue to carry on its busi-
ness affairs with monetary system in
20 unsettled a state Is it Is 1T present"
Seek Remedial Program.
After declaring the deposits guaranty |
provision radical departure from the |
customary procedure in American bank |
Ing" the association placed in the
hands OF its Administrative Committee |
the question Of giving proper consider
alton 10 this matter with the idea Of |
taking such remedial steps a. seem f1t-
ting and proper"
Leaders in banking from coast to |
coast and assailed the deposits guaranty |
provision throughout the convention as |
unsound Francis H. Sisson, retiring |
president Of the association, said 1t |
would adversely affect the sound bank |
in favor Of the less sturdy.
T0e RESOLUTION yeSteIo1y expressed y
belief that installation Of the insurance |
on-deposits program might result in |
many bank failures. The guaranty plan |
would apply to deposits Of $2,500 and
less.
''Ihe new law provides for the organi- |
cation Of . corporation to administer |
the insurance Of deposits, but IS yet |
this corporation has not been formed"
the resolution stated.
"It also provides that there shall be |
made q thorough examination Of banks |
to determine their qualifications for In
surance, but these examinations have
not yet been made. There Is not now re- |
ZlolasA leuAnHa khe hodiYa- L