Carolina watchman. [volume] (Salisbury, N.C.) 1871-1937, 1933-06-23

Q.-What is the Glass-Steagall
bill?
Am act passed by Congress
and known as the Banking Act
of 1882 to provide for the safer
and more effective use of the as
sets of banks, to regulate interbank
control, and to prevent the undue
diversion of funds into speculative
operations"
Q.-What are the principal sub
jects covered in the bill?
Alteration of a corporation
to insure bank deposits; the divorce
Of member banks from security
and investment afhliates; provision
for limited branch banking for ma
tional banks; control over interest
rates.
OWL the bill have any i'm
mediate effect on bank depositors?
Ayes. 1t prohibits payment
by member banks of interest on
demand deposits. Approximately
1000 banks stopped making such
payments.
Q.-What does the act say about
time deposits?
Alt gives the Federal Reserve
Board power to regulate interest
payments on time deposits.
Q.--Has the Federal Reserve
Board take many action yet under
this provision?
A.-No.
Q.-Does the bill say ANYTHING
bout the rights of depositors to
withdraw deposits from their
banlrs?
A 1t says that where a deposi-
tor puts money in a bank for a
specific period the bank shall have
no authority to waive the time
limit and give the depositor his
money sooner
Q.-What does the act say a
bout mutual savings banks?
A.-Mutual savings banks may
Join the Federal Reserve System
subject to the same provisions Of
law as State banks and trust com.
panies. There are a few technica
differences in the hammer of sub.
scribing to capital stock of the
Reserve banks.
Q.-Is any other type of bank.
ing ICE admitted to the Fed.
eral Reserve?
Ayes. Morris plan banks ane
other incorporated banking institu'
tons engaged in similar bushes!
may become members.
Q.-How will bank deposits b
insured under the act?
, Although a special corpora.
ton to be known as the Fedora
Reserve Deposit Insurance Corpor-
alton.
OWL this corporation insur.
deposits in member banks only?
A.-No. Deposits in non-mem.
l Der banks may also be insured. bu1
insurance for these non-member.
will expire July l, 1886.
Q.-What does a bank have tt
do to have its deposits insured?
Alt must subscribe to stock
in the Insurance Corporation. Two
classes of stock will be issued, Clas.
A and Class B. Member and non.
member banks will subscribe to the
Class A and the twelve Fedora
Reserve banks will subscribe to
the Class B.
Q.-How much money do bank.
have to subscribe to the Insurance
Corporation?
A.-Federal Reserve banks will
contribute one-half of their surplus
as of January 1, 1888. Member
banks and non-member banks
which qualify for membership
must contribute initally one-half
of one per cent. of total deposits
in the form of subscriptions to
Class A; stock.
OWL member banks and
non-member banks be liable for
any assessments?
Ayes. The act provides that
if the insurance funds are depleted
to a certain point these banks may
be called on for a further subscrip-
ton.
; OWL the Government have
anv part in this new corporation?
A.-The Treasury Department
is authorized to subscribe up to
$150,oo0,o0o to the new corpora
ton.
OWL all the deposits of
banks who subscribe to stock in the
new corporation be insured?
A.-Yes, but not for one humid
red per cent. on sums over $780,
900. The insured deposit liability