The Daily Alaska empire., 1933-03-25
By J. R. BRACKETT

By J. R. BRACKET
 NEW YORK, March 25.-No ma- jor country in the world has a banking system comparing In com plexity with that of the United States.
 It is to the simplification of the system that most of the plans in Congress are directed. Advocates )f revision hold that the present complexity makes lax supervision Of some banks inevitable and al- lows them to perform functions which are dangerous to the depos- itors' money.
 May Reduce Bank Total
 There were some 18,000 banks when the bank halliday was called, but President Roosevelt, under wide powers given him by Con- gress, may reduce this total, since it is planned that. only banks that are known to be sound will be op- ened.
 A bank, says the dictionary, is "an institution for lending, bor- rowing, issuing or caring for mon ey." Such a definition includes al- most every institution which ham, dles money. The public looks upon bank as an institution which takes money for check account or pays interest on savings accounts.
 At the top of the nations bank ing structure stands the Federal Reserve system, with 12 banks for the 12 reserve districts. of the country, commanded by the Fed eral Reserve Board in Washing ton. These are bankers banks for about 5000 members. The mem Der banks borrow from the re- serve banks, get currency from them, and keep reserves in them
 National banks are required by law to be members of the Federal Reserve system. National banks obtain their charters from the na- tional government and are super vised by the government.
 Although many state banks be- long to the Federal Reserve sys- tenn, some 11,00O state banks are independent of any national sys- tenn, being supervised by state au- thorities only.
 Despite the greater number of banks not affiliated with the re- serve system, it's member banks contain about two-thirds of all bank deposits.
 Savings banks are supervised by their states. Most savings banks are mutual; that is, all profits go to the depositors instead of the stockholders. They are rigidly reg ulated as to type of investment.
 Private banks usually do not re- ceive as much legal supervision. They are banks which accept only large deposits, and which float se- curities.
 Both state and national banks often maintain savings depart ments, and through affiliates sell securities to the public. There is proposed legislation in Congress to take this function from state and national banks, the institutions in which individuals, business and in- dustry keep their money and on which they make their checks.
 A few years ago trust compan- ies were distinct types of banks, confining themselves largely to the management of estates and trust funds. Lately, however, oom- mercial banks have taken over trust functions, and trust compan- ies have taken over commercial functions.
 Proposed banking reforms en- visage the inclusion of all state and national banks into a more unified system. Some plans pro- pose establishment of a new sys- tenn of depository banks which would hold funds for a fee.
 The United States government maintains the postal saving S banks, which pay a low rate of interest. It has been proposed that these banks provide checking facilities
 Life insurance are banks to the extent that they invest the pub lies money. Building and loan associations also perform this func- tion.