Evening star., 1933-03-02
MARYLAND SPEEDS
BANKING PROGRAM
Legislature Awaits Report,
Hopes for Reopening
by Saturday.
ee corrasnordent of The Star.

sy staff Correspondent of The Star.
ANNAPOLIS. Md, March RE
ocening Of Maryland's banks by Satur-
dav was the objective of the Legislators
as they met in the State House thlS
morning, awaiting a report from TWO
senate committees which spent most OF
the night studying the administrator
banking bill.
Several obstacles in the path OF that
objective arose, however, the orlgHal
bill having provoked considerable oppo.
sition, which appeared officially nrSt at
a public hearing on the measure anu
promised to reappear In both houses.
While Gov. Ritchie and a group OF
Baltimore bankers and attorneys urged
SPEEDY action on the BILL the commit
tees found themselves faced with the
difficult task of incorporating various
additions and changes advanced py
both proponents and opponents OF the
measure.
One Baltimore banker told the COM
mittees that if uniform restrictions on
Withdrawals cannot be agreed upon by
Saturday they should at least PROVIDE
for permitting every depositor to take
out $40 on that day so as to be able TO
do his week end marketing and relieve
the fear of hunger"
Hearing Held Quickly.
After being introduced by Senator
BENJAMIN H. McKindless of Baltimore
CITY Yesterday the bill Immediately was
referred to the Finance and Judiciary
Committees of the Senate, which con-
Quoted a public hearing late In the
afternoon, after Gov. Ritchie arrived
here from Baltimore where he had been
in continuous conference with the
bankers since the State holiday was
declared last Saturday.
In addition to the Governor, those
yho addressed the hearing included
Attorney General w. Preston Lane. Jr.;
howard Bruce, Baltimore Trust Co.
board chairman; Edwin c. Baetjer,
Baltimore attorney, who had a major
part in drafting the bill. Maj. E.
Brooke Lee, one of the Governors ad-
Nisors; Mayor Jackson and Secretary
of State David G. Winebrenner, Sd,
were among those attending the hear
ing, presided over by Senator LanSdale
G. Sasscer of Prince Georges County,
chairman of the Finance Committee.
The most controversial feature of
the bill was, of course, the provision
giving the bank commissioner power to
fix the amounts which can be with
drawn from the various banks at vary
ing rates.
"Is there any justification for say
Ing that solvent debtor shall not
pay?" Arthur w. Machen, jr, attorney
for a Baltimore trust company, asked.
'Why should we be drawn in because
others need an umbrella?" He con-
tended that the bill, as drafted, would,
Il passed, court litigation"
Attorney General Lane explained that
the bill embodied "a collective idea"
based on similar legislation enacted
or contemplated in other States.
Broad Powers Urged.
He said the setting up Of a bank
dictatorship under the State bank COM
missioner was device to give the bill
constitutionality by placing all the
ship" 1t was necessary to give the
commissioner broad powers because we
don't know what he may be called on
to do from day to day as a matter Of
necessity" he explained.
During the hearing it was suggested
shat each county should be allowed to
have its own rate of restrictions on
Withdrawals.
At the close of the hearing the two
committees went into an executive Ses-
sion which lasted until early this morn
ing. 1t was reported the committee men
were considering several amendments
which, however, do not involve radical
changes in the bill.
As originally submitted, the bill pro-
Eides that only those State, city and
county deposits in banks that are not
secured either by collateral or surety
bonds would be freed of withdrawal re-
strictions The secured deposits would
be subject to the same withdrawal re-
strictions as deposits in general.
1t provides for the honoring Of checks
for the payment Of taxes up to today,
but this provision drew considerable
criticism and probably will be changed.
The bank commissioner is placed in
charge of all banking institutions of
the State for period Of six months
with the Governor and Attorney General
given power to extend the time to one
year.
unNEE vnAN RITZ, PASSED.