Evening star., 1933-04-30
BANK REOPEN|NGS
ARE BEING PUSHED
Many Institutions Restored
to Operation in Past
Two Weeks.
Special Dispatch to The Star.

special Dispatch to The Star.
NEW YORK. April 29-The latest
oficial compilation covering the condi-
ton Of the banks Of the country shows
that Of 6,736 Federal Reserve member
banks open before the holiday, there
were SAB operating on an unrestricted
basis on April IS, while of 1l,435 State
banks, 1854 were open without restric-
tions
In the past two weeks q considerable
number Of both member and non-mem-
ber banks have been allowed to oper-
ate. 1t is estimated that between 13,500
and $4,000 banks Of the 1911 open
on March 3 are now doing business on
100 per cent basis.
The deposits involved in the banks
that are still closed, or under restric-
tions, approximate $4,000, ,0OO, 900. The
banks that had closed prior to March
4, including the years from 1929 to
1882, had total deposits of $3,764, ,000,-
600. Between 20 and rs per cent Of
these deposits have been released
through the reopening of banks and a
partial payment to depositors In banks
still closed.
Estimate of Deposits.
While no exact figure on the net of
frozen deposits" in banks that closed
prior to the holiday" is available, it is
believed to be approximately $780,
000. 900. Therefore. all bank deposits
still subject to adjustment aggregate
about $7,500,0O0,000.
1t is this item that Senator Borah
Is considering when he advocates as a
helpful and constructive bit of legisla-
tion the payment by the Federal Gov
Prnmonf nf Re
IN closed banks. This would be $4,-
soc, 100000. The Treasury would take
an assignment of depositors' claims as
security. Senator Borah also is in IA
vor of a guarantee of bank deposits
The latest change in the banking bill is
said to provide for such a guarantee on
all deposits under $4,000. This would
cover practically all time and savings
deposits, which seldom average more
than a few thousand dollars
Some such form of paying out of de-
posits now withheld from their owners
and a guarantee of future deposits
would be a practical and understand
able means of increasing purchasing
power and raising the level of prices,
say its advocates. The immediate ef-
feet in Detroit this week, releasing 80
per cent Of the deposits of the banks
in that city that have been closed for
nearly two months, was to stimulate all
kinds Of business and to liquidate debts
that had been incurred during the
moratorium.
A longer time view of the banking
situation than is involved in immedi-
ate problems to assist the depositors In
closed or restricted banks has been
| taken by the Economic Policy Commis-
sion of the American Bankers Associa-
ton. which has just published its re-
port. 1t advocates as one of the most
necessary measures to strengthen the
banking situation that all banks become
members of the Federal Reserve System.
The slownesS Of non member banks
to respond to the invitation to join the
Federal Reserve is due to the exactions
Of the system in the matter Of charging
of depreciation on securities or on
commercial loans before the applicant
for membership may be admitted. There
have been comparatively few additions
to the Federal Reserve System since
the bank holiday.
Restrictions on Loans.
Other recommendations of the eco
nomic commission include a limitation
Of the amount Of interest that may be
paid on the commercial deposits in
Reserve member banks. One of the fea-
lures Of a bill introduced in Congress a
short time ago provided for deposit in
surance was the elimination of all in
terest on demand deposits. The COM
mission would also require depositors to
give notification that they were to with
draw time deposits on the theory that
all depositors should be protected
against the dangers that may result If
hysterial minorities among them sud-
denly convert their bank deposits into
currency"
Other suggestions of the commission
ere that there should be rigorous regu-
lation of the granting of loans by banks
to their own officers and directors: that
steps should be taken to restrict the
postal savings system: and that public
funds should have the same status as
private deposits. Branch banking priv
ileges should be uniform within States
for both national and State banks. It
has been reported this week from Wash
ington that President Roosevelt favors
branch banking if limited to county
(Copyright. 1881