The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-09-20
LETTERS TO
THE EDITOR
REPEATING BANK DEPOSIT
GUARANTEE
Editor TimeS-News:

Editor Times-News:
There has probably never come
to any nation as quickly and as
penetrating so great shock to
the feeling of security in the ma
tional we'll being as that caused
by the thousands of bank fail
ures Of 1881 and 1882. This
shock was more disturbing and
paralizing to the national spirit
than any declaration of way OF
the hardships Of horrors follow
ing such q declaration. There
was more monetary loss to the
people Of this country than has
been lost in any war it has wag'
ed. There was probably lost to
the people a greater amount of
confidence in men Of / affairs
both from the starNlpoint~of hon
esty and ability that has Ever
been lost to them during any
period of our history. That the
great majority Of these bank
failures did not occur as re-
suit of the violation on the part
Of the managers Of them Of any
appreciate number of regula-
Tory statutes does not change the
situation. The fact is that the
public has suffered a crushing
blow from which they have not
recovered and which has honey
combed our business structure
with Il feeling of insecurity not
! likely TO be quickly dissip2ted
and forgotten by means Of the
ordinary propaganda as to om
basic soundness and future great
ness.
1t is absolutely necessary that
the services Of banking institu-
tons be preserved. They can
not be preserved without public
confidence in them. and without
that confidence our while struc-
ture of commercial relations will
fail and worse chaos come upon
us. The leaders, in political
thought know this the state and
national governments know it.
Ultimately all recovery programs
will be of little avail and must
ultimately fail if this confidence
is not recreated. The fact that
large banking institutions in
large centres of population have
large deposits and through THEN
| ,>,,1I;+,Sno,,- u =, = ! ', acs osrC.;-
tions with great wealth are get,
ting on their feet again does no.
prove the return Of public con
fidGncc in our banking institu
tons. The fact is that there is
more money and less credit. Thi.
money is not we'll distributed anc
for that reason is amassed in I
comparatively few of our thou
sands of banks and this vast
amount Of money is not in gen
cral circulation and is only lent
out on basis that keeps The
bank aiquid, or in a condition
that it can quickly convert il!
loans and general resources into
money. One can not fairly
blame these big institution.
from following this course 81
long as the general situation i!
as it is. The government real
ICES the very delicate situation
and the congress in its wisdom
has seen fit to pass a banking
law designed to correct in large
measure both the evils Of thu
past ard establish soundeI
working basis for the future.
basis that will give reasonable
protection to the depoSitor anC
at the same time allow reason
able profits in the banking bust
ness. Among the new provision!
is the guarantee Of bank deposit.
up to $4,000 and to increase thi!
amount later, l believe, up tt
$4,000.
The American Bankers associa
ton are vigorously fighting thi.
provision of the new law and art
seeking every effort to have i
repealed when congress convenes
Under normal conditions l cal
see how our banking laws Nigh
be so framed as to eliminate an,
necessity for government guar
antee of deposits, but with tn,
very poor standing of our bank
ing laws with relation to those
of other Countries and the de
plorable number of failures a.
compared with other system,