Evening star., 1933-10-17
BOARD EXPED|TES
CLOSED BANK AID
Institutions Shut This Year
n to Get Loans Under I'm
mediate Plan.

nounced machinery for getting ap'
nraisals of bank assets to the new boaro
wosald be accelerated by the Reconstruc'
ton Corporation. the Treasury Depart
ment. the controller of the currency
the Deposit Guarantee Commission
and other related agencies OF the Gov.
eminent. The new liquldatlrg poare
is a division of the R. F. c.
Jones said the plan OF operatlo.
would be to select chairman OF tn'
Deposit Liquidation Committee for eacf
FEDERAL Reserve district. who in turr
would select local chairmen II he de
sired.
The district chairman and his com
mittae would assume responsibility lol
apuraising and certifying as to m
value of the assets of banks IN MS ols
trict that have closed since January !
r. F. c. Offers Facilities.
The immediate plan contemplate
dealing only with those banks tina
have closed this year, the inferenc'
being that banks which closed PRO
to that are already far along IN tn
process of liquidation or reorganization
The corporation may later look INTO tn
status OF those banks, however.
The Reserve District Liquidatln;
chairman will be offered the 1aclltle
of the Reconstruction Corporation; III
cluding ofice space and clerks ana eA
aminers. Under his direction ioca
committees will contact state pankIl
commissioners and the controller OF IN
currency, urging that receivers MAJ
applications for loans from the H. F. v
"Giyen the cooperation OF depositor
and state banking authorities. ther
annears to be no reason why ther.
should be any undue delay" Jones salo
The exact amount to be distributed
he added. depends upon the appralsa
of the actual assets OF each paik
President Roosevelt, announcing tn
formation of the board, said its pur
poses would be to bring about an or
derly liquidation, and to lend up U
.the reasonable liquidating value OF tn
collateral, reserving what seems TO o'
necessary to provide for taxes. interest
and expenses during the period o
liouidation.' The board has fixed nv
years as probable period for oroerl.
liquidation"
Appraisals on Hand.
The controller of the currency al
ready has in hand appraisals OF th'
assets of the 778 national banks taa
are still unlicensed. They have deposit
of s67l 100000 At the suggestion o
the President, these appraisals VIII o'
re-examined by the District ADVISOR!
Committees.
Jones said this meant reappralsa
In the light of changed conditions lathe
l;1o of
He said it would not be necessary where
such appraisals had already been made
to 20 through all the books again t.
arrive at sound liquidating value"
Money will be lent to the receiver!
and conservators on a basis of 4 pc
cent. Loans will be made up to maxi
mum of SO per cent Of banks deposits
inclusive of distributions heretofor'
made Where remaining assets ar
worth less than so per cent. deposition
will get only their share in the remain
ing assets, with the deductions To-
liquidating expenses and taxes.
Present plans call for the Deposit In
sIrance Corporation to take over tht
functions OF the Liquidating Bcart
after January l.
Jones said the board had available
all the money that would be necessar!
until Congress meets.
Text of Statement.
Jones statement follows:
The first meeting Of the Deposi
Liquidation Board was held this morn
ing to consider the program assigned
to it by the President. 1t will. through
the existing agencies of the Reconstruc
ton Finance Corporation and the new
q rdc Pres.
ident, proceed at once to bring abou
the release of deposits frozen in closee
banks wherever possible.
The agencies of the Government
represented on the Deposit Liquidation
Board already have in their hands 9
great deal of the information which
will be required for the task.
The Reconstruction Finance Corpo
ration previously has made many loan!
to closed banks for liquidating pur'
poses. 1t is not anticipated, therefore
that many new problems will arise
IN connection with the intensive effort
which will now be made to get intt
the hands of closed bank depositor!
every dollar which the assets of such
institutions will justify.
No Reason for Delay Seen.
THE machinery of the Reconstruc.
ton Finance Corporation, the Treasury
Department. the controller of the cur.
rency, the Deposit Guarantee Commits.
sion and every other related agency
of the Government is ready to proceed
with all possible dispatch
Given the cooperation of deposi-
tors and State banking authorities
there appears to be 10 reason why
there should be any reason for undue
delay.
while every effort will be made te
establish the full value of closed bank
assets the exact amount that can be
distributed will be governed by the
appraisal of the actual assets of each
closed bank.
The plan of operation will be to
select chairman OF the Deposit Lioui-
datipn Committee in each Federal Re-
serve district, this chairman and his
committee to assume responsibility for
appralsing and certifying as to the
value OF the assets of banks in his
district that have closed since January
i, 1888,
1t will be suggested to this chair
man that he use the facilities of the
r. F. G. agency, including Office space
and such clerks and examiners as in
his opinion will enable him to expedi-
tiously do the work.
Duties Are Outlined.
He will have the authority to ap-
point such committee or committees
as he wishes both at the home office
of the Federal Reserve district anC
branches thereof as well as such othel
sections of the district as would seem
advisable
1T will be the duty of these com.
mittees. acting under their chairman
to contact State banking commissioner!
and the controller of the currency
urging that they have their receiver!
make application for loans to tht
r. F. c. with as little delay as possible
When applications are in form they
should be forwarded to Mr.. c. B. Mer.
riam. director of the R. F. c. and heae
of the Deposit Liquidation Board, IL
Washington, for consideration by the
Deposit Liquidation Board and approva
by the directors of the R. F. C.