Evening star., 1933-06-16
BANKING ACT GIVEN
CLOSE STUDY HERE
Financiers and Depositors
Both Deeply Concerned
in Provisions.
BY EDWARD c. STONE.

BY EDWARD c. STONE.
washington bankers are studying with
intense interest the far-reachlng Glass
Steagall banking act, as finally adopted
bv both branches Of Congress, Whlle
bank depositors are equally concerned
in the measures taken for the better
protection of their funds through the
expected strengthening of the country's
entire banking structure.
Insurance of bank deposits, d1vorcing
of afiliates, elimination OF oouple
liability upon national bank stock
holders. curbing of private banking and
extension of branch banking are among
the main provisions of this measure
which President Roosevelt considers the
"most important bank legislation passed
since the adoption OF the Feoeral
Reserve act"
Features Summarized.
Main features of the bill are sum-
n,arized today by the Wall Street Jour-
nal as follows:
It eliminates the double liability I'M
posed upon national bank stockholders
with respect to shares issued a1ter tne
date of enactment of the act
It creates a Federal Open Market
Committee of IL members, representa-
tives of the II districts.
n creates a Federal Deposit Insurance
Corporation to insure deposits OF all
member banks in the Federal reserve
system, effective on ana a1ter July l,
1884, unless the President snali py
proclamation fix an earlier oale. ~
NAV insure deposits of all non-memoer
hanks who are class A stockholders OF
the cornoration, after the same date, put
insurance for non member banks WILL
expire July /, 1886. -
treasury Department is authorized 10
subscribe $150,000,000 to new corpora
tion: and capital of corporation Is 70
ba divided into class A and class b
shares the former to be held by mem
her and non-member banks ana laIVer
by Federal Reserve banks;
The Federal Deposit Insurance cor
poration is authorized to issue ana 10
have outstanding notes, debentures ana
bonds aggregating not more than three
times its capital;
THE corporation will open on its books
q Temporary Federal Deposit Insurance
Fund which shall become operative on
January l, 1894, unless the Presldent
shall by proclamation fix an carrier
date" to insure deposits OF memper
banks until July l, 1884;
Terms Are Defined.
It empowers the Federal Reserve
Board to exercise special SUPERVISION
over all relationships and TRANSACTIONS
of any kind entered into by any FeaeIdl
Reserve bank with any foreign pank
or banker; ,- ero,,,
acting as the medium or agent for any
non-banking firm or individual IN max
ing loans on the security OF STOCKS,
bonds and other investment securities 10
brokers or dealers in stocks, bonos anu
other investment securities;
IT prevents member banks, directly
or indirectly, paying interest on oe-
mand deposits, with specltlc excep-
tions, and it empowers the Federai Re-
serve Board to limit, by regulation, tne
rate of interest to be PAID py meuioef
banks on time deposits;
II provides that after one year from
enactment no member bank shall be
afiljated in any manner with any un-
dervriter or distributor of securities,
IT permits national banks, with the
annroval of the controller OF currency,
to operate branches within the limits
of CITY. town or village in which salo
association Is situated, If such eStab-
lishment and operation are at the time
expressly, authorized to State banks,
and at any point within the State,
under certain restrictions;
It defines terms under Wnlch natlonai
banks may consolidate;
After the expiration of one year 1t
will be unlawful for any person or
firm engaged in underwriting or dis
tributing securities to engage In the
business of receiving deposits subject
to check or to repayment upon pre-
sentation of a passbook, certlflcate OF
depositor, or other evidence OF debt"
Otterback Chairman of Board.
After 43 years in the banking busi-
ness. Maurice Otterback retired yester-
day as president of the Anacostia Bank,
was elected chairman Of the board, and
j. Frank Campbell, vice president of
the bank, was elevated to the presi-
dency. Mr.. Otterback requested that
he be relieved of the active duties OF
president, but as chairman of the board
will share full responsibility in the
operation of the bank.
Mr.. Otterback started his career in
the National Capital Bank in 1890. In
1906 he became manager OF the Ana
costa Bank, then branch OF the Un-
ion Savings Bank When the institu-
ton became a State Bank in 1910, he
was elected cashier and on May l, 1918.
was elected president. He is president
OF the Eastern Building & Loan Asso-
ciation and a member Of many civic,
fraternal and charitable organizations
in the District of Columbia.
Mr.. Campbell, the new president, was
a successful hardware dealer In Ana
costa for many years before entering
banking.
Comment in Financial District.
Trading on the Washington Stock
Exchange was light today. Mergenthaler
Linotype sold at 81, 81 900 Anacostia g.
Potomac Railroad first SIS at 43 and
Potomac Electric Power per cent
preferred stock at 1104.
The Treasury Department has invited
tenders for 9l-day Treasury bills, dated
June 2l, to the amount of 100000, 600
or Whereabouts Tenders will be received
up to pm, Eastern standard time,
June 10.
The Interstate Commerce Commission
has approved loan Of S6,000.000 to the
Great Northern Railway Co. by the
Reconstruction Finance Corporation for
a three-year term, to be used to pay
funded debt interest due July /, 1888
The trunk line railroads operating
from New York, Philadelphia, Baltimore
and Washington and other points in
the territory east of Buffalo and Pitts
burgh announce reduced fares to the
Chicago World Fair
Chemical Bank & Trust Co., New
York, has declared the regular quarterly
dividend of 45 cents, payable July /
to stock OF record June l9.