Evening star., 1933-04-04
BANKING RECOVERY.
TRACED BY WOOD|N.
Treasury Secretary in Forum
Commends Return of
Public Confidence.


last 16 days of the month, Secretary o.
the Treasury woodin assured thu
American people last night that "th'
work of restoring banks is going forwarc
rapidly"
The Secretary spoke in the National
Radio Forum arranged by The Wash
ington Star and broadcast over a coast.
forecast network Of the National Broad
casting Co. to inaugurate the series OF
forum addresses by members Of PreSi-
dent Roosevelt'S cabinet
Secretary Woodin explained the ad.
ministration policy for reopening banks
which still have not been returned tt
u 7"estricted banking. He commended
lie return of confidence" and the
public-spirited action by citizens re-
organizing new banks in certain cities
But the secretary told his hearers
that while the conservation policy Of
the administration under the emergency
bank act makes it possible to conserve
the resources Of national banks which
could not be Immediately reopened
some Of these banks cannot be re-
opened"
viii Guard Against Losses.
at Is the policy Of the administra-
tion," said Secretary Woodin, ito carry
on this work Of conservation in such
a way as to keep losses OF depositors al
a minimum and to secure orderly and
intelligent liquidation where liquidation
Is necessary. You may be assured" he
said, that values are not to be Sacri-
feed unnecessarily and that debtors are
to be given all reasonable opportunity
to work out their situation"
The Treasury Secretary reviewed the
bank situation from the time the new
administration took office, prefacing his
short address with the informal remark,
II am just going to chat about what
the Treasury has been doing since the
4th of March"
Il think that it is evident to ALL"
he said, that the Government is doing
at the job Of reconstruction with COM
mon sense and courage" He declared
the Government deserved the confidence
given to 1t by the people, said that the
administration would take steps in other
directions Ito relieve other phases of
the depression" and predicted that
with the kind Of support which you
are giving your Government will ac-
complish its great task"
Praises Economy Bill.
The economy bill he characterized as
notable achievement" estimating
that 1t would result in savings running
into hundreds Of millions of dollars. to
enormously benefit the Federal budget. {"
Tracing the development of the bank
crisis, the Secretary said that the plan
to restore facilities was based on the
plan to make it possible for all banks
having adequate assets to secure plenty
OF good currency, and then as rapidly
as possible, open all sound banks and
proceed to rebuild all others not
weakened beyond repair"
Following the national plan of "re-
opening only sound banks" the Sec
retary said that by the end of March
1887 national and Federal Reserve
member State. banks that had deposits
Of nearly $26, boo, 900 900 had been re-
opened. In addition" he said, more
than 1880 non-member State banks had
been reopened on an unrestricted basis.
This restored to the people and to
the business of the country, the use
OF the major part of the banking IA
cilities.''
Explaining the part played by the
Federal Government under the emer-
gency bank act to assist in reopening
banks. through aid by the Recon-
struction Finance Corporation, he said,
the Government is proceeding on the
basis OF supplying such capital where
conditions warrant on the plan that
not less than half the needed capital
would be furnished from private
sources"
Cites Detroit Situation.
The 289 national banks, with de-
reopened in the last 16 days of March,
the Secretary said, were made avail
able to the public on the same solid
basis as the banks reopened in the
first days. A total of nearly $50, ,00O, 900
OF new capital funds was put into these
289 national banks" But he explained
that in these institutions less than
$550,000 of new capital was to be fur
nished by the Government. Almost all
OF 1t was furnished by private sub
scriptions and contributions.
Such a record" said the Secretary
indicates the enterprise and resource
fulness OF the communities in which
these banks are located" The Secre-
tary specifically referred to the stu
alton In Detroit. He praised the Treas
ury organization, upon which he said
the situation had imposed a tremen-
dous task" and said the Treasury and
the Federal Reserve banks had re-
sponded with zeal and devotion worthy
OF the best traditions of patriotic ser
vice.
Referring to the large return flow OF
gold coin and certificates to the banks
the Secretary said that the volume of
outstanding currency was still greatly
In excess Of the amount required to
meet ordinary needs under existing con-
ditions. 1t should go back to the
banks, he said Return of boarded
money, he predicted. would give a
marked stimulus toward business re-
covery."
Text of Address.
Following is the full text OF Secretary
Woodin's address:
I hope that none of you will be sorry
to know that l do not make speeches
! EN- just going to chat about what the
Treasury has been doing since the 4th
Of March. Banking of course came first
We simply helped to put quickly into
effect some common sense ideas about
banking. The way in which the people
have backed up the leadership of oul
President in the common sense banking
plan has been real inspiration. Such
leadership and such support promise
well for the future of our country.
BY the first days of March so many
banks had closed that people became
fearful about almost all banks. The
rush to turn bank deposits into currency
placed great strain on the banks. Tc
stop this it was necessary to close al
banks for short period. This closing
which had already been effected ir
practically all States, was made nationa
by the Presidents proclamation Of
March 6.
How were banking facilities to be re.
stored? The plan which We adopted
was simple. 1t was to make it possible
for all banks having adequate assets t.
secure plenty of good currency ant
then as rapidly as possible open al
sound banks and proceed TO rebuild al
others not weakened beyond repair.
Emergency Act Passed.
AS soon as the plan was worked ou