Evening star., 1933-03-03
BANK BILL PASSES
MARYLAND. SENATE
Upper Chamber Approves
Emergency Legislation
Without Debate.
sya stan Correspondent of The star.


Bya Stan Correspondent of The Star.
ANNAPOLIS. Md, March s.-With
Senate passage Of the emergency bank
today, state ofiicials were busy work
ing out details for reopening Of Mary
land banks as soon as possible, possibly
Monday.
The senate action was taken without
debate.
When the legislation goes into effect
the rate Of Withdrawals will be uniform
throughout the State, at least at first,
1t appeared probable today. Belief that
the rate should be uniform was ex-
pressed by a ma jority Of bankers from
all sections Of the State who conferred
with Bank Commissioner John j. Chin
CHER In Baltimore last night, although
the emergency bank bill gives the COM
missioner the power to fix the with
draWal rate in each bank separately.
T. Howard Duckett Of the Prince
Georges Bank g. Trust Co., and Eu-
gene Little of the Citizens Bank Of
Laurel represented Prince Georges and
the Southern Maryland counties at last
nights conference, while Montgomery
County was represented by Richard r.
Green OF the Farmers Bank d Trust
Co., Rockville.
Baltimore Bankers Called.
Gov. Richie summoned Baltimore
bankers today to present the condi-
tions in their institutions to Commis-
sioner Ghingher.
II will not be in a position to end
the bank holiday by Monday unless the
bank commissioner has the advice Of
the banks of Baltimore City as to the
conditions which they believe should
govern the reopening," the Governor
said.
Described a. one Of the most drastic
acts ever to gain progress in the Mary
land Legislature, the bank measure to-
day reached the third and final read
ing in the State Senate.
The proposal, after it had been draft
ed at conferences Of State ofncials and
financial leaders In Baltimore and re-
viewed and amended by Senate commit
tees. last night was presented to the
Senate in a favorable report. which was
accepted by q viva voce vote.
Leaders in the House Of Delegates
pushed other legislation aside in prepa-
ration to receive 1t and to carry 1t
it to committee hearings. The body
also planned to remain in session Satur-
day and possibly Sunday in an effort
to get the bill to the Governor for his
signature.
The principal features Of the Mary
land emergency banking bill as amended
and moved for final vote in the State
Senate today are as follows.
The State bank commissioner to take
custody and management Of all bank
ing institutions for one year and per-
hitting extension Of control another
year in the discretion of the bank COM
missioner. the Governor and the attor-
ney general.
Legal Remedies Barred.
The suspension Of all remedies at law
or in equity against the banking insti-
tutions during this period. This sus-
pension would not apply to new de-
posits made after the banks begin to
function under the new control sys-
tenn.
The restriction Of Withdrawals, with
certain exceptions, by the bank commits
sioner on a pro-rata percentage basis
to be determined by him after a survey
of the States 205 banking institutions.
The exclusion from the withdrawal
provision of all checks drawn on or be-
fore February % for the payment OF
taxes to the State or any political sub
division, and presented for payment up
to that time. These would be paid In
fun.
The exemption from the withdrawal
provision Of funds collected by receivers
Of defunct banks and placed on deposit
in others.
The empowering Of the bank commits
Aoner to permit in his discretion the
determined by him or reserve funds
deposited by one banking institution
with another.
The transfer Of all unsecured State,
county. municipalities, town or taxing
district funds now on deposit to the
status Of new deposits Immediately.
The continuation Of surety bonds and
collateral on public funds on deposit
to the term Of the extension Of pay
ment resulting from the emergency act.
The reorganization Of any institution
which cannot meet its obligations under
the supervision of the bank commission
er, If SO decreed by its board Of direc-
tors and not blocked by action of stock
holders. creditors or depositors.
Dividends Suspended.
The suspension Of the payment Of
dividends to stockholders by any bank
under custody and management Of the
bank commissioner, except with his
written approval.
Crowds of bankers. politicians, busi-
ness men and depositors thronged the
State House all day yesterday seek
ing news of the bill. and finally packed
the Senate chamber when the members
Of the Finance and Judiciary Com
mittees. worn by l8 hours of almost
continuous meeting, filed in to report
the bill.
Three Senators took the floor to
comment on the measure. Senator
Lansdale G. Sasscer Of Prince Georges,
Finance Committee chairman, said the
one paramount thought of the COM
mittee was the protection Of the de-
positors and the public in general"
Senator ]. Allen Coad Of St. Marys
County pointed out that there was no
precedent to guide the committees in
formulating the legislation. and said
that although the measure would work
some hardships, its final benefits would
apply to all.
Individual selfshness was blamed by
Senator David G. Mcintosh, jr., Of
Baltimore County for the condition
causing the bank holiday, making the
proposed legislation necessary ito pro-
tect the people from themselves"
While the committees were still
studying the amendments, several
Prince Georges County ofncials, who
have been unable to pay the county
school teachers or others on the public
pay roll. appeared at the State House.
They were told that under the terms
Of the bill collateral posted as security
for the county's bank deposits could be
used to meet the county pay roll.
Unable to Borrow.
Neither the county school board nor
the county commissioners of Prince
Georges can borrow money for emer-
gency purposes and Q suggestion was
advanced that q local bill be passed
giving them power to borrow up to the
amount of their secured bank deposits.
More than SO requests for informa-
ton concerning the Maryland act have
been received by Bank Commissioner
John j. Ghingher from elected officials
4 ~ Ntnor Cfofae ond fodau