Morgan County Democrat. (McConnelsville, Ohio) 1886-1943, 1933-02-02
Redemption OF Platform Pledges

Redemption of Democratic state
platform pledges to revise and
strengthen banking laws and build
ing and loan regulations to safe
guard depositors was urged upon
the Ninetieth general assembly as
solemn obligation this week. In
collaboration with Theodore Tango
man. state director of commerce,
Governor George White has worked
ont remedies for the conditions that
have handicapped hundreds of thou
sands of thrifty citizens whose mon
ey has been frozen in financial IN
stitutions crippled by extraordinary
effects of the depression.
Principal reform in building and
loan operation proposed by the ad-
ministration is sought through leg
islation empowering the state to as
sist in liquidation of these mutual
organizations Such power is now
employed by the state in supervis-
ion of banks. Building and loan
experts to whom the chief execu-
tive's program has been submitted
agree that its extension to their
institutions will eliminate in the
| future many difficulties that have
been encountered in the past two
years.
Just as the state has been able to
intervene in the interest of deposl-
/ tors of distressed banks, to free as
! sets and to reorganize the banks, 1t
will be able to take over building
and loan companies under the sug-
I gested statutory revisions.
! Benefits of the federal Recon
struction Finance Corporation poll
cies also will be made available for
/. building and loan associations
! through the governors plan.
! Emphasizing his determination
! to make protection of depositors in
building and loan enterprises a
major accomplishment of his sec
ond term, Governor White thus
| counseled the lawmakers:
'The ultimate ability of most OF
these associations, when properly
and economically managed to pay
/
! doubted by those of us who still
! have faith in the assured future OF
! our state.
| Notwithstanding the difficulties
! some degree of relief can, however,
be furnished by the solvent associa-
! tions to those most in need, and this
must be recognized by the associa-
tions as moral obligation, the
penalty for violation being more
/ severe and often more certain than
\ the violation of a legal duty.
'In those cases where building
and loan associations should be
/ liquidated we have been confronted
, with the drastic alternative of re-
, ceivership with all attendant eX-
| penses and destruction usually ac-
companying such procedure.
"It is clearly apparent that some
method of dealing with. these insti-
tutions must be devised which will
avoid the unbearable overhead eX-
penses and at the same time avoid
! hasty and unwise liquidation.
building and loan associations
which have been SO unWisely man.
aged that they are really unsound
and in cases where public welfare
| requires a dissolution, must be re-
moved from the class known as
1 building and loan associations lest
I in the public mind they contami-
nate the entire body of sound insti-
tutions and for fear that uninform-
ed persons may entrust their saw
ings to those institutions This
should be done by methods less de-
structive than the only method now
provided.
'Liquidating or realization cor
porations, owned and controlled by
the depositors and stockholders Of
the present building and loan cor
porations may insure orderly, eco
nomical and equitable liquidation
and be for the best interests of the
depositors, stockholders, and the
community at large.
"The existing law must be
strengthened with regard to SUI
pervision and new laws be framed
which will prevent a continuance or
racurrepce Of the conditions now