Evening star., 1933-10-15
Institutions Outside Federal
Reserve Seek Admission
to Guarantee Fund.
RAPID PROGRESS NOTED
BY TREASURY LEADERS
Examination Task in Charge of
Hundreds of Especially As
signed Financial Experts.
BY EDWARD C. STONE.

By EDWAhD u. SIONE.
Every one of the 10 banks in Wash
ington, which are not members of the
Federal Reserve System, already has
applied for membership in the Federal
Deposit Insurance Corporation, it was
learned in the financial district yes
terday.
Earlier in the week Walter j. Cum
mings, chairman of the newly organized
insurance board, stated that nine out of
ten of the local non-member banks
had filed their applications for mem
bership, this action giving the District
Of Columbia a higher percentage record
than any of the 48 States.
The local banks now have scored 100
per cent in their applications and stand
ahead of all the rest of the country, so
far as the percentage basis is concerned.
There was no delay in the filing OF the
final application. it merely being held
for approval of the regular meeting
date of the board of directors.
The insurance corporation is IN
charge of the guarantee of deposits IN
all the banks in the United States, the
new law going into partial effect on
January l. During the first six months
of 1884 deposits will be guaranteed up
I.OO
amount of protection shall be increased.
More than 25 per cent of all the
State banks in the country already have
applied for membership in the 1nsur-
ance organization. which is under ]urlS-
diction of the Treasury Department; up
to the middle of the week 2,171 appllca-
tions had been received from non-mem-
Der banks, remarkable speed in the
opinion of J. F. T. O'Connor. controller
cNnSidp~jnD that the
application blanks were not mailed Out
until September II.
Examinations Being Rushed.
Applications are being received by
the Treasury at the rate of 200 a day.
So far, Indiana has sent in the most
applications, with Pennsylvania second
and Minnesota third. Both Controller
O'Connor and Chairman Cummings are
sure that all examinations Will nave
been completed before the deposit saIety
plan goes into effect as the new deal
enters the new year.
For the examination work, 47 ma
tional bank examiners have been MADE
supervising advisers in charge OF states.
To assist them in handling the lnsur-
ance fund examinations, 799 other eX-
oerienced examiners have been appoint
ed to this tremendous task.
Depositors are looking forward to
the n.w safety era with marked en-
thusiasm. A great increase in BANK
deposits is predicted. They say bank
vaults will bulge with money now IN
postal savings and in hundreo other
places. s,,
to ask Congress to amend the law. to
kee, the maximum insurance at S2,5O0
or less. Recently it has been discovered
that over s5 per cent of all bank de-
nositors have $500, or less, in their
accounts That carries protection Tar
enough, says opponents to the plan
Some bank officials would also IKE
to see a congressional amendment CIV
ing each bank the right to decide 1oa
itself whether it will be in the insurance
corporation or stay outside
First Bank Holiday in 1871.
Cyril B. Uphar1, of the Brooklngs
Institute addressing the forum meetlng
of washington Chapter, American IN
stitute of Banking, made very inter-
esttng reference to the history OF BANK
holidays. 1t appears that Mrs. OLearyS
cow. when she kicked over that lantern.
had a great deal to do WITH tne hrst
one. Mr. Upham said:
"The first banking holiday in the
Tinted states of which there is any
definite record occurred in connection
with the great Chicago fire in 1871:
The buildings in which II OF the l6
national banks of that city were housed
were totally destroyed. Nevertheless,
the banks were able to resume buSl-
ness within eight days after the con-
f1agration in temporary quarters In
1872, he said, there was a disastrous
fire in Boston, and the banks were
closed, some for two days, others 1or
four. .. eu,
Mr.. Upham continued, at which time
the Governor of Maryland, by procla-
nation, declared legal holiday ex-
tending from February to %. Two
wears later the earthquake and fire in
San Francisco virtually destroyed the
bank buildings of that city Contlnu-
ing legal holidays were declared by
proclamation of the California chief
executive extending over the period OF
the emergency which lasted from April
18 to May 23
"The recent epidemic of banking
holidays had it's origin, Mr. Upham said,
in so-called mayors moratorla IN
MANY small towns and cities. especially
. in the Middle West and the North
west Nevada was the first State to
declare a State wide holiday. he said,
and was followed by Louisiana, Mich
igan. MARYLAND and other States in
rapid succession, eliminating in the
Nationwide bank closing order OF Presl-
dent Roosevelt"
Tabler Associated With Ferris.
Otis F. Tabler. formerly associated
with Gillet g. Co.. and later having
an investment securities corporation OF
his own, has become connected with
George M. Ferris & Co., investment
bankers in the Washington Building.
It was announced yesterday.
Graduate of George Washington Law
School and the Georgetown School OF
Foreign Service, Mr. Tabler is men,
her of the District of Columbia Bar.
washington Bond Club and Kappa
Sigma, Phi Delta Phi and Delta Phi
Epsilon Fraternities. He is 81 years old.
During the World War he held
commission as captain in the Army Air
Service. Entering the investment
security business in Washington IN
1921, he was first with the firm OF
Brooke, Stokes & Co. He was with
Gillet & Co. from 1922 until early in
1881, when he entered business for
himself, dissolving the firm only re-
Gently to become connected with
George M. Ferris. The new deal is
already in effect.
HOSIERY PRICE THREATENED.