Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-03-04
BANK BILL FOR D. c.
SIGNED BY HOOVER
Controller May Rule to Limit
Withdrawals to Safeguard
Depositors, if Necessary.

President Hoover today signed the
Copeland-Steagall resolution authoriz-
ing the controller of the currency to
make rules governing the receipt and
withdrawal of bank deposits in the Dis
trict Of Columbia's banks and trust
companies.
This authorization is In no wise
mandatory but can be taken whenever
the controller Is of the opinion such
action would be in the interest OF de-
positors and creditors Of District banks.
The controller is given this special
authority for q period Of six months,
but under the terms of the act the
President has the power to extend the
authority an additional six months.
The resolution was passed BY both
Houses of Congress yesterday shorty
after 1t was introduced by Senator
Copeland. Democrat, of New York.
Situation Explained.
Leaders in the banking business here
pointed out that in view OF the ap-
preaching adjournment of Congress 1t
was considered by the leaders OF the
Senate and the House, and by the Sec
rotary of the Treasury and the con-
troller of the currency, that the Dis
trict of Columbia should not be lett
without any law enabling United States
Treasury officials to prescribe needful
regulations for the protection OF de-
poSitors. Before Congress acted yester-
day, 80 States had adopted laws under
which Withdrawals of deposits are be-
ing restricted temporarily. There was
no authority vested in any officer OF the
Federal Government to take any action
regulating deposit Withdrawals until
Congress passed the Copeland-Steagall
resolution. The terms of the law
are very broad. The controller OF
the currency is to make regulations
only SO far as necessary and he may
apply them to some banks and not to
that action wise.
The opinion was prevalent in banking
and business circles that banking con-
ditions throughout the District have
been greatly strengthened by it.
Text of Resolution.
The text of the resolution follows:
Resolved, by the Senate and House
of Representatives of the United States
of America in Congress assembled
That, with the approval of the
trol.er of the currency, whenever he Is
of the opinion that such action Il
necessary for the protection Of the in
terests of the depositors and Other
creditors Of any incorporated bank and
(or) trust company doing business in tht
District of Columbia, and that such
action Is in the public interest, is hereby
authorized and empowered to prescribe
such rules and regulations as he deems
advisable governing the receipt anc
withdrawal Of deposits by and from any
such bank and trust company, which
rules and regulations shall be binding
upon said banks and trust companies
That, 1t shall be lawful for any In
corporated bank and trust company II
said District to comply with such rule!
and regulations promulgated by the
| controller Of the currency.
Nothing herein shall be construed
to impair any power otherwise possessed
| by the controller of the currency, thu
Secretary of the Treasury or the Fedora
Reserve Board.
! That all powers herein conferred
shall terminate six months from TIT
approval of this joint resolution by thu
President of the United States, but n
may extend the force Of the provision
hereof by proclamation for an add
| tional six months.
This resolution is hereby declared II
be an emergency law necessary for tn
immediate preservation of the public
peace, health and safety"