Evening star. [volume] (Washington, D.C.) 1854-1972, 1934-06-11
ATTITUDE CHANGE
! URGED FOR BANKS
Crowley Holds Defensive
Methods Seriously Hamper
ing National Recovery.

BY the Associated Press.
SARANAC LAKE, N. Y, June IL
Leo T. Crowley, chairman Of the
board of the Federal Deposit Insur-
ance Corporation. called upon bank
ers of New York State to don new
garments of aggressive leadership" in
an address today to the State Bank
ers' Association.
Declaring the bankers should drop
the defensive attitude which has so
seriously hampered national recovery"
Crowley urged them to try on these
new robes and to assume the attitude
Of optimism which accompanies the
purchase of new dress"
Sees Confidence Return.
THAT there is a strong return Of
confidence in progress today" he said,
''is shown by the fact that your cor
respondent relationship is larger now
than it has been for the past two
years.
ION May 30 the Federal Reserve
Board reported that member banks in
the New York district had balances
from other banks Of better than 500
million dollars. This was an increase
Of about ATS million dollars since the
first Of the year. On the same date
demand deposits in the same group
Of banks were well over six billion
dollars, in excess of a billion dollars
more than at the turn of the year.
When this upward surge is con-
sidered to have taken place in spite
o. regulations preventing payment of
interest on demand deposits, it may be
seen that it represents genuine gain
o. confidence among bankers"
Lack of confidence among depositors
throughout the country reacts more
seriously for banking in New York, he
said, than loss Of trust on the part Of
bankers.
Let confidence waver in some Sec
ton Of the country and the banks in
it Immediately draw on their New
York reserves" he said.
Discussing many phases of the bank
situation. Crowley said his organiza-
ton was receiving many requests from
banks that they be released from their
r. F. C. commitments, but that 1t was
not the corporations policy to assist
the banks in bringing about such
release.
Cites u. S. Aid to State.
Crowley offered a resume Of the
expenditures by the Federal Govern
ment to help New York out of the
depression He said the Home Own
ers' Loan Corporation closed 1858
loans up to May IS, involving a total
of S92. 600 900. that the Farm Credit
Administration had refinanced debts
of $4,000 900 to New York banks in
its first IL months of activity, and
that the Public Works Administration
allotted $l56,000,0o on non-Federal
projects and $4,000, 900 on Federal
projects within the State.
In other words" he said, ''the Fed
eral Government has already made
commitments far in excess Of $9l2,-
000, 900 in this State The extent of
Federal financing, then, on various
phases of the recovery program which
directly benefit the people of New
York Is close to one billion dollars. "
Discussing proposed changes in the
deposit insurance law, he said the
directors of the corporation wanted
the present temporary fund" ex-
tended for another year "in order that
we may study deposit insurance in the
light Of actual experience and in
order that we may recommend def
mite legislation which will place de-
post insurance on a sound and scien-
tific basis"