The Washington times., 1934-04-05

y ~ 4O4AO w A4A5
statement:
"A 6 itati0n
for the en-
act m ent by
Congress Of q DUNBAR HARE
law to pay the losses sustained
by depOsitors in closed banks
affiliated with the Federal Re-
serve System calls attention to
the fact that, since January l,
1884, the possibility Of repeti-
tiOn Of such losses has been
largely eliminated.
"The temporary insurance
fund, which began operations
the first of the current year,
insures, in full, deposit &C.
counts up to $2,5OO in 1852
banks in every section Of the
country.
PROTECTION EXTENDED
"While the proposed Federal
law would provide only for the
repayment Of losses sustained
In national banks and in state
banks holding membership in
the Reserve System, the pro-
lection extended by the insur-
ance fund applies to state non
member banks as well. OF the
1852 banks holding member
ship in the fund, 1892, or 54.7
per cent, are state banks not
affiliated with the Reserve Sys-
TEN, 5,275 are national banks
and 915 are state banks be-
longing to the Federal Reserve
System.
"The insurance fund now in
effect was originally scheduled
TO be succeeded by the per-
manent insurance fund on July
I, 1884, and, by the provisions
Of the latter, deposits up to
$4,000 would be insured in full,
deposits from $4,000 to $4,000
would receive IS per cent pro-
lection and deposit accounts in
excess Of $4,000 would be so
per cent insured.
However, there has been con-
siderable sentiment for pro-
longing the present fund-in-
suring individual deposit &C
counts up to- $2,5OO only-fOr
another year after July l,
next"
The committee of specialists Of
the New York Stock Exchange
today filed with the Banking
and Currency Committee of the
Senate a supplementary petition
In respect to the national securi
ties exchange bill.
Included in the petition is q
letter from DR.. G.. Wright Hoff-
man, professor of insurance at the
University of Pennsylvania. He
said in part:
Gas now drawn, the bill pro-
videS for a complete separation
Of the broker function from the
trader function for all members
operating on the premises of an
exchange. In principle 1 believe
this to be . desirable move
though am not convinced that
It should be put into force
throughout inflexible provision
In the law.
"Rather it seems to me the
law should grant to the Federal
authority designated to enforce
the act full power to make such
. separation of function in such
manner as its judgment dictates.
The business Of the specialist, as
at present maintained on an ex-
change, is an extremely techni-
cal matter. If q separation Of
the dealer broker functions is to
be made, it should be done grad
ualIy, in the more active stocks
first, with careful study and OBJ
servatiOn of the effects upon the
market. As experience is gained,
the list of stocks could be ex-
tended and methods adopted in
the light Of this experience
which would result in the best
possible application of the law
to the market"
Norman r. Hamilton, receiver
for five of the seven closed banks
that went into the Hamilton Ma
tional Bank, returned yesterday
from an Easter vacation with his
family at Portsmouth, Va.
Gibbs Lyons, Of the Treasury
Department, returned yesterday
from a visit to his home in Geor'
gia. Like John F. T. O'Connor
Mr.. Lyons processes ignorance oi
any immediate move to assess
stockholders of closed local banks
Municipal, State
Bond Issues DrOE
New State and municipal bone
issues approved by the voters Of
e5 municipalities in 20 State'
during March totaled $5,4l0.32O