Evening star., 1934-11-05
HOPES TO ABOLISH
RELIABILITY
A. B. A. Seeking Legislation
for National Banks, Flem-
ing Declares.
BY EDWARD C. STONE.

BY EDWARD c. STONE.
National legislation to eliminate
double liability Of national bank
shareholders is being sought by the
Americap Bankers Association, ac-
cording to the report made today by
Robert v. Fleming. president Of the
Riggs National Bank and chairman of
the A. B. A. National Legislative
Committee.
The present law applies only to
stock issued after it became effective,
Mr.. Fleming explains. Senate bill
1855, which would apply the elimina-
tion to pre-existing bank shares, re-
ceived the associations support. but
failed of passage in the pressure Of
the closing hours of the last sessio.
of Congress.
The committee believes the intro
duction of similar legislation at the
next session Of Congress Is desirable
and We are hopeful of success in
securing its enactment" he says.
Deposit Insurance Reviewed.
In discussing the postponement of
the effective date Of the permanent
fund under the Federal Deposit In
surance Corporation and the exten-
sion Of the terms of its temporary
fund for another year, carrying with
1t an increase in the insurable amount
of a bank deposit from $4,000 to
5000. Mr.. Fleming stated that about
81 per cent of the deposits in bank
members of the fund we're fully
covered under the smaller amount
and that only a negligible increase in
coverage has resulted from the higher
figure.
Another measure in which his COM
rsittee took special interest, he re-
ports, was the national securities ex-
change act in so far as 1t handicapped
in its original form the management
OF banks Following many confer
ences with Government representa-
tives. amendments we're embodied in
the bill, the report says. by which the
law was made more workable without
interfering with the normal functions
of bank and yet providing the check
upon speculation which Congress and
the administration felt was desirable
and demanded by the public
Particular attention is directed in
Mr.. Fleming's report to the co-opera-
ton which his committee extended to
the Federal Department of Justice in
working for the adoption Of the Fed
eral crime bills sponsored by Attor-
new General Homer S. Cummings,
aimed to curb the operations of GRIM
inals and gangsters, the measure
most directly affecting banking being
one which makes robbery in connec-
ton with a member Of the Federal
Reserve System Federal criminal
offense.
Bank Bills Studied Closely.
"Your committee. Mr. Fleming
continued made careful studies Of
the effect of all bills introduced in
Congress affecting banking and en-
deavored not to be obstructive but.
on the contrary, to offer constructive
suggestions for betterments in the
law. However. where proposed legis-
1atlon was of such a character that
its enactment would not have been
in the best public interest. vigorous
efforts were made to protect the in
terests of the public and of our men,
bership
Il am pleased to report that in all
these contracts with the heads OF
Government and Congress, courteous
attention was given to the viewpoints
we expressed and it is my belief that
the administration realizes that the
policy of the American Bankers As
sociation is constructive one rather
than one of arbitrary objection to all
proposed changes in legislation az
fecting banking"
Chairman Fleming also expressed
assurance that the banks Of the
country will cooperate to the fullest
possible extent in the Federal Hous-
ing Administrations repair and
modernization program toward the
success of this movement, which
should greatly assist in the employ
ment of labor. consumption OF ma
terials and in putting idle funds to
work"
He points out that large part Of
the research and formulation Of rec
concentrations making up the basis
of committee action was carried on
by the special Committee on Pro-
posed Revision of Banking Laws. ap-
pointed at the Chicago convention of
the association in 1888. Mr.. Flem-
ing served as chairman of this lat
ter committee likewise
Today's Trading on Exchange.
On the Washington Stock Exchange
today interest centered largely in Cap
ital Traction SIS. During the session
three 81 900 transactions and two $500
sales took place at 81, unchanged
from other recent transfers. The only
other transaction was nine-share
sale of Riggs National Bank common
stock at 205. The stock closed with
2l0 bid and 220 asked. 1t was an
nounced that the exchange will be
closed tomorrow. Election day, when
the New York Stock Exchange will be
closed
Eugene E. Thompson. head of the
Associated Stock Exchange. has re-
turned from Boston where he attended
the Tooth anniversary of the founding
Of the Boston Stock Exchange. The
event was given much more than
passing notice.
The New York Stock Exchange re-
ports that the contraction of broker
age activities during the year, up to
November |, had resulted in the clos
ing OF l09 branch offices, leaving 1,106
open branches located all over the
country.
Leo T. Crowley chairman of the
Federal Deposit Insurance Corp, be-
1ieves The sharp increase in bank de-
posits will result in substantial busi-
ness recovery. History shows that
money never remains idle indefinitely.
and there is no precedent for money
remaining idle as long as it has al
ready, he adds.
Certificates OF insurance have been
issued to Ill Federal savings and loan
associations and State-chartered thrift
institutions located in 81 States by the