Evening star., 1934-01-08
SEEN
! ON BANKING LAWS
Open Outbreak to Amend De-
f,poSit Insurance Guaran.
tee Is Predicted.
~ the Associated Press.


Banking leaders in the capital were
fetting ready today for an extended
congressional controversy over banking
laws, and threats and challenges prom
ised plenty of action.
Several party chiefs feared there
would be an open outbreak as soon as
sufficient support could be mustered by
those who want to amend the 1883
banking act with its deposit insurance
provisions.
On the one hand was the strong
House group largely responsible for en-
actment of deposit insurance despite
the lukewarm attitude of Senator Car
ter Glass, Democrat, Of Virginia; on
the other was insistence by Glass upon
permission of branch banking in States
which specifically authorize it.
Insurance of deposits up to $4,000
became effective January l. On July l
It Is to be extended to all deposits on
a percentage basis-l00 per cent OF
$4,000 and so per cent on those over
$4,000.
Glass VS.. Steagall.
Glass argues that the Federal Reserve
membership requirement OF the present
deposit insurance law will make for
sounder banks Chairman Steagall,
Democrat of Alabama, of the House
Banking Committee replies that scores
of State banks which are just as we'll
managed as national institutions might
be forced to close because Of the re-
ouirement, since they would not have
sufficient capital to join the Feoeral
Reserve system.
Talk is being heard in the Senate
of delaying permanent deposit insur-
snce for another year-until July l,
1895. Steagal said today that II such
q bill passed the Senate and came to
his committee. he would insist that 1t
be amended to include "a direct ban
against branch banking and removal of
the requirement for Federal Reserve
membership"
IF I don't put in bill to let State
banks insure their deposits without
joining the Federal Reserve, somebody
will Steagall said We will have to
get rid Of that restriction before July
/, 1886"
All Banks Reached.
Meanwhile j. F. T. O'Connor, the
controller of the currency, said yester-
dav that every national bank in the
United States which was unlicensed on
March l6 following the banking holl-
day. has been acted upon in some man
ner" by his Office.
such institutions" he said. have
either been opened, merged, sold to an
other bank, absorbed by another lnsti-
tuition. placed in receivership. received
approved reorganization plans or re-
ceived disapproved reorganization plans.
There we're l,439 national banks
(including 10 non-member banks In
the District of Columbia. which are di-
rectly under the controllers superV1-
sion) unlicensed and in the hands OF
conservators on March 16, 1888, while
subsequent to that date seven other
national banks were placed in charge
of conservators- Total deposits for
$4,000 (based on the December, 1882,
'call.)
All Considered.
"At the close of business on Decem-
Der 30, 1888 there were but 448 un-
licensed national banks in the country
and every one of these institutions had
been considered by the controllers Of
flee. OF the total, 337, with 1884, ,570,-
600 frozen and S25,8l3,000 unrestricted
deposits. had received N)proved reor-
ganization plans while Ill banks, with
$72, ,458, 900 frozen and $4925000 unre-
stricted deposits. had received dSap-
proved reorganization plans.
National banks which have received
approved reorganization plans from the
controller of the currency can open just
as soon as the provisions of the ap-
prevails are carried out. Banks which
have received disapproved reorganiza-
ton plans may yet be opened if salts
factory plans are submitted to and ap-
proved by the controller.
More national banks were opened
during the month of December than In
any previous month since March.
Throughout last month, II national
banks. with s78628,7O3 frozen and
s4,124.00O unrestricted deposits, were
licensed and opened or reopened. This
compares with 46 national banks
having $51 ,706,000 frozen and $4,28T-
900 unrestricted deposits. licensed and
opened or reopened during the month
of November In October 40 national
banks received licenses"