Evening star., 1934-07-06
GUARANTY FUND
SHOWN IN ACTION
East Peoria DepositorS Get
First Benefits Under
Safety Act.
BY HAROLD B. ROGERS.

Payoff of depositors in the f. It
failed bank to be insured, under the
Federal Deposit Insurance Corpora
ton, at East Peoria, H., has drawn
Nationwide attention to the new
security thrown around depositors in
insured banks, and is expected to have
beneficial influence throughout the
country.
Ninety-nine per cent of the in
dividual oepositors in the little Fon
Du Lac State Bank, in East Peoria,
will receive the full amount of funds
they had on deposit from the Federal
Deposit Insurance Corporation it has
been officially estimated.
w. Kenneth Hayes of the F. D. I. C.
returned to his desk here today from
East Peoria, where he personally
handed the first check to the first
depositor in the country to benefit
under the new law, widow who had
her entire savings of $3.50 restored
to her. The family had been hard hit
by the depression, Hayes said and
Mrs. Lydia Lobsiger. the depoSitor, had
told him that she desperately needed
the money"
The pay-off. which started July 3,
marks the first time in the history OF
the United States that depoSitors in
a closed banking institution have
been protected against loss through a
national system of deposit insurance.
Deposits of the bank at the time of
closing amounted to S24l, ,412.86, while
the number of depositors was 1,789.
Individual depositors were insured up
TO $4,000.
ID. c. Banks Insured.
Every one of the 81 open banks in
the District of Columbia is insured
under the Federal Deposit Insurance
Corporation. under the new limit,
which on July l, was increased from
$500 to $1,000. This insurance is
known to have had a substantial effect
In increasing confidence on the part
of the public in local banks, following
the closing of 13 institutions here
after the Presidents holiday in March,
1888.
Out of those 13 banks which we're
refused licenses to reopen after the
banking holiday the largest dividend
paid so far has been 65 per cent, with
most of the banks, however. paying
so per cent. one paying 40 per
cent, and three, the United States
Savings Bank, Park Savings Bank and
Industrial Savings Bank, paying no
dividends yet
Receivers are working on assets of
all these institutions, and the United
States Savings Bank was on the verge
of paying 65 per cent last Monday.
but this was blocked by a new suit filed
by Col. Wade H. Cooper, former presi-
dent Of the institution.
Ten banks out of the thirteen which
did not reopen in March. 1888. we're
reorganized by merger or purchase
and now are open, but the rest still
are closed.
Assessments Levied.
Remaining assets of 19 banks are
In the hands of receivers for liquida-
ton in the District of Columbia. while
there are 81 open banks operating
without restriction. Four of the nine
teen banks were closed in July, 1882,
one, the Commercial National, went
into receivership in February, 1888,
along with the Continental Trust Co.
which it had previously absorbed. and
the remaining 13 banks were closed
at the end of the Presidents bank
holiday.
Assessments have been levied
against stockholders of all four banks
closed in 1882, against the stock
holders of the Commercial Cont
mental and the Park Savings, but not
against the shareholders of any of
iYoctitutiOnc Much
interest still CenterS on the question
of what Treasury officials will do
about assessments against other
banks. Under terms of their organi-
zation no assessment can be levied
against stockholders in the former
Franklin National Bank, nor the
Mount Vernon Savings Bank
The Park Savings Bank, where
there is shortage of about $2,500, 900,
is in the midst of a series of
suits to restore what funds can be
realized from the stockholders,
through court action.
OF interest to Washington financial
circles was the fact that one of the
officials in attendance at the pay-off
of the bank in East Peoria was
w. Irving Shuman, now in charge of
the Federal Deposit Insurance Corpo-
ration area with headquarters at
Chicago. Shuman was largely instru-,
mental in reorganizing the closed
banks here in Washington.
Treasury Asks Tenders.
The Secretary of the Treasury gives
notice that tenders are invited for
Treasury bills to the amount of
S75,000000 or thereaboutS. They will
be 182-day bills and will be sold on
a discount basis to the highest bid
ders. Tenders will be received at the
Federal Reserve banks or the branches
thereof up to 2 pm. Eastern standard
time, on Monday July 9, 1924. Ten
ders will not be received at the
Treasury Department. Washington.
The Treasury bills will be dated
July II, 1884, and will mature on
January 9, 1885. and on the maturity
date the face amount will be payable
without interest They will be issued
in bearer form only and in amounts
or denominations of $1,000, $4,000,
100000 $50OO 900 and sl,ooO,o0O ina
turity value).
1t is urged that tenders be made
on the printed forms and forwarded
in the special envelopes which will
be supplied by the Federal Reserve
banks or branches upon application
therefor
No tender for an amount less than
$1,000 will be considered. Each ten
der must be in multiples of $1,000.
The price offered must, be expressed
on the basis of 100. with not more
than three decimal places-e. g.,
e9.125. Fractions must not be used.
Lumbermen to Visit Europe.
Because of the fact that the um-
Der code makes the sustained forest
yield definite objective of numbering
operations the Oberlaender Trust of
Philadelphia, operating under the
auspices of the Carr Schurz Memo