Evening star., 1934-01-01
DEPOSIT INSURANCE.
OPENS NEW ERA TO
BANKS DURING 1884
More Than 10000 Institu-
tlons to Enjoy Benefits of
u. S. Assurance.
OFFERS ARE ADVANCED
FOR UTILIZING SURPLUS
r. F. c. Will Issue More Than
$S00.000.000 in Debentures.
Public Works Taxes End.
r. the Assnciated PIess-

By the ASsoCla ed p eSs.
A new banking era begins today with
o new year which opened speculative
yistas Of new financial moves and closed
an epoch stamped indenbly with a
Nationwide bank holiday
Lock-stepped with 1884 is a national
Insurance of deposits in more than 49,
600 institutions-99 per cent of all
Ranks, according to Jesse Jones. Recon-
struction Finance Corporation chair
man, and 81 per cent of all bank ac-
counts, in the estimate of the Federal
Deposit Insurance Corporation
Outstanding also is a New Year offer
in2 OF Government help for banks with
surplus funds simultaneously. taxes
trrging in S3000O0,00O annually are
lifted
Still closely veiled amid other devel-
opmentS- President ROOsevelt's none
tary program moves toward It's COM
modify dollar goal. Gold buying is
scheduled to Contmue-may possibly eX-
TGnd-and silver coinage under the in
ternatiOnal agreement is in its infancy.
Jones announced the r. F.. C.'S plan
Of "cO-operatlng with the banks which
have issued preferred stock to the
r. F, c.
Will Purchase $500. 10000
The debentures. Jones said in tele-
gram TO the banks, are fully and un-
conditionally guaranteed both as to in
terest and principal by the United
States and are exempt from all taxa
ton except SurtaXeS estate, inheritance
and gift taxes now or hereafter i'm
= L-r+ nj
ments or their Subdivisions
The Reconstruction Finance Corpor-
alton" Jones said, has authorized the
purchase Of more than $500 900 900 in
preferred stock and capital notes in ap
proyimately 4.500 banks. This has been
made possible through the leadership
of President Roosevelt and the cooper
alton of governmental and State agen-
c-eS and the banks themselves.
"One result Of these investments is
that approximately 90 per cent Of all
banks in the United States are today
members Of the Federal Deposit 1nsuT-
ence Corporation and each individual
deposit in these banks is fully insured
up to 50 500.
ut is the purpose of the Reconstruc-
ton Finance Corporation to continue
:ts preferred stock program until all
banks in the United States have had
strong capital position.
The strengthening of all capital
structure of banks together with Fed
eral deposit insurance should dlSpell all
.ear Of depositOrs,
State Banks Turned Back.
Credit must be available if agricul-
ture and industry are to prosper. As a
means Of cooperating with the banks
which have issued preferred stock to
the R. F. C despite their large surplus
tnvestment funds. the r. F c. is offer
ing them its pa per cent debentureS
maturing December IA. 1885. These de-
bentures are fully and Internationally
guaranteed both as to interest and
principle by the United States"
Jones statement followed close after
8 presidential proclamation turning
back to State officials control of hun
5reds of State banks over which Nr
Roosevelt extended Federal control
Fhen he declared the national bank
holiday March g.
FINANCE Corporation debentures. it was
explained unofcially, did not concern
Me borrowing limitation of S4O75 ,OOO.-
200 fixed in the r F. c. enabling act
The extent OF the debenture issue is not
limited and Is to be determined only
BY the amount Of money needed from
this source
The new debentwes. maturing De-
tember Is, 1888. Will give TO the banks
which have issued their preferred stock
20 the Reconstruction Finance Corpora
zion opportunity to invest their surplus
funds in a guaranteed field. an invest
clent outlet for funds hitherto restricted
BY laws demanding guaranteed securi-
ties
Insofar as the Reconstruction Finance
Corporation itself is concerned. the new
CONTINUED on PAGE .. Column 81