The Washington times., 1934-05-15
(continued from Page y

gal CD Of Alabama, chairman
of the House Banking and Cur
renew Committee, has pending in
the House.
viii Press for Action
The measure was referred to
the Senate Banking Committee,
and the authors asserted they
will make every possible effort to
gain approval Of the measure by
that committee. ;,
The Steagal bill would permit
the Federal Deposit Insurance
CORPORATION to increase the
amount of bonds it can sell, put
the Government in back of these
bonds and call upon the corpora,
ton to loan to receivers OF closed
banks on a 100 per cent Valua-
ton of the assets.
Should the House favorably acC
on the Steagal measure. it would
be before the Senate Committee
and avoid delay Of consideration
there in case the two Senate
authors are unable to bring
enough pressure on the Senate
committee to have the measure
reported favorably to the Senate
in the meantime.
Other Moves Considered
It is believed that if the Senate
committee fails to act within a
reasonable time on the PROPOSE
tion offered by the two Senators,
the sponsors will offer 1t as an
amendment to some other meas
IRE which comes before the Sen
ate before adjournment.
Further activity by Representa-.
tive Clarence J. Mcleod (Ro Oh
Michigan to force a vote IN tn te
House of his 100 per cent payo11
,,len included a stirring radio ap-
neal to the nation last night 10
Aid in the fight for bank reileI. ~
'9 0,,or a coastto-coast network
he declared:
Mr.. Mcleod said:
"TOday, the United STATES Es.;tS
roIernment is confronted WIN
"O ~rave and serious moral OOn,
= lion s to a great proportion o.
gaIlon W It is morally respon'
sible to millions OF 1nnT t;nn col.
tins of the worst banking ;, Ur
Tonse known to history. Fa az ~
"a ."ps S,,,fill this obligation WIN III.
g. o,r Government OF neglec'
.0. .Ss;st those for whose as
10 sSo,S' night it is largely re-
"s;uce the foundation Of our
country. thrift has been lauueu
= civic virtue and a most oe'
sirable trait to inculcaIe+ ~ III shirt
ing children. Indirectly tne sP haS
# saving "fOr a rainy gay " %S
Saen fostered and promoted Wy
~ Government. In puDnc
Snsools throughout the country
scn;st habits were encouraged
among the children anu 4 tha,n
POSSIBLE facility EXTENDED 'no ~
to save their small sums "a
money.
BOARDING SCORED
"Not 50 very long ago, heavy
u,,+hSrawals from banks caused
Sno- concern. The evils OK
%oarding were broadcast DS
sroakers throughout the coun'
trv. The Government Organlteu
an extensive campaign 10 ssOp
%oarding. and urged people as
nS,hio necessity to assist recOV-
ery. to place their FUNDS III
banks. -:
"Peoule were told that conf
dence was all that was neces-
1arv-that there was no cause
for their fears.
"Citizens had good reason 10
believe these GOvernment,SpOn.
sored statements. They knew
4he Government was in posi-
ton to speak with authority ON
the condition of banks. Banks
which used the words ma
tional" and federal in their
names were subject to Federal
SUPERVISION and control. This
was a matter of common kn0Wl'
edge. Taxpayers contributed 10
The salaries of specially trained
experts who periodically IN
spected the books and super
vised the statements OF cOndl'
ton of these banks.
"Not a single depOsitOr had
the remOtest idea that his Gov.
eminent would knowingly ana
willingly tell him to deposit MS
savings in an insOlvent bank.
Depositors knew that these
banks were chartered by the
Government and under the law
would be prevented from re-
ceiving deposits if in an unsafe
condition.
RESPONSE SEEN
"Therefore, when the Govern"
ment broadcast its authorizing
plea, the response was enthusl'
astically, trustingly made. The
story of how these trusting de-
positors were shamefully duped
is now a matter of public
record. Testimony of Govern
ment witnesses before a Senate
committee, Substantiated by
copies of official letters and
kilograms which were inserted
into the record, shows beyond
possibility Of contradiction, the
responsibility OF the Govern
ment to depOSitOrS.
"TheSe records DrOve that the