The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1934-10-03
Bank Expenses
Receiverships ARE Costly

Receiverships ARE Costly
In their fight against the law enacted by the last Con-
Rress authorizing the Reconstruction Finance Corporation
TO purchase the assets of closed banks officials of the
Treasury Department insist upon painting the receiver
ship system as an economical and efficient method Of
winding up the affairs of the closed institutions.
These officials regard the attempt to eliminate the re-
ownership system through purchase Of the assets OF the
banks by the Reconstruction Finance Corporation as an
attack upon their integrity and ability.
It is no such thing and would attempt to deny
that in many the receivers are capable ana con-
scientious men who perform excellent service.
ON THE OTHER HAND 1T is FOOLHARDY FOR
ANY OFFICIAL TO DENY THAT MANY RECEIVERS
HAVE BEEN AND ARE INCOMPETENT ARE IN
TERESTED ONLY IN THE PRESERVATION OF
THEIR JOBS AND ARE NOT FITTED EITHER BY
TRAINING OR EXPERIENCE FOR THE TASKS
WHICH THEY HAVE UNDERTAKEN.
Likewise it is oohardy for any official to deny that
the recevershp system is costing millions Of dollars
every year. cost which must be paid by the poor de-
lued depositors who believed that it the function of
the Government to keep eye the banks before the
financial collapse as well as after.
COMPTROLLER of the Currency j. F. OConnor is proud
Of the record of his receivers and points out that nearly
81 cents of every dollar collected the receivers for
70 years has been returned to depostors
That of course, tells only part of the picture.
It should be noted that it is 81 cents of every dollar
COLLECTED by the receivers and 81 cents Of every
dollar which the depositors thought they had in the bank
THE FIGURES COMPILED BY THE COMPTROLLER
SHOW AN AVERAGE FOR A 7O-YEAR PERIOD.
THEY DO NOT COVER IN DETAIL. AND DO NOT
PRETEND TO COVER EXCEPT TO THE HURRIED
READER, THE SITUATION CREATED BY THE
WHOLESALE REFUSAL OF PERMITS TO REOPEN
INSTITUTIONS CLOSED ARBITRARILY IN THE
BANK HOLIDAY
It was this arbitrary action which tied up thousands of
millions of dollars of the depostors money about so per
cent of which is still frozen.
Much of this money tied up through the action of the
Government and tied up after the Government had given
every that it safe, is being spent on
liquidation expenses. It may be spent at the rate nd
Gated by Comptroller OConnor but already the receiver
ship and Conservatorshp expense in Washington banks
alone has run million dollars.
WITH MONEY BEING TAKEN FROM THE DEPOSI-
TORS AT THAT RATE HERE AND AT A SIMILAR
RATE IN THE MORE THAN A THOUSAND BANKS
I'm RECEIVERsHIP THROUGHOUT THE COUNTRY
THE BILL IS HUGE.
bill which the depositors are being called to meet
and which in the end will eat up all that is left of their
deposits
IN ADDITION TO THE BILLS ALREADY MET
BY THE DEPOsITORs IT IS FRANKLY ADMITTED
THAT THE RECEIVERSHIPS WILL CONTINUE FOR
ABOUT ANOTHER FIVE YEARS THE BILLS WILL
INCREASE THROUGHOUT THAT PERIOD
Still the Treasury Department resents any attempt to
find better solution of the problem and objects strenu
ousy to any attempt to have the Government take over
the expenses of the liquidation for which is in large
measure responsible.
Fair Play
The American Ideal