Evening star., 1934-01-03

Merits Of the bank insurance policy,
which went into effect with the new
year, are recognized by the country.
Instead of previously voiced doubts as
to the encOurageme of careful bank
ing the tendency is to applaud the
method of more rigid inspection Of
banks, which it is believed has been
most effective in other countries. There
is a wide belief that guaranty of de-
posits will bring large amounts of money
out of boarding, and that credit faclI-
ties OF these institutions will be eX-
parded as q result Of the new system
1t is assumed that success for the first
six months, during which there will be
limited insurance, will result in the
greater satisfaction of a wider inSur-
ance after the half-year mark has been
passed.
Bank depositors are advised By the
Newark Evening News to give careful
attention to the details of the system
that has now been inaugurated, as
these are well worth the consideration
Of all" The Miami Daily News is con-
yinced that insurance on a national
scale has better chance to succeed
than the limited experiments previously
tried in several States" The Akron
results certain to follow the six months
trial are to be helpful" thinks that IF
security for deposits had been demand
ed in the past. bank management would
not have been permitted to resort to
loose practices" The Columbia IS. c.
Record agrees that this is true and
states: 1T is merely a pity that it re-
quired the sudden collapse of the whole
banking structure, which has been
gradually disintegrating for years, and
the spur Of legislation to teach bankers
what might have been, as it ought to
have been perceived long ago, when
some Of the depositors' money that is
now lost and gone might have been
saved"
"One new thing never before seen in
the United States is hailed by the BoS-
ton Transcript, taking note Of the fact
that "a special force of Federal ex-
aminers has been busily going over the
condition of banks throughout the Ma
ton; that definite progress has been
made in bringing them into a status
stronger than ever" and adding:
Commercial non-member banks under
State charter are not compelled to join,
but, in fact, substantially all of them
have applied for entrance in order to
permit them to compete on equal terms
with the insured banks
Recognizing that there was "a gen.
eral housecleaning" after the bank
holiday. and that "borderline banks
were not. permitted to reopen without
reorganization" the Roanoke World
News AYERS that "the number of fail
ures since then has been small'; that
advocates Of the plan believe there
will be a considerable expansion OF
10, will ha
to make loans. money will come out OF
boarding, and money now in postal
savings will be diverted to banks" On
the other side of this same subject the
Los Angeles Times takes the positive
position that belief has become con-
v.ction that the act should be radically
amended; that eff a depositor has
nothing to lose, he will not care where
he puts his money and will tend to
choose an institution which grants
loans freely and Is generally the most
accommodating" that he will tend
to favor the poorly run bank" The
Detroit News. however, sees "loosen-
ing Of credit, which the Government
ulation of business" The Ashland Daily
Independent feels that the plan will
bring boarded money into circulation.
From this source the Morgant0Wn
Dominion-News predicts expansion of
credit.
Lack Of confidence will quickly melt
away" thinks the Charlotte Observer,
quoting bankers "who look upon it as
a measure that will enable them to re-
c!sim that universal trustfulness on the
par. of the public without which these
institutions areecrippled." The Spring.
rield Republican advises that "fcr thc
Immediate future, strong new Eafe-