The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-12-08
Not to Seek Abrupt
Changes i'm Banking, Capital Hears
Senate Banking Chief Finds
Experiments Un-
wanted.
BIZ United Press

w AO444AN0 wv DONs ~
Word that the Roosevelt Ad-
ministration is not disposed
toward abrupt changes in the
banking structure was being
passed out quietly today from
Congressional quarters here.
This development was re-
garded as another of the re-
assuring gestures aimed at
bringing private interests more and
more into the recovery movement
1t came as banking authorities pre-
dicted rehabilitation Of the banking
structure would be completed in six
months at a total cost Of $1,000
100000.
The word was considered another
in the series of reassurances put
forth during the summer and early
fall to the effect that the Admins
tration was soliciting suggestions
from capital and industry, and
would abide by them as much as
possible.
QUESTIONABLE Studied
Chairman Duncan U. Fletcher OF
the Senate Banking Committee has
been analysing responses to a ques-
tionnaire sent to bankers and finan-
ciers. He found the preponderant
opinion one of stern opposition to
further immediate experimenting
with banking legislation.
Senator Fletcher sought these
opinions as a guide to possible new
banking and monetary legislation.
One answer to Senator Fletcher's
QUESTIONABLE which attracted par
ticular attention was from DR.. T. j.
Anderson Jr. of New York Univer-
sity. who advocated unificatio11 of
the banking system "by requiring all
banks of commercial deposit to take
out Federal charters"
He listed advantages of Federal
incorporation and supervision as:
1. Elimination or reduction of jurls-
dictional controversies over banking.
2. Uniform rules of practice and pre-
vention of shifting from one type of
control to another to escape restrictions
8. Establishment of nationwide bank
ing standards.
4. Formation of emergency policies
which could be put into effect uniformly
and effectively in any such crisis as the
banking holiday of 1888.
5. Establishment of a unified system
of bank examination.
g. Introduction of uniform national
credit policy.
:. Elimination Of so-caIled ''chain"
banking.
8. Establishment of a deposit insurance
plan unon a more stable basis than at
present.
Such a move is, according to DR..
Anderson, 1.-THE most significant
single prerequisite to a truly strong,
well-supervised and depression
resisting banking system"
The rehabilitation news came
from Jesse Jones, chairman Of the
Reconstruction Finance Corp, and
Leo T. Crowley, chairman of the
Federal Deposit Insurance Corp.
Program to Expire
Mr.. Jones said his agency's pro-
gram to lend money to banks and
to purchase their preferred stock
and capital notes will be terminated
within the next six months, while
Mr.. Cowley said that capital struc-
ture of the nations 1896 banks
would be fully repaired by June 80,
1885, under FDIC standards of a
10-to-1 deposit to capital ratio.
Chairman Jones said the RFC
has assisted banks to the extent of
1866, 641 1873, of which $1,217, 425, 423
has been repaid. He estimated
slightly less than $500, 100000 would
complete the program.
Authorities hope to obtain repay
ment of all disbursed funds, al
though doubts are expressed as to
whether they will get all the $751;
100000 owed by the Central Repub-
lie Bank of Chicago, the Dawes
loan.
Mr.. Jones said loans on assets Of
closed banks totaled $702, 100000
He estimated about $3O0,000,000
more would complete this program.
Purchases of preferred stock and
capital notes have reached $780,
100000 and about $200,000,OO0 more
will be needed. OF this $70,000,000
has been repaid.
Up to the present, according to
the American Banker, 1894 have
been opened, bringing the total as
Of Dec. 1 to 1896.