The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-02-20
INDIANA GROUP
ATTACKS BANK
LAW REv|S|ONS
Capitalization of Control,
Postal Savings Both
Draw Fire.

was on record today as unalterably
opposed to revisions of national
banking laws which would tend to
centralize credit and management
control in a political body. The OPP
position was expressed in a resolu-
ton, copies Of which were sent to
the Indiana congressional delega-
tin, congressional committees on
banking and currency and other ma
tional leaders.
The essence Of the proposed legis-
lation, in many respects, the aSso-
citation declared, seems to Sidetrack
the bank stockholder and, for the
bank depositor, it is like writing a
blank check to bures Icracy to in
vest his funds via the purchase of
government bonds, as bureaucracy
sees fit. 1t would remove the last
check against spending, it is main
tanned.
I'VE recommend" the announce
ment continued, that there be
taken such steps as are necessary in
order to bring about a further
amendment to the banking act of
1888, modifying it so as not to re-
quire non-member state banks to
become members of the Federal Re-
serve system.
Originally postal savings was de-
veloped as an agency which would
reach into territory untouched by
banks and also supply a service to
aliens. During the time of the bank
crisis the proponents of postal saw
ingS again urged the enlargement of
the system so as to insure, as they
said, adequate protection to the saw
ings on the people. Now, under the
Federal Deposit Insurance Corp,
bank deposits are insured up to
$4,000.
Rate Held Too High
Immigration has been definitely
checked. There now exists no real
reason for the further continuance
of postal savings. At present, the
rate of 21a per cent charged de-
poSitory banks is too high. The
interest charge against the gov
eminent for these funds is ex-
cessive in comparison with the rate
paid the Government on its
other obligations.
"On June 3, 1884, there was a
total of $1,197 100000 in postal
savings deposits, $685., 575,0OO of
which was redeposited in banks.
This represented So per cent of the
total deposits of postal savings and
Indiana has her share, on which
the banks pay 21a per cent and
the government pays the depositor
2 per cent.
I'VE sincerely believe that in the
best interest of the community and
recovery that postal savings should
be now progressively curtailed, con-
tracted and eliminated altogether.
1--WE are opposed to branch bank
ing on any other than county
wide scale. The very existence of
unit banking institutions. both
nation and state chartered, is con-
tinually beng threatened as is the
entire American system of banking
being faced with 2 crisis.
Unit Bank Landed
'"The unit bank, which in a large
measure makes up this dual system
Of banking, is now attacked by those
in favor of the foreign system of
banking. The unit country bank,
whether national or state, owned by
and of1cered by men who have their
homes in the community where the
bank is located, has been the great
est factor in building up the COM
munity. 1t has prospered with the
people and suffered with them from
depressionS which have affected
their communities.
Mistakes have been made in large
banks, small banks, group banking
systems and large chain banking
systems. Unit country banking has
had it's share of failures, because
the people who owed the banks could
not pay their obligations on account
of the worldwide economic condi-
tions over which they or their banks
had no control. Banks did not fail
until their borrowers failed first.
I'VE also believe that we should
use our influence to bring about the
coordination of examinations by
the several supervising authorities;
that we should continue to empha-
size and develop better bank man
agement and that, in collaboration
with our Indiana Department of
Financial Institutions, we should
continue to encourage the appoint
ment of competent examiners with
adequate pay so that all banking
supervisory efforts may be as far
removed from politics as possible"