The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-05-21

sometimes unwittingly always look
to the financial institutions as
source for raising taxes.
Those groups never realize but
what the bankers own all the assets
of the bank and never take cog
nizance of the fact that after all,
the banker is only the trustee for
the depositor's funds and is the
employe of the stakeholder who ex-
poets a fair dividend from his in
vestment, but who during the last
few years has received very little
dividend and has in many instances
paid out the amount of his stock
in either stock assessments or the
REPAYMENT of capital positions.
Assessment Release Sought
The report also said:
"In 1888 Congress passed a law
which provided that after June IT,
1888, the stock of all national banks
which were organized subsequent
to that date was free from any
assessment liability.
"The 1885 session of Congress
passed an act which provided that
on and after July l, 1887, any ma
tional bank which was organized
and which declared its intention
six months prior to the effective
date of the act would automatically
make it's bank stock free of any
assessment Inability.
Several states have followed this
procedure and have provided the
same exemption for stock of state
banks and trust companies. In the
1886 special session of the Legis'
lature the deck was cleared where
by in 1887 the first resolution might
be introduced which would set into
motion the necessary machinery BY
which we hope in 1910 we might
ultimately come to the same crys-
tallized realization for the benefit
of those holding stock in state
banks and trust companies of oul
state"
Mr.. Mitchell warned that an in.
crease in bank deposits without q
similar rise in commercial loans
presents more than a temporary
problem"
No Demand for Reserves
1.-THE condition presents more thar
temporary problem, because tn;
increase in deposits leaves large re-
serves for which there is no de
mand," Mr.. Mitchell said.
"These reserves" he added, "must
lie idle without earning anything Of
be invested in government bonds OF
general market securities on whicr
the yield h become smaller anc
smaller.
"At ais time, the government note
securities must be of approximately
two years maturity before there is
any yield at ALL Funds are there
fore being invested in longtime cap
ital investments that will be in dan
ger of substantial market decline.
He also said that since the bank
holiday bankers have witnessed {
phenomenal growth in bank de.
posits.
He listed five reasons for the in
crease in deposits: Cd Restoration
of public confidence in financial in
stitutions: (2) A higher level of in
dustrial activity attended by profit
rather than losses; 90 Federal de
post insurance; az United State
government deficit financed by con
tinuous increased borrowing; (5)
The influx of foreign gold.
He said that although banks wer
in transitional period today h
believed the banking system wa
gradually being brought ito a NOR,
permanently sound basis of opera
ton"
He suggested that the way ha'
been cleared for study of tn
ACCESSIBILITY of an amendment b,
which the double liability featur,
of Indiana chartered banks nigh
ultimately be eliminated.
This would tend to bring tn,
ownership of state bank stocks t,
as favorable position as owner
ship of stocks of national banks
he said.