Evening star., 1937-11-23
CROWLEY URGES
BANK STANDARDS
F. D. |. c. Chief Asks Fix.
ing OF Minimum Rules
for Institutions.
BY EDWARD C. STONE.

Development and enactment of set
Of minimum operating standards for
all insured banks was demanded by
Chairman Leo T. Crowley of the Fed
eral Deposit Insurance Corp. as the
most important step possible to
strengthen the present banking system.
In an address today before Illinois
bankers and made available here.
Deposit insurance is essentially a
mutual proposition, Chairman Crow
ley continued, aimed at safety for de-
positors through the soundness OF the
whole banking system. Mutuality i'm
plies that all participants shall play
according to the same rules. 1t is un-
fair that banks in States with high
standards and strict controls should
have to pay for the mistakes and
losses arising in banks in States with
lax regulations.
Furthermore, the Government Off
cial declared it is not right that sound,
well-managed banks should be called
upon to bail out incompetent bankers
and unjuStifable banks as a result of
speculative losses and poor invest
nents. If these inequities are to be
remedied, the working program of the
several classes of banks must be
strengthened and placed on basically
uniform basis.
Not Usurping States Rights.
Chairman Crowley said he antici-
pated Mortified cries and claims that
his organization is attempting to
usurp States rights. This he denied
The insurance corporation has worked
satisfactorily and in close harmony
Stii the State departments of bank
ing and prefers to continue working on
that basis, he declared
Pointing to inequitable features in
the present plan Of assessment upon
insured banks, he said that present
assessments bear no relation either to
relative risk or to concentration of risk
in individual banks. To remedy this,
some reliable measure of risk must be
developed.
In conclusion he asserted that any
reduction in the total annual assess
ment payments by insured banks must
await definite proof that banking
standards have improved and that the
ability and integrity of bank managers
are above suspicion, that supervisors
are willing to enforce laws and policies
consistently and courageously, and that
the $4,000 banks of this country are
working as a group toward common
ends. rather than as isolated indi-
viduals.
Finance Firm Votes Extra.
A. Burks Summers. president of
General Credit, Inc, local automobile
finance company. today announced
that the Board of Directors had voted
an extra quarterly dividend of Is cents
on the common stock in conjunction
with the declaration of the usual quar-
terly dividend Of 25 cents on the COM
mon.
At the same time the regular quar-
terly dividend on the company's out
standing 6 per cent preferred stock
was declared. All three dividends will
be paid December to stockholders Of
record November 25.
To facilitate the handling of an in
creasing volume of business the COM
pany. during the summer, substantially
increased its capital structure through
a S90,000,000 sale of preferred and
common stock. George NJ Ferris &
Co., Inc, of Washington handled the
underwriting. The extra dividend is
declare. in riew of the companys
highly successful year.
Dwelling Construction Lower.
A notable slump in the building of
family dwellings in urban areas during
the third quarter Of this year is shown
in estimates just made public by the
Bureau of Labor Statistics.
Announcing a l3 per cent increase
In the first nine months as a whole,
as compared with last year, the third
quarter shows a drop of % per cent
under the same period of 1886.
During the nine months new dwell
ing units were provided for 1926
families in the United States urban
area, approximately 10000 more than
q year ago. The number of one-family
and two-family dwellings both showed
substantial increases. There was
marked decline in the number of
apartment-house units provided.
Morgan Talks to Credit Men.
10 V. Morgan assistant corporation
counsel of the District of Columbia
and administrator of the gross receipts
tax, addressed the November lunch
con of the Washington Association of
Credit Men. wholesale organization,
at the Raleigh Hotel this noon
He spoke on the District tax law,
presenting information of great value
to the credit men as we'll as to all
other WaShingtonians. His address
was similar to the talk he made re-
Gently before the fiduciaries section
Of the District Bankers Association.
There was large attendance at the
luncheon. L. A. Brown, the associ-
atoms president, presiding.
Heard in Financial District.
E. c. Graham president of the
Hamilton National Bank, will arrive
home from a trip to Florida in time
for Thanksgiving.
The Missouri Bankers Association
has asked all members to oppose pas=
sage of the Patman bill, which pro-
vides Government ownership of Fed
eral Reserve banks. Bankers are
urged to explain their views to their
Representatives in Congress. This is
just what the Western bankers and
hundreds of others have recently been
doing.
The low marks reached by stocks
yesterday brought out throng of Wis
istors to the brokerage houses here
this morning. The opening was much
better than eynectad hv oopu tro dorc