Show Bankers Bankers' Scan Government Safeguards Against Boom WASHINGTON WASHINGTON Jan 14 UP Bankers UP-Bankers Bankers t today day studied tile the i gov-i g vJ latest effort cHort t to td tighten s safeguards feg against an another security se se security security se- se market boom such as shook America before the the depress depression on Initial steps to prevent the dr drawing wing of bank credit into pos apos a possible pos possible sible security market boom were taken by the Federal Reserve bank in promulgation of regulations regulations' I designed to check speculative use of bank credit 1 Under tho the tentative regulations which will DO bo put Into effect after otter a n months month's study by bankers banks will witt be put in the they same position as brokers when It comes to the amount mount of ot money th that t may may maybe be IC lenton lent lenton 1 on se securities Brokers in the margin accounts of customers are ore n not t allowed to lend more moro than that 55 to 75 per cent of the market value of or s securities with most falling in the 55 5 per cent class Banks have hove not heretofore been restricted and could lend any amount on securities s. s The reserve board regulation contained contained con con- tamed many technical points point and was supplemented with two margin requirement plans on which it in invited Invited Invited In- In suggestions and criticisms ms of oC banks When one of these plans Is adopted the board said it will be applied both to brokerage and bankIng bankIng banking bank- bank Ing loans 1 One plan was the same some cj re now in effect with respect to brokers This set the tho maximum loan value on it a a security at r. r 55 per cent a of its market price or per cent of the lowest price at which It has sold over the past three Y years ars but in n no circumstances circumstances circum cIrcum- stances in excess of ot 75 15 per cent of the market price The alternative plan proposed Inthe in inthe inthe the regulations was a straight percentage percentage percentage per per- loan value on on n the lowest price pric at which the security has sold over a period of preceding months No percentage figures were suggested suggested suggested sug sug- in thIs In-thIs this plan pIan the boa board d preferrIng preferring preferring pre pre- ferring to await ideas of the country country's country's coun coun- try's try ba bankers Whatever plan is finally n adopted opted the board said its intention was to apply it both to loans by banks and loans by brokers in order to put a check on use of at bank credit for speculative purposes Present loans loans' of at banks are not af affected a- a and the tho proposed regulation would not apply to se securities securities securities se- se or broadly securities that are arc not registered on security exchanges ex I ex ex changes |