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Show K,tionaI Topics Interpreted Jj f jng by William Bruckart Kijcmml ,ton.Vord has reaohod T circles In Washington liuli-;;r' liuli-;;r' eating some fear :inrt among residents Wostt ' of the drouth h;: fleeted nron tlmt tlle pro. n3 i dry period and its attendant ,J ' '", conditions may cause some ''''trouble among banks. I ln-('.': ln-('.': alll0ng ollicials of the Fed-1, Fed-1, Vsit Insurance corporation , Wri" these conditions, and I V: ":'surances that there Is little, . .s - '.'ij'jncer, of new banking dldl-ri,' dldl-ri,' ; "'. Furthermore, the olliclala dc :-ed me that even If new trou- '"'VJlil arIse nefirly 811 of the Hiors in the distress commute commu-te r, ,'are protected under the bank vim ' guarantee law. hr.-,-'' -"reporting these assurances I iri '.'" .t mean to imply that every u "' all parts of the country has Wo.;' sce coverage for Its depos-ar.i; depos-ar.i; Bat the scope of the insur- "" Corporation membership is so ;er i that it Is almost possible to " .,e it as complete coverage w , V.'tie small banks. The cor- ' ' ' 'id figures show that 97 per NV- o( all depositors whose Indi--v"' ' jeeounts are less than $2,500 a't'or. ;',r;on are protected by the in-..e, in-..e, Something like 95 per Vall the banks in the coun-j coun-j members of the insurance ''fe significance of these figures IK 'Vie minimized. For example, SSsVtbank failure in Illinois was which closed their doors during those bluclt days would not have been so affected had there been funds available to pay off depositors deposit-ors In the banks that closed early In those desperate times. There are many Washington observers ob-servers who still have their Angers crossed ns to success of the deposit depos-it Insurance plan. They look upon It as placing a premium on unsound un-sound banking. I think no one can doubt the psychology of this guarantee guar-antee In cases where bank managers mana-gers really desire to be crooked. They can feel obviously that their depositors will be protected for the most part nnd If they "bleed" their bank the wrath of the bulk of the citizens in a community will be dissipated dis-sipated obviously by prompt repayment repay-ment of their deposits from the federal corporation. These observers ob-servers contend further that the federal law has not had an opportunity oppor-tunity for a real test. It is their thought that, a period of five years or more will be required to gain an Idea of how the machinery Is going to function. It is to be noted that there has been no assessment levied on the banks which are members of the pool thus far beyond be-yond the original cash contribution for the membership purchase. The test will come, therefore, when the $400,000,000 fund has been exhausted exhaust-ed and the banks which are members mem-bers of the pool must again dig up funds to replenish the larder. Senator Gerald P. Nye of North Dakota, a Republican Independent, is on record with Nye Predicts the prediction New Party a pollt-' pollt-' leal party is bound to come, and that he believes It Is now gaining rapid headway. The senator was not quite specific In his declaration, however, because he gave the impression that he recognizes rec-ognizes many of the problems confronting con-fronting organization of a third party. He has; shied away from campaigning for Republican regulars regu-lars seeking senatorial seats this fall and to that extent has definitely definite-ly put himself in the position to be active In any third party movement. move-ment. The thing which Senator Nye and other Independents on the Republican Repub-lican side are dodging Is President Roosevelt's direct action in drawing from liberal members of both Re-nnhlirnn Re-nnhlirnn nnd Democratic affilia- T&t:-i'!or by the Deposit Insurance -I ration and It paid 99 per cent dumber of depositors with a vh1 of 5125,000, a figure that was , half of the total deposits in SyJi That Is to say that only If .(fflt of the number of depos-t depos-t ; !d the bank had accounts in of $5,000 each the maximum Sunder the temporary fund ie total of these larger ac--I was equal to the total de-, de-, of the other 99 per cent of i liividual having accounts with t institution. ff, :li respect to the fear that has l"'.; indicated In the drouth-strick-rjL immunities, it was explained jSf'.aDy Individuals thought there 'Iff : 1 i be a repetition of conditions fj'if-: :il years ago when the small i were unable to realize on and short-time credits extend-t0 extend-t0 i j the same areas. The depres-i, depres-i, : mide it impossible for many rs to repay. The officials ve, Just : a, however, that the condi-:e condi-:e soe; tow are somewhat different. gut s: pointed out, for example, that got a 1c :; of the distressed farm mort-dge mort-dge hitherto privately held are voulj : : In the hands of the govern- tion. It Is regarded by political students here as quite obvious that only a few of the Republican Independents Inde-pendents ever will stay put In a party organized as they believe Mr. and that the home loan bank : "Soffi i has been doing the same sort age on t 'lag for owners of residences age tte us and cities. ristim i true, of course, that many ;irl, tlii: ' tanks have extended credit ; and f normally would be sound thrond led that the drouth and its ie ho ;:ent destruction of crops will spend it ' s"rae loans to be uncollect-t uncollect-t this time. But the point Is express "ie strain is not so great as It "It won ' 'if In the depression and ofQ-,-y ckti. ''re generally believe that ,:s will pull through with the igh of Dli'i'num of failures. 11 be a I . Roosevelt to be organizing a new party. It is the old story of new party ambitions existing in too many spots. They exist among Republicans Re-publicans now In the North and the Northwest and in some sections of the Middle West, and they exist among the radical wing of the Democratic Dem-ocratic party in some sections of the South and in most parts of the Middle West. But as far as Washington Wash-ington information goes there are few points upon which these various vari-ous groups are yet able to agree. Old line Republicans and the conservative con-servative wing of the Democratic party are paying little attention, however, to the threats of party defection. Many "efficiency experts" are appearing ap-pearing in the New Deal governmental govern-mental agencies FederalClerks and the heads of r ft. clerks are be-Lose be-Lose Jobs t t,,,, ginning to fall. The process of separating workers from the federal payroll always is ny:iy, - i curious coincidence, how-e. how-e. What that this new fear of . bank-Moth! bank-Moth! ; t in- trouble 'in the el fr-:i' 'iiirasfca drouth areas , pulliK iperimenf should arise at a ing a hit" time when the .'Nebraska is just closing out told W-'-iWKperiment with the state Docn wl'"Hisit guarantee law. The c,l tliat- '-Si experiment was by no nulc h o successful. Its life was !!;rt. Nevertheless, it has s(lffayli 'tat state almost twenty tl lieen if ;o clean up the wreckage that ,s cr5t lb 1 torn an attempt to Insure t t)lis :: "Jits within the limited juris-hPr juris-hPr del"'1- ;0 e state. all lootfl ; to be recalled that during S-aiicv s,s': '.i;',0;il debate on the federal atch"'orli "rgument was advanced ' the lose ; enactment of the national thrills sl'.; ;e l.iw on the basis of the er tliclf V '" the numerous state at- a difficult proposition and so the efficiency ef-ficiency experts are moving very slowly. But authentic reports Indicate In-dicate there will be a sharp reduction reduc-tion in the government payroll shortly after election. It seems possible that a few will join the ranks of the unemployed even before be-fore election but the number Is likely to be Inconsequential according accord-ing to the Information I have obtained. il"ei"a" .' llle answer apparently what ".. e fact that conditions In If tlisi may be bad from an eco- hailn''1'' .""Point, or they may be th U? M,ral States' but 11 ls seI" ' Mvatc'' ' .'""he whole United States in V'"0: ;!, tion3 of a character vers w''' v ln widespread wreckers wreck-ers fr"1"1 'ls- Another strength ' irl fri: : , ot the Federal De-ee De-ee All,lt ' ' in 1 e corPratlon see In JpllL-lit i'1"1 .., law 18 that no attempt Is ' bute "arantee all deposits. As unt J1"1'', i;,,?' the Umlt is $5,000 ; ut :.,! 'vWual account. While ther ; 5, 0n floea not protect the The appearance of the' efficiency boys, however, has started many Washington correspondents on the trail of something deeper. While none of them, as far as I know, have been able to learn definite and Irrefutable Information as to plans, there Is no doubt In their minds that the payroll reduction presages something in the way of tax legislation leg-islation In the next congress. How far It will go or what new taxation taxa-tion methods may result, it Is of course, too early to tell. One of the best proofs of this Is the recent statement by Senator vriteW1 ; i. amounts of cap- monK-i't';1 . ' sufficiently high, accord- i he sC "4;nn . 3 by tlle insurance 'P n',J 0 provil3e for imme- ninil''10'1' i ,ont to at least 07 per d he W aurv ldual depositors In icosr w', t bis 'r.i(;' mrnration has more Ivedt '0 "t Its command 1 tn-11 , itth' , t0 depositors In and t, k lU-re. It ls rldi- tli.1 ! K ,,;l,me that this amount t nd as l,"lentt0 tany such r- oUdr' i,; rred In 1932 and rfi ' Sr'eit 0l'sllt t0 be saW nsT' ' my of the banks Carter Glass, the Virginia Democrat Demo-crat who so long has been an outstanding out-standing figure in the senate on financial questions. Senator Glass said In a speech, and said It with emphasis, that "there Is a pay day coming." He amplified his remark only to the extent of saying that the tremendous rate of Spending eventually has to be checked and that If the credit of the federal government Is to be maintained, provision for retirement of the great public debt now In excess of $2S,0OO,0O0,00O must be made very soon. .. . Western Newsrarjer Union. |