ΜΟΝΤΑΝΑ March 26, 1935. - Has greatly restored confidence and receives almost unanimous acclaim. NEBRASKA February 19, 1935. Agency has made a fine record in this State with a high percentage of deposits now insured. NEVADA April 9, 1935. - After experience of last 3 years when banks were blowing up like firecrackers in Nevada, depositors unequivocally approve deposit-insurance plan. They are not interested in howl of big banks, who may have to carry premiums for some of their weaker brethren. They feel this latter will be an incentive to insist on good banking practices and will insure national supervision and inspection. NEW HAMPSHIRE April 9, 1935. - About 1 out of 50 know anything about it. New Hampshire Bankers Association report public neither informed nor interested. Reaction nil. NEW JERSEY March 5, 1935. - There is little comment concerning this agency, but it is believed that this activity has full public support. March 26, 1935. - There is little said about this agency, its activities being accepted as a matter of course. NEW MEXICO April 9, 1935. - Have heard of no comments either pro or con in New Mexico. NEW YORK April 9, 1935. - Public reaction to Federal Deposit Insurance Corporation not wide-spread, but generally favorable. Larger banks in Manhattan protest method of assessment, claiming only insurable amounts of deposits should be taxed. Otherwise not opposed, although unenthusiastic. NORTH CAROLINA April 9, 1935.- General public reaction most favorable. Find in contacting number of bankers, who will eventually help mold public opinion, in vast majority think $5,000 coverage sufficient and favor definite premium sufficient to cover, but to be lowered if justified later. Majority same parties favor premium on insured deposits only. Five thousand limit covers 95 percent depositors banks this State. : able. NORTH DAKOTA February 19, 1935.-Public attitude and editorial comment uniformly favorMarch 26, 1935.-Has restored public confidence in banks and is now accepted as a matter of course. April 9, 1935.-Agency has restored confidence in banks and public opinion remains wholly favorable. OHIO March 26, 1935. Program has been exceptionally beneficial and remains least criticized of all emergency activities. April 9, 1935.-Is least criticized of all emergency agencies. OKLAHOMA April 9, 1935.-Public reaction reveals this is one Government program with which general public will go all the way. No derogatory comment to Federal Deposit Insurance Corporation was made in interviews with large number of Oklahoma business men and individual depositors. Editors and newspaper clipping bureaus report Statewide approval of program as reflected in press. Increased deposits indicative of restored confidence. Group 4 of Oklahoma bankers' association in convention at Ardmore yesterday passed resolution recommending titles 1 and 3 of Congressional Banking Act of 1935 and commending work of Federal Deposit Insurance Corporation. Group 5 in Tulsa today expected to pass similar resolution according to secretary of association. These group meetings represent approximately 450 eastern Oklahoma bankers. State banking commission reports only two failures in State banks since inception of Federal Deposit Insurance Corporation. Continuance of Federal Deposit Insurance Corporation under competent management felt essential to continued faith in banking system. OREGON February 19, 1935. Has produced desirable feeling of security of average citizen in his bank account. PENNSYLVANIA March 26, 1935. - Has functioned very successfully and restored confidence. April 9, 1935. ---Has greatly strengthened banking system, although many small banks, due to limited capital, criticize the provision compelling them to join the Federal Reserve System by July 1, 1937, in order to maintain their insured status. RHODE ISLAND April 8, 1935.-Banking situation here unusually strong, therefore, except for added confidence due to Federal Deposit Insurance Corporation, difficult to determine public reaction. SOUTH CAROLINA February 19, 1935.—Has restored confidence in banks. Comment is frequently expressed that this program is one of the most important in "new deal." March 26, 1935. - Public has great faith in this activity. April 9, 1935. Most beneficial, SOUTH DAKOTA February 19, 1935. Comment wholly favorable, with the exception of a very few bankers who are opposed to the principle of this activity. March 5, 1935. There is little comment concerning this agency, but it is believed that this activity has full public support. TEN NESSEE March 5, 1935. It is suggested that means be provided to inform the public of a bank's insured status by means other than the notices on tellers' windows. March. 26, 1935. - Has restored public confidence in banks. TEXAS March 26, 1935. - Well-staffed and functioning effectively. UTAH February 19, 1935. -Public opinion generally favorable. March 26, 1935. -Public unanimously for Federal Deposit Insurance Corporation, although some bankers and financial interests remain skeptical. VERMONT April 9, 1935. - Public reaction to Federal Deposit Insurance Corporation quiet but favorable. About half the banks use their participation in their advertising. Bank public apparently take it as an accomplished fact and rely upon it, although not particularly outspoken in their comment. WASHINGTON March 26, 1935. Has resulted in vastly improved banking conditions and a general increase in deposits. 127297-35-10 April 8, 1935. - Has resulted in improved banking conditions, although need is seen for means to enforce provisions of Federal Deposit Insurance Corporation. WEST VIRGINIA April 9, 1935. - Public reaction to Federal Deposit Insurance Corporation quite sympathetic and guaranteeing of deposits has stimulated confidence in banking institutions. Deposits have materially increased. Bankers, however, are opposed to proposed amendments to existing law now pending in Congress. WISCONSIN April 9, 1935.-Don't hear about it. Deposits on increase. Only through restatement of fact that money is in circulation, do we know about its works. Banks favorable. WYOMING April 9, 1935. - Banks noncooperative toward this activity. (Thereupon, at 12:45 p. m., an adjournment was taken until Friday morning, Mar. 1, 1935, at 10:30 o'clock.) The committee met at 10:30 a. m., Hon. Henry B. Steagall, chairman, presiding. The CHAIRMAN. All right, gentlemen, we have with us this morning Mr. O'Connor, Comptroller of the Currency, and he will discuss the bill. I am going to suggest that Mr. O'Connor be permitted to proceed in his own way, without interruption, until he shall have finished his preliminary statement, if that is agreeable with the committee. We will be glad to have you proceed without interruption, until such time as you desire to be interrogated, Mr. O'Connor. STATEMENT OF J. F. T. O'CONNOR, COMPTROLLER OF THE CURRENCY Mr. O'CONNOR. Mr. Chairman and gentlemen, I assume that, from the inquires I have received from the members of this committee and others in Congress, that they have a very especial interest in the national-banking situation, inasmuch as Congress is more directly and largely responsible for the national banks, and I, of course, have most to do with that possibly as Comptroller, and also as a member of the board of the Federal Deposit Insurance Corporation, and I would like to discuss the general situation as well as the bill. The CHAIRMAN. Mr. O'Connor, if you permit me, I am going to suggest that you address yourself, first, to title I of the bill, as we have had that solely under discussion down to this time. After you shall have finished with that, we will then decide as to when we will take up the other parts of the bill, if that is agreeable to you. Mr. O'CONNOR. Yes; thank you. Unless the committee desires it, or unless they do not desire it, I would like to bring you up to date with a brief picture of the national banking situation as it is today, from the office of the Comptroller, with reference to these closed banks and unlicensed banks that we started with after the termination of the banking holiday of 1933. At the close of the banking holiday in March, we had 1,417 national unlicensed banks, and these banks had in deposits $1,971,960,000. The question naturally arises before us this morning as to what has been done with those banks and those deposits, and I am giving you the figures of my office up to the first of February, as we release a monthly report at the end of every month. We have reorganized 1,091 of these banks with deposits of $1,805,622,000. Thirty-one of these banks decided to go out of business, and they paid their depositors in full, $11,513,000. There was placed in receivership 292, with deposits of $151,540, 000. Now, that accounts for 1,414, leaving 3 unlicensed national banks at the beginning of the present month, or the beginning of February, rather, and those 3 had $3,280,000 in deposits. Let us now take up the problem of these banks in receivership. We have paid to depositors in those particular banks, $51,084,265; and we have plans approved for reopening four of these receivership banks, which will release an additional sum of $1,427,000. That is the complete picture, gentlemen, from March 1933 to the first of February of the present year, and you will notice that all that remains of approximately $2,000,000,000 in the receivership banks is approximately 5 percent of that amount. That is, briefly, the story of the unlicensed national banks after the holiday. During the same period, from March 16, 1933, there has been distributed to depositors in all banks, those closed before the bank holiday and since the holiday, $621,920,917; and, roughly, I believe that represents, gentlemen, about 54 percent of the total in the national banks; and please bear in mind that I am only referring to the national banks in this statement. The total number of receiverships accumulated over the years up to the present time, including those that I mentioned of unlicensed banks, was 1,547, and they had deposits, at the time of the closing, of $1,880,710,184, and there has been paid to depositors to date of February 1, 1935, $1,016,836,666. In addition to that work, the Comptroller's office has been very much interested in the sale of preferred stock in the national banks, to do two things: First, to strengthen the capital of the national banks; and, secondly, to make more money available for credit, and also to relieve the banks from compelling debtors to pay who are not able to pay at present, but had good, going businesses, and if permitted to go along, could, in time, pay. That was the object of purchasing preferred stock in national banks. I have received this morning from the Reconstruction Finance Corporation the purchases of preferred stock and capital notes and debentured outstanding, and also loans on preferred stock outstanding, divided, first, national banks and, secondly, State member banks, and third, nonmember banks. In national banks the loans on preferred stock outstanding were $9,624,716.30; purchases of preferred stock $437,577,064.65, a total of $448,444,001.09. In State member banks the loans on preferred stock outstandingand that probably would be also debentures or notes where they were not permitted by State law to issue preferred stock-$1,064,618.44; and purchases of preferred stock, capital notes, and debentures outstanding, $174,943,610.25, or a total of $176,008,228.69. With reference to nonmember banks and other State banks that are not members of the Federal Reserve System, loans on preferred stock outstanding, $8,797,658.20; purchases of preferred stock, capital |