Reform the banking laws; stop credit flowing to speculation; relieve depositors of closed banks

There is need of revising the banking laws so as to place our banking structure on a sounder basis generally for all concerned, and for the better protection of the depositing public there should be more stringent supervision and broader powers vested in the supervising authorities. We advocate such a revision.

We favor requiring reports of and subjecting to thorough and periodic examination all such affiliates of member banks until adequate information has been acquired on the basis of which this problem may definitely be solved in a permanent manner.

Security affiliates: examination, not the divorce the Democrats proposed.

I have recommended to the Congress the reform of our banking laws. Unfortunately this legislation has not yet been enacted. The American people must have protection from insecure banking through a stronger banking system. They must be relieved from conditions which permit the credit machinery of the country to be made available without check for wholesale speculation in securities with ruinous consequence to millions of our citizens and to our national economy. I have recommended to Congress methods of emergency relief to the depositors of closed banks.

As a result of weaknesses which have developed we must have constructive revision of these regulations in a form that will not destroy but will give greater service and greater security to the whole people. The spirit in which we must develop these remedies and reforms is the preservation of initiative of our people, that we should punish and prevent wrongdoing, not that we should destroy them by our Government foisting great bureaucracies upon the country which only deaden and do not heal.

Seventh, an authority by which we could secure early liquidation of deposits in closed banks that we might relieve the distress to millions of depositors. We did not secure that authority out of the Congress.

Eighth, revision of the banking laws. This matter was postponed.

I recommended to the Congress the sane reform of our banking laws. The Democratic House of Representatives did not see fit to pass that legislation in the last session, but we shall persist until it has been accomplished.