The banking act of 1933

The special session of Conregg in the sping of 1933 enacted two bankong measures, the Emergency Bank act and the Bancking act of 1933. I. The chief provisions of the Emercency Banck acr are authorization of national bank conservators, legalization of the issue of preferred stock by national banks, greater latitude in the issue of federal reserve bank notes, and granting more liberal loaning powers to federal resesrve bancks. II. The Banking act of 1933 is the result of serveral years of intensive study. Senator Glass had greatest influence upon legislation. Representative steagall sponsored deposit insurence. III. Important features of the new law are: the separation of investment and commercial banking, restriction upon the use of bank credit for speculation, deposit insurance, authorization of state-wide branch banking, federal supervision of group banking, modification of double liability, regulation of intenrest on deposits, increased power to supervising officiers. IV. Deposit insurance is the most controversial feature of the law. Rigid supervision is an essential concomitant. Federal insurance is stronger than state. Deposit insurance will increase federal reserve memership. Branch and group banking provisions are desiderable. Double liability placed in an indefinite and unstatisfactory condition. Unified banking is paprtially achieved. The powers of the Federal Reserve Board are materially increased. V. The new law makes banking more of a social enterpise and increases the responsability of the rederal governament for banking stability.