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...five and a half years Federal Deposit Insurance Corp. has guaranteed U. S. bank depositors against loss on deposits up to $5,000. Meanwhile, deposits of commercial banks have increased from $39,562,000,000 to $51,355,000,000 and U. S. bankers have sweated trying to make the billions earn money. Stagnant business and stagnant real estate have reduced the wage that a banker's dollars can earn. To keep them from becoming unemployed he has had to hire more & more of them to the Government. Today all banks have 30% of their total deposits on "relief...

Author: /time Magazine | Title: BANKING: Money on Relief | 7/31/1939 | See Source »

Month ago the Booneville Savings Bank solved its low income problem by announcing that it would go out of business. Its 300 corn-belt customers were invited to come and get their $267,000 on deposit. To its depositors, the bank promised full payment, to its stockholders, the $10,000 capital they put up 33 years ago to found the bank, plus $21,000 surplus and undivided profits, $11,000 in real estate. Yawning, the local farmers let their money be, figuring that they would take their 2½% interest as long as possible...

Author: /time Magazine | Title: BANKING: Direct Action | 7/10/1939 | See Source »

...minded Humorist Will Rogers told Pan American Airways: "If you boys ever get around to flying the oceans, I want to be your first passenger," offered to make a cash deposit for the privilege. The airline refused his money, but put him at the head of its waiting list for both Atlantic and Pacific crossings, then only misty dreams. Before taking off for Siberia in 1935, Will Rogers tailed Pan American, asked if he could get back in time for the first Pacific flight. He could have, easily-but for the crack-up in lonely Point Barrow, Alaska, which killed...

Author: /time Magazine | Title: Transport: I Want To Be First | 7/3/1939 | See Source »

...subject of his warning was brokers' general practice of taking customers' cash deposits and mingling them with their own funds, with the result that if a broker fails, his customers are just some of many unsecured creditors. By contrast, he pointed out that the U. S.'s No. 1 department store (Manhattan's R. H. Macy) "accepts customers' cash for deposit against future purchases. But . . . these deposit accounts are not commingled with the general funds of the store. They are deposited with a totally separate banking company set up under State banking laws and supervised...

Author: /time Magazine | Title: MARKETS: Fire Warning | 7/3/1939 | See Source »

...England, traditionally the world's banker, and for Wall Street, now the world's safe deposit box, Sir John Simon's order to investors to "Buy British" recorded another portentous retreat from the free capitalism of Adam Smith. Under it, Britain found that capital export opened markets, expanded prosperity across national boundaries, employed surplus British wealth. Today, British capital is no longer exported in this sense; it flees, and its flight is at this time a drain on national resources...

Author: /time Magazine | Title: MARKETS: Buy British | 5/29/1939 | See Source »

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