(The table referred to follows:)

TABLE I.-Insured commercial banks-Net profit after taxes, with estimated earnings on obligations of U. S. Government and on loans guaranteed by agencies of U. S. Government, 1934-49

Mr. PATMAN. Table II is the estimated earnings on loans guaranteed or insured by agencies of the United States Government, insured commercial banks.

(The table referred to follows:)

TABLE II.-Insured commercial banks-Estimated earnings on loans guaranteed or insured by agencies of U. S. Government, 1940-49

1 Average of amounts held June 30 and Dec. 31 each year at average rate of 6 percent estimated by management of CCC; 1940 amount estimated.

2 Face amounts under secs. 203 and 603 reduced by 10 percent estimated average amortization at 412 percent reduced to 4 percent, 1946; new rate applied only to net increase.

3 Face amounts under secs. 207, 210, 608 reduced by 5 percent estimated amortization at 4 percent

maximum.

4 In absence of data on holdings or outstandings, based upon "origination" data. All National and State banks accounting for 67 percent of origination in 1948. Average length of loan 22 years at 6 percent. Based on uncalled-for commitments at assumed net earning rate of 5 percent.

6 Guaranteed portion outstanding after scheduled amortization; bank holdings estimated at 35 to 40 percent of total taken at 4 percent maximum on real estate loans as guaranteed business loans relatively small.

Mr. PATMAN. Table III is "Gross operating earnings, profits and estimated earnings on United States Government securities," for the same years, all of them.

(The table referred to follows:)

TABLE III.—Insured commercial banks-Gross operating earnings, profits, and estimated earnings on U. S. Government securities, 1934–49

Mr. PATMAN. Table IV is Federal Reserve Banks, Total Earnings, Earnings on United States Government Securities and Paid to United States Treasury. That is for the same years.

(The table referred to follows:)

TABLE IV.-Federal Reserve Bank-Total earnings, earnings on U. S. Government securities and paid to U. S. Treasury, 1933–49

Mr. PATMAN. I have another table here: Table V, Insured Commercial Banks Taxes on Income and Other Taxes, 1941-49.

68689-50-7

(The table referred to follows:)

TABLE V.—Insured commercial banks' taxes on income and other taxes, 1941–49

Mr. PATMAN. I have here Table VI, Insured Commercial Banks Capital Accounts, December 31, 1940-1949.

(The table referred to follows:)

TABLE VI.-Insured commercial banks' capital accounts, Dec. 31, 1940-49

Mr. PATMAN. Next, I have a table gotten up for Mr. Multer, of New York, by the FDIC. It says it is for the years 1927-49, and it has the interest paid on demand deposits by Federal Reserve member banks, and, of course, that only lasted to 1937. We have the service charges on deposit accounts, Federal Reserve banks and all insured banks, and the last column is total FDIC assessments paid by all insured banks.

Now, I would like the table to be amended, Mr. Chairman, by the FDIC, to include interest-is there someone here from the FDIC? The CLERK. Yes; there is.

Mr. PATMAN. To include all insured banks instead of just the insured member banks, and I would like to have it include the interest on time deposits from 1927 down to date, and I would like two more columns, one column the total amount of deposits, demand, and then the total amount of deposits, time, each year.

I ask unanimous consent to insert that material in the record at this point, Mr. Chairman.

The CHAIRMAN. Without objection, that will be done.

(The information referred to follows:)

Comparison of interest paid on time and demand deposits, service charges on deposit accounts, and FDIC assessments, 1927-49, Federal Reserve members and all insured banks 1

1

1 The insurance of bank deposits by the Federal Deposit Insurance Corporation became effective Jan. 1, 1934.

Includes some interest paid on interbank time deposits. The amount cannot be eliminated from the total but it is known to be small.

First reported separately in 1933. Prior to that time it was not a common practice for banks to make such charges.

4 Not published separately for Federal Reserve members.

Payment of interest on demand deposits was prohibited by the Banking Act of 1933 and subsequent legislation (with certain exceptions for a limited period). This item was not reported after 1937. 6 Not available.

Sources: Interest payments-Banking and Monetary Statistics, Board of Governors, Federal Reserve System, p. 262, and Federal Deposit Insurance Corporation reports. Services charge on deposit accounts-Banking and Monetary Statistics, Board of Governors, Federal Reserve System, p. 262, Annual Reports of the Federal Deposit Insurance Corporation, years 1934-48. FDIC assessments-Federal Deposit Insurance Corporation reports.

Time and demand deposits, Federal Reserve members and all insured banks,1

The insurance of bank deposits by the Federal Deposit Insurance Corporation became effective Jan. 31, 1934.

Sources: Banking and Monetary Statistics, Board of Governors, Federal Reserve System, pp. 73, 78, 110, and 113, and Statements of Assets and Liabilities, Operating Insured Commercial and Mutual Savings Banks, Federal Deposit Insurance Corporation.

The CHAIRMAN. Are there any further questions?

Mr. HAYS. Mr. Wiggins, I did not understand your answer to the question about the addition that should be made to this bill. I understood you to say that you were for this bill as is, but favored an additional provision, and I did not understand what you said we should add to the bill.

Mr. WIGGINS. I covered a number of points. Particularly, the new item that is not in the Senate bill was a provision for a building for the FDIC. But my testimony recommended that the assessment credit be made 75-percent limit, where the bill provides 60-percent limit, and I thought that we could safely go to the 75-percent limit.

And the third point was that if there is not adequate authority for the FDIC to go into a bank in which it has found a contingent possible liability of insurance, if it needs better authority to go in without being hampered, then the Congress might well consider providing that authority. I did not propose any formula by which that should be done.

Mr. HAYS. Thank you, sir.

Mr. WIGGINS. I would like to answer one thing that Mr. Patman asked me, and inadvertently I overlooked it, and that is this: Mr. Patman, I do not see any connection between a provision prohibiting the payment of interest on demand deposits and insurance cost of deposit insurance. They were not related at the time it was done, and, as a matter of fact, I happen to remember that when the provision about prohibiting the payment of interest on demand deposits came along that was considered as a separate proposition.