16. Describe the alternative techniques available under present aw for the protection of depositors in failed or insolvent banks. Discuss the criteria by which the Corporation selects the manner in which it will handle each case. Do you consider it an element of potential inequity that some techniques result in the protection of all posits while other techniques provide only for the protection of deposits up to $10,000?

17. State for each year since the establishment of the Corporation he number and amount of liabilities of failed and insolvent banks which have been handled in accordance with each of the techniques discussed in the preceding question.

18. Discuss the advantages and disadvantages of extending the coverage of deposit insurance to all deposits in insured banks. In our discussion, stress the role of deposit insurance in contributing to conomic stability.

E. BANK EXAMINATION

19. What do you believe to be the role of bank examination and supervision in furthering the objectives of the Employment Act?

F. RESERVE REQUIREMENTS

20. Discuss the function of bank reserve requirements, stressing their role in credit control. What are the arguments for and against bjecting all insured banks to the same reserve requirements as member banks of the Federal Reserve System?

G. THE BANKING STRUCTURE

21. Will you please submit a memorandum discussing the adequacy of banking facilities in the United States? For this purpose, take as your standard of adequacy the ideal of bringing banking facilities within convenient reach of all persons having need of them, and, so far as practicable, giving all persons the opportunity of choosing between two or more competing banks. Distinguish between deposit facilities and loan facilities.

H. AVAILABILITY OF CAPITAL FOR SMALL BUSINESS

22. Discuss the changes which have occurred during the last 25 years in the ease or difficulty with which small-business men have been able to raise capital or to borrow. What in your opinion are the reasons for such changes as you find to have occurred? Do you believe that a more liberal supply of capital and credit to small business would contribute to the diffusion of economic power and to the dynamic character of the economy? What steps could be taken to bring about a more liberal supply of capital and credit to small business? Do you believe that any of these steps would be desirable? Distinguish between the longer-term aspects of the problem and those of particular importance today during the current national defense mergency.

23. Discuss the effects of bank examinations on the lending policies of banks, particularly as they apply to loans to small-business men. Distinguish if necessary between examinations by different examining authorities.

QUESTIONS FOR THE ADMINISTRATOR OF THE RECONSTRUCTION FINANCE CORPORATION

Discuss the changes which have occurred during the life of the Reconstruction Finance Corporation in the ease or difficulty with which small-business men have been able to raise capital or to borrow. What in your opinion are the reasons for such changes as you find to have occurred? Do you believe that a more liberal supply of capital and credit to small business would contribute to the diffusion of economic power and to the dynamic character of the economy? What steps could be taken to bring about a more liberal supply of capital and credit to small business? Do you believe that any of these steps would be desirable? Distinguish between the longer-term aspects of the problem and those of particular importance today during the current national defense emergency.

QUESTIONS FOR STATE BANK SUPERVISORS

1. What do you believe to be the role of bank examination and supervision in maintaining economic stability?

2. Discuss the advantages and disadvantages of extending the coverage of deposit insurance to include all accounts in insured banks. Do you believe that this should be done?

3. What do you believe to be the principal functions of bank reserve requirements? Do you believe that all insured banks should be subject to the same reserve requirements as member banks of the Federal Reserve System? Why, or why not?

4. Discuss the adequacy of banking facilities in your State. For this purpose, take as your standard of adequacy the ideal of bringing banking facilities within convenient reach of all persons having need of them, and, so far as practicable, giving all persons the opportunity of choosing between two or more competing banks. Distinguish between deposit facilities and loan facilities.

5. Discuss in general your policy in acting on applications for new State-bank charters. Stress your concept of what constitutes ample banking facilities-especially the degree of competition which you believe to be necessary or desirable.

6. Would you please submit a statistical analysis showing year by year for the past 10 years the number of applications filed for Statebank charters in your State, the number approved, the number rejected, and the causes for rejection, classified by such principal reasons as (a) existence of ample banking facilities, (b) no prospect of successful financial operation, (c) inadequate capital for the establishment of the bank or branch, (d) no satisfactory evidence that competent management would be available, etc.? Comment on this analysis in any manner which you consider appropriate.

7. Discuss the changes during the past 25 years in the ease or difficulty with which small-business men can borrow from their local banks in your State. Explain the reasons for such changes as you find to have occurred. Do you believe that a more liberal lending policy by commercial banks to small-business borrowers would contribute to the diffusion of economic power and to the dynamic character of the economy? What steps could be taken to foster such a policy? Distinguish between the longer-term aspects of the problem and those of particular importance today during the current national defense emergency.

8. Discuss the effects of bank examinations on the lending policies of banks in your State, particularly as they apply to loans to smallbusiness men. Distinguish if necessary between examinations by different examining authorities.

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QUESTIONS FOR ECONOMISTS

1. What are your views of the effects of credit policies resulting in relatively small and relatively large changes in interest rates, respectively, upon (a) the lending policies of commercial banks, (b) the lending policies of nonbank investors, (c) consumer saving, (d) business plant expenditure programs, (e) business inventory policy?

2. How important do you consider the expansion of credit to be in the totality of factors underlying the post-Korean inflationary boom? The postwar boom in 1945-48? How would you appraise the effectiveness of (a) general and (b) selective credit policy in coping with (i) a high level of private capital investment, (ii) a high level of consumer spending, (iii) large present or prospective Government expenditures, (iv) the wage-price-farm support spiral?

3. What do you believe to be the appropriate roles of direct (e. g., price and wage) controls, selective credit controls, and a general tightening of credit as means of restraining inflation (a) when the Treasury is not expected to be a large borrower in the foreseeable future, (b) when a large volume of Treasury refunding operations will have to be effected in the foreseeable future, (c) when it is expected that the Treasury will be a large net borrower during the foreseeable future, (d) under conditions of total war?

4. Do you believe that it would be (a) desirable and (b) possible to insulate public debt securities in whole or in part from the impact of restrictive credit policies designed primarily to discourage the growth of private debt? Do you have any concrete suggestions for action in this regard?

5. To what extent do you believe that the demand for Government and other high-grade, fixed-interest-bearing securities by nonbank investors is influenced by (a) the current level of interest rates, (b) expectations with respect to changes in interest rates, (c) other factors? 6. Discuss the merits and demerits of the proposal for the issuance of a bond, the value of which would be guaranteed in terms of purchasing power.

7. What types of securities do you believe should be the principal vehicles of Government borrowing (a) under present conditions, (b) in the event of the necessity for substantial net Government borrowing? 8. Under what conditions, if any, do you believe it would be desirable to resort to compulsory methods in the sale of Government securities to (a) banks, (b) other financial institutions, (c) other corporations, (d) individuals?