What reforms should be applied to the Federal Deposit Insurance Corporation?
The FDIC should be prohibited from substituting its own standards of management for those of private bankers. By confining itself to the insurance function, it would not be providing a monopoly profit position for existing banks and discouraging constructive loans to farmers and small businessmen. 169. Are reforms needed in the Treasury? Yes. The system of selling U.S. Government securities through a small group of preferred dealers should be abolished. There is no reason to guarantee government bond dealers vast profits. In addition, the Treasury s practice of leaving deposits of public funds with private banks at no interest should be stopped.
