Ke Alakai o Hawaii, Volume IX, Number 26, 8 October 1936 — Bank, Trust Officials Resent Knox' Attack On Insurance Policies [ARTICLE]

Bank, Trust Officials Resent Knox' Attack On Insurance Policies

Hie attempt of Col. Knox, the Republican candidate for Vice President, to frighten the public as to the safety of their liie insurance policies and barik aecounts got nowhere, because his statem;ents were so palpably' false. But his rumor mongering has aroused resentment among bankers, who have been asked uncomfortable questions by their depositors, and among insurance agents, who deeply resent such reckless talk.

Despite the fact that Col. Knox's' assertion at Allentow», Pa., that "today no life insurance policy is secure; no savings aecount is safe," was obviously untrue, therfe eame an avalanche of testimony to refute it. The eight exedutives of large insuranee companles who called on President Roosevelt issued ā statement in whieh they said that life insurance policies were "the safest of all securities" and reported a gain of three billion dollars in the combined assets of life insurance policies since January l, 1933.

Mortimer L. Nathanson, secretary of the National Association of Insurance brokers, sent a telegram of strong protest to Col. Knox and Chairman Hamilton, who hād suppoi*ted his charge. Nathanson and his associates also eircula,rized state insurance Commissioners and immediately received replies from eighteen, all testifying to the soundness of life insurance eompanies.

E. A. Smith Jr., Insurance Commissioner for Utah, replied: "Col. Knox is either not familiar with the facts or else lie is wilfully stating that whieh is not trae."

Edgar B. Sims, State Auditor of West Virginia and ex-officio Insufance Commissioner, said: "Any ch'arge that 'no life insuranee policy is secure' is foolhardy and asinine."

U. A. Gentry, Insurance Commissioner of Arkansas, characterized the Knox allegation as "the most asinine statement of the season."

W. J. Dawson, Commissioner of Insurance of South Dakota, wired: "Col. Knox must be particularly dumb regarding life insurance."

R. L. Daniel r Chairman of the Board of Insurance Commissioners, reported that legai reserve life insurance compaiiies in Texas were all soujid and added: "The condition three years ago was quite different from what it is today." *

P-epuhliean Chairman John D. Hamiiton in indorsing Knox's attack on ba»ks ano insurance companies said; "Certainiy they were safer in 1932 than now." Yet the record shows the banks and insurance companies went to the government for loans in 1932 and have been paying them back unaer this administration.

Life insurance companies borrowed from ihe Reconstruction Finance Corporation $37,924,000 through March 3, 1933, and paid back up to that date only $2,370,000. They borrowed $4,910,000 from March 4, 1933, through September 15, 1936. and they paid back $38.441,000 during the same period. In other words t hey were forced to borrow iuider Hoover and were able to paj' it all back under Roosevelt.

The same ; thing was true of the banks. Banks and trust eompanies . got ioans froni RFC tlirough 3Vlarch 3, 1933, to the aniouiU-. oi $997,094,000 and m thc same period paid baek less than a Uiird, Oi $302,29:i,000, They honoweā §900,003,000 Lioiu Mai. 4, 1933, tiii'ougii Sepl<ynber 15 ( 1930, iepiiid duung iho Si«ue penod $1,429,000,000 Uie same story, foreed ti b<.nrow under Hoover and prospeivus cnough undex Roose\ ell to repaj' their ioans. ln I9«i wixeu, accoi\iuig to Mr. iianui?sn, bfe uisui.aiee policies and bapk aeeounU 'weie safer than are uow, ihe:e were

15456l s 456 bank failures. For the two entire years 1934 «iaid 1935 and eight months in 1936 there werg oniy 122 bank failu^es.