THE MITCHELL AND SCADDING PAPERS.

The author comments on papers by economists John Scadding and George Mitchell regarding competition in financial institutions. He states that if the U.S. Congress repealed the prohibition against interest payments to owners of demand deposits, the Federal Deposit Insurance Corp. could protect itself from excessive bank competition by adopting a new pricing policy. He comments on the reluctance of the Federal Reserve to work with other governmental agencies in long-range reform measure before an economic crisis occurs, which has resulted in patchwork regulation by the Federal Reserve.