The herald and news. [volume] (Newberry S.C.) 1903-1937, 1920-10-26
BANKERS CLOSE
BUSY SESSION
ENDORSEMENT OF FEDERAL. RE
SERVE SYSTEM.
American Association and State
Bankers Not Agreed as Shown
By Resolutions.

Washington, Oct. 21.-blanket IN
dorzement of the federal rcse.ve
system coupled with g pledge to aid
the national railway equipment cor
poration, organized to help the car
1iers obtain equipment, marked The
conclusion today Of group meetings
of the American Bankers association
convention.
AS an outgrowth Of the convention
however, bankers and others, from
cotton states, took steps preliminary
to the organization Of a S12,oo0,000
export financing corporation to meet
the situation which led to numerous
appeals from cotton growers for gov
ernment relief. The corporation will
be formed under the Edge act and
start operations with an initial PAID
in capital and surplus of s6,000,0oO.
The federal reserve system vas
given unstinted praise by the na-
tional bankers group in resolutions
adopted at their final meeting with
the approval of the equipment cor
poration and the pledge to go be-
fore the state legislatures where
necessary to obtain revision of laws
prohibiting investment of trust funds
in such securities was voted by the
saving banks section. Their action
was based on the increased values
given all railroad securities through
creation of the equipment corpora
ton the resolution said.
Endorsement of the federal reserve
system, which included approval OF
it's administration brought the IA
sional bankers again in sharp opro-
sition to the stand taken by the state
bankers who yesterday denounced
several phases of the reserve boards
work. Leaders in the two groups of
bankers believed tonight the differ
ence between the two sections might
come to light when the report of the
resolutions committee reaches the
floor of the convention tomorrow. All
resolutions adopted in sectional
meetings will be considered by the
association committee and final ac-
ton be taken by the convention as
whole.
The question of par clearance with
which the state bankers dealt in their
section resolution yesterday, WAS
passed over in the convention today.
The special committee considering 1t
reported progress and was IN
structed to continue its work. Its
chairman, N. J. Bowling of Olivia,
Mimi, however, told the convention
the only remedy he saw for the coun-
trv bankers who favor a collection
charge on checks was amendment OF
the federal reserve act.
The crop financing corporation
project took shape at an informal
meeting of several hundred bankers
and representatives of cotton inter-
ests. A special committee headed
by Robert F. Maddox of Atlanta,
presented a favorable report.
Although specific mention was
avoided, speakers indicated that es-
tablishment of the corporation would
mean an early opening of sales ne
gotiations with European manufac-
turers who were said to be in the
market for round 100000 bales OF
cotton.
Mr.. Maddox declared that the cor
poration was not proposed in any
sense as a vehicle for the holding OF
crops, but as a facility for their
marketing.
The national bankers elected Off
GERS today, choosing H. II. Mckee,
president of the National Capitol
bank, Washington, D. c., as pres'-
dent: John G. Lonsdale, president o.
the National Bank of Commerce, St.
Louis, vice president; Walton Bew-
conner, president of the National Tx
change Bank of Baltimore, chairman
of the executive committee.