The Semi-weekly leader. (Brookhaven, Miss.) 1905-1941, 1922-05-13
STATE CONVENTION
OF BANKERS ASSN
Address Of President w. D. Davis OF
Brookhaven P1eases for Brevity
and Direetness.

dent Davis said that the past year has
been a most difficult one for the banks,
but also one of unprecedented useful
ness; that their problems have been
complicated by drastic readjustment
conditions, and enforced deflation due to
the war. These two years, he said. are
long to be remembered, bringing trials,
and problems never before experienced
but, while the burdens have been many
and grievous, its sorrows wide and deep,
its losses large and general, Mississip-
pts record as to bank failures is a re-
markable and meritorious one. Now
with the readjustment almost over, the
business revival already under way, new
problems and enlarged opportunities are
presented.
Touching general business conditions,
President Davis said:-
"The dullness always incident to the
turn of the year is wearing away. The
farmer is getting better prices for his
products. The iron and steel market,
always a dependable index, grows
stronger. The lumber business is more
active. Merchants are buying again,
and there is a decided shrinkage of un-
employment.
"The buying Of materials by manu-
facturers is, of course, still limited. for
few care to anticipate orders, but the
absorption of wholesale and retail
stocks is compelling more liberal pur-
chases by merchants, while the consul
mer is buying again, if only because he
must"
The advance toward normal rondit-
ions, continued President Davis, is a
natural and orderly one. During the
feverish years of maximum production,
agricultural, industrial and otherwise,
business was hardly on a competitive
basis, and almost anyone could make
money. These last months of business
depression have necessarily eliminated
great numbers of concerns that could
not stand the credit strain, but the ma
tion's business fabric is the stronger for
it. The men who are doing business
today, and, through efficient manage
ment and sound financing, are prosper
ing under existing conditions, are the
ones who may hope for increased and
enduring prosperity in the prolonged
period of receding prices and normal
business which is now at hand. A
merica's latent buying power is enor-
nous and unimpaired and our business
structure fundamentally sound.
WORK OF COMMITTEES
President Davis briefly reviewed the
work of the various standing commit
tees, praising the success of their Ia
bors during the past year. He espec-
tally approved the work of the commit
tee on education named at the sugges-
ton of the American Bankers Associa-
ton, whose duty it is to conduct an
educational campaign lin the public
schools relative to bankers and bank
ing.
Regarding the work of cooperation
with farmers President Davis said:-
"One of the lessons which the recon-
struction days has brought home to us
has been the emphasis of the Age-old
truth that upon agriculture depends all
commerce Ours is an agricultural sec
ton and there can be little or no pros
perity unless agriculture prospers. Two
fundamentals have to do with this ba-
sic neutrality-suspicious. and market
ing.
"As to production, although the doc
trine of diversihcation has been preach
ed, and wisely so, for many years, in
recent months we have seen King Cot
ton carry his subjects into a period OF
the greatest distress, and while 1t is
doubtless true that cotton should retain
its place at the head of the list of our
farm products, considering the danger
on one hand of individual failure on
account of the work of the boil weevil'
and the danger on the other hand of col
lective failure on account of over-pro-
duction, it is necessary and most essen
tiaI that the farmers get away from
the one-crop idea and grow their food
and feed stuffs at home. Such policy
is of so much Importance, that, if ne
cessary, drastic measures to bring 1t a.
bout and fully justified, and it is a good
sign that some of our banks are refus-
ing to make loans for the purpose OF
buying feedstuff. "A general policy of
this kind among our members would be
very effective.
Mr.. Davis praised the work of the
various agencies that are encouraging
diversihcations and trying to obtain
more profitable markets for farm pro-
ducts, and suggested that an agricul-
tural committee be named to keep more
closely in touch with these agencies.
Praise was given to the work Of the
Federal Reserve System, the Federal
Land Bank and the War Finance Cor
poration. Touching the Federal re-
serve system, he said;-
"The Federal reserve system has been
a bulwark Of strength, and I hope that
the few Objectionable laws governing
it's operations may be removed, so that
all eligible non-member banks can be-
come members"
MUST ENCOURAGE CAPITAL
Touching the subject of legislation
President Davis said:-
"The political situation In our state
is far from satisfactory. There are
members of our legislature, and other
office-holders in the state, who, are
strong and true, and men in every sense
of the word. There are others who ap-
pear to be but time-servers, more in
terested in staying in office than they
are in giving the people of Mississippi
an efficient administration of its affairs.
"The attitude of the state Of Mis-
sissippi is considered hostile to capi-
tai on account Of certain laws now on
our statute books. AS has been said,
legislatures can either build magni-