Evening star., 1923-06-22
D. c. BANKERS TOLD
Of FINANCE BODIES
Harry v. Haynes One OF
Those Speaking at Hot
Springs, Va, Sessions.
Special Dispatch to The Star.

Special Dispatch TO The star
HOT SPRINGS, Va. June 22.-The
second business session Of the cur
rent convention of the District Of Co
llumbia Bankers Association was held
here this morning with Harry Y.
Haynes, next president of the body.
presiding. Following the invocation
the speechmaking began.
Frank P. Bennett, jr, editor of the
United States Investor. lauded worthy
finance companies OF the country,
but delivered a scathing denuncia-
tion of those whose primary object
is a stock jobbing scheme. at the
same time providing a handy tool for
the man who manufactures and sells
doubtful stocks and bonds to the
public.
If it were possible to accumulate
reliable figures, the speaker voiced
the belief that one could prove by
sheer statistics that the oil we'll and
the prospective mine have been less
frequently the nucleus Of stock job
bing schemes in recent years than
new finance companies.
In discussing the two main varie-
ties of finance companies, namely,
the buying from manufacturers and
merchants of their open book ac
counts, and. secondly, the cashing of
sales for manufacturers that have
plan. Mr.. Bennett warned that the
promoter has lured more victims to
financial grief by his wonderful sto-
ries OF the profits from trade
financing than by any other reference
to finance company activity. Like
wise, he held the second variety was
also contrary to public welfare, as
it defeats the spirit of thrift, mas
much as it makes the purchase of
needless articles altogether too easy
own these things.
No Banking Jealousy.
Entering further into the discus
sion of this second variety Of finance
company business, Mr.. Bennett ex-
pressed the belief that it can be
handled better by finance companies
than by banks. and that banks need
companies that do this business.
This work, he declared. Is for the
specialist
Passing to the merits OF finance
companies, Mr.. Bennett called atten-
tion to the commeEdable rescue work
they performed in the business con-
cern that Is under-capitalized: to the
finance companies that supply the
liquid assets which permit the modest,
established concerns and the am
emergencies-emerg which are
fatal to 90 per cent of the business
mortalities which befall those who
start in business on their own ac-
count.
When properly administered, finance
companies perform a real service, Mr..
bennett emphasized in closing his
remarks.
Pointing out that the twenty-five
year-old automo bile business has out
a
road industry. Oscar Coolican, presi-
dent of the Packard Washington
company, who followed Mr. Bennett,
urged more cooperation between the
banking profession and the automo-
bile industry.
Attitude Toward Autos.
The attitude of the bankers to-
ward the automobile industry has
changed in the past year or two de-
clared Mr.. Coolican, and they now not
only admit its amazing growth, but
also that it is sound and fundamental.
The automobile has become essen
tisl only because it serves" said Mr..
Coolican. 'It il helping the children OF
the crowded cities to have homes out
in the suburbs. 1t Is saving the farm
er from the isolation which was sap
ping the strength OF agriculture. And
the automobile has become just as
essential to the economic life of the
nation. Imagine what would happen
IL the automobile industry stopped
buying its billion dollars worth Of
other metals, leather. lumber, paint
and all the other raw materials"
The courage and economic common
sense of the automobile industry was
a very important factor in our gen.
eral business recovery last year. The
automobile industry was back to nor
NAL in March, 1922, while general busi-
ness did not reach this point until
nine months later. Considering all
the problems 1t has had to face. the
automobile industry may we'll be
proud of it's stability, restraint and
forethought."
Money Not Diverted.
The money being spent on automo-
biles is not being diverted from the
so-caIled necessities of life or from
savings, declared Mr.. Coolican, citing
the bankers own statistics. Retail
business increased while the auto
mobile industry was supplying the
biggest demand in its history. And
according to Caldwell Hardy. chair
man of the fifth reserve district.
savings reported by savings banks
show a continuation Of the steady
increase that has been in evidence
since 1890" Also. the census and
those states In which the highest per-
centage Of people own their own
homes are also the states which have
the highest per capita ownership of
motor cars.
Mr. Coolican pointed out the great
opportunities for the banker in the
automobile and its application. He
discussed the coordination of rail
roads with motor trucks and of the
street railways with busses. He
pointed out how the banker can CO.
operate with the financing corpora
tions which are making It possible
to sell automobiles on the INSTALL
ment plan.
Mr.. Cooiican drew to the attention
of the convention the possible
menace Of the so-called used car
problem to the automotive industry.
He also illustrated the added oppor-
tunity for education and travel which
the automobile affords to the family
Of the man Of moderate means
The golf tournament for the w. b.
Hibbs cup will be run OF this after
noon.