Evening star., 1925-06-09
CREDIT PROTECTION
URGED BY HOOVER.
Praises Association for Its
Campaign and Pledges
Departments Aid.

| NSPoI tttiCiIt y HIus
stressing the enormous loss to
| American business through The opera
| ton of credit criminals" Secretary
OF Commerce Hoover. addressing the
| National Association Of Credit Men
at the Mayfiower Hotel today. de
/ clared there were three principal
methods of improving the credit pro-
cedure Of the country. These are, he
| said. the extension OF credit to good
! people. the refusal Of credit 10 "unre
liable md incompetent people" and
''iail for the bad"
| Prsising the credit men for their
, campaign against fraudulent business
| practices. Secretary Hoover said: Il
/ don't know OF any worse waste than
that which comes from commercial
crime" The waste from this source.
| Mr.. Hoover said. was not only levied
against the immediate loser. but. in
! the long run. was levied on the whole
people. The Department of Commerce
: pledged relentless pursuit of CONNER
/ cial criminals by Secretary Hoover.
who said that such pursuit was A mat
! ter OF enormous economic impor
| tance."
! Declaring that the credit men had
an opportunity to become "one of the
stabilizing influences of the country"
/ Secretary Hoover pointed out how the
credit executives were able to watch
the ebb and flow of business and TO is
sue warning in times OF danger not
| only 10 the association membership
but 10 business as a whole.
Urges "SeH-Government."
Selfgovernment" was recommend
ed 10 the American people by the
Secretary, who declared that with the
increasing density of population and
consequent increase of difficulty be
tween man and man. there was need
ed a growing "setf-government out
side Of government"
| The growth in asSocia tions through
out the country was praised by the
Secretary. who said that those which
! have sense of public responsibility
and service provide a helpful means
of lifting standards a nd ethics in their
own groups.
| 1T ia funda mental" said Secretary
Hoover. that we maintain credit
/ based on character. for character Is
! not only large part of credit risk.
! but the maintenance of character as
a basis Of credit Is a stimulant to the
! Nation. It provides a chance for
/ many TO start on useful careers who
i might otherwise be unable to start
j are undeserving ii places premium
| on character itself.
There is always a small proportion
! OF criminals with us. They are the
destructive insects who infest our
; commercial fabric. This sort Of per
! son Is the ba ndit of commerce. There
! is no greater service than relentlessly
! to pursue him. Aside from punish
ment, as deterrent to evil. it has a
Il, Sr~ta
Warns Against Booms.
| Secretary Hoover warned against
/ the danger Of booms. saving that they
were always followed by slumps. with
/ great detriment to the entire national
| structure.
! The association today also heard
Senator F'ess of Ohio warn against the
mania for Iegisla ton md listened
to Vice Gov. Platt of the Federal Re-
serve Board propose branch banking
as a means of preventing bank fail
ures," during the course of the second
days convention program at the May
| flower Hotel.
| One of the important features of
! the dav was the series of trade group
conferences this afternoon. where va
rious branches of banking, manufac-
| turing and business planned TO get to-
/
study OF the problems confronting
! them.
| Tonight there will be reports from
the advisory council. three committee
reports and two plays by credit men
in competition for the national asso-
cia ton cup. The plays will be pre-
sented by casts from Atlanta. in Hit
ttine on All Four" and from South
Bend, in THE Credit Salesman"
n
been built up "a bureaucratic system
at Washington that is irksome IL not
DANGEROUS" The demand for legis-
lation on the part of the people had
become so heavy, he said. that 1t was
| pertinent to inquire whether the ma
mia for legislation has not already be-
come the serious problem in American
politics"
"The danger" he said, lis not alone
in the mere number Of laws enacted
or attempted. but also in the character
of the proposals. Sounds economic
consideration is thrown to the winds.
Public appeal for political favor is
embraced. The statesman gives way
to the politician. Every proposal is
given the political bias"
| Attacks Demagogues.
The "demagogue" was attacked as
| taking advantage of the demand for
| legislation.
Senator Fess referred to the ex-
| pa nsion of the Department of Agri.
! culture, as good example of the
enormous growth of bureaucratic gov
ernment in the last two decades"
! Vice Gov. Platt of the Federal
Reserve Board, speaking before the
Robert Morris Associates. bankers.
declared that where smaller banks
are necessary to accommodate the
people branches should be permitted.
The national banking system" he
said, would be much stronger IL we
could provide that in the future no
banks should be chartered with a
capital less than $4,000 (as in the
| national bank act before 1900 or,
better, $100, 900, which. considering the
general increase in prices. is no more
than 200 represented in the early
days OF the national banking act. +"
Mr.. Platt thought 1t unfortunate
that the national banking act has
been generally interpreted as not
authorizing branch banks. THE Con.
| crosses which revised the act, Mr..
Platt said, did not intend to prohibit
branch banking. They certainly did
not. intend to prohibit branch bank
| ing within city limits, and 1t appears
reasonably clear that they did not
intend to prevent national banks
from having the same privileges with