Evening star., 1925-06-25
DEYbERPRAISES
RESERVE SYSTEM
Makes Opening Address at
Bankers Convention at
Hot Springs.
BY CHAS. p. SHAEFFER,
STAFF Correspondent of The Star.


Staff Correspondent of The Star.
HOT SPRINGS, Va, June 25.-The
seventh annual convention Of the Dis
trict of Columbia Bankers Associa-
ton got under way here this morning.
Once a year the precarious loans,
Improbable and overdrawn notes and
defaulted payments are subordinated
or entirely forgotten by this group of
Washington financiers, who gain con-
structive knowledge of vital subjects
during the short day business sessions
and revel by night.
Confidently, this mornings initial
session was begun at the same hour
and on the same date as the associa-
tons inaugural conclave held seven
years ago at Deer Park, Md. The as
sembly was quickly notified OF this
fact by Victor B. Deyber, president of
the association, in his opening ad-
dress
In his speech, which he tacitly re-
ferred to as an 'ante-mortem state
ment" CMr. Deyber's official demise be-
ing scheduled for next Saturday morn
ing, when new officers will be named
for the year,. Mr.. Deyber assumed
the role Of a eulogist. Beginning with
the Federal Reserve Board, and con-
tinuing down the line to his minor
praise was offered by the speaker. The
stand taken by the local banking fra
ternity with respect to rent legislation
last Spring was also warmly COM
mended.
Praises Reserve System.
From a credit point of view, Mr..
Deyber asserted the birth OF the Fed
eral reserve system places in our hand
a -f,,1 70 yr~U
with the minimum Of danger and the
maximum prospect of success. Trac-
ing the unsatisfactory economic seas
from colonial days until about 10
years ago when the system came into
being, the speaker declared although
its christening and initial trial oc-
Cured during the most unprecedented
economic and financial upheaval in
the worlds history, it has weathered
country into a peaceful and sound
financial calm.
America has escaped the chaotic
currency and credit conditions of
Europe" he said, 'and will continue
to adjust herself in an orderly fashion
If this great banking system is safe
guarded. liberalized and administered
under intelligent legislation"
Mr.. Deyber declared this country's
business was never so good as 1t is to-
day. He believes, he said. conditions
were never better set for progress, CIV
ing as his reasons the following sali-
ent facts: Retail business in 1924 was
the largest recorded in this country,
and 1925 is running ahead of 1924; the
wealth Of the world is far in excess Of
pre-war figures, despite the wars tre-
mendous waste; our transportation IA
cilities are being used to their fullest
extent and are more efficient than at
any time in our history: the prices Of
securities are higher than at any time
in 1924; d marked Improvement has
taken place in the agricultural situa-
ton, and a higher level Of return
seems assured to the farmer for the
next harvest year, and, except during
the postwar boom, our foreign trade
is the greatest in history.
Mondeu Scores High Taxes.
The present wartime taxes now lev
led upon the American people, in some
cases amounting to more than 40 per
cent OF earned incomes. are in peace
times unfair. unjust and wicked, >"
Frank w. Mondell. member of the
War Finance Corporation, fatty de-
clared in a speech on Federal Tax
Reduction and Reform before the
association,
Mr.. Mondell expressed himself in
accord with President Coolidge that
the high rates are indefensible from
the standpoint Of justice and equity
Considering them from the standpoint
of their defect upon the general pub
lie interest he called attention that
three Presidents and a like number
of Secretaries Of the Treasury gave
warning to the disastrous effect of
the continuation of these rates.
Beyond all question" said Mr..
Mondell. these Treasury returns af-
ford abundant demonstration of the
unwisdom Of continuing high rates
In 1915, under a maximum surtax
rate of 13 per cent income in excess
OF 100000 were reported in the sum
of $1.S56 900, 900 and in 1923 the same
class of reported incomes had dwindIed
to 1913 900 900. The difference be-
tween these sums, at the rate of 6
per cent, represents the income from
more than SIS. 900, 100000. Assuming
that large incomes have increased in
the same proportion as other classes
of income, we find that the sum of
81 400 900, 900 would represent incomes
in excess of 500, in 1923. The diff
ference between that amount and the
sum of incomes actually reported rep
resents, at per cent, the income of
$24 900 000,0 ,000."
Billions Invested Abroad.
"It appears, therefore, that under
the high tax rates large portions, in
the sum of at least $50 0,000, 900, 900, as
conservative estimate, has been
withdrawn from the field of active
business and invested abroad or in
tax free securities or so divided as to
no longer appear in the high brackets
of the income tax"
Mr.. Mondell offered this suggestion
bankers and influential business men
in u. s. Lifts