Evening star., 1927-04-08
ALARM IS SENSED
IN BUYING TREND
Regional Savings Convention
I Hears Plea for Scientific
Study of Thrift.


sounded by Orrin c. Lester, vice presl-
dent of the Bowery Savings Bank,
New York, in an address this forenoon
at the regional savings convention, IN
session at the Willard.
I'VE spent N the year 1926 $S,0O0,-
100000 on installment buying alone,
and it probably cost us another bll-
lion for the privilege. of using this
form of cheap credit, the speaker de-
clared.
while 1 do not condemn all forms
of instalIn1ent buying it is my opinion
that this intoxicated state of mind,
which is mortgaging incomes before
they are earned for articles that could
well be done without, is fallacy and
q delusion that is undermining the
foundation of sound credit and the
economic welfare Of American families.
At Confusion Crossroads.
"It seems to me that we are stand
ing in this country today at the cross
roads of economic confusion, with one
signboard pointing to a revival Of eco
nomic intelligence and another point
ing to the encourag cement Of economic
waste; with one set of forces urging
people to personal eXtravagance and
another set trying to impress the
need of rational economy.
1T is the appeal of extravaganza
working against the principle OF
thrift; the appeal to but depreciating
luxuries against the appeal for life
savings; the appeal to use money for
O. good time and die poor against the
appeal for a competence in old age
And the thing that concerns us today
is which of those forces is going to
win.
There are probably far more
people in this country who are eco
nomically sick thar physically sick,
and yet we, as savings banks, have
not developed our purposes into any
such accurate science as the science
of medicine. There is no science of
saving. We have not established our
selves as experts in the field Of money
saving, which is our primary pur-
pose and obligation to our depositors
and the public.
Challenge for Saving.
IT believe that the thing that chal.
lenges our brain and vision today is
an attractive, well thought out scien-
tific program of systematic savings
that viii put before men as a chal-
lenge plan by which they can ac-
cumulate out Of their life income a
better living and a competence for old
age. We must equip ourselves to
provide form of practical, free finan-
cial service that viii bring the COM
mon people to our institutions for
help and assistance in these matters.
just as they come to the bank to make
deposits"
President Robert V. Fleming of the
Riggs National Bank led a discus
sion that followed this address on
Income Management"
1s1ra
other instructive address by President
w. r. Morehouse of the savings bank
division, American Bankers Associa-
ton on the subject, Various Kinds
of Depositors and How to Handle
Them. The second speaker on the
program was William f. Ritter, as
sistant treasurer, Central Trust &
Savings Co., Philadelphia. He told
The convention that it is not unusual
TO find 40 per cent of the savings ac.
counts in a bank to be inactive.
The nearest solution to the prob.
lem is to make thrift, or savings, a
habit he told the convention. why
not assume that every account that
is opened is apt to fall into the in
active class and use all possible
modern methods to prevent such a
result?"
The discussion of this question Of
improbable accounts, which is one
of the most difficult the banks have
TO face, was led by Frederick 2. II.
Siddons, secretary of the American
Security & Trust Co. of this city.
Dana S. Sylvester, executive man.
ager of the Massachusetts Savings
Banks Association, spoke on 1.-THE
Savings Club Idea" He declared that
the Christmas savings. club outstrips
all others because of the tremendous
appeal to the imagination in the word
Christmas. But he is strongly in
favor of vacation" "coal," 1" tax" and
other clubs and believes strong imagi-
native advertising will achieve results.
In conclusion, he made strong plea
for ''installment saving in the place
OF installment buying"
Another Washington banker, Ed
ward J. McQuade, vice president of
the Liberty National Bank, led the
after-discussion. The forenoon ses-
sion closed with an address on Mass
Advertising" by c. II. Veteran, vice
president American National Bank,
Nashville, Tenn. Eliot II. Thomson,
publicity manager, Washington Loan
d Trust Co, opposed mass advertising
except under certain conditions.
Guests at Banquet.
Last evenings convention banquet
was attended by these guests: Gov.
Crissinger of the Federal Reserve
Board. Controller Joseph w. McIn-
tosh. Commissioner Proctor J.. Dough-
erty, Commissioner Sidney +. Talia-
ferro. A. w. Hall, director of the
Bureau of Engraving and Printing;
A. w. Pole chief national bank ex-
aminer; Il. II. Mountjoy, deputy man
ager, national bank division. Ameri-
can Bankers Association: Rev. DR.. ia
son Noble Pierce, and DR.. Heinze T.
IuedlcNe, editor, German Association
Savings Bank journal Others at
the head table were bankers active in
the District Bankers Association.
w. w. Spaid was POSTMASTER, and
threw his audience into roars Of
laughter with q Scientific" discourse
on the origin Of the spinal column
end his discoveries on eating.
President Morehouse brought greet.
1ngs from the savings banks division
of the American Bankers Association
and Fred n. Shepherd, executive man
ager Of the association, touched briefly
on the work the association is doing
and the value Of the regional confer
ences
Merle Thorpe, editor OF the Ma
tion's Business, scored a hit with his
address on prospects Of Continued
Commercial ana Industrial Prosper
ity and its Effect> on Savings" He as
serted that there is a great industrial
revolution going on in this country
Il Is peaceful, but the old individual
efforts are giving way to group efforts
SO that all the great industries are
now meeting growing competition as
powerful groups. Business is spotty.
but sound aS "a Y,uf no ya;a