Evening star., 1927-10-24
BANKERS DISCUSS
FRAUD FINANCING
Addresses Open Convention
of Association at
Houston, Tex.
By the Associated Press.

BY the Associated Press.
HOUSTON. Tex, October 24.-Tax
revision. legislation. educational cam
paigns and exposes of "gold brick
financing" featured discussions at the
opening of the American Bankers
Association convention here today.
Responsibility for bank failures Of
the defiation period was charged to
systems used by the various State
banking departments and the control.
Ter of the currency. by Dan V.
Stephens. president of the Fremont
State Bank. Fremont. Nebr.
Banks Decreasing.
The business Of the country now is
being conducted by about 1000 less
banks than existed seven years ago,
when the defiation started. he as.
serted, and no doubt could be con.
Quoted with 1000 less banks than are
now operating.
He declared the Federal and State
system of bank examination was in
effective, due in part to lack Of per.
manent assignment of examiners,
which he found resulted in long
range findings" He suggested adapt
ing the banking departments of the
various States and the controller of
the currency to the credit clearing
house idea.
An address condemning archaic
court decisions affecting check collec.
tions," and urging adequate legisla-
ton to protect banks in out-of-town
items. was made before the State
bank division by o. Howard Wolfe,
cashier Of the Philadelphia. .Girard Ma.
tional Bank
Wolfe assured bankers of his belief
that differences of opinion on legisla-
ton along these lines could be worked
out and presented to the various Leg.
islatures in concrete form.
Warns of Crooks.
Gold brick financing" costs the
American public more than $1,000, ,OoO,-
600 a year, Harry w. Riehl,
ness Bureau, St. Louis, reported to
the savings bank division.
Riehl warned the bankers of the
highly organized efforts of stock
crooks, who go to school and swap
succer lists" He explained that com.
pilation of the sucker lists, now listed
under the sobriquet Of lilly" were
kept up to date and found a ready
market.
w. E. Albig, deputy manager of the
association, found that education of
children and the management of in.
come through school savings had be.
come necessary part Of schooling.
He gave shortened hours of labor,
high wages and sales pressure as rea-
sons for the necessity of educational
campaigns to teach thrift and income
management
Hugh Fl. Saxon of Chicago char.
acterized the trend of depositors to de-
mand long time securities instead of
short time paper as one of the chief
problems of State banks. He declared
this was a challenge ito our sources
Of information and our intelligence"
IL proper credit judgment was exer-
cised.
County Credit Viewed.
Reports to the State secretaries
meeting showed rapid progress in
linking county credit bureaus into
Statewide chains, to prevent duplica-
ton of securities given in efforts to
obtain excessive loans.
Reduction of the corporation tax
from 1874 per cent to 10 per cent in
the prospective revenue bill was adj
vocated by Senator George of Georgia,
Democratic member Of the Senate
finance compittee.
Senator George also proposed re-
peal of the estate or inheritance levy
and repeal of the remaining wartime
excise duties in a speech prepared for
todays meeting of the State bank di-
vision.
Some consideration also would be
given by the Georgia Senator to cut
ting surtax rates applying on indi.
vidual incomes between $4,000 and
$40 1000.