The Washington times., 1928-10-02
1928 BUSINESS
GOOD, BANKERS.
ARE TOLD
BY international News Service


BY international News Service
PHILADELPHIA, Oct. 2.-Busi
ness in the United States for 1928
z political year" will probably ex
osed that OF 1927. Thomas r. Pres
ton. president of the American
Bankers Association, predicted ir
IN address today before the annual
convention of the association,
Mass production and efficiency
has put millions of automobiles
radios. electric lights, telephones
and other eonvenienees in Ameri
can homes, Mr.. Preston said. 1.-The
saving OF the people are also con
stantly increasing. Our transpor-
tation facilities were never equal
TO what they are today All OF
these have had a direct bearing upon
the banking business ofthe country.
Business has been uneVenly ex'
panded, but upon the whole the
year 1923 will prove a satisfactory
year and the volume of business
will likely be larger than for 1927.
The natien's wealth is, being enor-
mouslXs increased and all business is
learning efficient methods.
New Political Era
Preston said that it seemed to
him that this country is coming into
new era in tbs political life.
He predicted that there would be
no disturbance of legimate busi-
ness. either large or small regard
less of which party wins the presi-
dency in the coming election. Po-
liticallv. he declared. as well as in
manylsother ways, business and the
masses seem to have gone into
partnership. and now the country
has a more sympathetic under
standing and a more cooperative
spirit than ever before. He pointed
out that the greatest friend of la.
Dor today Is business.
Citing the important changes in
4l1e social and business life of the
american people. he revealed that
since 1921, when there were 30.-
E93 hanks in this country. the num-
her. asa result OF consultations.
failures and other causes. has de-
clined until now there are about
$1,000.
Every thoughtful person real
better for the public that we have
fewer and larger banks. which can
at all times render adequate SER
vice, rather than multitude of little
ones struggling for existence"
Reasons Given
Mr. Preston, who is president OF
the Hamilton National Bank of
Chattanooga, Tenn. said the colln-
try needs more banks with capital
of fifty to one hundred thousand
dollars substituted for those with
capital of ten to twenty thousand.
He added that the continued con-
centratiion OF banking resources in
the centers may seriously affect
many fthe independent banks.
One ~ the chief reasons for this
concentration. he explained. is the
improved highways and marvelously
improved methods of transportation
and communication which have taken
place in recent years. These changes
are not alone in banking: they are
in many other lines. notably in mer-
chandising growth in chain store
sales.
''The resources OF all the banks
OF the United States have gained
more than 80 per cent In less
than 20 years and this move
ment has continued to gather mo-
mentum in the last few years, al
though since 1921 the number Of
hanks have decrea sed over 5000.
he Said. THE total resources are
now slightly less than seventy bill
lion dollars: sum never before
reached in this or any other coun-
try.
Never before has the public own
ed so large an interest in the banks
as now. Ownership of banks by
the few is passing to the many.
Stocks of banks as well as other
corporations was never so widely
distributed az now. | think also
that the standards in banking as
we'll as everything else are on a
higher plane than never known be-
fore
Makes Recommendations
Mr.. Preston made three recon.
menda tiOns to the association:
/. He recommended the form
ing Of an international Bankers
Associa ton.
2 He renewed the recommen-
dafion made by exPresident Tray.
Tor that the American Bankers AS
sociation have reorGa MIA tion ~
rcaii=nment Of the divisions of tho
association along functional in
stead NJ charter lines.
!. He recommended that th,'
association should have a perma-
nent home.
Speaking NJ his plea for the for
walton % an international Bank
srs Association. he said:
1T seems m me it would he i'm.
practical to have any other kind
of an association except a delegated
ore. such an association would moi
only help us solve fina ncial prob
lens and difficulties which beset
every country. and would un
dolIbtedIy make for more cordial
and sympathetic understanding be
tween the countries of the world.
Solving Problems
'If the United States il To main
tain its financial and Industrial su
nremacy it must continue to lend
Invest and sell abroad on an ever
increa sing scale. Foreign business
20 MS will be more important I'm the
future than it has been in the past
We are now 40 closely related Il
otber countries that what affects
one section Of the world in turn af
Fect. us all. and il seems TO me j
would be desirable 10 have meet
Jrg Of representatives of all tn
hanks Of the world at some con
yenient point like New York. Lon
Lon Paris or Berlin. at intervals o
two or three years.
"Our investments in foreign secur
I,ios have not always been deSif
able. and this international assc
ciation might bring q better under
.+anding OF credit conditions an