The Washington times., 1928-05-26
FUTURE
CALLS FORTH
OPTIMISM
By RICHARD HATTON

&DI ABLGA1EAA9A1 A11A4
In urging a more comprehensive
participation OF bank directors in
the affairs of their banks. in an
address at the convention Of Kansas
bankers this week. Craig B. Halle
wood, vice president of the American
Bankers Association, also visioned
continued development of the bank
Ing business in this country and con-
cIuded by stating:
One may conceive an even bright
or future for the banking business,
/ trust, without being charged as
visionary. realize the difficulties
that may appear in the path of this
program. But have seen strange
and wonderful things happen in
other lines of business. I have seen
science and cooperation applied to
our national transportation system
with astounding results. I have
seen one industry or business group
after another taking its cue from
other successes and marching into
more advanced ground. / firmly be-
lieye that as the result of united eff
fort we are now in the morning
hours OF new movements move
nlent which may at present be inn
perceptibly slow, but which, /
daresay, within q few years, will
gather an amazing momentum in the
direction Of scientific and able bank
management.
Then we sha have in banking
what we are demanding of our
customers in other lines of busf-
ness control by men who over
look no essential of the problem,
market analysis, the elimination
Of improbable units and wasteful
practices, closer budgetary control,
efficiency and economical opera.
ton, lower costs, q larger gross
and increased net profits, faster
turnover Of capital and greater
huuidity with even greater safety"
Outflow Of Gold
According to United Business Ser.
vice, the persistent outflow Of gold
and the sale Of securities by the
Federal Reserve banks are remov-
ing purchasing power from circula-
ton. The United Business Service
doubts IL this loss of buying power is
baing replaced entirely by the
Increased borrowings by the mem
bw banks frol the Federal Re.
ures, the Federal Reserve banks
are lowering the credit base formed
by the gold reserve by forcing gold
certificates into circulation in place
Of Federal Reserve notes. The
purpose doubtless IS to check stock
speculation, but one effect Of tight
ening money il to depress com.
modify prices.
Current monetary conditions there
fore favor decline rather than fur
Their advance in the commodity
index. Il prices decline. collec-
and failures tend to increase again.
That the average liability per
failure has again declined Ii of
itself favorable sign, but the
critical factor to watch is the
trend Of the price index-and par
ticularly industrial prices. A de-
cline in that quarter undoubtedly
would lead to an increase in fail
ures.
Magazine Fills Need
Appearance of the second number
Of the United States Banker places
this new financial magazine, which
il published here, definitely in the
ranks Of authoritative financial pub
locations and il welcomed, as was the
first issue, as filling distinct need
In current writing dealing with
banking and financial subjects.
It has been realized for some time
that this city should be represented
by q high-class financial publication,
and the support which is being given
the United States Banker indicates
that it has come to fill the need.
The current issue is attractively
bound and measures up with older
magazines of the same class. The
material is well selected, and the
subjects dealt with are covered by
recognized authorities. Editorially.
the magazine sustains the high
promise Of the initial issue, and it
in evident that the National Capital
has added q distinctly high-class pub
LEGATION to financial literature.
Edmund d. Rheem, vice president
of Swartzell, Rheem and Hensey
Company, has just returned from a
twO-Weeks motor trip, through up
per New York and Canada.
The New York Stock Exchange
will be closed all day today in &C
c0rdance with recent custom in or
der to permit Of catching up with
the bookkeeping in brokerage of
fees.
President Cunniberd of the In.
ternational Exchange Bank has re.
turned from a short business trip
To New York.