Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-20

Decision on International In
stitution's Power Was
Urged by Americans.
BY JOHN F. SINCLAIR.


Special Dispatch to the star.
NEW YORK, October 1e.-Melvin
A. Taylor, Chicago banker, who 10
comforting with other world bankers
now at Baden-Baden, Germany. In
an attempt to set up q practical
and effective international bank, won
most important victory when the
committee gave the central banks Of
the world a veto power over fiscal
operations of the International Bank.
1t will work this way: If the Inter-
national Bank desires to carry on GER
tain financial operations in the United
States which the Federal Reserve did
not consider advisable, the International
Bank automatically would cease to push
the situation any further in the United
States.
This, in the flanl analysis, makes the
Federal Reserve the power within the
United States. It makes the Bank Of
England the power within England.
And it makes every other central bank
the fiscal power within its own country.
So the international Bank will not be
the superbank Of the world.
American Victory Seen.
This is considered a victory from
the American point of view, inasmuch
as the fight for this veto clause was
led by the Chicago banker.
Many times it has been stated that
the international Bank would really
speculate in the exchange Of different
countries. But the British delegate, w.
T. Layton, categorically denied this
when he said: THE Bank of Interna-
tional Settlement is not primarily q
bank for making profits on exchanges,
but to facilitate exchange. The mere
mutual knowledge of the central bank
when transfers occur should tend to
stabilize exchanges"
AS the International Bank Is a new
world creation, the like of which has
never existed before. it must be par
ticularly careful in its original set-up.
That is the business now that is keep
ing the Baden-Baden conference In
almost constant session.
Macdonald and Finance.
. Andrew M. Chaffey, Canadian born
president of the California Bank Of
Los Angeles, commented recently upon
was attached by the financial writer's
to the visit Of the prime minister Of
Great Britain to the United States.
Looking at the whole matter Of dis
armament from purely business
standpoint, no international meeting in
years approached the simple one be-
tween the President and the prime min
ister in Washington last week, clearing
away the non-eSsentialS and preparing
the great powers" said Mr.. Chaffey to
the writer.
IF 1t Is possible to accomplish q re-
duction right through Of, say, 10 per
cent, those millions that are now spent
in Army and Navy expansion can be
spent on internal improvements. It
means millions and millions Of dol
lars saved In every firSt-class country.
To me there Is no more important SUBJ
ject with which the business men of
the world are so vitality interested and
concerned as this one OF rational dis
armament"
Mr.. Chaffey, SIS. was born in King
ston, Ontario, spent his early life as o
bank clerk in the interior of Australia:
at the turn Of the century lin 1902 he
moved to Southern California and or.
ganized the First National Bank Of
Ontario. Next he organized the Amer.
lean Savings Bank of Los Angeles.
which later changed its name to the
California Bank.
Introduced Branch Banking,
Today this bank has combined re.
sources of $3.50 ZOO, 600, with IS branches
in Los Angeles and 10 branches in the
surrounding towns in Southern Cali
fornia.
Andrew Chaffey, trained in the
British branch banking system, was the
banker who introduced branch bank
ing to California and opened the drst
branch in that State in 1905.
Branch banking is a perfectly logi-
cal step in the evolution of the United
States. Had the laws of the United
States and the different States per-
mitted, the United States today would
be served by few huge banks with
branches scattered over all parts Of the
country. just how the larger units
will develop now is not quite clear, but
that the day OF the larger units has
arrived Is evident on all Sides
Visitor Sees Prosperity.
H. Gordon Selfridge, the Wisconsin,
born department store magnate of Lon.
don, England, who is spending a short
time in the United States, is not at
all impressed with the results which
the Americans get from the ardent
speed. hurry and rush Of modern life.
He believes that the American peo-
pie, as rule, rush about too much,
eat too fast, sleep too little. Poise and
dignity are lacking
While he sees nothing ahead but
prosperity and further expansion In the
United States he warns against the
growing traff1c congestions in the great
cities. It is particularly bad in New
York, Philadelphia, Detroit and Chi
cago. These, Of course, are the largest
of the American cities.
Nearly every substantial business
leader today who has large store and
property interests in the downtown
sections of great cities Is giving more
and more attention to this most dificuit
and knotty problem. It will be worked
out some way, but at this time its I'LL
innate solution looks more hopeless
than it really is.
MIR. Selfridge, who owns the largest
department store in the British Empire.
employing $4,000 workers, is never
rushed, always free to meet business
associates or friends who drop in and is
never cluttered up with red tape. In
fact, he seems less busy in hist London
Office than many executives employing
100 men.
II never let myself become too busy.
so handle my affairs that I see peo-
pie the instant they come to my office"
says this London merchant.
Come to think about it, most big men
are that way.