Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-06-19
EMPLOYEES CREDIT
UNIONS SHOW GAIN
More Than 800 Are Now
Functioning in U. S.-Aid
Small Borrowers.
BY JOHN r. SINCLAIR.


! Special Dispatch to The Star.
| NEW YORK, June 19.-There are
now more than 800 employee credit
| unions in the United States. They have
been growing rapidly for the last two
years.
So far. 81 States have passed legisla-
ton governing the formation and oper-
alton of such employee associations.
Credit unions, long an important factor
| in European life, demonstrate the
Soundness of the position some OF the
larger banks in the United States have
recently adopted-that is, that f1nan-
cial accommodations to small borrowers
unable to give banking collateral for
loans are not only an urgent need but
a legitimate and feasible banking
service.
All of this spells the death knell OF
the loan shark, who has gouged the
small-salaried employe, often out of his
last nickel.
Recently a study was made of this
subject by the National Industrial Con-
ference Board. In the report the board
has endeavored to classify the many
plans in proper groups. ranging from
elementary forms providing for deposits
to comprehensive plans. including
adaptation Of the investment trust
principle and the building and loan as
ISOLATION idea.
Every effort which goes TO expand the
cooperative credit movement should be
supported.
BY the end of 1929 one will be able
to travel by air from Montreal to
"a nd
to Buenos Aires. and to return by way
of the Brazilian coast to New York and
Montreal.
This is another way of saying that
air lines are springing up. connecting
important cities throughout South
America. Many of them are operating
on daily schedules. The greatest de-
velopment in aerial travel In South
America so far is in Colombia and Peru.
Both countries are rich.
AS early as eight years ago the
"Scadta" was operating a weekly air
line service over the Magdalena River
as far inland as Girardot about 800
miles from the Atlantic Coast. Now
this city, virtually unknown to North
America, is connected by train with
Bogota. There are few good roads in
South America, and railroads are ex-
pensive to build, hence the rapid de-
velopment of airplane travel.
1t looks as though the more progress
s1ve of the South American republics
might become world leaders in aviation.
Deaths from automobile accidents
increased IN the Is large cities of the
United States during the four weeks
ending May ID, according to the De-
partment of Commerce figures. The
number of deaths, 582, is an increase
OF As over the same period a year
ago. Most of the deaths occurred in
accidents within city limits.
Considering four-week periods dur
ing the last four years, beginning Nav
l, 1925, the lowest total, 346, was for
the four weeks ending March 81, 1925.
and the highest. TIL, for the four
week period ending December 90 1928.
Among stable cities having no
deaths from automobile accidents dur
ing the last four-week period reported.
with Flint, Memphis and Spokane, while
those having only one death were Ell
Paso Erie, Lowell, Nashville, New Bed
ford, Syracuse, Waterbury, Whining
ton, Worcester and Kansas City, Kans.
For the next three months, auto
mobile drivers should be particularly
careful, for these are usually the high
death-from-accident months.
banking circles for revamping the Fed
eral Reserve System and modelling 1t
more closely along the lines of the
Bank of England. Today the Federal
Reserve System is run by 108 directors
g directors in each of the IL banks.
In addition to these directors must
be included the members of the Fed
eral Reserve Board at Washington,
making total of 116.
When an important matter of policy
is decided upon, there is almost sure to
be wide difference of opinion in the
present reserve system. Not so in the
Bank of England.
OF course, the Bank of England
stands at the head of a closely-kni
banking system, in which the bulk of
the country's resources are in the hands
of five banks. None of them. how
ever has the right to issue banknotes.
which is the sole prerogative of the Bank
Of England.
Tradition gives the Bank of England
power. 1t has history of 225 years.
it is unified in control and its cohesion
Is relatively easy. 1t is often said
that the American central bank di-
rectors are sometimes subject to politi-
cal influences yet the Bank of England
has also had much criticism in recent
years, but lately. through Sir Joshua
Stamp and Sir Basil Blackett, it has
helped to allay the feeling that it lis
not representative of the commercial
interests.
Nevertheless, the Federal Reserve
system, when organized, had to con-
slider the fact that there were $1,000
independent and distinct banking units
in the United States at the time.
Should the branch bank system come
into vogue in the United States, uni
flcation of the central banks naturally
would follow. Until then, it is rather
doubtful If any great change will be
made in the organization.
The change toward unification in
banking authority is already under way
in the United States.
A successful American exporter was
discussing the qualities which to him.
were most needed for success in the
growing export field.
To study and know the customs, habits
and thought life of other people was
number /. He referred to the trade
mark of an American firm which had
on 1t the picture of a dog.
Now. should that Arm do business
in China" he said, II am afraid It
would have to modify its trade mark, for
the Chinese have a very low regard for
dogs"
DR. Julius Klein tells of a manufac-
turer who stamped the image of a
rabbit on his goods He attempted to
sell his goods in China and found he
had made great error, for rabbits, too
are not popular there.
Certain exporters of fruit from the
United States have found it necessary
to change the color combinations of
their boxes going to the Far East, be-
cause the original colors did not appeal
to the Chinese people