Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-28
CHANGE NBANK|NG.
PRACTICES URGED
Suggestions for improving
Methods Of Federal Re-
serve Are Made.
Special Dispatch to The star.

Special Dispatch TO The Star.
NEW YORK, September 27.-R. C.
Leh1ngwell, Sc. Yale graduate, partner
in j. p. Morgan q Co., makes three
suggestions to improve Federal reserve
banking practice.
First-Seek to get not only men Of
strong character, but in addition those
who understand banking and finance for
high places in the Federal reserve sys-
TEN.
Second-Give the IL Federal reserve
banks greater measure of autonomy In
the management Of their business.
Th1rd-Gtve the IL reserve banks
power to make their rediscount rates
effective.
1T would be better for the country IL
the money markets were more promptly
responsible for the modern changes in
Federal reserve POLICE" believes Mr..
Lef1ngwell.
Here is Morgan partner asking for
less, rather than more, banking concern
tratlon. The House OF Morgan NJ thought
OF by many to be the very apex of finan.
cial concentration, yet this Morgan part
ner pleads for more local self-control,
even at the expense of taking such
power from the Federal Reserve Board.
Inc American people opposed the AID
rich bill because it centralized banking
control too much. They supported the
Owen-Glass bill because It modified the
oanklng reserves, but left the banking
management In the IL regional centers.
The power of the regional banks to
operate automatically" says this Nor
gan partner, must of course include
the power customarily to pick their own
rate, and their own open market policy.D
Mr. Lefhngwell, q native of New York
CITY, began practicing law in New York
as member Of the firm of Cravath A.
henderson. When the war broke out
ne was made special assistant to the
the liberty loans. In 1920 he resiSned
70 again resume his place in his old law
flrm. In July, 1928, at the age of as.
ne was asked to become Q partner IN
the mouse of Morgan, and he accepted.
he Is known as one of the best In.
formed men in the United States on In ?
ternational finance.
Hitler's Statements.
The spectacular statements of Adoluh
Hitler. German Fascist leader. that hes
and his group, when they get CONTROL.
would not only scrap the treaty Of Vefs
sailles, but would in addition use the
guniotine freely to chop OF the heads
OF ooclalst, Republican and Fascist
w AAOu AACAP bAlC 1CIIUH0 CTe0lG
situation in the world. Yet the verv
nature OF the Hitler statements viii dis.
Is done. @.eA"A
Nevertheless, the tremendous rain IN
the Fascist following, evidenced last
week in the election, has caused Lord
iHotnemere, the largest British pub
iisneT, 70 issue . word Of warning and
Say very frankly that in his opinion
the treaty OF Versailles is due afor 4
radical and revolutionary revision"
80 france, cautious watching constant.
~ Tor her own security, has been with.
craving FUNDS from the German banks
IN large amounts. Other funds, too.
t nave neen moving out Of Germany since
Germany needs credit to carry an
In no year since the war has she hear
anle TO pay her way, either within the
country or outside. Her national rev.
enues, received from taxation. have not
In any year since the war paid her
natlonal expenses: nor has she sold in
any year since the war as much o,,f-
sac OF her country as she has bought
The credit balance l. AGAINST h.-
on both counts. She needs money ~
carry on; that Is, credit. Let her cre6it
De oestroyed and she Is in q bad Wav
Immediately. -
TnuS the visit Of DIR. Fans fa,thar
70 the United States becomes An svar,t
on International Importance. Not onIv
VIII this former German Chancellor.
now mead Of the Reichsbank. be busv
, Win FEDERAL Reserve oficials, but.
nave an opportunity to find out how
Iar the banking world viii 70 back
ing up Germany while she works n,,t
her ulncuit problems Of reconstruction.
Gain In Business.
Is per cent gain In business s.t,v. +
lty over the preceding week for fhe
week week enoing September 20, measured bv
nank debts outside of New York f-itv
merce. VI Ooin-
a.. A new Fall activity is on. wheth.r !,
1ne record will be above the I1orn,a1
rM ian Tor this season or not re-
ny the Fisher Index. basea an Ios1
prices, were higher than a wsat scH
DuC lower by Is per cent when .nornr
pared with the prices of A wear sgc
oseel ana iron prices remain sho,,t 49,
same, although wholesale prices v~rS
less tnan Q year ago.
a, TOT Ine week ending today. inerea IN.
h ~ SScGIVlIy over the preceding week were
a,r..SS - thiAs' Duuolng construction
=, .E nituminous coal production and
~ -. Lne receipt OF cattle and calves Il,
liz sAls primary markets. Declines were re-
ceipts. SAM "Aieat re-
Present figures point TO an increas.
Sngntly larger than the Seasonal In
crease during the last two weeks.
Retail Distribution.
Inc new census figures on retail .,is.
trlDutlon are extremely Valuable M
study OF the economics of Distributors
mas mas ever been complete, because of the
little data available, but this conditinV,
Will soon be remedied,
1t Is already evident that efseiancv
IN production is far In advance ~ an.
cheney in distribution. largely hacamsS
production statistics have been avsiIahjS
Tor many years, while distribution fir-
ureS have not.
Reports from different cities will he
made available as soon as connnIete6
ALREADY the figures for four cities hav@
been arnounced-El Paso Tex: Pueblo.
COLO; Trenton, N. j., and Syracuse
Economists and business men ara
Duslly studying these local distribution
ngures with unusual interest.
For example: In Ell Paso, Tex. .2sO
retail stores of all kinds, empIoyinT
4,122 people, did a business In 1929 AZ
S4S,S4S,OO0, which means that each enn-
pioye sold slightly more than SiO.OOO
worth OF goods for the year.
such figures are definite and consnre-
hensive. The Census Department IN
rendering A most Valuah1a aarrriaa a.