Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-22
Committee Would Make Priv
iIege Optional With Indi-
viduaI Houses.
Representative MCFadden
Advises Against Taking
Any Such Step.

displayed during the past year has made
membership advisable. The recommen-
dalton was placed before the conven-
ton at the Mayflower Hotel by H. H.
Newell of Cleveland, the vexing prob
lem having been given a years study
since the last convention at Atlantic
City. The 600 delegates were expected
to vote on the recommendation late to-
day.
The committee report stated that 1.-The
events of the past two years have given
every banker many occasions to be
thankful for a strong, liquid and effi-
cient central banking system in this
country and the conclusion of your COM
mittee is that mutual savings banks
should in the best interests of our vast
number of depositors, attempt to obtain
the privilege of membership in the
Federal Reserve System"
1T will be utterly useless for your
Federal Legislative Committee" the re-
pert added, Ito present and obtain pas
sage in Washington of an amendment
TO the Federal Reserve act without the
Endorsement Of their efforts by this as
ISOLATION"
Advises Against Joining.
The committee report, made this
noon, followed quickly after the address
L.
in which he advised the mutual saw
ings banks to maintain their freedom
and remain outside the Federal Reserve
system. The committee recommended
ton urges the Legislative Committee to
seek passage OF an amendment permit
ting this class of banks to join the Re-
serve system, but at the same time to
make such a move optional with the
banks.
Reports came in fast at today's con-
Vention session. Many of them COW
ered technical studies in progress for
the past year. The late afternoon pro-
gram also included the election of off,
| GERS for next year.
McFadden Sees Slow Recovery.
Chairman Louis T. McFadden of the
House Banking Committee. in his adj
dress, predicted that recovery from the
depression would be long, hard pull"
| and expressed the hope that it would
not be necessary for Congress to in
| crease taxes, but that it would reduce
Government expenses instead.
The Pennsylvania urged the bank
ers to maintain their independence of
the Federal Reserve system, blaming it
and certain business interests with re-
sponsibility for what he described as
inflated securities values before the 1929
crash
1t would be dangerous, he said. to
deal with the question Of reducing
wages at this time because Of the psy-
Geological attitude of the public. He
said surpluses held by big concerns
should be distributed to stockholders
and to employees in wages as a step
toward stimulating business.
ut seems to me-" he continued, that
as long as price levels continue to fall,
just so long will the business recovery
be held back-until those forces which
affect price levels are Steadied. There
can be no just settlement of proper
wage scale until price levels are settled
permanently. Standards Of living de-
eide or should decide, the level of wages
The maintenance of the present
standard of living in the United States
is vital to the maintenance of our
present form of government, and every
force and element to sustain this Is
necessary. In times like this there are
always people who cry out against the
fixing of what they term political
wage, but who at the same time strain
every nerve to get political price by
tariffs, combines and credit control"
Investment Rate Pulling.
Among the 500 delegates opinion was
divided in Yesterdays discussions over
the idea of reduction of interest rates
on thrift accounts, which all agreed
was to be considered only as last
resort, but which some bankers were
inclined to regard as inevitable if pres
ent conditions remained much longer
unchanged.
The rate paid by savings banks, even
after such reductions as might become
necessary, would, according to Harry
P. Clifford, president of the Salem Five
Cents Savings Bank. Salem, Mass be
higher in all cases than those paid
by commercial banks having thrift &C
counts.
Many banks, including "aIl the wise
Ones" Mr.. Clifford said, were guarding
against an increase in deposits repre-
senting other than actual savings. 1T
would be unfair and unWiSe," he said,
Ito reduce interest rates on the basis
of such deposits, unfair to our real and
regular depositors and unwiSe because
such accounts would be withdrawn as
soon as business conditions improve"
Discusses Foreign Investments.
Grosvenor Jones. chief of the finance
and investment division of the Com
merce Department, told the 600 dele
gates there was marked tendency to
ascribe the delay in world economic
recovery to the fact that "this country
is lending and investing III foreign
securities less freely than before the
1929 stock market crash.
Our critics forget" he said, that
many countries borrowed TO the limit
when the borrowing countries as well
as this country were prosperous, and
foreign issues could be easily placed
with the American investing public"
In addition to the war debts and
short term investment abroad, he SAID.
Americans had invested more than
sis, 900, 100000 in foreign securities.
mo Economic Santa Claus"
Federal appropriations for inland
waterways and super highways" we're
denounced as "doles" granted by the
Government to selfish business inter
ests" at the expense of the American
taxpayer, and accounting in part for the
present Treasury deficit by Samuel S.
Wyer, consulting engineer, of Columbus,
Ohio.
There is no economic Santa Claus"
he said. In the long run, the money
comes out of the pockets of the tax
payer, who right now is paying 81 per
cent of the highway costs to 38 per
cent paid by the users, and go per cent
of the cost of the inland waterways to
40 per cent paid by the shippers.
Mr.. Wyer characterized the appoint
ment of Power Commission by Gov.
Roosevelt as "an attempt to put Presi-
dent Hoover in a hole" and the per-
sonnel of the commission as "men hay-
ing no pracS ical experience" The Gov
ernor, he said is only trying to make
the people believe he can give cheap
electric power to the people of the