Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-06
ASSOCIATION HOLDS
BANKS ARE STRONG
Report Says SO Per Cent of
/ Deposits Unaffected by
Economic Situation.
" the Associated Press.

~ the Associated Press.
ATLANTIC CITY, october 6.-Amer-
lean bankers today launched an assault
on the Nations economic problems.
Criticising critics of the banking
structure and pleading for perspective
picture of a serious situation, the Eco
nomic Policy Commission of the Amer
lean Bankers Association presented its
report to the first general session of
the associations convention.
The report is not voted on by the
convention, but bankers take it to rep
resent the views of financial men and
regard it as particularly important at
this time.
In common with the rest of the
world our country is being forced to
face many serious problems, but Amer
lean credit is still the strongest in the
world" the report said.
Gold Holdings Cited.
1--WE hold in this country a large
part of the worlds monetary gold. 1t
is still fundamentally true that where
the gold is the strength lies.
I'VE have no doubt that Americas
1ndomitable will to conquer will see us
through the present difficulties as it
has seen us through similar difficulties
in the past.
THE facts are that, while 4 per cent
OF the banks, as to numbers, were per-
manently or temporarily closed in the
first eight months of the year, some
90 per cent were not involved and.
Furthermore, that only IL per cent of
the deposits were tied, which means
that almost 80 per cent were not af-
fected.
1T is obvious, in view of the fore
going, that an exaggerated and dis
torted view Of the banking situation
has been created in the public mind
by focusing attention solely on the
bank-failure figures, unrelated to the
broader situation of which they are but
q part.
Many Difficulties Met.
1T surely stands strikingly to the
credit of the banking profession that
during this period this vast majority
of the bankers have so completely, so
courageouSly and so successfully met
their difficulties and obligations.
THE effects of the drought, the de-
moralization of agriculture, the stag
nation of industry, the breakdown of
trade, the inability of so many here
tofore desirable customers to meet
their obligation to the banks, the i'm
pairment of public confidence by mob
scareS and false rumors resulting in
unreasoning runs, the abnormal depre-
citation of quoted security values even
in the most wisely conceived invest
ment accounts, the utter collapse of
real estate values-all these things have
occurred on Nationwide and world
wide scale.
The effects of every one of them
have assailed the banks with destructive
forces because they are of the very es-
sence of the banks economic substance.
Deposits Protected.
"Yet, as we have shown, the great
bulk of our banking deposits has been
protected without harm. And our
banks in a vast majority have con-
tinued to serve, support and strengthen
their customers and their communities
with unfagging and unconquered devo-
ton. =
1--WE sincerely feel that the fate of a
relatively few banks and the acts of a
small number of bankers have had an
absolutely dsproportionate effect on
public confidence in banking as a
whole.
I'VE feel that it is the great public
task of the banking profession and OF
all business interests as well for their
own protection to restore that conf
dence.
For justified public confidence is,
after all, the very foundation of bank
ing"
Sees Rail Raise Approval.
Fairman R. Dick, spokesman of a
committee of railroad security holders,
predicted yesterday the Interstate Com
merce Commission will grant a freight
rate increase as an emergency measure.
He addressed the savings bank division
OF the association.
Mr.. Dick said rate increase was the
only practicable measure suggested for
the immediate critical situation.
Henry Bruere, president of the Bow
cry Savings Bank of New York, urged
savings banks to take up the torch of
leadership, which seems to be lying
smoldering on the ground and every
body afraid to handle it,
School savings banks as builders of
citizenship were Endorsed by the saw
ings bank division.