Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-02-06
BANK Management
CHANGE is URGED
Young Believes in State Su-
perviSion of Savings and
Trust Companies.
BY JOHN F. SINCLAIR.
Il nisnatch to The Star,


polling all State banks to become men,
bers Of the Federal Reserve system, saw
ngs banks and trust companies should
be left under State supervision.
Before the Glass Committee of the
United States Senate he elaborated this
theory, and explained clearly the diff
ference between a commercial bank and
a savings bank. He does not believe 1t
practical or wise to have these two types
of banking combined into one, even II
the assets are segregated into savings
assets and commercial assets.
Bank affiliates, too, give him trouble.
He is perplexed about them. He is in
doubt about the propriety of some af-
filiated companies. But he does believe
that if security companies are going to
be associated with banks the own
ership of the security companies and
banks should be identical; that there
should be no divided interest here.
Otherwise, better prohibit aftiliates alto
gether.
Mr.. Young came out strongly against
the plan advocated by Sir Josiah Stamp,
John Maynard Keynes end other Eng
lish economists for managed currency
and credit. He said:
IT may say that 1 have some personal
views on this whole question OF the use
of Governments Government bonds in
central bank operations. And In that
connection 1 may say that l am OPP
posed to a managed currency and
credit"
Cigarette Taxes Mount.
Apparently people smoke more when
times are bad than when times are
good. At least that's the way the rec
ord reads for the year of 1880. Cigar
cite manufacturers paid the Govern
ment more than 81 100000 in cigarette
taxes for every day of the year.
It was paid on a little more than
11e.500, 100000 cigarettes-an increase
of better than 100000 over the preced-
ing year.
while this 1920 increase was the
smallest in the past few years. the
month of July, 1890, was the record
month of all time, with production
approaching 10000 100000 cigarettes.
The cigar business continued to
shrink. Taxes we're paid on less than
6.000,000,000 cigars-a drop of more
than SOC, 900 under 1929.
Snuff production also declined, as
well as manufactured tobacco.
It's only in the field of cigarettes
which has, at the moment, immense
popularity with both sexes, that the
phenomenal tobacco gains continue.
Unemployment Remedy.
The Portland Civic News of Louis
vile, KY, advances another remedy
for unemployment.
This publication, which is printed in
the working mems section of the city
where the men. who have bsen working
among machines, have seen the decrease
in employment growing year by year
due to the machines, suggests that a
tax or tariff Ito be paid directly in to
the United States Treasury by the own
ers of the machinery be placed on all
n1achine-made products"
This is on the theory and for the
same reason that America now imposes
tariff on imported goods produced by
pauper labor in Europe. I'm both in
stances" says the news, "the principle
of protection to American labor is in
yolved and we believe the remedy would
prove successful in the one instance as
1t has apparently done in the other
The fund so created could be turned
over into an unemployment insurance
fund that would take care of every I'M
employed person displaced by machinery
until other employment could be OBJ
tanned.
This is an unique idea, but not likely
70 De ADOPTED.
Extent of DeflatiOn.
Deflation continues. Bradstreet's in
uex number of average commodity prices
on February ] shows decline Of 81 per
cent in the general price level during
January.
How much is this decline? June 1872
per cent for the year, and IS per cent
from the top point Of deflation, reached
on December /, 1925.
The Bradstreet index now is at the
lowest point in 10 years. But 1t Is still
68 per cent above the level of August,
1914
At what point vii 1.-The dropping price
level BE- stabilized? Will the decline
continue another per cent? If it does,
the standard of living will be back
again to that reached in August, 1914,
when the World War broke.
There are many worldly wise men in
the United States that believe that the
price recession will not stop before that.
Kent an Optimist.
A. Atwater Kent, Philadelphia radio
manufacturer, thinks people are all
together too pessimistic and alarmed
over present conditions; that the coun-
try has passed through many different
periods of depression, and many COM
panies have suffered loss of business
and loss of profit in such times. But
both the country and the business in
situations that have been handled prop
erly have always come back strong.
Radio as a product and radio as an
advantage to humanity will compel its
continuance as a major industry" says
Mr.. Kent. For my own part, view
the prospects in radio, and those de-
velopments which radio is bound to
offer, as entirely favorable to every
branch of the industry.
"Of course, this is predicated upon
our ability to keep ourselves in position
to do an outstanding. concentrated job
when business again assumes normally.
While that may not be immediate, we
are, nevertheless. assured that the trend
is now in that direction"
Institute Meeting.
Jerome d. Green, member of Lee,
Higginson 81 Co. and chairman OF the
American Council of the Institute Of
Pacific Relations, has just announced
that Hangchow, China, has been Sc
lected for the meeting this Fall of the
Fourth Biennial Conference Of the In
stitute of Pacific Relations.
E. c. Carter, secretary Of the Ameri-
can Council, says that American bust
ness men should be vitality interested
in the Hangchow conference, for its
discussions will center about China's
economic problems in relation to her
neighbors, bordering the Pacific Coast
This IS the first conference OF the In
stitute ever held in China, and the
same results should follow, Mr.. Carter
says.
(copyright, 1891. by North American News
paper Alliance