Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-20
D. c. BANKERS NAME.
M'QUADE PRESIDENT.
Atwood, in Address, Urges
Refusal of Charters for
Weak Institutions.
by EDWARD C. STONE,
ntan cnrrasnnnhent of The Star.


stan Correspondent Of The Star.
HOT SPRINGS, Va. June 20.-At
the closing business session Of the Dis
trg.t of Columbia bankers Association
convention here today Edward ]. Nc
Quade, president Of the Liberty Ma.
tional Bank, Washington, was elected
president for the coming year, succeed
ing Lanier p. McLachlen.
C. H. Pope, vice president OF the
Munsey Trust Co., was elected f1rSt vice
president: George o. Vass, vice presl-
dent and cashier of Riggs National
Bank. was named second vice president.
and Frederick p. H. Siddons, secretary
of the American Security 81 Trust Co.,
was elected association secretary.
Albert S. Galley vice president of the
Lincoln National Bank, was reelected
treasurer, and Frank j. Hogan con-
tinues as general counsel.
Previous to the election of officers
An address by Albert w. Atwood, edi-
torial and financial writer of the
Saturday Evening Post, featured the
business session. Mr.. Atwood presented
q gripping address on THE Reform of
Banking and Business" going right to
the root of the great number Of bank
failures in recent years, declaring that
the trouble should be stopped at its
source by the refusal Of charters to
weak banks so that such institutions
can never open their doors. In his ad-
dress he also scored "antiquated trust
laws and too extensive borrowing.
Urges Needed Bank Reforms.
Because of the heavy toll of failures
in the past few years. Mr.. Atwood
argued, sit goes without saying that
banking. as a whole, needs reform, and
al lyrNU The nronoPo1 line Whirh This
should take. Banking must become
more professional and less circum-
stantial in its origins. We have had
too many banks formed for inadequate
and extraneous reasons: any kind of
an institution has been able to call
itself bank, and this must stop. The
banking structure must sift and settle
down. This it is doing rapidly and
naturally at the present time, and
whether it needs any further legal help
through changes of laws extending
branch or other multiple forms Of
banking or providing for different types
of organization or jurisdiction from
what we now have, such, for example,
as Mr.. Poles trade-area idea, I am not
wise enough to say.
1T may be that we need some vast.
all at once reorganization of banking
form and structure, but I am more in
clined to believe that II laws are to be
changed the place to reform them Is in
the granting Of charters. Why not stop
the trouble at the source? Why think
of grand and elaborate reorganizations
for the protection of banks after we
have allowed weak and unsound ones
to start? In the same way people dis
cuss Unfortunately the industrial or
power trust and monopoly problems,
while the States go on merrily COM
peting with one another in granting
charters to any sort Of a careless or
even vicious holding company. with
every conceivable privilege tackled on
that the mind of clever and not always
too over ethical lawyers can think Of.
Why lock the stable door after the horse
is stolen? The banking reform we need
is far more severe restriction, both in
law and public opinion, upon the for
nation Of banks.
Orgies Of Speculation Scored.
THE reform of both banking and
industry must come, not through any
simple and easy formula or ism. but by
patient work, trial and error, conference.
study and accommodation. Let us
learn to govern ourselves IN small things
before we attempt world reorganiationS.
How can industry learn to cooperate
and coordinate to prevent depressions
and booms while we have antiquated
antitrust laws? How can we make
vast master plans for industry as
long as we allow our cupidity to run
us into great orgies of speculation or our
passions to carry us into the even
greater diSturber. war itself? Many
people are suggesting the establish
ment Of a Peace Industries Board
or Supreme Economic Council,
and the idea is not wholly bad one.
but what could such board or council
do as long as people borrow and spend
more money than they should?
II may be entirely mistaken. but I
for one do not view the future with the
dire apprehension which Is so common
these days. AS Chancellor Brown Of
New York University recently said,
The future just now is beSet with
viciSSitudes. as every future always is
The existing order is full of defects. but
what order has ever been free from
them? We certainly have made prog
ress in reforming 1t, in improving it
here in this country. Unemployment
used to be regarded as almost normal:
now 1t is abnormal. Surely it is better
to have country in which unfortunate
ss the situation may be, some people ,
because of unemployment, cannot buy
enough or more than Is needed than to
have country which never has enough
to go around, for employed as well as
unemployed.
Moreover" Mr.. Atwood continued,
EVERY sensible man knows that the
present depression is serving. If past
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