Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-17
BANKING SITUATION .
DECLARED BETTER
Delegates at Augusta Meet
ing Believe Depression
Has Reached Bottom.
BY EDWARD C. STONE.


all parts of the United States attending
the Spring meeting of the executive
council of the American Bankers! Asso-
citation at Augusta, Ca, expressed the
belief that the business depression has
reached bottom. They also revealed
much more confidence in the banking
situation than has been noted in many
months. But when marked upturn In
business will come neither the bankers
or economists present attempted TO FORE
cast.
The more optimistic feeling was high
1y gratifying to the delegates. Several
months ago the larger banks were far
from anxious to assist other institutions
which wanted q little support under
existing conditions until they could i'm
prove their positions. That reticence
seems to have disappeared, and much
more cooperation is evident in various
sections of the country. This new at
titude of helpfulnesS was one OF the
high spots of the meeting.
The time when the business recovery
will be accelerated depends on the dis
posing of present SURPRISES. There is
tremendous surplus of copper, big sur
plus Of grain and other industries still
have more goods on hand than they
these SURPRISES can be absorbed Is more
than the bankers at Augusta attempted
10 predict.
Local Delegates Reach Home.
The delegation of washington bank
ers at the convention reached home this
morning. Among those taking the
Georgia trip were Lanier P. McLachlen,
president of the District Bankers ASso-
citation; Francis G. Addison, ir,; Joshua
Evans, IT.: Robert v. Fleming, John
Poole, Howard Moran and E. E. Mount
10y. Frank S. Hight, local bank d.
rector and manager Of the Willard, was
also in the party.
Mr.. Addison, who represents the Dis
trict Bankers Association on the A
B. A. executive council, said today that
many intensely interesting reports were
presented but that he considered the
outstanding addresses those made by I.
S. Hecht of New Orleans, for the Eco
nomic Committee, and by Fred I. Kent.
now q New York economist, on the in
ternational situation Mr.. Kent pre-
scented some most Illuminating ideas on
the gold situation, the Young Plan of
international settlements and other
problems Of world importance. Mr..
Hecht took up the national economic
situation as his committee sees it.
The idea recently advanced in New
York State Of segregating savings bank
deposits and handling them entirely
separately from other bank funds met
severe opposition at the Augusta meet
ing Such q step would force banks to
invest the savings funds in very lin
tied securities securities Of grade that
return an exceedingly small yield.
Such funds would have to be placed
in q certain few State, municipal or
railroad bonds, which would force these
bonds to an abnormally high price. At
the same time many of these funds,
which are now loaned out to the adj
vantage of home business and industry,
would have to be diverted from such
channels which the bankers held would
be highly undesirable.
Urged to Assist Business.
Bank oficials at the convention were
urged TO see to 1t that their banks do
everything within reason to aid business
in their own localities. The general
belief was that such a policy at home
would be most effective in helping to
end the national depression.
The claim has recently been made
that bankers were in favor of further
cuts In wages. The Council members
said that the American Bankers As
societion had made no such recommen-
dations.
The hnanciers at the Augusta meet
ing took no sides one way or the other
on wages. All the banks demand. when
they make big loans to industrial cor
porations, IS that the corporations keep
their expenses down to a point where
they can repay the loans. II business
concerns are losing money, they must
make adjustments so that their loans
are sound, or else they are abusing their
credit with the banks. How these re.
trenchments are to be made the banks
do not attempt to dictate.
President Stephenson's views on this
subject have already been published
Other bankers expressed similar opin-
ions that business concerns should not
Day out more than they take in during
an extended period.
The local bankers returned by way
of Charleston, S. c.. where they were
shown the gardens which have made
that section famous These gardens are
now at the height OF their splendor.
Trading on d. c. Exchange
Heavy trading in Capital Traction
featured todays session OF the WASH
ington Stock Exchange. The stock
opened with an 80-Share sale at 80 and
another 40-share transfer at the same
price. A block OF 100 shares and 2
next 10 shares sold at 3212. The market
then turned upward, with SO additional
shares selling at 80 and a single share
closing the market at 1917.
Warrington Railway g. Electric pre-
ferred figured In a 50-share turnover at
08h and 10 shares Of American Security
& Trust Co. stock sold at 33s. The only
bond transaction was in Capital Tra0
ton SIS. $1,000 selling at 10.
Bond Club Speaker Announced.
Secretary Baker Robinson of the
Washington Bond Club announced today
that Thomas F. Woodlock will address
the April meeting. next Tuesday, at
1880 pm, at the Carlton Hotel, Mr..
woodlock has many friends in Wash
ington, having been member OF the
Interstate Commerce Commission He
will speak on Railroad He is a
former director in the Pere Marquette
and has made deep study of this sub
ject for years. He Is now a writer on
the Wall Street Journal.
Attending Loan Conference.
C. Clinton James, Washington attor-
ney, has been called to Chicago TO at
tend a meeting of the directors of the
United States Building and Loan League
which opens q two-days' session there
today. The parley, which is a seasonal
meeting Of leaders in the $4,000 600 O0O
building and loan business, will shape
S-oncies and plans for the home flnanc-
ing Of the future 70 be presented C
the thirty-ninth annual convention OF
the league in Philadelphia this August
Mr.. James Is the ranking United
States league officer In the district 5
which includes. besides Washington
d. c., the States of Kentucky, West
Virginia. Maryland. Virginia, Delaware
North Carolina. South Carolina, Ten
nessee, Mississippi, Georgia, Alabama
and Florida.
Smashes Insurance Records.
Chan c. Mason, 300 Inves ment