Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-22

LOUIS T. McFADDEN.
a matter of fact, the question OF funda-
mental change in our whole conception
of economic instruction and the de-
velopment perhaps CT new school Of
economic thought.
Unfortunately there has been some
confusion of thought now as to what
we mean when we speak of course of
instruction in personal economics
Some have confused it with the broad
| generalities OF thrift, and when we
| have tried to bring 1t down to the
| concrete and definite theme Of instruc-
| ton in money management, it has
sometimes been assailed as unworthy
of the motives of our educational sys-
| tenn. Some have confused it with
! school banking. and please let me en-
! phasize here that it is not an auxiliary
of school banking. 1 think we'll of
school banking as practical school,
! room project / believe it may serve
to make some lasting impression upon
young people of the importance of saw
ing money.
Personal Teaching Needed.
But we are considering here quite
a different idea, the idea Of a new
form of economic instruction and a
| new subject of education, and which
ultimately may serve in large way to
take the place of our present form of
economic teaching. It is my personal
| Judgment that If this new conception
Of economic instruction is not built
around the management of personal
incomes or some other equally concrete
2rfiPal theme NJ e1Ir
coed as an educational subject. 1t will
not command the support Of business
men, or catch the imagination of school
! students.
Due to the experience that we have
had in the States of Massachusetts, and
New York, due to the interest that has
been displayed by groups of educators
and business men In other sections Of
the country, particularly due TO the
misfortunes OF recent economic events,
and, above ali, due to the fact that this
subject should stand out in the minds
OF every thinking man as vital to the
success OF our economic and social
prosperity, I believe that there should
be started here in the city of Washing
ton today the beginning of a co-opera-
tive national movement between edu-
Gators and business men, looking to
! the establishment of this subject on
association of savings banks should
recognize this as an opportunity to
| join in a progressive movement for the
| advancement Of better economic think
| ing"
D.. Small Bank Requirements Aired.
Much of today's program was taken
technical nature The session was
! opened by Thomas H. Riley. jr.
| treasurer of the Brunswick Savings In
stitution, Brunswick, Me, who spoke on
The Needs and Requirements of tn.
Small Savings Bank-Institutions With
Assets of Less Than $4,000, 00O." His
address was followed by one on Book
ing Problems" by Charles c. Handy
treasurer of the Lynn, Mass, Five Cent
Savings Bank
The Committee on Insurance an
nounced that ''it is apparent from re-
ports that the general public has more
or less abandoned the idea of specula-
ton and people are more inclined to de-
post their excess funds with savings
banks than with stock brokers" AS the
funds and securities on hand in the
banks increase, the committee held that
the, banks ought to add to their in
surance protection.
The Committee on Legislation would
have the word savings" barred from
the title of any bank having Federal
charter and has an amendment before
Congress to this effect. The mutual
savings banks are also anxious to obtain
lower taxation.
The Committee on Small Savings
Banks reported that some State legisla-
ton has been proposed to force ali saw
ings bank trustees to be substantial de-
poSitors. 1t has been learned that with
out State legislation, 30 per cent of the
trustees are already depositors in their
banks. Such legislation is held un-
necessary.
The problem of how a savings bank
should invest its money was the sub
Ject OF a most exhaustive report. At
one point this report said I'VE fail to
see any reason why industrial bonds are
not wen worthy of consideration for in
clusion in savings bank lists. 1t is, of
course, recognized that some method of
exact definition. from an accounting
standpoint would be desirable as a pre-
REQUISITE to the legalization of industrial
bonds"
Branch Banking Favored.
The committee on promotion of new
savings banks said sit is urged that
the law should be made more liberal
IN all savings bank States which I'M
duly restrict the establishment of
branches, as being the first step to-
ward providing this savings bank serv-
ice in cities, towns or communities
where 1t Is not now available. The
establishment and operation OF a
branch is attended with much less legal
and practical difficulty than the organ
lzation of new bank.
1t is apparent that a successful new
savings Eank cannot be established in
community too small to promise q
reasonably quick growth in deposits. 1t
Is difficult to set the minimum size OF
such community, because other con-
siderations than population have a
bearing. Probably 5000 would be the
smallest population capable of support
ing savings bank, and no doubt many
would set the minimum limit at a
higher figure than this.
1T Is probably lnwise to establish
new mutual savings bank in COM
petition with commercial bank which
receives savings deposits, unless it is
entirely clear that both banks nave an
opportunity to prosper. We may. rea-
sonably admit that a community is
entitled to the service rendered by a
commercial bank before a savings bank
is encouraged to enter the field. The
attitude of competing banks and of the
State authorities which have super
vision of banks must bee carefully con-
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