Evening star., 1932-06-10
Optimism VOICED
BY MERLE THORPE
Presents Views of Business
Outlook at Meeting of
District Bankers.
BY EDWARD C. STONE,


HOT SPRINGS, Va, June 10.-Merle
Thorpe, editor Of Nations Business,
sounded note of optimism on the busi-
ness outlook in an address on Whats
New on the Rialto" at the second days
session of the District Bankers conven-
tion at the Homestead here today.
George o. Vass, vice president of the
association and vice president OF the
Riggs National Bank, presided at the
meeting.
Mr. Thorpe is director in the Ma
tional Metropolitan Bank and the Ches-
apeake g. Potomac Telephone Co.. and
has Just returned from the annual
meeting of the Chambers of Commerce
| OF the West Coast. He presented some
OF the views on the business outlook ad-
vanced at those sessions. He Is always
heard with interest by Washington
bankers, having spoken at previous con-
ventionS.
Optimism Voiced.
1.-The banker" Mr.. Thorpe said, "has
always been fair game for the critics Of
| business. There is no closed season for
| the banker If he lent Font. and
| charged interest he was called usher
If he didn't lend money to Tom, Dick
| and Harry, he was called tightwad.
In the troublesome times through
which we are now going, 1t is inevitable
that the criticism should be increasingly
severe. A year ago, when bank failures
lending too much money; today. with
practically no bank failures, the banker
is represented as being the chief devil
of the hoarders. q.
Under the authority Of the Glass
| Steagal act, the Federal Reserve Banks
have bought large quantities Of Govern
ment securities and the cash position Of
member banks has been correspondingly
| increased. Because there has been no
! immediate increase of business activity,
it is said the banks are at fault. The
charge is made that they are boarding
this new money.
The same complaint is made that
| the Reconstruction Finance Corporation
has advanced the liquod position of
the banks but has not helped business.
But naturally and purposely those loans
were made to banks which needed i'm
! mediate help and were obliged to
strengthen their own position with an
eye first on their depoSitorS.
Business isn't eager to borrow for
purpose Of expansion unless it sees
possibility of increased business activity
Criticism today against the banks is
really criticism against the public state
of mind. An unreasoning fear rules
the public. And the banks are, and
must be, sensitive to the public state of
| mind.
Another Difficulty Cited.
There is another factor that is
making it difficult for the banks to
serve their communities with credit
and that is the increasing control Of
| banks by government, with a cor
responding substitution of abstract
principals for experienced banking
judgment upon credit risks.
Nine out of ten Of the millions Of
| business transactions carried on daily
in the United States are done on
credit This is an age OF credit
Credit is simply confidence, one man
in another, that he will keep his word
And, what is important just now, IS
that conditions are such that he will
be able to keep his word"
This was institute day" at the con-
vention, Washington Chapter, American
Institute of Banking, being accorded
special attention.
Aubrey o. Dooley Speaks.
An address on Better Bankers in the
Making" was given by Aubrey o. Doo-
ley, assistant trust officer Of the Fed
eral-American National Bank & Trust
Co., who has just completed a years
work as president of Washington Chap
| ter. He summed up the activities OF
the chapter and the progress made by
the banking students.
The three winners Of the Institutes
essay contest, which Is sponsored by the
| bankers association, read their papers
at today's session. The prize winners
we're Norman E. Towson, Washington
Loan g. Trust Co.: John r. Keener,
Riggs National Bank, and Robert B.
Morris, Federal American National Bank
& Trust Co.
The subject was What Are the
Methods for Selecting and Training
Bank Personnel in Order to Secure
Efficient Management and Individual
Advancement" The winners were Sc
lected from 20 contestants.
Joseph D. Yerkes, Federal-Amerlcanl
National Bank g. Trust Co.. reported
as chairman of the safe deposit section.
Ten meetings were held during the year,
| IL banks being represented at each.
Chairman Yerkes quoted the present
bylaws of the section as stating that
each member bank may appoint four
delegates to attend meetings. But as
one institution has a main office with
five branches and another bank has
main Office and four branches, the COM
mittee chairman urged a change IN
| rules to permit four delegates from the
main Office and one from each branch,
so each safe deposit department may be
represented. Each bank, however, would
continue to have but one vote.
Auditors Convention Planned.
| Arthur j. Linn of the Federal-Amert-