Evening star., 1932-07-02
STRONGER BANKS
AIM OF CHAMBER
Commerce Poll Seeks to Help
Depositors Through New
Legislation.
BY EDWARD C. STONE.

Better protection for bank depositors
Is one of the chief aims Of the poll of
members Of the United States Chamber
Of Commerce for suggestions intended
to strengthen the various banking pro-
posals now before Congress. AS already
noted in The Star, the chambers Bank
ing Committee has just made many i'm
portant suggestions on current banking
problems which will come up for action
at the next session of Congress. The
necessity of strong repositories has
been foremost in the committees con-
sideration. according to the report
which says:
mo selfish interest of stockholder or
bank officer. no narrow view OF wnat
constitutes the credit requirements oil
business, and no popular prejudice must
be permitted to delay such adjustments
in our banking structure and methods
as will protect the savings and other
deposits of our people Effective means
must be found of fostering the general
development of more strong institutions
under the supervision of men OF proved
integrity and ability.
thanking fundamentals and not sur
face symptoms or SuperticlailtleS are the
true key to improvement. Legislation
alone will not insure good banking. IL
may curtail some undesirable practlceS
or open the way to improvements
Neither law nor public supervision can
be depended upon to correct all abuses
in hankinp prevent bank failures. or
save the community from personal or
business mishaps. Good banks are
mainly the products of properly equip
ned. far-seeing men of high professional
Standards with a keen sense OF public
interest.
Human Element Held Vital.
'The human element in banking is
a principal factor. Capacity for good
management and improved efficiency OF
hang executives cannot be supplied by
law Indeed. rigid prescription OF
statutes that would seem to insure auto
matte safeguards presents the danger
that bankers may be encouraged to teel
that practices not definitely prohibited
are to be defended solely because they
are legally permissible. The regulation
of banking upon the assumption that
the lowest standards of practice may
preyail can cause injuries as surely as
failure to discountenance practice ao-
mittedly bad.
soThe business of banking is far too
important to be subjected to partisan
strife or longer to be an open nelo OF
adventure for the poorly equipped. Inc
development of sound management OF
hanks is more a charge upon business
and professional associations, and upon
conservative banking and business leao-
ers. than it is upon legislative or ad-
ministrative agencies"
The committee commends the two
snecial emergency banking measures
adopted by Congress, one the Recon-
struction Finance Corporation act and
the other the Glass-Steagall act.
A plan for forming an important
Government agency, such as is men
toned in the Glass bill. to help speed
the liquidation of closed banks, is
favored by the committee.
Recommendations of the committee
deal principally with proposals for
banking legislation embraced in three
measures before Congress known as the
Glass, the Goldsborough and the Stea-
gall bills.
Broker Consolidation in Effect.
The consolidation of Clark Childs &
Co. and F. B. Keech & Co. went INTO
effect yesterday. as the two firms started
operating as one. The Keech office In
this city remained unchanged in man
agement or personnel. IL was an
nounced yesterday that Edward F.
Barry. who was formerly member OF
the firm of F. B. Keeeh & Co., will be-
come a partner in the new firm.
AS the new firm now stands, the gen.
eral partners are Frank B. Keech,-
Herbert H. Childs, Gilbert w. Keech,
William F. Bartholomew, George A.
Garrett, Walter S. Aagaard, William M.
Erb, W. Charming Burbank, J. Clarke
Dean, Lewis A. Waring, George Rus
shon, George S. Passmore, Ray P.
Sackett, John Edmund Carney, Lucius
P. Ordway, jr; John Everett Holbrook
and Austin F. Barry. ]. F. A. Clark
and Richard Wharton will be limited
partners.
The firm has membership on the New
York Stock Exchange and many other
exchanges.
Heard in Financial District.
All the local banks and trust COM
panies were opened as usual today, but
the brokerage houses were enjoying
change was closed.
The National City Bank says that
the outstanding favorable development
of the past month was the quieting
down of nervousness both here and
abroad regarding the soundneSs OF the
dollar.
Swift's Office here has received word
that the regular ssmi-annual dividend
of Sl50 a share has been declared by
the directors of Compania Swift Inter
national. payable August is to stock OF
record July Is. 1882.
The Maryland State Bank Commits
sioners has called for statement Of con-
dition of Maryland State banks and
trust companies as Of July l.