Evening star., 1932-10-06
BANKING CHANGES |
URGED BY S|SSON.
New Head of American As
sociation Addresses Closing
Session at Los Angeles.

BY the Associated Press.
LOS ANGELES, october 6-Demand
for sweeping changes in the banking
system and prediction that "the worst
Of the depression is passed" were made
here today by Francis H. Sisson of New
York. new president of the American
Bankers Association.
Addressing the closing session Of the
fifty-eighth convention of the associa-
ton. which represents approximately
$50, ,0O0, 100000 of the country's re-
sources, Sisson said he read the story Of
better times in the advance in prices of
stocks, bonds and commodities and, to
an even greater extent, in the disap-
pearance Of the panicky spirit of few
months ago.
There is reason to believe" he said,
that the worst of the depression is
past, and that the elements of improve
ment noted thus far are the forerunners
Of a more tangible recoverey that will
gradually raise business activity. earn
ings and employment to the levels that
our natural and human resources give
Room for Improvement.
A demand for sweeping changes in
the banking system by congressional
enactment has presented bankers with
a new problem, he continued, saying:
1T is the duty and privilege OF bank
erS to use their influence to see that
changes are made in accord with sound
banking principles and with the present
needs of the country. Events have
exposed weaknesses in our banking sys-
tenn, although when We consider the
exceptional period through which We
have passed We are justified IN con-
graduating ourselves it has functioned
as well as it has But We are forced
to conclude that there is room for i'm
provement."
Bankers, he went on, have had TO
shoulder more than their share of
blame during the beWilderment and
encouragement Of the depression
Can Be Proud Of Banks.
1T is true" he explained, that most
bankers did not realize how severe and
prolonged the reaction would be, but,
with a very few exceptions, neither
did any one else, Bankers can not be
indicted for not being more human.
In SO far as banking weaknesses have
contributed to the difficulties of the
last few years they are attributable
mostly to the failure Of bankers to
foresee the unforeseeable. plus defects
in the banking system for which no
banker or group OF bankers can fairly
be held responsible.
Full restoration Of confidence will
require time and the best efforts OF
bankers to re-educate a frightened pub
lie to the fact that its money is safer
in the banks than it is anywhere else.
Only to the extent that the public re-
turns to the banks will the latter be
enabled to play their essential part in
financing business recovery. =.
In facing the future the bankers of
this country can find abundant ground
for pride in the fact that the greatest
of all financial crises has failed to shake
the foundations Of the American bank
ing system"
Demand Economy.
The demand for a reduction of pub
lie expenditures became more inslstent
today with another session Of conven-
ton of the Bankers Association being
devoted to a consideration OF the
problem.
Paul Shoup, vice chairman of the
Southern Pacific Co. added his
voice to the announcements of taxes by
delivering the principal address. Over
taxation-a Business Viewpoint"
The convention already had gone on
record as demanding a reduction OF
public expenditures and discontinuance
of the present high rates of taxation.
Despite the pessimistic attitude taken
ca far hy the ha n kers m the tax Sitlla :
ton they agreed on the declaration that
for the first time during this long de-
preston we are able to record definite
business improvement
In a so-called 'better-times" resolu-
ton the bankers declared Improvement
in general business is shown by advanc-
ing commodity prices, increasing vol
umes of industrial production and rail-
road traffic, and sharp decrease IN
commercial insolvencies."
Opposes Guaranty Plan.
The association, also by resolution,
took a stand opposing the proposals
for guaranty of bank deposits and in
dorsed the services performed by the
Federal Reserve System and the Re-
construction Finance Corporation. An
anticipated controversy over Nation
wide branch banking was avoided in the
compromise resolution. which set forth
the opinion this question is an internal
problem of the State and national bank
divisions, and not of the Bankers
Association.
Frank NJ Law of Houston, Tex, was
elected first vice president and Ru-
dolph S. Hecht of New Orleans, second
vice president, to serve with Slsson.