Evening star., 1932-10-04
j. S. HELD VICTOR
OVER WORLD FEARS
Historic Courage Has Saved
Nation, Bankers Head
Declares.
BY the Associated Press.

matched her strength against a world
that thought financial ruin was in store
for the United States and won, Harry
j. Haas of Philadelphia told the Ameri-
can Bankers Association in his presi-
dental address at the annual conven-
tion here today.
Happier conditions today" he said,
represent a real re-establishment Of
fundamentally sound banking. business
and general economic conditions" as
compared to the banking panic" that
surrounded the convention year ago.
In the very trough of the depression,
he said, foreign interests, believing
financial ruin was ahead for the United
States, continued to dump securities in
American markets and withdraw the
proceeds in gold
Then suddenly in June came the
end Of Europe's ability to take further
gold from this country" Haas said
america had matched her strength
against the world and had won, but
other countries seemed to appreciate
it before we ourselves realized it.
Pays Tribute to Nation.
He said the improvement noted to-
day constitutes one of the greatest
tributes to the traditions and institu-
tions of this Nation and to the courage
has ever been written in the annals
of the country in times either of peace
or war" He said the people had taken
the change from new era" prosperity
to adversely like true Americans and
good soldiers who have never lost
war"
Property rights have been respect
ed" he said. I'VE have had no social
upheavals as witnessed in other parts
of the world. The minority have abid
ed by the decision Of the majority.
We have probably experienced the en-
actment Of some of the greatest con-
structive measures in our history.
Our unemployment had never been
as great and the fortitude with which
they met their conditions is matter
Of record. Generous assistance has
been rendered to the unfortunate by
those who have been able to carry the
burden. Many of our outstanding
leaders in business and industry have
given literally Of their time and effort
to public and social matters. In
short, no matter what our position in
life, we should be proud of the fact
that we are citizens of this great coun-
try where these things are possible.
Praises Government.
"In considering the influences and
forces that have led toward recovery
from the depression, full recognition
should be given to the broad-minded.
non-partisan and effective EFFORTS OF
the National Government at Washing
ton in both its legislative and execu-
"yet a great task Of government lies
ahead. It has yet to wrestle with over
TAXATION - We should bear in mind
that it is the duty Of our people to
support the Government. and not the
Government to support the people"
Az compared with other lines OF busl-
ness he said, banking need not apol-
ogizs to any one" He added banking
proved itself during the depression to
be one Of the strongest elements m the
economic structure.
Haas said that In 1881, $500 banks
closed, with liabilities Of $3.50, ,0oo,o GOO,
but this did not mean loss OF tnat
much money. He estimated the actuai
loss to depositors Will be less Lhan
$500. 600 600, a general average per cap
ita loss among depositors of less than
SIPS. He pointed out that 8 out OF ~
banks were not involved.
I'VE must admit" said Haas, that
many banks failed due to internal pol
icies that should never have been pur-
sued by their managers. We cannot
make banks foolproof by legislation
but we can come near doing so by good
management and common sense.
BIames Lax Policy.
The president attributed large part
of bank failures to the fact that Gov
ornment officials, in both State and
national systems, for period OF more
than 20 years permitted organization
of great numbers of banks with insult
fcient capital or in places where they
never could be successful, and in many
instances over the protest OF well es-
tablished banks.
I'VE are justified in feeling confident
that we now stand on the threshold
of a return to better panKng conol-
tions," he said.
Legislative measures are not the only
means for promoting improvement IN
banking The more fundamental ac-
tions must come within the spirit and
practice Of banking itself.
Our banking methods at heart are
sound. our established traditions are
fundamentally true. If there have heen
any deviations from them the remedy
is in a return to standard principles,
not in rigid formulation by law OF
those things that must be left to the
dictates Of experience and free discre-
ton"
The Bankers Association today ON
cially opened its flfty-eighth annual
convention, after having praised and
criticized, in pre-convention sessions,
the governments relief efforts.
Ogden L. Mills Secretary Of the
Treasury, will address the gathering
tonight.
Cautions on Relief.
OF the relief program, Thomas c.
Hennings of st. Louis, head Of the
associations trust division, said:
Subsidies. credits and tariffs, coupled
with the general invitation to the public
from Washington to come and get
money and not be timid about it, may
delay the return of normal conditions.
If this cheap money campaign OF the
Home Lean Bank Is continued break
down may result in the safety OF resi-
dence loans. The only excuse for the
extensive use of credit at this time is
the hope that it is a temporary ex-
pedient"
Harold C. Parker. vice president of
the Standard Statistics Co. OF New
York, described as ''gocd" the Recon-
structicn Finance Corporation loans to
the railroads.
Jay Morton, vice president Of
Seattle savings bank. said:
"A huge Government building pro-
gram to relieve the depression may de-
feat its own aim. We must bear In
mind that funds for public construction
work are derived from taxes. most OF
which must be paid now when we are
little able to carry the added burden"