The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-05-20
LAW IS URGED
FOR GREATER
BANK SAFETY
State Association Considers
Legislation to Curb
UnwiSe Policies.
TAX REMEDY IS SOUGHT
Separate Fund, of Interest
on State Money, Also
Discussed.

DiSCuSSeu.
Measures to enable authorities TO
curb unwise banking policies and
eliminate dishonest practices we're
among resolutions to be considered
bv the Indiana Bankers Association
at the closing session Of its thirty
sixth annual convention this after
noon at the Clsypool.
The group also was 10 consider
resolutions seeking remedy OF the
chaotic condition OF the state tax
system.
The resolutions committee recon-
naendations were being framed by a
group headed by Frank B. Bernard
Of Muncie. former president OF the
association.
A topic Of consideration before
ts1a convention was a plan for pay
ing ali interest on public funds into
q separate fund, to be used in max
ing good state deposits in banks
that fail.
Such a step is necessary, II was
asserted because insurance and
surety companies have notified
banks they no longer are willing to
provids the bonds TO secure govern-
mental deposits.
Drastic Cuts Planned
II is expected that drastic reduc~
lions IN public expenditures will be
urged in the tax reform resolutions.
strengthening of the supervisory
power exercised by state authorities
over financial institutions by means
OF provisions for adequate funds and
personnel in the state banking de-
partment was advocated by members
OF the Governors study commission
for Indiana financial institutions at
the round-table discussion at the
early session today.
The bankers and commission
members also approved a plan 10
codify the state laws regulating
banking. The plan would provide
for more drastic loan limitations
methods for enforcing the double
liability o. shareholders, and more
rigid requirements concerning pun
ishment of both inside" and out
side" bank crimes.
Notifications designed to place all
financial institutions so that they
will be enabled to weather the eco
nomic storms such as now confront
our economic situation. also are
included.
Greenough Is Chairman
Walter S. Greenough of the
Fletcher Trust Company is chair
man Of the study commission.
"One of the greatest hindrances
now experienced in the economic
picture is the impatience Of the
masses because improvement is
slow. and pessimism and fear still
are blocking the way of recovery,
S. L. Cantley, commissioner for
finance for Missouri, told the bank
ers in a discussion of the topic,
Looking Ahead"
Following adoption Of the resolu-
tons and election Of officers, the
convention was to adjourn this
afternoon.
American Bankers Association
officers elected for Indiana are:
Lowell W. Cox OF Richmond. vice-presi-
dent for Indiana; J. @. Wallick OF Elk
hart. chairman OF the state bank division;
Fred D. Rose Of Muncie. chairman OF the
trust division. George E. v Bingham Of
South Bend. chairman OF the savings
division: A. @. Matthews OF Terre Haute
chairman OF the national bank division
and Elmer w. Stout president OF the
Fletcher American National bank. and Fe-
Xix r. McWhirter president OF the Peo-
pies state bank both OF Indianapolis. and
Prank Bernard OF Muncie. who will rep
resent Indiana on the nominating COM
mittee OF the American Bankers Associa-
ton az the convention TO be held in San
Francisco later IN the wear.