Evening star., 1932-03-28
CLEVELAND BANKER
SEES SLUMP END
L. P. AyreS Tells Senate Bank
Group Recovery 2lz
Years Away.

BY the Associated Press.
Leonard P. Ayres, vice president Of
the Cleveland Trust Co., told the Sem
ate Banking Committee today the
banking situation appeared more hope
ful, but said that-judging from SINH
lar experiences of the past-full busi-
ness recovery cannot be expected for
about two and half years
AyreS appeared in opposition to the
Glass bill intended to prevent repeti-
tion Of the 1929 stock market collapse
by preventing use Of Federal Reserve
facilities for speculation.
Its passage at this time, he said.
would surely operate to prolong the
depression and increase its intensity"
Disturbance Feared.
He argued that it would disturb the
business and financial situation lust
when revival Of credit is most urgently
needed
Earlier Rudolph Hecht of New Or
leans, chairman Of the Economic Policy
Commission of the American Bankers
Association, opposed the bill on the
ground it would add to the length
and depth of the depression
Ayres described the present depres-
sion as the worst the country has ever
faced
He said it is "stil getting worse" and
referred to the cessation of business
activity" as unparalleled In our his
tory"
History shows" Ayres said, that in
depressions recovery has been more slow
than decline.
If that be true this time it means
we are not more than half way through
this depression. Business is still de-
clining.
1T has been doing so for two and q
half years.
We can be quite sadly confident
that there is long period ahead Of US
before we can see recovery"
When Senator Brookhart, Republic
an, Iowa, asked what could be done to
try to "end the depression" Ayres re-
piled that one way is TO refrain from
trying to change our complicated busi-
ness and banking machinery"
You mean, do nothing" remarked
Senator Fletcher, Democrat. Florida.
While saying there is no "panacea"
to bring better times, AyreS told the
Senators there is a better sentiment
in banking"
The banking crisis that was carry
ing US toward dangerous abyss is by"
he said
THAT is the greatest victory so far
in the process that will lead us to re-
covery." He ascribed the improvement
In the banking situation largely to the
Federal remedial measures-the Recon-
Struction Finance Corporation and the
Glass-Steagall bill
Questions Greater Ability.
Becht also questioned whether the
Federal Reserve Board-which would be
given increased control over operation
OF member banks-would avoid errors
any more than the bankers themselves
have done.
Hecht testified it is mot feasible 10
substitute rigid rules enforced by pub
lie officials in Washington for human
initiative and responsibility"
such an attempt, he said would be
"unworkable and dangerous"
You cannot take the human element
out of banking" he reiterated
He said bankers have learned i'm
portant lessons" from the experience
Of the last few years
1T is extremely doubtful" Hecht
said. whether enactment of law large
ly centralizing control of detailed finan-
clal operations of banks would improve
the situation"
Many bankers, he asserted. have ex-
pressed the view that much of the
blame for the undue speculation and
consequent collapse" Gin 1929 at
taches to the easy money policy of the
Federal Reserve Board then in office.
"Ofdcials in Washington are no less
subject to errors in Judgment than
bankers in New York and elsewhere"
Owen D. Young, chairman of the
board of the General Electric Co., was
present at the hearing. He told the
newspaper men he was "an interested
spectator" but declined to comment
on the bill