Evening star., 1933-06-09
BLACK STRESSES
BANK REOPEN|NGS
Tied-Up Billions Represent
Most Vital Problem, D. C.
Bankers Told.
BY EDWARD c. STONE.

Eugene r. Black, new governor o.
the Federal Reserve system, told ovel
200 washington bankers and theil
guests at the annual dinner at the Co.
lumbia Country Club that the most
pressing economic problem facing
America today is the freeing of billions
of dollars now tied up in closed banks
all over the country"
Millions of depositors put billions into
these banks suppoSing they could draW
the money out at any time they might
need it. 1t is their money and they
should have just as much as 1t IS pos
sible to pay and at the earliest possible
date ~
Not only are the depositors entitled
TO this vast sum Of money, but business
recovery demands that these funds be
freed and returned to circulation. The
problem is Nationwide. The same con-
dition which confronts Washington
bankers is being faced by other cities
and towns all over the United states.
The problem must be solved, Gov. Black
declared.
In one of the keenest and wittiest
addresses ever made before the Dlserict
Bankers Association, the new chle1
outlined the policy to be pursued by tne
Federal Reserve Beard. 1t was right to
the point and about the briefest state
ment of the kind on record.
Reserve Board Plans Outlined.
"The policy of the Federal Reserve
Board will be to do everything possible
to press forward business recovery,
Gov. Black declared. The board Will
act independently, keeping only the re-
turn of prosperity in view, ne aooeo;
"I could not say more than that II 1
talked all night on the supJecl' tiie
governor asserted.
He let it be known that the 1ull CO
operation of the member banks Is
needed in the Fastening OF this recovery.
His optimism is contagious He's sure
the bottom has been passed and ms
faith in the future is unshaKaDle. ne
saws the problem has three vital ele-
ments. It is economic, social ana po-
litical. .ho
II should be greatly worried over the
advances in stocks, bonds anu com.
modities were it not for the lact tilaC
fundamental business recovery IS taxing
nIaca at a still faster pace than the
rice in these markets" he said at one
roint in his address. He made 1t very
main to his hearers that the recent
sweening advances in the great security
and commodity markets nave peen
based on something more tnan talk
about imitation. ,,,;+,,
GOV Black has no patience with
nessinistic bankers. A California oanK,
or called at his Office the other Gay anu
complained for an hour about every
single step the Government mas laser
to bring back prosperity to the Wnole
country. He objected to dropping OF
Union hQ CIeaIIY
showed he did not know what the gold
standard really is. Gov. Black nnaiIy
asked him If he wished the last three
and half years to be continued, WIN
factories silent, bread lines and mlillons
of unemployed walking the streets look
ing for jobs.
prosperity's Return Chief Aim.
The Government has taken dennlte
action to change these condltlons, Gox.
Rlack asserted, as he asked the bankers
- hear their full burden in helping the
recoverv Depositors have been forceo
IN take losses, and the banks must pe
willing to take their share, he SAID.
Gov BLACK said that the leadership
of washington developed an empire out
of forest; Lincoln's leadership prougnt
a new freedom in another crisis. am
mot going to mention any living man,
hut I believe leadership has been pro-
vided for meeting the present Crisis anu
that before long we shall be looking
hack on the depression and at the same
time enjoy a new prosperity, ne salu;
Gov. Black declared that pe cateo
nothing for political fame, power, OF
glory of any kind. All he wants 10 oo
as head of the Reserve Board Is 10 he4p
the country in every possible way on
- S Iaaol, 70 fiponcial and economic
relief. -
He came here frcm Atlanta, Where ne
was governor of the Sixth District Fed
rral Reserve Bank. Il know all aoout
volIr local banking situation" he salo.
sYou have been lucky. The rest OF the
country had the same troubles three
wears ago. The problems are mucn
alike in every city, town and hamlet
in the United States. Much has al
ready been done, more will be done IN
their solution. But my faith IN the
future cannot be shaken.
Gov. Blacks humor captlvateo tnc
house. He described the robbery OF
FLORIDA bank right after the boom,
onining that the bandits evidently did
not know the condition of those banks
at the time. He told many other
stories. but insisted he would not make
a speech. But many bankers today de-
cIared "his remarks" the best speech
they had heard since the flood.
Bank Merger Efforts Lauded.
The dinner was in charge of Karl W.
Corby Frank j. Hogan was toastmaS-
ter Robert v. Fleming gave an excel
lent talk on pending banking legislation
and Thomas w. Brahany humorously
pictured some of the incidents that tock
x,Jo r-Iaa Ha Of the White
House secretaries during the Wilson
administrations.
Many Treasury officials were intro
duced. and the new officers OF the
Bankers Association, elected at the
morning session, also were presented.
An unusually good entertainment fol-
lowed the speeches. Elder Michaux and
his 40 radio singers were only part OF
the talent The most pleasing an
nouncement made was that no coats
would be worn during the dinner. How
they did ccme off!
In his speech Mr.. Fleming praised the
statement of Gov. Black regarding the
freeing Of as much as possible of the
S30,0oO,o00 tied up in the local closed
banks. He said the merger efforts de-
serve the Endorsement of the banks
which are open on full time.
Failure OF the merger would force
these banks into receivership, throw
their assets on the market and would
be bound to have some effect on securi-
ties held by the 20 open banks, Mr.
Fleming said. The merger plans are
being pushed by men who are our per-
sonal friends and have stood high in
the community for the last 25 years"
the speaker concluded. His plea was
received with applause.
With Exchange 20 Years Today.
Ralph j. Saffell executive clerk OF
the Washington Stock Exchange. noted
the twentieth anniversary of his con-
nection with the exchange today He
was heartily congratulated by the mem
bers at the regular session and praised
for his long, efficient and faithful
service In all that time he has been
absent from the exchange no more