Evening star., 1933-09-24
Session Called September %
Will Weigh Many Vital
Problems.
GIVEN CAREFUL STUDY
AT A. B. A. CONVENTION
Proposed Draft Includes Provisions
on Child Labor, Rates and
Other Practices.
BY EDWARD C. STONE.


Washington financiers are expressing
keen interest in the bankers code,
which comes up for a hearing in this
city on September %, and which is ex-
pected to be adopted by the National
Recovery Administration in the near
future.
The new code naturally will include
labor provisions, fix hours of employ
ment, take up the question of wages,
consider methods of administration,
1alr trade practices, interest rates, Serv-
ice charges and host of other matters
vital to every bank in the United States.
At the recent meeting of the Ameri-
can Bankers Association in Chicago
the code problem was given most care
1ul study The association adopted a
code of fair competition for all banks" I"
which the members hope the N. R. A.
will see fit to adopt practically as drawn
up. The proposed code has been
printed in full in the financial press
since the Chicago meeting. One pro-
vision, relating to so-called child labor,
says:
On and after the effective date of
this code no person under 16 years of
age shall be employed by any bank, ex-
cept that persons IA and Is years of
age may be employed for period not
to exceed hours per day, said hours
TO be between am. and pm, in
such work as will not interfere with
hours Of day school; it is provided,
however, that where State law pre-
scrloes higher minimum age, no per-
son below the age specified by such
State law shall be employed within such
State"
Bankers Favor 4O-Hour Week.
The suggested code would have no
banking employe work more than 40
hours Per week on an average over a
period OF Is consecutive weeks. How
ever, under certain conditions, the
banks would make the following ex-
Ceptions:
In districts or sections of the coun-
Try Where the seasonal nature of COM
inerce, agriculture or industry, making
necessary the moving of some product
within limited period, imposes upon
ranking facilities an unusual demand.
employees of banks subject to such peak
demand may work 48 hours per week
Tor a period not to exceed Is consecu-
tive weeks in any calendar year"
Another paragraph says that all
banking employees required to perform
extra work or observe later hours in
connection with periodic examinations
10y Federal or State banking authori-
ties, over which the bank has no con-
troll either as to the time of occurrence
or as to the duration, shall be exempt
curing such periods from the limita-
tons upon hours Of employment pre-
ecrlbed.
Provisions Relating to Wages
The following rules are suggested for
covering the question of wages laid
By the banks:
On and after the effective date of
this code no employe in cities of over
SoOO,OOO population, or in immediate
trade area OF such cities, shall be paid
less than at the rate of SIS per week;
no employe in cities between $50 900 and
100000 population, or in the immedi-
ate trade area of such cities, shall be
paid less than at the rate of $1450 per
week: no employe in cities between $500
and 250,000 population, or in the i'm
mediate trade area of such cities, shall
b3 paid less than at the rate OF S14 per
week. In towns of less than $500 popu-
lation the wages of all classes of en-
ployes shall be increased by not less
than 20 per cent, provided that this
snail not require wages in excess of the
rate of $12 per week.
1T is provided, however, that en-
ployes without previous banking ex-
perlence or training employed as ap-
pretices may be paid during continu-
GUS period of not more than one year
at the rate of 80 per cent of the mini
mum wages prescribed in the foregoing
paragraph
A. b. A. Committee Advocated.
The proposed code favors the forma-
ton OF Code Committee, to include
members of the American Bankers As
sociation, to assist in carrying out the
policies of the national industrial re-
covery act. The committee would sug-
gest any changes from time to time
that might assist in meeting any new
conditions that may arise. The Code
Committee would form regional COM
mittees in order to better keep in
touch with the banking situation every
where.
The A. B. A. suggests that all banks
have uniform hours for keeping their
doors open for business, the main point
in this provision being that no bank
shall be allowed to shorten hours in
order to reduce its working force
Touching on the vital question of in
terest rates. one paragraph says that
subject to the rules and regulations of
the Federal Reserve Board with respect
on time and savings deposits and the
method of calculation thereof as pre-
scribed in the banking act of 1898, all
banks within groups, or districts here
inbefore referred to, except mutual saw
tngs banks, shall maintain the same
maximum rates of interest and the
same method of calculation thereof
upon deposits of like character, but this
shall not be construed to require any
bank to pay such maximum rates if
1t does no SO desire.
Would Fix Service Charges.
No banks are to be permitted to
pay interest on time deposits; banks
In various districts are to be permitted
to fix their own service charges; trust
departments are to be operated accord
ing to the rules of the A. B. A. now in
effect.
Many other provisions are touched up.
The code is not intended to conflict
with any of the rules of the Federal
Reserve Board or the Controller OF
the Currency. It is also understood that
the President Of the United States will
have the right to make any changes
in any provisions as circumstances or
experience may indicate"
RAIL INCOME IMPROVES.
NEW YORK. September % P1.-The
Southern Pacific Co. yesterday reported