Evening star., 1933-09-13
STON|ER PREDICTS
BANKING REFORMS
TRANSACTIONS ON THE NEW YORK STOCK EXCHANGE
Educational Director Tells
Local Institute Much Will
Have to Be Learned.
BY EDWARD C. STONE.

BY EDWARD C. STONE.
The new era in banking is here and
what a thoroughly eodcated banker may
have known about his business five years
ago may apply to very limited extent
now. During the next 10 or 10 years
bankers will have to learn a great deal
that is new as our present banking sys-
tenn must be improved. Such was the
opinion expressed by DR.. Harold Stonler,
educational director of the American
Institute Of Banking, in an address last
night before the officers, faculty ana
governors of Washington chapter, at
the Raleigh Hotel. Education looms
larger than ever in the banking picture,
he said.
MANY customers do not know the
number of seasoned banking nstltu-
tions which have weathered the storm
of adverse business conditions In TINS
country during the past 100 years. ne
said. I'VE have over $50 banks IN the
United States 100 years OF age or over,
We have over 1000 banks more than oo
years old. These institutions re represent
resources of over $4,000 100000.
an other words, we have more banks
over 100 years of age than any other
country in the world. We have more
hanks over so years Of age than any
other country in the world. These banks
have gone through most difficult depres-
sion eras and have maintained tnelr
prestige and the ability to meet their
depositor obligations.
British VS.. American Banking.
"Whv haven't we the British system
in this country? Largely because II
does not fit the demands OF the Unlteo
wit roniH
in all fields. Many people forget tnat
re tried the British banking system 1or
f,earlv 40 years in the United States: 1t
Eas inaugurated by law; 1t was killed
~ law. At one time we had central
izhd banking system with branches from
New York to New orleans. It Is ridic-
ulous to try to compare the American
banking system with the British bank
ing system. They are simply two dn-
feren systems to meet the demands OF
two different kinds of people.
From the business point OF view:
DR.. Stonier continued, "the American is
progressive He takes chances; he
CANDLES. The Britisher CANDLES only
on horse races. He does not gamble
on the stock market on the real estate
market, or on the cotton market.
Banking Requires Training.
Banking is a business which re-
ouires a good deal of training and ex-
perience at the point of its manage
ment. Our laws have made it possible
for almost any one to go into the
banking business in this country; hence
the degree of irresponsibility which we
have on the part of so many people who
have entered the business.
I'VE differ from the British in that
we demand a rapid development of
anything we undertake. In one State
ir. this Union there are 10 towns in
existence today with a population Of
more than 5000 each that were not on
the map eight years ago. Such
situation has been unheard of in Eng
land for more than 500 years.
I'VE demand a speedy. flexible finan-
cial system. The British want slow,
inflexble system. Ours makes for pros
for conservative, stable conditions. 1t
would not have been possible to develop
this country beyond Pittsburgh or below
Washington D. c.. as it has been de-
yeloped with the British banking sys-
tenn.
Failure is the price we pay for our
speed We have had on the average
1000 business failures month for the
past 10 years, but we still have in this
country more than 100000 solvent
concerns.
Future of U. S. Banking System.
I'VE can improve the American bank
ing system just as we can improve any
human system. 1t must be improved.
The system today is a far better one
than it was 25 years ago, and it has
given us credit facilities to develop the
greatest industrial. agricultural and
commercial nation in the world.
There has been more public educa-
tion in the field of banking in the
United States since March than dur
ing any other similar period in our his
tory The President Of the United
States has been responsible for good
deal of it. People realize now that
they cannot convert the United States
of America into cash over night. Any
banking system must be predicated on
the law of averages just as any business
system must be- We cannot all buy
shoes on the same day. 1t would break
down our whole system of the manu-
facture and distribution OF footwear:
We cannot all get our deposits converted
into gold or currency over night. We
tried that and failed.
1.-The American banking system OF
the future will be a better system by
virtue of its experience during the past
four years. Not only will we nave
better bank management but our bank
ing clientele will also be more lntelll.
gent about its responsibilities toward
the bank" DR.. Stonier concluded.
Chapter Outlook Is Bright.
Walton L. Sanderson, chairman OF
the Education Committee of the local
chapter, presided. George o. Vass, pres
ident of the District Bankers Assocla-
ton. presented greetings: Raymond b.
Dickey, dean Of the faculty, spoke
ter president. j. Earle McGeary, mem
bership chairman. and William H.
Laughiin, chief consul, also stressed the
Importance of a large enrolment this
Fall.
It was announced that the women of
Washington Chapter will hold their an
nual dinner tomorrow night at the Ken
endy- Warren, with chairman. Miss Con-
stance D. Fogle, presiding. The guest
speaker will be w. w. Spaid OF w. B.
Hibbs g. Co., who was president OF the
chapter in 1914 and 1915, and later
president of the District Bankers As
sociation.
other speakers will include Dean
Dickey, Robert H. Lacey, w. L. Sander
son, j. L. McGeary. T. Hunton Leith
and E. Wallace Schreiner. The annual
dinner is for the women employees IN
washington banks and is to stimulate
educational interest. It is always largely
attended and enthusiastic.
Notes in Financial District.
Wholesale commodity prices, as meas
ured by the index of the National
Fertilizer Association, moved up slightly
during the latest week. This index ad-
vanced from 67.2 to 67.3 for the week
which ended September 9. During each
of the preceding two weeks the index
gained i points. The latest index num-
Der is points higher than it was a
month ago and is At points higher
than it was at this time last year.
rafirad XLIoS ShinQ.