Evening star., 1933-06-23

sage OF the Dill III
the closing hours
Of Congress as IN
1.-The greatest rev.
olution in banking Francis n. Sisson.
since passage Of
the Federal Reserve act and perhaps
in the history of bank legislation"
"It is the answer" he said, ito the
popular clamor and public demand for
a new deal in banking. Eighty per
cent of the suggestions and problems,
controversial and otherwise, which
have engaged our time and thought
for these last years are definitely dis
posed of in this measure, thus present.
ing us with conditions to be met rather
than theories to debate"
The provision for insurance OF bank
deposits he described as the next log
ical step" following the action OF the
new administration in declaring a bank
holiday, which resulted In the Federal
Government assuming responsibility for
reopening only on sound basis, thus
creating q strong moral obligation to
protect deposits in banks thus licensed.
Points to Duty.
"The hysterical denunciation of the
measure by bankers generally" he
added, has not tended to increase our
prestige with the public. It is now the
statute law, and the patriotic duty of
every banker is to lend whole-hearted
support in its administration. 1t Is not
with any great mental effort that we
may recall a day last March when we
scarcely would have inquired the price
If offered such protection"
Aside from its main purpose OF re-
storing confidence on the part of the
depositor, Mr. Keys said, the measure
solves two problems which have given
the banking profession great concern,
namely, the preference of security re-
quired for deposits of public funds, no
longer practical or necessary under the
insurance deposit plan, and the unfair
and disastrous competition of the pos
tai savings system with other banks"
Further" he said, 'it practically
assures a unified banking system in
the United States, fact We must rec
ognize whether or not we agree with
the principle"
Reviewing the important develop
ments in banking during the past few
years with particular reference to Vir-
ginia, President Keys said Virginia
banking legislation has kept pace with
a changing situation during the past
few years. THE 1882 session of the
legislature enacted a number of stat
utes which seemed peculiarly adapted to
meet the banking emergency which
followed, and which have contributed
in no small degree to the fine record
made during the crisis" he said.
Sisson Attacks Guarantee Plan.
Francis H. Sisson, president of the
American Bankers Association, ad
dressing the same convention, aSSailed
the guarantee provision of the Glass
Steagall bill as dangerous and un-
necessary.
"The guaranty of deposits has been
undertaken on Nationwide SCALE"
he said, ION the theory that it will
duce the number of failures Experience
shows that it will not reduce the
number of failures and that any conf
dence it inspires will amount to moth
ing more than feeling of false security
that will run heavy risk of eventual
disillusionment, with disastrous conse-
quenceS.
"The only kind of confidence worth
having is a confidence that is warranted
by the soundness of the banks, and
soundness is gained not by deposit
guarantees, but by competent manage
ment and supervision. The scheme will
be successful only to the extent that
genuinely better banking makes it un-
necessary"
Regarding the remainder of the ad-
ministration's recovery program, Mr..
Sisson said, ANY attempt to pass judg-
ment at present would be premature"
Price Recovery Highly Encouraging.
1T is beyond a doubt" he said. that
the vigorous price recovery which has
occurred in recent weeks, besides be-
ing highly encouraging in itself. has
been accompanied by pronounced ex-
pansion in various branches of trade
and industry To what extent this i'm
provement represents natural rebound
after three years of depression and re-
adjustment, and to what extent it re-
fleets a speculative demand for goods
resulting from fear as to the future
value Of the dollar. must remain mat
ter Of conjecture for some time to
come
Whether or not the improvement is
as substantial and as firmly grounded
as we hope, there is no doubt that it
has brought about certain changes in
the immediate situation that are, to
say the least, impressive. If the vast
powers that have been placed at the
disposal of the Government are admin
istered with wisdom and moderation,
and particularly If unsound inflation-
airy methods are avoided, there Is
ground for genuine optimism regarding
the outlook for economic recovery"
Auditors Elect New Officers.
The auditors section of the District
Bankers Association held their annual
meeting at Olney Inn last night and
elected A. E. Yeatman of the Columbia
National Bank, chairman for the COM
ing year: R. Earle Haycock, Riggs Ma
tional. vice chairman; and James T.
Barrett, American Security & Trust Co.,
ecretary-treasurer. The retiring chair
man, William M Harris, Lincoln Ma
tional Bank, was presented special
token of regard for his fine work for
the section during the past year.
Charles H. Doing second vice presi-
dent Of the Bankers Association was
guest of honor and made a brief
talk. Miss G. NJ. Keer, assistant secre-
tary OF the association, was also a
guest.
Capital fractions Net Improves.
Net income Of the Capital Traction
Co for May showed an increase OF
S2,78975 over May, 1882, according To
reports filed with the Public Utilities
Commission. Operating revenues were
much lower than year ago but ex-
penses were cut enough to more thar
Offset the revenue drop Revenue pas
sengers in May numbered 3.103, ,548, g
decrease Of 39l 1856. For the first five
months OF 1898 operating revenues to,
tailed 81 ,24l ,024. a decrease of over
$4,000, while operating expenses
amounted to $982,47 or $154,941 be-
low the same period year ago. Aftel
all the usual deductions, Capital Trac
ton reported net income for the fiv,
months of $l6,631.77. a decrease o
$52,08883 over the like period a yea
ago. There has been a falling off il
revenue passengers numbering NOR
than 2e00 900.
Trading Light on Exchange.