Evening star., 1933-09-11

pledged loyal sup ~ <
port to the great bssszE.sza' 's'ss'
efforts now being Francis M. Law.
made by the ad-
ministration to conquer the depression
and start a wave Of expanding pros
perity.
Before leaving Chicago, Mr.. Law
stated that he believed the resolutions
ADOPTED by the convention clearly rep
resented the viewpoint of the majority
Of bankers IN the leading issues in
banking now before the country, ana
added that he would do everything IN
his power to make those views effective.
In reply to a question about deposit
insurance, the new A. B. A. president
said
My impression of the attitude OF
the bankers as expressed not only IN
the convention but off the floor is that
there persists a widespread feeling that
1t would be highly desirable TO post
pOne putting this provision into op-
Grafton on January l next If way
for such postponement can be found.
Predicts Many Bank Re-openings.
Mr.. Law expects the re-opening Of
a great many more banks before New
Years day all on a sound operating
basis. His remarks at the conclusion
VI llle S!lllSISD NOIlNCiIl-Oll dAS SoPSSAetAAs
timely and interesting. In pledging
support to the Government, according
to the financial press, he said:
The number of unlicensed banks
throughout the country, including those
which are either closed or restricted
has been very materially reduced in re-
cent months and the deposits in such
banks represent a total which is less
than 7 per cent Of total deposits IN
licensed banks. There is reason to be-
lieve that a large percentage OF these
unlicensed banks will be reorganized
before New Years day. When they are
recpened, il Will be on a sound basis.
The $4,000 or more banks now oper-
ating on an unrestricted basis have
gone far III the matter OF setting their
own houses in order, each for Itself. In
my opinion. very few bankers who are
actively engaged in the banking busl-
ness today will in the course OF their
lifetime forget the lessons taught by
the past four years.
We know now, if We never knew
before. the meaning of sound policies
and the Interpretation of them in the
right running of a bank, and especially
with regard to the use OF deposltorS'
money in the making OF loans, How
ever. ability, even with experience
added, is not enough. 1t must be &C
cCmpanied by a lot OF courage ana
prodigious amount of hard work.
Offers Whole Hearted Support.
"The new administration of the
American Bankers Association pledges
the Government at Washington It's
whole-hearted and loyal support in the
herculeans efforts that are just now
in the making to put more people 10
work and to raise wage levels. The
people of the country seem to be prac-
tically a unit in their response TO the
plans as proposed by the President OF
the United States. 1t will take time
of course, and this fact should pe
stressed so that people will not be-
come discouraged when good results
are not immediate.
when the new Congress meets IN
January it is generally believed that
there will be some new banking legls-
lation. I earnestly hope that the
thoughtful and patriotic bankers OF the
country will make real contribution
in the working out and the per1ectlng
of such amendments to the banking
act as may be necessary. The country
has a right to expect as much from
us. It goes without saying that in
such efforts grab and selfshness will
have no place. I, for one, am con-
fident of the result" the A. B. A. Of
ficial concluded.
Bank Insurance Action Near.
In financial circles it is expected that
the newly appointed board to take
charge of the Bank Deposit Guarantee
Corporation will take up the problem
at once of examining about 5000 nom
member banks for inclusion in the new
insurance plan Insurance Of bank
deposits up 10 $500 is called for in
the new bank law, to begin on jan
uary /.
A way to proceed in this important
matter has already been tentatively
outlined by Treasury officials and will
be presented for approval by Chairman
Walter J. Cummings OF the Deposit
Board.
The plan to be presented to the board
of directors will be based essentially on
the theory Of decentralization of exam
ination activities A list of more than
1900 eligible examiners is available and
this entire staff can be mobilized at
short notice to begin the work OF certl-
flying as to solvency of non-member
institutions desiring to participate in
the insurance plan.
Fifth District Trade Holds Up.
It is reported by the Richmond Re-
SGIhG bdllh llldG lCtdil l1o0N III CAiN
fifth district held up during August to
about the same levels as noted in July
and June, well ahead of last year.
Wholesale lines are reported as CORE
spondingly active. Business was good
last week in spite of the holiday Early
tobacco prices have been Disappointing,
but growers have hopes that the agr1-
cultural adjustment act will prove bene-
fetal in the near future. Reports from
the Atlanta area show substantial gains
In retail trade and in employment.
Trading Quiet on Exchange.
Trading was unusually quiet on the
Washington Stock Exchange as the
week opened today. The local market
evidently fell in line with the almost
standstill business on the New York
Stock Exchange A small lot of Wash
ington Railway & Electric preferred
sold at Sc and in the bond department
$500 Washington Gas IS, series B, came
out at 1882. That was all. y
Fanny Farmer Candy Shops, Inc,
has declared the regular quarterly
dividends of Is cents on the COM
mon and go cents on the preferred,
both payable in United States funds
october 2 to stock of record Septem-
Der Is.
Most Virginia Banks Open.
OF the State banks in operation in
Virginia when the banking moratorium
was proclaimed on March 4, last all
except 20 are now doing business,
Myron E. Bristow. director of the State
banking division, announces.
When the banking holiday became
effective, there were 232 State banks.
Today there are 212, of which nine
are operating on a restricted basis.
Three State banks remain in receiver
ship, but one is expected to reorganize
and merge with national bank.