Evening star., 1933-05-05

enCe TO IL Is LlIllely.
Regarding confidence, Mr.. Sisson said:
ITO restore confidence is perhaps the
primary funs ton cf the Federal Gov
ernment-confdence in our institutions,
confidence in the efficiency OF our Gov.
eminent, confidence in the stability OF
capitalistic systems, confidence in our
own possibilities, confidence in the posi-
bilities of recovery and OF wise guidance
toward recovery. That psychological
element, in my mind, is perhaps the
basic necessity of the whole situation
Along with that, to do everything IN
their power to sustain our national
credit. to see to it that the obligations
of our country are sufficiently protected
that they will be honored and respected
not only here but abroad. To see to 1t
that our budget at home Is so balanced
that the Governments credit is kept
sound.
One of Paramount Tasks.
"Then, perhaps, in connection with
our foreign situation, to ask OF our
Government more considerate pro-
lection of American foreign trade and
American interests abroad, with all the
ramiications that lead in the problem
OF international peace and to the
restoration of economic order and the
eoualizing and stabilization Of exchange.
That, at this particular moment, IS
perhaps one of the paramount tasks CT
the hour.
But to proceed from that in our own
country, it seems to me one OF the pre-
eminent tasks they face is to leglslate
for the United States as whole, TO
wipe cut class and sectional and party
distinctions just as far as possible, ana
to not let the differences between the
AGRICULTURAL West and South and the
industrial East and North reach the
point of economic disorder or of govern
mental prejudice or participation.
There is no new era, as we dlscoV-
cred in 1929. Nor is there any new
deal, in the broad sense, today. The
old order stands and the laws which
governed it, and which have governed
and guided humanity through thou
sands of years. still stand. The good
old law of demand and supply Is just
as real today as it was 5000 years ago
in ancient Egypt, where we read nrSt,
perhaps, Ct its operation.
Praises Record of Banks.
Turning to the present banking stu
alton. President Sisson asked for Ger
tain degree of charity in the general
condemnation of bankers that IS sweep
ing the country, because bankers are
unable to foresee the unforseeable. He
continued:
The sober fact is that over pc
riod of "a years in which the records
have been kept, the amount of money
returned to depositors from closed banks
is little over 80 per cent. So that
the loss to the public in deposltlng
money in banks has not been any more
severe than good many OF you men
have suffered in your own business.
"One of my associates in the Guar
anty Trust in talking about the situa-
ton and the loss of money, securities,
business and commodities, said, The
mistake I made was in not selling out
all my stuff in 1929 and putting all my
money in the Bank Of United States.
I'd have gotten IS per cent back then
80 we find in spite OF this great
newspaper publicity which has been
given the question. that there are still
q substantial number Of banks serving
the public today. There are today over
1928 banks open and doing business.
Their total resources are something over
sac, 900 900, 900. For the most part they
are serving the business community as
effectively as possible There is some
thing like perhaps $4,000,0 100000 tied up
in banks that are not open, which the
Government is proceeding to try to
loosen up as far as possible. Those
1900 banks are immensely better of,
better prepared to serve the public to-
day than they we're before the banking
crisis came One of the effects has
been to greatly increase banking capital.
Politics in Banking Scored.
"In 1929 the banks of this country
had about little over S6,000,000, 600 of
banking capital. The banking capital
today is over $8,500,000,0 900 and we have
10000 less banks than we had then.
So, while We have decreased the num-
ber of banks, we have increased the
measure of protection which the pub
lie has in the banking business. If we
had not so many banks, of course, that
protection might be good deal greater
in the various units offered, but the
point I want to make is when dealing
with the Federal Government the fun
damental difficulty in the banking busi-
ness has been political and not eco
nomic nor business.
1T is because they permitted banks
to be organized with such a small
amount of capital and in such great
numbers that it was not possible for
those banks to live in a period of eco
nomic depression and reaction. 1t was
not a question of dishonesty or bad
management in most cases, and while
there are flagrant instances which we
all greatly deplore, perhaps the average
was no higher than in other businesses,
but at any rate, the real cause of that
situation was before thousands of
banks were permitted to exist which
never should have been permitted by
Government, and the reasons they ex-
listed were political and not economic, ="
he asserted.
In conclusion the A. B. A. president
reviewed the IA points for better bank
ing which were adopted at the recent
meeting of the associations council at
Augusta, Ga, and expressed the hope
that many of these suggestions will be
given full and careful consideration be-
fore the Glass banking bill Is finally
passed.
Lanston Officers Are Reelected.
All officers and directors of the Lam
ston Monotype Machine Co. were re-
named at yesterdays annual meeting
when the stockholders met in Alexafl-
dria. The officers include j. Thilman
Hendrick, chairman Of the board; Har-
yey D. Best, president; T. Frank Nor
gan, A. E. Pagola and Frank j. Rode
rick, vice presidents; John A. Ferguson,
secretary; Allen r. FretZ, assistant sec
retary; Wilfred Bancroft. treasurer, and
Harvey w. Monks, assistant treasurer
The board of directors, including the
Washington members, consists of Har-
vey D. Best, M. c. Branch, Carl w
Corby, John w. Hyde, jr.: j. Thilman
Hendrick, Adrian H. Larkin, Royal T
McKenna, w. Usher Parsons and
George w. White.
The directors voted dividend of 81
per share which is payable May 81
tanston stock is still very widely held
In Washington. 1t is quoted on the
washington Exchange at A bid and So