Evening star., 1933-09-16
MORE ADVERTISING
HELD BANKS NEED
National Association Urges
Campaign to Inform Pub
lie on Finance.
BY EDWARD C. STONE.

BY EDWARD c. STONE.
Financial advertisers all over the
country are going to stress the impor-
tance of giving the public more infor-
nation about banks and banking, as a
result of the national convention just
ended in New York. Echoes from New
York cast some very interesting side
lights on the banking situation, too
much secrecy being blamed for many
of the misunderstanding in the past.
In this connection it is important to
note that Washington banks are PLAN
ming to do much more advertising in
the near future than they have done
since the bank holiday last March.
They are planning to let out" after
the Hamilton National Bank opens, &C
cording to current reports
For several months it has been felt
In the financial district here that it
might be unfair to the dozen restricted
banks if the others conducted extensive
campaigns. But when the seven banks
in the Hamilton merger throw open
their doors for 100 per cent operations,
the other banks see no reason why they
should not resume advertising on the
scale in force before the moratorium.
This view Is also shared by the Wash
ington Clearing House Association.
advertising Job" Needed.
In accepting the presidency of the
Financial Advertisers Association, Alva
G. Maxwell, vice president of the Git
liens & Southern National Bank OF
Atlanta. pledged the association to let
the people know what goes on in the
banks" a policy which the public has
a right to demand and which would
have avoided many of the mistakes OF
the past according to Mr.. Maxwell
L am frank to concede that we
bankers have been at fault in that mis-
understanding on the part of the public
should have been permitted to develop
inasmuch as public knowledge OF
banks and bank methods must come
from the men who know them, the men
in the banks. If this information had
been available in the past 1t. would
have eliminated much friction and
great deal of unjustif1ed criticism. 10
dav, on a basis of this mistake. we
recognize the right of people to Kno"
what gees on in the bank which SAFE
guards their money. That Is the Dig
aim and objective OF our aSSoclallol'
Nj Maxwell said.
The new president, who is a memoer
of the Savings Promotion Committee OF
the American Bankers Association. ad-
yocated advertising as the vehicle 1or
translating legal protective measures
and for educating the public and SAID
that there never was a time When
there was greater need for every bank
to do an advertising job He urged
continuous. honest and intelligent
advertising to build the confidence in
banking.
Guy Emerson Blames Public.
Declaring that sound banking will
not be secured until the temper OF
our people permits sound banking
Guy Emerson, vice president OF Bank
ers' Trust Co. of New York and
member of the Reserve City Bankers
Association committee carrying on an
exhaustive study of banks, urged the
education of depositors, constructive
proposals for stronger banking system
and leadership by bankers and the
Government. Immediately, he said,
there must be fewer banks, greater
sense of professional responsibility by
bankers and a greater training for
them. He urged the training OF the
public to know that they control this
picture. it is their money that lies in
the bankers deposits"
Criticizing the policy of the Gov
ernment at Washington in permitting
Cne department to urge liberal credit
and another to object to that policy,
Thomas R. Preston. a former president
of American Bankers Association and
president of the Hamilton National
Bank of Chattanooga, said that the
reason some debtors default IN their
obligations is political.
We have all witnessed one depart
ment of the Government in Washing
ten asking banks to be more liberal
in their credit policies and at the same
time another department OF the Gov
ernment criticiZing banks because they
have been liberal" he said. You fire.
Quently hear men in public life warn
creditors not to ask people to pay. to
be lenlent and cOnsiderate, which is
often interpreted to mean that they
can ignore their obligations and still
be in good standing. This attitude has
a tendency to harm the very people it
Is intended to benefit, as the lenders
of funds in the future will be more
cautious than they have ever been, and
men whose credit standing has been
impaired will find it difficult to obtain
funds. The most valuable asset any
man has in business is his credit
Preston Scores Poor Banking.
Attribuung multiplicity of banks and
incompetent management to be the
prime cause of the financial troubles,
MI. Preston pointed to two provisions
OF the Glass -Steagal bill as construc-
tive measures to establish sound bank
ing, the Tennessee banker cited the
clause tending to unity banks under one
system. and personally urged that no
new charters to banks be granted with
out double the capital provided by the
o1o,
privilege of Statewide branch banking.
He stated that no branch bank should
be permitted in cities where independ-
ent banking facilities are adequate.
A new element has come into So
ciety-that of common planning-and
heads of financial enterprises must rec
Ognize this and its bearing on their
operation, according to Henry Bruere,
president of Bowery Savings Bank.
The association delegates were urged
to humanize their advertising copy by
Merlin H. Aylesworth, president of the
National Broadcasting Co.
Bankers and financiers," he said,
''should use newspapers and radio regu-
larly to interpret their business, so the
people can understand it clearly, and
so that popular misconceptions can be
corrected"
Notes in Financial District.
Incorporated Investors has declared
the regular semi-annual stock dividend
OF 2l2 per cent, payable October 16 to
holders of record September %.
Otis Elevator Co. has declared a divi-
Gend of Is cents per share on the COM
mon stock and the regular quarterly
dividend of 81 so on the preferred, both
payable October 16 to stock of record
September 25.
Our net income for August, after
charges and taxes, was about $780,
OOo" said Gen. w. w. Atterbury, presi-
dent of the Pennsylvania Railroad Sys-
tenn. This, added to our seven months