Evening star., 1934-05-30
S|DD0NS ELECTED
BY D. c. BANKERS
Succeeds George 0. Vass
as President at White
Sulphur Session.
BY EDWARD c. STONE.
Staff Correspondent of The Star.

WHITE SULPHUR SPRINGS, w
Va, May 3O.-Frederick P. H. Siddons,
secretary of the American Security &
Trust Co., was elected president of the
District Bankers Association at the
concluding session of the sixteenth
annual convention here today. He
succeeds George o. Vass, vice presi-
dent, Riggs National Bank.
Charles H. Doing, vice president,
Washington Loan & Trust Co., was
elected first vice president; Karl w.
Corby. partner in w. B. Hibbs & Co,
second vice president; Albert S. Cat
ley, vice president, Franklin National
Bank, treasurer, and Thomas j.
Groom, vice president and cashier,
Bank of Commerce e. Savings, Secre-
tary. Frank j. Hogan was again
elected general counsel.
The new secretary. Thomas j.
Groom, was general chairman Of the
present convention. According to the
associations policy of advancement,
he will be president of the organiza-
ton four years hence. AS only one
slate was presented, all officers were
chosen unanimously and took office at
once Members of the Council of Ad-
ministration and officers representing
Washington in the American Bankers
Association were also elected.
Siddons Gives Address.
Mr.. SiddonS spoke on The Ef-
fects of the Banking Act of 1888"
Results on credit, management,
cellaneouS bank policies were con-
sidered in detail by the speaker.
"The banking act as yet has not dis
turbed many old-time practices in
connection with credit. The acid test
will come when there is a call to
apply brakes on speculative credit,
when a critical stage is reached in
the enforcement of the Federal deposit
insurance assessments, or when money
Is tight" Mr.. Siddons asserted
so far as the management of
banks is concerned, the act has served
most useful purpose. Opponents
deny it has influenced management
but the experiences of bankers in the
last five years could only make the
banker know his bank better and thus
force him to improve and strengthen
the management. The Federal Re-
serve Board has the power to force
good management, to try, warn and
remove any officer or director. The
banker must keep his bank in order,
not only from liquidity standpoint,
but from the standpoint of all phases
of good management. Another vital
section relates to loans to executive
officers.
"Unquestionably the enforcement of
security affiliates effective June Is.
1884, is an excellent move. The serv-
fee rendered by those engaged in the
purchase and sale of securities cou-
pied with advice as to what consti
tutes good and bad securities when
bought on margin, is not a bankers
function. Just as much as the brok-
erage business is not banking busi-
ness Mr.. Siddons said.
oppOSeS SOtne
Congress went little too far in the
segregation of the security business
from the banking business when 1t
placed in the law restrictions on the
services of brokers on bank boards.
The advice of the broker to the
banker is invaluable, and section 80,
which stated that those who were
dealing primarily in the purchase and
sale of securities could not serve on
bank boards, took away valuable help
to the banker.
"A fairly satisfactory Interpretation
has been that directors engaged in
the real estate business, who sell real
estate notes. do not come under this
section of the act.
The effect of the banking act upon
personnel is bound to put into the
banking business better bankers and
is closing the door to persons entering
the field who lack necessary expert
ence to make good bankers" the
speaker continued 1t will draw peo-
pie into the management of banks
who understand finance.
Public confidence has been re-
stored by the terms OF the act relat
ing to the Federal Deposit Insurance
Corporation The increase in de-
posits is concrete evidence of this con-
fldence. There has been built up such
a strong public demand for guaran-
teed deposits that while the law may
be tempered, insurance will become
permanent"
Mr. Siddons declared that owners
of bank stocks in the days before the
depression are not satisfied with the
banking act, which permits new bank
stock to be issued without the double
liability clause. Old stockholders be-
lieve they have not been treated fair
ly, that all bank stock should be on
the same footing.
Many bankers believe that by
eliminating interest on demand de-
posits 1t would cause heavy with
drawals from centers, this affect
ing the bank correspondent system.
Strangely, the reverse appears to have
been true. On June 16, 1888, mem
ber banks of New York City reported
their demand deposits at 81 1474, ,000,-