Evening star., 1934-10-25

that a balanced budget is the corner
stone of sound financial policy, whether
public or private, we nevertheless
recognize that emergency expenditures
are at times called for in the interests
of human welfare. Understanding
statesmen meet such emergencies as
they arise. but at the same time make
it clear that expenses cannot be al
lowed to exceed income indefinitely.
While the outlays called for were
greater than those included in any
other peace-time budget in our his
tory, the President wisely took occa-
sion to call attention to the fact that
these expenditures should not be con-
tinued as a matter of permanent
policy.
We earnestly urge our members
to support this sound policy that we
should return to definitely balanced
budget. We believe that both the
Government and business should and
can collaborate to hasten the time
of such return. Assurance that the
budget is to be balanced will give
rise to an expansion of industry and
trade.
In its report the associations Eco
nomic Policy Commission reviewed
the banking situation generally with
the observation that all efforts to eX-
pand have been disappointing. 1t
stated that, in its opinion. American
business men must take the initiative
for productive business expansion and
that bankers should foster and assist
this business expansion. The COM
missions report was presented BY
Leonard P Ayers, vice president Of
the Cleveland Trust Co., acting as
chairman.
"One of the most important les
Sons of the depression the report
said. lis that the employment of bank
credit depends not only upon its
availability, but also and primarily on
the ability and willingness of business
men to borrow"
L. S. Best Customer.
The report also said:
The DEVELOPMENTS of this period
have conclusively demonstrated that
credit availability can facilitate enter
prise, but cannot create 1t.
Unless and until productive busi-
ness expansion takes place on a large
scale the Federal Government must
remain the most important customer
OF the banks.
The policy which should guide
bankers in their operations during
this period should be that of fostering
and assisting business expansion.
The establishment of a bal
enced budget would eliminate the fear
of currency initiation. 1t would insure
the stability of our monetary system,
which is fundamental to the general
development of aggressive business
plans as a major element in national
recovery, unemployment and economic
security"
Prior to taking up the resolutions,
the convention heard an address by
j. Howard Ardrey, deputy administra-
tor of the Federal Housing Admins
tration. who discussed the operations
of the housing act and asked cooper
alton in carrying its provisions into
effect.
Warneo of Despotism.
Earlier David Lawrence told the as
sociation the forces of the left" are
trying to consolidate political and eco
nomic power and set up political
despotism" in Washington.
Declaring his criticism was directed
'far beyond any man or any group of
men who happen to be in Office to-
day" the editor summoned his hear
ers to a struggle"
Although praising President Roose-
welt for his remarkable gift of in
tuitive reasoning" he hit what he
termed the spoils system.
Meanwhile new spirit of co-opera-
ton between the Government and
bankers was hailed by Winthrop w.
Aldrich, chairman of Chase National
Bank of New York, on the basis of
Mr. RooSevelts talk last night to the
Bankers Association.
Aldrich called on the President to-
day to express his congratulations for
the splendid address"
Il express my congratulations to the
President for his splendid address"
said Aldrich in a prepared statement
he gave to newspaper men after the
White House talk. "A fine spirit of
cooperation evidenced by the speeches
OF the President and of Mr. Jackson
Reynolds, president of the First Ma
tional Bank of New York, was most
inspiring to all of those who, either
as members of the Government or as
bankers are earnestly working to-
gether for the general welfare
ThankS IN President
The convention this m o rn n g
adopted an official expression Of ap-
probation to Government leaders who
had addressed the convention and
others, with special mention to the
District Bankers Association.
Referring to President Roosevelt,
the association declared it deeply ap-
preciates the courtesy of the President
of the United States in addressing the
delegates"
The resolution further commended
Guiding Robert V. Fleming of this
city. who was advanced from second
to first vice president.
A memorial to Francis H. SiSson,
ey-president of the association, who
died last year, was adopted.
AS its final business, the conven-
ton installed the new officers-Rudolf
S. Hecht of New Orleans. president;
Mr.. Fleming, president of the Riggs
National Bank here, first vice presi-
dent and Tom K Smith of st. Louis,
second vice president.
Tomorrow those bankers still in
the city will participate in a golf