Evening star., 1934-10-28
Favors Plans to Inform Pub.
Nc Instead of Tradi-
ti0naI Silence.
POINTS TO CONFUSION
OVER LOAN POLICIES
Distinction Between Safe Financ-
ing and Relief Declared Vital
for Understanding.
BY EDWARD C. STONE.

4AA OAlS VA bAAN OhOcOetAiAAAI6 1AAAA OocSS
before the American Bankers Asso-
citation, l.. E. Wakefield, president OF
the First National Bank & Trust Co.
Of Minneapolis, urged bankers to
break their traditional silence ON al
matters pertaining to their business
defend themselves against what they
consider unjust criticism, explain
that they are always glad to make
sound loans, but cannot loan money
to applicants who are busted"
He declared that there must be q
distinction between safe loans ano
relief, adding that no bank has the
right to loan other peoples money
to people who need it for relief pur-
poses rather than for business uses
His views aroused hundreds of bank
ers at the customers relations clinic
to a high pitch of enthusiasm and
1t became the common belief during
the rest of the convention that the
Nations flnanciers are likely to say a
great deal more in their own behalf
in the future than they have said
in the past.
We have lived up until the recent
months under that traditional at
mosphere of reticence until we have
actually permitted that there be de-
veloped in this country through the
propaganda and the political con-
versations of today a strong and ac-
cepted feeling that after all there
must be something crooked about the
banking business. If it were not so
why do the bankers let it 60 un-
answered." Mr.. Wakefield said.
Urges Clearer understanding.
~ believe we have become more
or less convinced of the fact that
if we do not ourselves undertake tc
create clearer understanding among
those people who deal with us as tc
their interest in our welfare, then we
have very little hope ahead of us
No one else is going to do it for
us, and there is no more intelligent
or capable body to undertake that
Job than is found among those peo-
pie who are either officers or en-
ployes of banking institutions.
so 1t seems to me not only appro-
PIRATE but absolutely essential that
the banking fraternity as such realize
at this time that without their gen.
eral intelligent interest in the crea.
ton of correct public UNDERSTANDING
Of their interest in the banking bust
ness we are doomed in this country
not only to naturalization of banks
but to complete state of socialism
or State ownership" the speaker
asserted.
Mr.. Wakefield gave it as his opinion
that there will be less worry over the
power of concentrated wealth" in the
future. He believes the present in
come tax, State and National; inherit
ance tax, estate taxes and all the vari-
Gus things that have been attached to
the disposition of property, have
greatly reduced past concern along
this line.
He expressed the very positive be-
lief that private banking can take bet
ter care of the needs of the banking
public than any Government con-
troled institutions could. II think we
should indulge in some effort to let
the public know that they are con-
cerned with us in this matter"
Costs Come Back on Public.
The public should be made to real
lie that every cost imposed upon the
banking business, whether it be in
added taxes, in the Federal Deposit
Insurance Corp. costs, or of any ma
ture whatsoever, is passed on finally
to those who deal with the banks, be-
cause no bank operates except as it
finds means of creating the revenues
from which it may pay its outgo. The
public is genuinely interested in these
results.
"All over this country there is too
great confusion in the minds of the
public, due to the propaganda of the
day, as to relationship between re-
lief and bank loans and I think you
all know there is no such relationship
and there never will be if banks are
properly run. No bank is privileged
to take the deposits of its customers
and loan them or give them to any one
who may be in distress. That right
and privilege is retained solely by the
owner of the property and is not to be
INDUCED in by anybody engaged in the
banking business.
1T is true that we have been slow
as bankers, I think, to accept the
challenge that has been given to Us
by those who have been criticizing us
and we have been slow in the last
five years in the realization of the
fact that we perhaps can take, anc
should take rightfully, a greater re-
sponsibility in the communities where
We are transacting our business" the
speaker said.
Staff Meetings Lauded.
Mr.. Wakefield believes the most
fertile field on earth for he develop
ment of a correct understanding Of
the banking business by the general
public is right in the banks them
selves. His bank employs 600 people
They have been divided into groups
of 100 and have meetings twice a
week, at which the heads of the in
stitution stress matters most vital to
the employees and through them reach
the attention of cusomers. He con-
cluded:
II don't mind telling you that am
mighty proud to be in this business
regardless of all the things they say
about us. I am going to keep right
on going, and am going to die on
the job OF undertaking to do the thing
in the community that a bank ought
to do, and think that is the spirit