Evening star., 1934-10-23
Institutions Must Be Eco
nomicaIIy Necessary for
Areas, Crowley Says.
INDIVIDUAL INITIATIVE
UPHELD BY A. B. A. HEAD
Foundations Of Present System
Should Be Preserved, With
Changes Added, He Holds.

A five-point program designed fur
ther to strengthen the banking sys-
tenn of the country by new legisla-
ton was laid before the American
Bankers Association today by Leo T.
Crowley, chairman of the Federal De-
posit Insurance Corp.
Speaking from the same platform
at the National Theater, Francis
Marion Law, president of the A. B. A.,
pledged the bankers to work for re-
covery, as they had in the past, but
need of individual initiativ and of
fair profit" was an absolute necessity
TO recovery He praised cooperation
Of banks with the Government under
the bankers code.
foundations Good"
Banking is not a closed science" :"
said Law, land bankers generally
agree the banking system we have
had, has not been good enough. That
does not mean it should be thrown on
the scrap heap. The foundations are
good and it should be preserved. 1t
is on this superstructure that work
needs to be courageously and intelli-
gently done, and the country has the
right to expect the bankers to do the
job" This remark was greeted with
applause.
THE bankers are far too intelligent
to assume an attitude" declared Law,
facts and conditions must be faced.
There could be no greater mistake
than for us to preach untempered or
undue optimism. There are grave
problems to be recognized and solved q"
Thus the fireworks of the first days
convention, which had marked sharp
bombardment of the Government
from some disgruntled sectors of the
banking organization, gave way to
what appeared to be more concilia-
tory approach to the sensitive ques-
ton of the relations between govern
ment and banking.
Curious About Speech.
Curiosity of bankers was at keen
edge. however, as to the message
President Roosevelt will deliver to
them tomorrow night, at Constitu-
ton Hall. This rose to a new height,
especially in view of expressions pub
hcly made by at least one speaker
yesterday criticizing the President for
his praise of British bankers, with al
legged implications against American
bankers, in a recent flreSide radio
speech.
Attendance, believed to be one Of
the largest in the history of the bank
ers' association, swelled to far above
the 5000 mark today. and demand
for tickets to the session tomorrow
night, when the President will speak.
far exceeded the supply. Many group
meetings of the A B. A. were under
way today.
Crowley said great improvement
had been made in the banking sys-
tenn, but he considered more advance
steps much needed.
Failure of $4,000 banks in 13 years
he declared was "unmistakable evi-
dence of the gross error that was
made in the almost indiscriminate
licensing of banks. We should not
repeat that error" he warned. mo
new bank or bank branch should be
licensed or chartered unless it is eco
nomically necessary in the particular
community"
Reserve Building Urged.
Urging sound management upon
bankers, he recommended to all "the
current absorption of all losses, and
the building up of reserves for any
future losses
Specific recommendations in the
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