Evening star., 1934-10-22

1.-THE Missouri State Life failed the
other day." Brown continued. we
thought it was great and impregnable
and that nothing could touch 1t. So
have failed half dozen insurance
companies that attempted to start in
the Middle West with the great idea
OF keeping the money at home and OF
putting it into farm loans. These
failures were due to the failure OF
the farm mortgages Of this country to
pay their fixed obligations. Then
in the face of this warning along
comes this political basket ball tossing
and the shout we will go a step
further and reduce the lien and de-
stroy the security"
While friends of the measure have
said that it is only good for five years,
the speaker said that President
Roosevelt has spoken OF 1t as in
some respects loosely worded and will
require amendment at the next ses-
sion of Congress"
so says the President" he said.
"In other words, the principle has got
its toes in the constitutional door of
protection of your home and your
contracts and your liberty to hold it
open and let the mob in to make po-
litical panaceas in disregard of prin-
ciples that have stood for centuries" F"
Are Not Money Changers.
Calling to mind the Presidents ref
erence in his inaugural address to
driving money changers from the tenn
pie. he said, "If we destroy the faith
and credit Of the debtor and creditor
policies and promises in a nation as
great as ours with political subteI -
fuge and new-found ideas Of emer-
eency laws and set aside the Consti-
tuition because we think times are
tougher than those of the Revolution,
the money changers may indeed be
driven from the great temple. But
] hold that the bankers, the trust
companies, who have protected widows
and orphans who have used the in
surance monies to live comfortably and
to see their sons and daughters edu-
Gated, who have furnished funds for
industry. the investor. the plain
American citizen. all on American
credit and American protective con-
tracts are not money changers"
Loan Policies Defended.
Hanes, who preceded Brown on the
program, defended bank loaning poll
cies. as did Clyde Hendrix, president
of the Tennessee Valley Bank OF De-
catur, Ala.
Contrary to frequent charges that
banks are reluctant to do their part
toward recovery oy making more loans,
Hendrix asserted banks everywhere
were burdened with idle funds seek
ing legitimate investment and were
actually eager to make loans, mot
only to be of service to their CUSTOM
ers, but as means of creating reve-
nues with which to meet operating
expenses"
Notable among the eight-point pro-
gram for the State Bank Division to
work toward, Hendrix, the retiring
president Of the division, said that an
effort was being made to bring about
q further amendment to the banking
act of 1888 This amendment, he ex-
planned, would modify it so as not to
require non-member State banks to
become members of the Federal Re-
serve System in order to continue
their deposit insurance: "and, if pos
sible, limit assessments to a fixed
maximum within the ability of banks
to pay" He urged also that we
continue to fight ageressively for the
preservation of the State banking sys-
tenn as against any form of bureau
cratic Capitalization"
Discusses Branch Banking.
Characterizing branch banking as
o system Of having bigger bank fall
ures," Clinton B. AFFORD, editor Of the
American Banker, New York City,
speaking before the division, warned
that the people of the United States
are going to take branch banking
in the name of reform if State and
unit bankers do not give them some
thing better"
Let us cite the fact" he said.
"that the banking holiday in 1888
found IT of the first 200 banks in
the United States unable to reopen
and of the branch banking systems
in the United States, 19 were unable
to reopen and they carried down with
them 494 branches"
The only thing which saved the big
British branch banks from similar
collapse in 1881, he said, was the fact
that England suspended gold pay
ments and that we relieved our banks
by the same method when they re-
opened after the holiday. Canadian
banks, he pointed out, have not been
paying in gold since 1880.
Cook Delivers Address.
This afternoons sessions of the Ma
tional Eank Division were called to
order by Irving w. Cook, president Of
the division, who delivered his annual
address. A. G. Kahn, president Of
Union National Bank, of Little Rock,
Ark, discussed Know Your Costs, y
and Frank P. Bennett, jr., editor of
the United States Investor. of Boston,
Mass, discussed Who Should Handle
Reserves Of National Banks"
Following the general convention
session tomorrow morning at the Ma
ClOIldl 1IledIcT, UIlG L uoI OlNlolOll WILL
hold its annual meeting tomorrow
afternoon at the Willard Hotel. called
to order by the division president,
II. O.. Edmonds.
High Officials to Speak.
In addition to the President, other
high Government officials will address
the bankers. Leo T. Crowley, chair
man of the Federal Deposit 1nsur-
ance Corp, will speak tomorrow
morning on the present and fu-
ture of that agency. which was orig
inally opposed by many Of the bank
ers
Another speaker on Wednesday will
be Jesse Jones, chairman Of the Re-
construction Corp, whose activi-
ties are intimately related with those
of the banks. j. H. Ardrey, deputy
administrator of the Housing Admin
istration. will talk about his work
Thursday.
Election Of the associations officers
for next year probably will find Ru-
dolf S. Hecht of New Orleans, first
vice president, succeeding to the pres
ll-~av ,.axv, ka1J ~, E,.o 81