Evening star., 1934-10-24

I. c. was insisting on a ratio OF 10
to /. Jones today said that IN MS
opinion q ratio of to should be
the limit.
Il agree" he said, that this limit
could be safely increased in excep-
tional cases. but laws must be passed
that fit the majority and not the
minority"
AS an immediate recommendation
along this line, Jones suggested to
bank directors that they "re-eXamine
their institutions during the next 80
or 40 days, being perfectly frank with
themselves as to doubtful items, and
replenish their bank capital, either
through local or r. F. c. funds"
Reduction of r. F. C. interest rates
had been made, Jones said. with
hope that these reductions would en-
courage lower interest rates generally,
by banks and other lending agencies.
Further decentralization of credit
control was held by Jones to be
worthy of consideration" There is
still a great deal of concentrated
power" said the R. F. c. head. land
Congress might look further into the
question of interlocking directors and
control of influence"
Cites Two Big Problems.
Reviewing the operations and the
present status of the r. F. c. Jones
said the two big problems still con-
fronting the organization were some
necessary assistance to railroads, and
the establishment of Nationwide
market for sound real estate mort
cages" Real estate mortgages, he said
constitute our really big problem,
making up our biggest source OF IN
veStment."
The final session of the convention
tomorrow will see the association vot-
ing on the platform to be followed in
the next year, now under preparation
by the Resolutions Committee.
This committee went to work yes
terday. There is a set procedure in
the selection of this body, which is
drawn from the various units OF the
ASSOCIATION, and. consequently. it was
said, no particular thought is given to
bringing into it men of divergent
viewpoints, whose attitude might
therefore be expected logically to be
reflected in the resolutions. At the
same time, however, the membership
is SO broad, members of the aSsocia-
ton point out, that whatever is pro-
posed for adoption by the convention
may be considered fairly representa-
tive of banking opinion as a whole.
Though there have been some
critical outbursts directed against the
administration, it seems doubtful that
ANYTHING of this nature will crop up.
Rather, prevailing sentiment ap-
pears to be summed up by Francis
Marion Law, the retiring president,
who last evening told newspaper men
bankers are wholeheartedly for any
program of recovery that does no vio-
lence to sound banking principles and
involves no jeopardy to the interests
of depositors."
From Capitol Hill yesterday came
criticism of bankers by a Democrat,
Representative SABBATH of Illinois, who
said bankers we're "retarding PreSl-
dent Roosevelt's recovery program by
unwillingness to extend sufficient
credit to legitimate business
Sees Party Victory.
He added:
1T is inexplicable that some Of the
very financiers and brokers that were
responsible for the recent panic and
crash, but who nevertheless were
themselves saved from complete ex-
termination, are foremost among
those who are today criticizing and
finding fault with the administration
These gentlemen must be under the
impression that the people have for
gotten that it was due to their avarice,
greed and ignorance that the country
has suffered.
NV advice to them is that they
should cease to be ostriches and should
look around and see what is taking
place in the minds of the people.
THE people of the country appre-
ciate that great service of our Presi-
dent, even if some of the bankers dc
not, and he today is stronger than
ever with the masses. I predict
Nation victory for the Demo
cratic party on November g."
Hecht, the new president Of the
association, is native of Germany
who came to this country 81 years
ago, after early banking training II
several European institutions, and
started his career in the United States
with the National Bank of the Re-
public in Chicago. He has been with
the Hibernia Bank since 1906. rising
through the ranks to the presidency
in 1918. when he was only 80 year!
old. Last year he was named chair
man.
He is a director of the Fedora
Reserve Bank in New Orleans, chair
man of the Advisory Board of th'
r. F. c. for the New Orleans distric
and a director in several industria
concerns.
He has also taken a leading par
in civic and business movements o
his city and the State.
Fleming Is a native Of Washington
where he was born A years ago. HI
had been president of Riggs Banl
for nine years and his service ther
dates back to 1907, when he startet
as runner.