Evening star., 1935-03-08
CAUTION URGED
0NBANKPROGRAM
Savings Conference Speak.
ers Plead for Great Care
in Congress.
BY EDWARD C. STONE.

1Wh, AL WlliS1 washington OcLhCAo
are greatly interested. urged great care
and caution by Congress in conSid-
Grafton of the large amount of pro-
posed legislation relating to banking
matters at the opening sessions held
yesterday.
T. ]. Caldwell, president of the Saw
ings Division of the organization and
vice president of the Union National
Bank of Houston, Tex, warned that
because of irresponsible loans" there
is only disaster in prospect unless the
Federal Deposit Insurance Corp. can
be considerably restricted" Much of
the proposed legislation in Washing
ton, he said, is contrary to the prin-
ciples Of commercial barking"
James K Steuart, treasurer of the
Savings Bank of Baltimore. reported
that Maryland savings banks are con-
cerned over the program of political
encroachment"
John B. Burton, president of the
National Bank of Far Rockaway.
characterized the small merchant and
small business man as today's forgot
ten man. He said that the most
the personal loan business.
Henry F. Long, commissioner of
corporations and taxation of Massa-
chusetts, said: I'VE have not
really been pressed through the
years to scientifically develop a we'll
co-ordinated and completely just tax
structure.
so universal has been the thought
that real property was properly sub
ject to tax that the creeping paralyz-
alton of this form of tax was not
noticed until failure of other sources
to continue substantial yields threw
an almost unbelievable burden upon
this class of property"
Jason Westerfield, assistant secretary
of the New York Stock Exchange, told
the conference that "our immediate
problem is to bring about a better
understanding on the part of the
public of the service that the world
OF finance renders to society"
Economic ignorance is the source
OF the wave of hostility against busi-
ness generally and banking in par
ticular which has swept over the
country like wildfire," he said 1.-The
only antidote for misunderstanding is
truth and your job and ours is to
nculcate economic truth into the
minds of the public"
Other speakers included David
Friday, Washington economist, a mem
ber of the board of directors of the
Bureau of Economic Research, and
Henry r. KinSey, president of the
Savings Bank Association of New
York. The meeting is sponsored by
the American Bankers Association.
Undue Credit Control Feared.
Directors of the United States Cham
ber of Commerce recognize that timely
notifications in the Federal Reserve
act and policies of the system will
continue to be necessary. However, in
a statement just issued, the board
adds that the country must weigh
carefully the adequacy of safeguards
against the political domination of the
Federal Reserve Board, the Reserve
banks and the member banks. and
against undue Capitalization of credit
control
Various banking groups are study
Ing the pending proposals. The board
urges that the commercial and in
dustrial interests of America do the
same without delay and be prepared
to register their opinions upon the
measure and upon the announced pur-
poses underlying it. The directors
added:
"It is hoped that early consideration
will be given by Congress to the
amendments contained in title of the
proposed banking act of 1885," modi-
flying the present plan of insurance of
bank deposits, and to the provisions
Of title III that deal with some tech
nical modification of existing banking
laws.
1T is urged, however, that Congress
deal with the proposed amendments to
the Federal Reserve act, contained in
title II, separate and apart from the
other portions of the bill. Business
asks reasonable time to determine its
position upon the amendments to the
reserve act, that are contained in title
II, and to make known its views to
Congress"
Would Pay Off Bank Claims.
Purchase by the Reconstruction
Finance Corp. of the remaining assets
of closed national banks and payment
to the depositors of go per cent OF
proven claims, is provided in bill
introduced in Congress. Depositors
in reorganized national banks closed
since January /, 1880. who accepted
bank stock in whole or in part for
their deposits, would similarly be re-
imbursed up to 60 per cent OF the
value of the stock they accepted.
Bank clearings in Washington in
the first week in March were % per
cent above the figure in the like
period a year ago The national
average gain was 1873 per cent. Clear
ings in Richmond were up 23.2 per
cent. The Baltimore advance was
almost exactly the same as the ma
tional average New 1885 peaks were
the rule all over the country.
The Virginian Railway Co. has
applied to the Interstate Commerce
Commission for authority to issue S3.-
10000 first mortgage Az per cent
series B bonds to reimburse its treas
ury for expenditures for improvements
which included construction OF the
Kanawha River Bridge and for GER
tain equipment.
New Treasury Bill Offering.
New Treasury offerings are coming
thick and fast these days. All the
banks here received notices today
from the Federal Reserve Bank OF
Richmond announcing the offering OF
$10O,000000 Treasury bills, dated
March 13, 1885, of which s50,000000
will mature on September II. 1885.
and $50, 100000 on December II. 1885.
Both series will be sold on discount
basis and tenders will be received up
to Monday. March IL.
On the Washington Stock Exchange
today Capital fractions SIS were again
very strong. changing hands at 96a4
on two $500 sales and one $1,000
transaction. Washington Railway &
Electric preferred stock opened at 103
and closed at 1031a. Mergenthaler
Linotype was unchanged at 80. Tran
sit stock was quiet today, closing with