Evening star., 1935-04-01
BANKERSPREPARE
FOR COOPERATION
Much Closer Relationship
With Business Seen by
A. B. A. Chief.
BY EDWARD C. STONE.


much closer cooperation between
banking and business in the future.
Writing in the associations magazine
for April, he says:
Bankers are often asked, and ask
each other, just what place their pro-
fession Is likely to occupy in the
period of national development which
lies Immediately ahead of us.
my belief Is that this era will be
characterized by close cooperation
closer than ever before-between
banking and business; that bankers
will maintain closer contact with
business problems and that business
men will know more about banking
than heretofore.
"As see it, our best ally toward
bringing about this better mutual
understanding and closer relationship
is education. In this connection I
wish to speak of two things: The i'm
portance of the step just taken by the
American Bankers Association in Or
ganizing the Graduate School Of
Banking, and my belief that the
basis of public education in economics
should be broadened to include stu
dents in high schools and other sec
ondary institutions of learning.
"A few years ago the depression was
the big news of the day, just as today
the big news is the effort of Govern
ment and business to speed recovery.
A whole new literature covering all
phases of the question and multi
tude of suggestions for the return to
equilibrium has circulated among peo-
pie whose recent experiences have
stimulated them to study eagerly
every constructive plan or suggestion.
I'm all our history no severe depreS-
sion has left the country unchanged.
Each has caused people to think, and
the effect of their thinking in the long
run has been shift in the direction
of national progress. The present in
stance, I believe, will prove no excep-
tion," Mr.. Hecht concludes.
Fifth District Trade Good.
Retail trade, coal production and
cigarette manufacturing led activity in
the fifth Federal Reserve district in
February, according to the Federal Re-
serve Bank of Richmond'S monthly
review. Heavy advertising campaigns
are being carried on the leading cities
In anticipation of an Easter trade rush.
Rediscounts increased between the
middle of February and the middle OF
March. The Richmond Bank in
creased its direct loans to industry to
supply working capital and also added
to its holdings of Government Sc
curities.
Debts for the four weeks ending
March 13 were IL per cent greater
than in the same period a year ago,
a development cited as an indication
of business expansion in the district.
Because of the curtailment in the tex
tile mills. employment was lower up
to the middle of March than year
ago. The automobile industry, how
ever, is absorbing some extra workers.
The Richmond Bank states that the
agricultural outlook for 1885 appears
favorable, with farmers in a better
financial position to carry on their
work. The weather delayed work
somewhat early in March, but Winter
crops have done well and conditions
are unusually favorable to Spring
planting.
The review covers Washington and
five States, Maryland, Virginia, West
Virginia and the Carolinas.
Why Pensions Are Popular.
The low cost of money may be a
fine business stimulant, says Sphere
magazine, but it means that the life
insurance companies have to charge
larger premiums and the man buy
ing insurance has to provide for a
much larger principal amount for
protection of his family.
A policy calling for 100000 for
which safe return of only 3 per cent
can be had is merely the equivalent,
In income, of what $4,000 in pri1-
cipal amount used to be when per
cent and safety could be had in mort
cages.
Building up security for ones old
age is just about twice as difficult as it
used to be. No wonder proposals for
old-age pensions are so popular, the
magazine comments.
The executive council of the Amer
tcan Bankers Association will hold
Its Spring meeting at Augusta, Ga,
April IA to IT, Aside from the an
nual convention, this is the most i'm
portant meeting that the association
members hold during the year. The
coming sessions should prove un-
usually interesting because of the
extremely important banking legisla-
tion now before Congress. Among
the Washington bankers attending
will be Robert v. Fleming, first vice
president of the A. 3. A. and president
of Riggs National Bank, also a men,
Der of the Special Committee which
recently presented some most i'm
portant recommendations regarding
the pending banking act of 1885.
New Peaks on d. C. Exchange.
Trading was very quiet on the Wash
ington Stock Exchange today, but
prices were particularly strong. Po-
tomac Electric Power 5l2 per cent pre-
ferred stock sold at 1151s. a new high
mark for the present year. Two small
sales were recorded
Capital Traction SIS, which have been
climbing steadily toward par in re-
cent months, reached SO today for the
first time in several years. One sale,
3OUO IIdilSleI, WAS IldQe at LfldG
price. The bonds closed with 98A bid
and 100 asked.
Stock of the Capital Transit Co. was
quiet, closing with 20 bid and 21k
asked. Up to noon today the Public
Utilities Commission was still await
ing the February report showing how
much the street car company earned
in the second month of the year. All
the other reports for February have
been filed with the Commission.
Heard in Financial District.
Norman z. Towson, assistant treas
urer Of the Washington Loan & Trust
Co., will address the annual conven-
tion of the American Academy of
Political and Social Sciences in Phil
adelphia later this week. He will talk
on 1.-THE Pattern of Financial Con-
troll"
The Women's Committee of Wash
ington Chapter, American Institute Of
Banking, will hold fashion show at