Evening star., 1935-11-18
NEW A. B.A. CHIEF
RETURNS TO D. c.
Fleming Holds Contest for
Second Vice Presidency
OveremphaSizeu.
BY EDWARD C. STONE.


Robert v. Fleming first president
of the American Bankers Association
ever to be elected from Washington,
was back at his Office in the Riggs
National Bank today after one OF the
momentous conventions in the annals
of the national association.
The new A. B. A. chief said the
contest over the election of the second
vice president, in which Orval w.
Adams was chosen over E. G. Bennett,
both of Utah, was overemphaSized in
some quarters.
One of the biggest issues III the
contest, Mr.. Fleming stated, was unit
banking against further expansion of
chain banking, Adams being most
vigorous advocate OF independent unit
banks, while Bennett holds views more
favorable to branch banking.
Mr.. Fleming was loud in his praise
of Adams and believes he will make
most capable A. B. A. official. Oppo-
nents of Bennett felt that he might be
under New Deal control. But he is
an able and successful banker. does
his own thinking and would not be
controlled by anybody, the aSSocia-
tions new leader asserted.
Wide Improvement Reported.
The convention proved to be one
of the most interesting and helpful
in many years. The report Of the
Economic Policy Commission was un-
usually encouraging. This report not
only noted marked improvement in
the banking situation in the past II
months, but predicted that the present
upturn in business will continue into
1886. The commission doubted that
an important flow of new capital will
get under way early next year, but
added:
1T seems reasonable to expect that
1886 will be a better business year
than 1885. and largely because of the
continuing operation Of the economic
forces that have made business better
this year than it was last year. In
dividual consumer purchasing power
should be at least as large next year
as it has been this year, and it seems
reasonable to expect that more, rather
than less. employment will be found
tions of bank deposits and bank credit
The Economic Policy Commission
does not believe that this country will
experience in 1886 the development
of active initiation that is now being
widely discussed Such a result might
develop from general fear for the
future of our money if the Nation
should enter upon the issuance of un-
secured currency for the payment of
the bonus or for other governmental
expenditures, but that seems wholly
improbable. 1t might result from a
wave of speculative overconfldence,
but only if grantors of credit generally
were eager to finance it by the gen.
erous extension of credit for Specu-
lative ventures Clearly that also is
wholly improbable as a development
in 1886.
Imitation Held Unlikely.
"A period of imitation. characterized
by abnorma!ly rapid advances in the
general level of the prices for COM
nodities, is phenomenon that de-
velops when the demand for the goods
is so active that would-be buyers bid
up the prices of those goods in order
to get them while sellers are reluctant
to part with them. 1t is almost i'm
possible for an infationary boom based
on the confidence Of a period of credit
expansion to get under way in a
country where the facilities of produc-
ton are efficient but are operating
far below full capacity, as they are
here" the report said.
The report of the Resolutions Com
mittee was equally interesting and
covered a wide range of subjects The
question of mortgage loan rates was
given a good deal of attention, fol-
lowing receipt of the message from
President Roosevelt urging rates under
per cent.
Reports from bankers all over the
country showed that a great deal of
mortgage money is now being loaned
at and 5is per cent. In fact, the
Presidents suggestions along this line
are already in effect and have been
for some time. In some instances
in the smaller communities, where
the loan field is limited, banks have
had to hold up rates in order to make
a profit Cost of operations and cost
of equipment make it impossible to
loan money as cheaply as big banks
in big cities can.
New President Felicitated.
President Fleming was shoWered
with congratulations from bankers
and business men here today. En-
ployes of Riggs presented him with
huge bouquet of flowers, which
gave his Office a most attractive ap-
pearance.
He has already started the wheels
moving for a most active A. B. A..
year. Every phase of bank manage
n1ent, customer relations and steps
to keep national recovery moving will
be accorded much attention.
Practically all the other bankers,
who made up the biggest convention
delegation on record. were back in
town today. All were most enthusiastic
over the New Orleans sessions. The
program could not have been better
and the second vice president contest
showed that the members are still
independent in action, they said. The
convention ended with fine and
harmonious atmosphere. District of
Columbia bankers added.
Delegates here today highly praised
the work of Thomas j. Groom. second
vice president of the District Bankers
Association, for the efficient manner
in which he made all the advance
transportation arrangements. The side
trips were as enjoyable as the main
convention.
Death Shock to Bankers.
In the financial district today bank
ers were shocked to learn of the tragic
death of John M. Riordon. for many
years executive vice president of the
Bank of Commerce & Savings his re-