Evening star., 1935-04-21
A. B. A. Council Is Concerned
Over Business Mems
Tendency to Delay.
FLEMING TERMS LAG
BIG RECOVERY OBSTACLE
Stimulation of Borrowing Re.
garded as Vital Factor in Bank
Earnings Situation.
BY EDWARD C. STONE.

In an illuminating review OF the
Spring meeting of the Executive Coun-
Gil of the American Bankers Associa-
ton, just ended at Augusta. Ga, Rob-
ert v. Fleming, first vice president OF
the association, said yesterday that
perhaps the biggest stumbling block to
more rapid national recovery is the
fact that business still refuses to bor-
row money for expansion.
Bankers at Augusta expressed much
concern over this situation, as the pre-
vailing condition has very direct bear
ing on bank earnings. The countrys
leading financiers feel that they have
done everything in their power to put
out money for business uses. All the
banks can do. however. is to offer funds
for loans. They cannot force business
men to expand their credit If they
don't want to do So Mr.. Fleming said.
Bankers at the council meeting ex-
pressed determination to 60 on offer
ing funds to business and be as helpful
as possible in all recovery movements.
While there was not an atmosphere
of gloom at the meeting. yet the situ-
alton is one that naturally caused a
good deal of concern. The lack of
borrowing Is, of course. considered
harmful and furnished the subject
< matter for broad discussion OF the
whole economic situation. There is
only one solution-the return Of con-
fidence on such a scale that business
will become anxious to expand and
seek the necessary loans to bring this
about.
Deposit Status Peculiar.
The Bank Management Commission
made one of the finest reports at the
meeting. the Riggs Bank president
continued Another excellent sum-
mary was presented by the Economic
Policy Commission.
The commission pointed to the very
unusual situation which prevails in
the great increase in bank deposits,
due largely to the fact of Government
spending rather than to private credit
expansion. Such a situation has In it
the danger of imitation If it goes on
indefinitely.
The Bank Management Commission
is working on cost accounting system
which is expected to prove very helpful
to the banks when completed. The
Commerce and Marine Commission.
Fred I. Kent, chairman, presented an
intensely interesting report on present
conditions and trends. This report
touched on much of the proposed ma
tional legislation which the bankers
consider is at the bottom of much OF
the hesitation and lack of confidence
among business leaders today.
While Mr.. Fleming diploma atlcally
declined to comment on the Augusta
discussions regarding legislation pend
ing in Congress, yet it is no secret
that bankers are strongly opposed to
many of the measures which have
been introduced as intended aids to
recovery. Many are considered I'M
practical and hurtful rather than
helpful to business revival.
Bank Bill Stirs Financiers.
The proposed banking act of 1885
came in for free and frank discus
sion at Augusta, Mr.. Fleming said.
The council adopted the report OF the
associations special committee ap-
pointed to make an exhaustive study
of this particular measure. 1t prob
ably received more consideration than
any other matter brought before the
Spring session.
The bankers considered Titles I, II
and III, respectively. They are op-
posed to certain provisions of the bill
as originally introduced. Title 1 and
Title III are generally favored by the
banking fraternity. The association,
however, is very much against Title II,
as written, as it would change the
whole Federal Reserve system.
The American Bankers Association
has already offered sweeping changes
in Title II. If these suggestions are
adopted in amendments, the associa-
ton will maintain a generally silent
attitude. If the suggestions are
turned down the Nations bankers will
fight the bill to the last ditch.
Mr.. Fleming said the council meet
ing was the most largely attended of
any he recalls and that all matters
presented were discussed most freely
and frankly. 1t was like meeting Of
a very large board of directors Of some
corporation. The annual convention
in october will take place in New Or
leans and the 1886 invitation to San
Francisco will be acted upon at that
time.
Return to Thrift Noted.
AS already noted in The Star, the
head of the savings division of the
association reported a distinct in
crease in savings, the large amount
reported not being considered as i'm
portant as the trend indicating the
return toward time thrift.
The bankers listened with great in
terest to Roger w. Babson's optimistic
view of the outlook and his forecast
Of a steady improvement in business
conditions during the next two or
three years.
Committee chairmen made no
attempt to gloss over unfavorable eco
nomic factors. At the same time they
pointed to the improved statistical
position in many lines and noted a
growing move toward conservatism.