Evening star., 1935-12-05

ed that while n.y r,,
large measure in
the burden of taxation has been
caused by efforts to relieve misfor-
tune and human suffering, our peo-
pie must recognize that there are
limits to the extent to which the
public debt can be allowed to mount
If we are to keep our economic struc-
ture sound"
The Washington banker referred to
the recent report made by the Eco
nomic Policy Commission to the
American Bankers Association show
ing that marked recovery progress
now is being made; spoke of the ris-
ing confidence and said that industry
must be given sufficient freedom so
that business will continue to expand
and keep on absorbing unemployment.
As head Of the A. B. A. he said he
would heartily support all constitu-
tional measures considered sound and
Just as strongly oppose all measures
that bankers did not consider sound.
Stresses Safeguards.
He stressed the safeguards that the
banks have under the banking act of
1885, adding that if these safeguards
had been used in 1929 the stock mar
ket would not have reached such top
heavy proportions. He spoke of the
Reserve Boards power to increase re-
quired reserves and in other ways
place a curb on too rapid expansion
of bank credit, although the board
has nothing to do with the buying of
securities with cash by corporations
or individuals.
He asserted that the banking act
of 1885 has the best machinery yet
devised to cope with conditions as
they are presented today. Expressing
the hope that Congress will pass a
pension law for the benefit of gov
ernorS of the Federal Reserve Board,
In order that the best possible type
Of men may be secured for this i'm
portant work. Mr.. Fleming named the
qualifications he considers necessary
for Reserve Board service. He pointed
TO the need for men of great banking
and business experience. In face of
the revival of confidence, there are
many problems yet unsolved which
will require rare ability, he added.
In expanding his views on the
danger of the -chartering of
banks, Mr.. Fleming declared that
promiscuouS chartering of banking
institutions is as important to busi-
ness as to banks already in existence.
Professional bankers can do little with
the problem. If bankers oppose an
over -chartering mania such as that
which afflicted the country in the
1920s, they would be accused of sell
hshnesS and desirouS of opposing
competition, he said.
Only few years ago there were
10000 banks in the country. 1t was
impossible for that number to render
service which would have justified
their existence. Many we're Charter
failures" at the start "The situation
brought on unsound practices and
made competition run riot. AS bust
ness gets better there may be another
undue clamoring for more banks. The
ultimate responsibility is with the
Government, but the A. B. A. will
not shirk responsibility in helping to
solve the problem" he stated.
Pennebaker Adds Partner.
c. B. Pennebaker, president Of
Pennebaker g. Co., investment deal
ers in the Southern Building, an
nounced today that T. S. Grape, presi-
dent of the Bearing Sales Corp. of
Washington, has been made vice pres
ident and treasurer of the invest
ment company as the result of re-
cent reorganization.
The company as it now stands pro-
poses to continue to specialize in
real estate mortgage bonds and a
general unlisted securities business in
all markets and to augment its IA
cilities through the participation in
such new issues as may be presented
by its correspondents.
Theodore S. Grape, the new part
ner, Is a graduate of Bryant & STRAIT
ton Business College and after gradu-
alton was connected with the New
York Central Railroad for eight years
as an efficiency expert. He joined
the Felt & Tarrant staff in the same
capacity in 1916. He was one of
the first to enlist in the World War,
returning to the same firm after
ward.
In 1921 he started the business here
under the name of the Bearing Sales
Corp, still being the head and the
principal Stockholder. He is a men,
Der Of the Society of Automotive En-
gineers, member and former director
of the National Standard Parts As
sociation, member and former direc-
tor Of the Mid-Atlantic Jobbers, mem
Der and treasurer Washington Auto
motive Wholesalers Association, men,
Der and past president Central Busi-
ness Mems Association, member of
Washington Board of Trade, chairman
Of Depositors Committee, United
States Savings Bank; member of Press
Club, B. P. o. E. and Congressional
Country Club, of which he is one
Of the governors.
MergenthaIer Leads Market.
Mergenthaler Linotype was the
leader on the Washington Stock Ex-
change today, selling at 81 and 38, a
new high on this move, the days
turnover reaching 100 shares. 1t sold
In Boston yesterday up to 41h. The
final bid here today was 38, with 40
asked.
Lanston Monotype sold at Sc, Cap
ital Transit at IS, Prince Georges
Bank at II and Riggs National Bank
common at 2081z. In the bond divi-
sion, Potomac Electric Power ConSoli-
dated IS moved at 1011s and City &
Suburban SIS at 80.
Announcement was made today that
approximately $4,000, 900 of 41z per
cent Federal Land Bank bonds will be
called tomorrow, and it is contem-
plated that a new issue of 100000, 900
will be offered to the public Tuesday,
December 10.
MONTREAL, SILVER.