Evening star., 1935-10-22
FLEMING PRAISES
1885 BANKING ACT
TELLS Members of District
Association New Law
Is Most Helpful.
BY EDWARD C. STONE

Robert v. Fleming, president Of the
Riggs National Bank and first vice
president of the American Bankers
Association. told 200 members of the
District Bankers Association at the
Willard Hotel last night that he on
siders the banking act Of 1885 most
constructive, helpful and practical. In
fact, as constructive and workable as
that type of legislation can possibly be
made.
AS the chief speaker at the associa-
tons regular Fall meeting, he dis
cussed the new banking act in great
detail, stressing all the highlights in
this important law. In recent ad-
dress before the United States Cham
ber of Commerce he was distressed to
see that he had been misquoted in a
portion of the press, the claim being
made that he had attacked and criti-
cized the new law. While he criti-
cized certain proposals in the bill as
1t was first presented to Congress, he
was unstinting in his praise of the
measure as 1t was finally passed.
Mr.. Fleming was introduced by
Charles H. Doing. president of the
association and vice president of the
Washington Loan & Trust Co., who
said the new banking act was con-
sidered by the Federal Reserve Board
to be the most important legislation
of its kind passed in % years. or since
the founding of the Reserve System.
He said he was proud to introduce
member of the association who has
become one of the leading bankers IN
the whole United States.
Technical Points Explained.
Mr.. Fleming plunged right into the
technical points of the new law. TAX
ing up title I, the protection depositors
have in the Federal Deposit Insurance
Corp, the assessments which the
banks have to pay and the limit placed
on the amounts the banks can be
called upon to pay in cases OF emer-
gency. He also spoke of the provi-
sion Of the law aimed at prevention
of the starting of new banks in terri
tory which already has all needed
banking facilities.
Passing to title II he called atten-
ton to the fact that the Federal Re-
serve Board is self-supporting. The
cost of operation is carried by the
Government and stock is held by the
member banks and not one nickel OF
the taxpayers money is used. He dis
CuSsed open market operations and
the improvement in the machinery OF
operation. Under the new law re-
serves can be raised before an emer-
gency and not after an emergency is
actually under way. vital safety step.
The salaries of the Federal Reserve
Board members have been raised from
$4,000 to $4,000 year. The speaker
regretted than the pension plan was
dropped, fearing that some able finan-
ciers might refuse to serve who other
wise would accept appointments. The
credit base has been broadened very
materially and the experience OF two
decades used to splendid advantage
in making this part of the law more
workable and practical. The law re-
fleets a broad conception Of the sys-
TENS functions in the Nations eco
nomic life, and defines more clearly
than ever before the responsibilities OF
the board in Washington and Of the
regional banks.
Title III was also reviewed in detail.
To the public one of the most inter-
esting points in this title is the fact
that after July /, 1887, the double La
bility on all bank stock will be re-
moved. At present there is no double
Lo, be
This title contains many Qualifications
and improvements in the technical
provisions of existing banking law,
Mr.. Fleming touching on many of
these in concluding his remarks. He
attended so many conferences on the
bill that his address was of eXcep-
tional value.
Given Ovation at Close.
On motion of Frederick P. H. Sid
dons the speaker was given a rising
vote of thanks for his address, with
added congratulations and best wishes
on his coming election as president of
the American Bankers Association,
to take place in New Orleans.
The association amended the con-
stitution to let representatives from
all branch banks attend meetings of
the safe deposit section. Each bank
will still have but one vote, but the at
tendance at the meetings will be great
ly increased.
Francis G. Addison, jr., chairman
of a resolutions committee including
John M. Riordon and j. Frank White,
expressed the deep regret Of the mem
bers over the death of Samuel r.
Baulsir, for many years cashier of the
Security Savings g. Commercial Bank.
On motion of James c. Dulin, jr.,
chairman of the Credit Committee, it
was voted to bring the records closer
to date. Hilleary G. Hoskinson, chair
man of special committee, reported
in favor of an extensive advertising
campaign to explain the work Of
banks and banking. The plan was
presented to the special committee
by the associations Advertising Com
mittee. Mr.. Siddons and Mr.. Addison
spoke in favor of the move and it was
voted unanimously. The better pub
lie relations drive will start in No.
NcLlUtT.
Insignia of Office were presented
to David Bornet, chairman of the
fiduciaries section; James D. Barrett,
chairman of the auditors section, and
Albert E. Fisher, chairman of the safe
deposit section. It was stated that
the work of the Community Chest is
now being brought to the attention
OF the banks. The unusually sue
cessful Fall meeting ended with
buffet supper.
MergenthaIer at New Top.
The Washington Stock Exchange
caught the spirit of the New York
Exchange today and trading was
extra lively. Mergenthaler Linotype
reached a new 1885 top when it sold
at IS, up full point from yesterday,
and l0-point gain so far this year.