Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-06-22
Virginia BANKERS
CLOSE CONVENTION
Delegates Praise Retiring
Chiefs Plea for More
II Aggressive Planning.
BY EDWARD C. STONE.

The Virginia Bankers Association
concluded one of the best conven-
lions in its history at the Homestead
at Hot Springs today. 1t was the
forty-second gathering of the kind.
As reported in late editions OF The
Star yesterday, j. Sinclair Brown,
president of the Farmers National
Bank of Salem, Va, was elected presi-
dent, succeeding Carroll Pierce, presi-
dent of the Citizens National Bank of
Alexandra.
J.B. Day, jr., senior vice president
of the National Bank Of Commerce
Norfolk. was elected vice president;
C, w. Beerbower, assistant cashier OF
the First National Exchange Bank,
Roanoke, was again made secretary
and Thomas D. Neal of the firm Of
Scott 81 Stringfellow, Richmond, was
chosen treasurer. They took Office
today.
Secretary Beerbower, who has served
the association many years in this
capacity, reported that there are
now 39l banks in the association and
that the organization is in excellent
financial condition.
Pierce's Address Praised.
Delegates were loud in their praise
Of President Pierce as a presiding
officer and of his address covering the
past year. He declared that banking
should take the offensive and initiate
needed reforms rather than have
measures forced upon them by those
who are unfriendly.
I'VE have regained much courage
and cheerfulneSs," the Alexandria
banker asserted, land to large eX-
tent we can adjust ourselves and our
business to any situation which might
arise. But it occurs to me that bust
ness as a whole. including banking
has expressed itself largely in OPP
position, opposing those things that
affect their interests adversely and
permitting those outside the field ano
less sympathetic to start needed re-
forms.
Expressing his opinion that the de-
post guaranty law seems destined 70
become a permanent law OF the land
President Pierce termed the rate OF
ne-eighth of l per cent on gross
deposits, as favored by the House OF
Representatives in the 1885 banking
bill. to be more or less contlscatory
for the reason that the earnings OF
small banks will not justify it, adding
that this high rate will consume
earnings to the extent that sufficient
reserves cannot be set up against
losses, to justify dividends to stock
holders"
He took the view that every bank,
however well managed, will have
losses from time to time, and it is
the reserve set up against these losses
which indicate good management
If we are to have mandatory assess
ment let us recommend that the rate
be made minimum, say OF one-six-
tenth of per cent or less" he stated.
Fleming Accorded Ovation.
Robert v. Jennings address was on
banking legislation and banking
trends. He attended the convention
as an officer of the American Bankers
Association. In opening his remarks
the Washington banker was accorded
an ovation when he said:
ut is always a pleasure to be with
the members of the Virginia Bankers
Association, for, as sort Of Virgnian
once removed, feel particularly close
to YOU. You probably do not know
this, but my father was born just out
side Richmond, served in the Rich
mond Fayette Artillery during the
Civil War and was assistant city en-
gineer at Richmond before moving to
Washington; and both of my grand
parents are buried in Richmond.
These ties would naturally make me
feel close to Virginia, but the many
delightful and worthwhile contacts !
have been privileged to enjoy with
fellow bankers in your wonderful
State have also made me feel very
close to Virginians.'
His summary Of the present situa-
ton in banking legislation was clear
and complete. In opposing the CEN
trail bank idea and granting OF sweep
ing powers of control to the Federal
Reserve Board in Washington, Mr..
Fleming said:
Central banking was twice tried in
this country with the first and second
banks of the United States, covering
the intervals from 1791-1811 and
1S16-1836, and both Of these institu-
tions were abolished because the
credit control they exercised became
unpopular and the question Of their
continued existence became political
issue.
REGIONAL Viewpoint Held Vital.
Realizing that our country is many
times the size of Europe and there
fore cannot be financially serviced by
one central bank, the Wilson admins
tration prof1ted by the experience OF
the past and devised the regional
Federal Reserve System. When we
consider that the Northeast is still
5dominatly manufacturing in char
acter; that the South, although grad
ually becoming more industrialized,
still looks to cotton and tobacco as
its main products; that the Middle
West yet largely relies upon grain and
live stock for its buying power, and
that the Pacific Coast even today con-
tinues to be almost a separate
economic unity, it is hard to conceive
how complete Capitalization Of bank
ing authority in Washington would
best serve the interests of our country
1t is essential that there be an express
sion of the viewpoint, and a represen-
tation of the vast and diversified
interests Of the various sections Of
cur country"
It was announced that Senator
Carter Glass had been detained in
Washington on account of pressure
Of work. The convention was deeply
disappointed today not to hear his
scheduled address. The Virginia states
man was given high praise by Mr.
Fleming for the courtesy he has
shown the officers of the A. B. A. II
banking bill conferences. "All of US
have been greatly impressed with his
magnificent grasp of the Fundamental