Evening star., 1935-06-11
CAPITAL BANKERS
ATTEND SESSION
Hear Hecht Warn Against
Establishment of Federal.
Controlled System.
By EDWARD C. STONE.

convention Of the American Institute
of Banking at Omaha. Nebr., was re-
ported in q special dispatch to The
Star received today, the real business
of the thirty-third yearly session
getting under way this afternoon.
The most notable address today
was presented by r. s. Hecht, presi-
dent of the American Bankers Asso-
citation, who declared the bankers
future in America would not be
promising if we were to turn back
100 years and experiment for a third
time with a central bank, and espe-
cially with one whose stock would be
owned entirely by the Government"
He added:
'"The central banks in Europe, such
as the Bank of England, France or
Germany, cover areas not so large as
some of the single States in this coun-
try" he said. "A central bank in the
United States, in fact, would be called
uuon to administer the financial
policies of an area far larger and
more diversified than all of Europe,
in which there are large number OF
central banks"
pending in Congress which he termed
$50 drastic that they would mean
nothing short of the ultimate disap-
pearance of our private banking sys-
TEN if they became law" Mr.. Hecht
held out an optimistic outlook. Il am
not pessimistic enough to believe" he
said, that these revolutionary ideas
will prevail and that the bankers
future will be reduced to nothing more
than high-claSs clerical positions un-
der the civil service regulations OF
the Government.
ION the contrary, I am firmly con-
vinced that the bankers future holds
greater promise than ever before In
the form of opportunity for rendering
wise and efficient public service and
in helping to mould proper legislation,
not in the narrow, selfish interest
of banking alone, but in the broad
view of our national welfare" the
A. B. A. leader said.
Banker Urges Wise Spending.
Speaking on Thrift and Spending:
Aids to Recovery" at the savings bank
ing conference, D. r. WeSSltng, presi-
dent Lytton Savings Bank, Lytton,
Iowa, expressed amazement at the
different ways which are considered
for reaching business recovery.
First, there are those who advocate
that the way to recovery Is by spend
ing" Mr.. Wessling said. They have
the idea of getting money to circu-
lating freely. Secondly, there Is the
group who feel that recovery must
come by thrift and saving. They
have the idea of living strictly within
the budget, not speculating on the
future.
When 1t comes to spending there
are two points to consider: Cd SPEND
lng for the necessities of life, such
as food, shelter, medical care, ETC.,
ant az spending for the comforts
over and above the necessities Of life
which make the difference between q
low and a high standard of living.
AS bankers we would not be STEP
ping outside our realm to encourage
and credit makes business. To gain
prosperity there must be spending Of
the proper kind. I do not advocate
haptazard spending, but the idea Of
spending and getting value for what
Is spent.
THE Government has been prim-
Ing the pump with appropriations
which have placed large sums of
money in the channels of business,
but recovery depends not on how
much the Government primes the
pump, but on who works the handle
of the pump and keeps on pumping
in other words, on the dollars each
individual, each firm, each factory
and each industry puts into business
activity"
Accounts Should Pay Way.
L. H. Lopes of California told the
Bank Administration Conference that
'every bank checking account should
stand on its own feet and pay
its own way and not be supported by
profits from other accounts or from
cutting down fair dividends to stock
holders"
THE depoSitor would prefer to pay
his own way" he declared, "by keep
Eng suficient balances or paying rea-
sonable fees. A system of service
charges in general should be based
Ion fair average costs plus a small
fprofit, and reimbursement must come
tfrom fees or balances available for in
Nestment"
Lewis r. Gordon, public relations
director Of the Citizens g. Southern
National Bank, Atlanta, Ca, speak
tng before the Business Development
and Advertising Conference, listed
four parts of public relations work to
be an analysis of the public to de-
termine its attitude toward the bank,
analysis of the bank to determine its
relations to the public, formation of
policies based on these analyses and
Interpretation of the bank to the
public through advertising, publicity,
public addresses and personal con-
facts by bank representatives.
Reports LiberaIizing Of Loans.
AS evidence of the fact that Fed
eral loan agencies are liberalizing
their policies, Frederick S. Dudley,
president of National Reflnance Corp.
of Washington. reports a $500, 900
flve-yea- working capital loan to a
New York stste brewery, which was
authorized by the Federal Reserve
Bank of New York, on supporting data
furnished by his company, the Manu-
facturers' Trust Co. Of New York par
ticipating.
Mr.. Dudley also reports working
capital loans authorized by the Re-
construction Finance Corp, in which
from rs per cent in one case to IS
per cent in another case, was allo-
Gated for the purpose Of satisfying in
debtedness Of client corporations.
Acacia Hits New High Mark.
william Montgomery, president of
the Acacia Mutual Life Insurance Co.,
reported today that production for
May totaled more than 800 900,
while business for the first i've months
Of 1885 totaled more than $4,000, 600,
assets increasing at the same time to
e5e,000,000.
While these results were achieved
nationally. production in the District