Evening star., 1935-08-17
BANKERS DISCUSS
. "CODE OF ETHICS"
14-Point Program Proposed
! by Controller 0'Connor
! Is Studied Here.
BY EDWARD C. STONE.


making banking profession rather
{ n a business" In .,esting these
higher business standards, Controller
O'Conno- declares that such a code
should include the following Il points:
l. Contain a statement { the duties
owed to the customer. to the profession
and to the community at large.
2. Assert that bankers are not under
illegal obligation to accept any busi-
nc-s offered, but banks are morally
obligated t, serve their customers &C
cording to their worth, their character
d the quality of their businesses"
3. Set up the principle that the
banks participation in any business
transaction will be determined on the
basis of its merit, uninfluenced by per-
sonal considerations or official con-
nection."
4. Not countenance advertising car
rying an implied reflection upon other
institutions; recognize the right to
advertise.
S. Declare to be abhorrent "Subter-
fuge and indirection, whether prac-
ticed through public statement, with
customers or With supervising au-
thorities."
6. Frown upon evasion of the law,
whether by citizens in general or regu-
latory authorities, declarin- that
blanks must strive to comply honor
ably with the spirit of all law and
regulations applicable to their busi-
ness"
7. Refrain from giving legal advice
Reasonable ,arges Urged.
8. Establish proper charges for
services rendered, with recognition
that critical situations do not justify
exorbitant charges or confiscatory
practices"
9. Refrain from taking advantage of
competing institutions by reason Of
their capital limitations.
TO- "Promotional enterprises will
not be encouraged through the use of
the name of the bank even as 'desig-
mated depository
IL. Information should be volun-
teered to the proper supervising au-
t'orities rather than withheld either
because the direct question is not
asked or because it may be asked in
srch a manner that an evasive reply
can be given
IL. Make person bias or political
influences not part of business rela-
tionship.
13. "Scrupulously refrain from deal
Ing with known criminals"
IA. Except in strict conformity to
f2rfS he at ttrih
course of action to any comment, re-
quirement or classification by an ex-
aminer or any authority whose duty
1t is to supervise the affairs of his
bank"
Steady Bond Market Forecast.
With so many different views being
expressed on the near and long term
bond market, the opinion of J. H.
Rumbaugh OF c. H. Childs & Co. is of
interest. He believes that as long as
excess reserves of banks are increas-
ing, bearish view on United States
Government bonds is inconsistent,
according to a review received by the
Washington Office He says. in part:
THE only way you can contract this
credit structure is to sell out the
Federal Reserve Bank portfolio or
have the Treasury retire the public
debt. The former is difficult to
imagine because that would be directly
adverse to Treasury program, and
latter can only be accomplished by
printing money to retire the debt
and that would still further pyramid
the credit structure and at the same
time it would diminish the supply
OF Government securities, thus en-
hancing their value
"A good example of lack of credit
demand is city of eDtroit, industrial
boom center of United States today,
and banks there are experiencing no
demand for credit from industry and
are potential buyers and owners of
Government as well as other securi-
ties.
Let's be different than the mine
run of prognoSticators and analyze
fundamentals before jumping to con-
clusions. Money will be cheaper and
demand for Governments unabated."
Gossip in Financial District.
Bank clearings in Washington for
the week ended Wednesday, August
IA were 1922 per cent ahead of the
corresponding week year ago. The
gain for the Nation as a whole was
only 70 per cent. Baltimore clear
ings were up 2.5 per cent, Richmond,
83 per cent, while Atlanta clearings
rose 1875 per cent.
One days heavy selling in Capital
Transit stock provided the feature
of the weeks trading on the Wash
angton Stock Exchange. The selling
wave was over in one session, the
stock advancing IL points the next
day. The demand for bonds, in
cluding Capital Traction 5s, remained
strong during the whole week.
Sales in local bank stocks con-
tinue to appear more frequently on
the exchange, the first 1885 transfer
in Bank of Bethesda stock taking
place this week. Riggs National,
American Security & Trust, National
Savings & Trust and Washington
Loan & Trust issues we're among bank
stocks figuring in the past weeks
trading.
James w. Dodd, jr., of the Rich
mond Reserve Bank recently paid
off the last of a scholarship loan
made from the American Bankers
Association from the $500 prize in
public speaking won at the American
Institute of Banking convention. He
won second place in the Giannini
contest.
More money is being circulated
among more people. That money
comes from wages paid, for you can
be sure that the hundreds of thou
sands of people on relief are not
saving" said Henry r. Kinsey, presi-
dent of the Savings Banks Associa-
tion of New York, commenting on
the large rise In savings banks de-
posits in New York City.