Evening star., 1935-09-10
FLEMING FAVORS
ADVERTISING MOVE
Urges More Data for Public
in Address Today al
Atlantic City.
BY EDWARD C. STONE.


tisers' Convention at Atlantic City to-
day. Robert v. Fleming, first vice
president of the American Bankers
Association and president of Riggs
National Bank urged a four-point
program to bring about greater under
standing on the part of the public of
the true functions of banking and a
proper appreciation of the bankers
relation to his customers. He advo-
Gated:
"First-Through the American In
stitute of Banking, the Graduate
School of Banking, Bank Management
Commission. bank management con-
ferences and customer relations clinics
educate each and every bank officer
and employe in banking laws and pro-
cedure as we'll as in the principles OF
public relations.
"Second-By individual advertising
campaigns conducted by banks, ac-
quaint local communities with the
facilities and functions of their banks
and, by constructive rather than mega
tive copy, educate the citizens of these
communities in the true principles of
banking and what banking service
means to their economic life.
"Third-By close cooperation be-
tween the Public Education Commis-
sion, educational director, publicity
department and its director, of the
American Bankers Association and
the Financial Advertisers Association.
- ~ 1oH-,
the functions of banking, to the end
that the mystery be taken out OF
banking where, as matter of fact.
no mystery exists.
"Fourth-By close cooperation be-
tween individual bankers and COM
mittees of the American Bankers As
sociation and the heads of Govern
ment both national and State"
Favors Individual Advertising.
Mr.. Fleming's views proved to be
very different from suggestions made
on the opening day of the convention
when a colossal Nationwide advertis-
ing campaign by the banks was urged.
The Washington banker. while in
favor of cooperative advertising under
certain conditions, believes that ad-
vertising by individual banks is the
most effective and helpful.
His address today was on the subject
"The Spirit of American Banking"
THE relationship between a bank
and its clients" he said, lis quite diff
ferent from that which exists between
any other business and its customers.
9Y, ho nj
have services and credit to sell, where
as the average business has a more
tangible product to offer Further
more, we are in the position of owing
our depositors the money they have
placed with us and, therefore, failure
of a bank creates quite a different
situation than that of grocery store,
merchandising establishment or any
one of number of other enterprises
catering to the everyday needs of the
public.
When these latter enterprises fail
as rule the public is debtor and
feels sorry for the fate of the un-
fortunate men whose business has
failed; where institutions like banks
fail. owing a great number of people
money, different sentiment is aroused
in the public consciousness. Even
today it is hard to convince some
people that it was not bad manage
ment or dishonesty, but chiefly the
fear which led the masses to withdraw
and hoard their funds, coupled with
the depressed value and non-liquidity
of assets, which was responsible for
the failure of many financial institu-
tions and resulted in great suffering
to depositors, borrowers and stock
holders"
Lauds O'Connor Banking Code.
The Washington financier lauded
the code of banking ethics which
Controller J. F. T. OConnor re-
Gently suggested in a letter to the
president of the California Bankers
Association. Touching on the new
banking law which has recently gone
into effect, Mr.. Fleming asserted:
I'VE now have new banking law
which makes deposit insurance as
sound and workable as we believe this
type of legislation can be made and
the confidence Of the public in the
safety of their funds should be re-
stored. The banking act of 1885 also
clarifies many antiquities and elmi-
mates a number of unnecessary re-
quirements contained in the banking
act Of 1888.
In addition, the new law, while
retaining the fundamental principles
on which the Federal Reserve Sys-
kAx, I4I
system. so that the board and the
representatives of the regional banks,
working as unit, should be able, to
a degree not heretofore possible, to
prevent undue imitation and contrac-
ton of credit"
Discusses U. S. Activities.
In urging broader long range atti-
tude in dealing with customers, Mr.
Fleming said that during the current
emergency the Government of neces-
sity has taken over some of the func-
tions of banks, by aiding the people
of the country, where private institu-
tions were unable to do SO on account
Of existing conditions.
This has brought about situation
diACSCAJ o1ACNbAiB OoAAh CoA AlAilSS. N1dlly
of the agencies established by the
Government as emergency organizv-
tions are still functioning, and will
have to continue tc function until we,
as bankers, take over the facilities
now offered by these agencies, where
ever we can soundly do so.
I'VE often hear complaints against
the Government participating in busi-
ness; let us. therefore, make it pos
sible for the Government to get out
of business. I do not advocate the
making Of unsound loans, or engaging
in any practice contrary to sound
banking principles, but I do believe
that with the broadened facilities now
available through the Federal Reserve
system, and the fact that public con-
fidence in the safety Of banks has
been restored, there is no longer any