Evening star., 1935-05-30
FLEMING ATTACKS
PENDING BANK BILL
Tells 0. c. Bankers in Con-
ventiOn That Politics May
Rule Board.
BE- EDWARD C. STONE.

BOT SPRINGS, Va MAY SO.-ln
ADDRESSING the seventeenth annual con-
vention of the District Of Columbia
Bankers Association here today, Rob-
ert v. Fleming, speaking as first vice
president Of the American Ba ankers'
Association, alta cked proposals in the
bending banking act of 1895 which he
said would place the Federal Reserve
Board under 100 much political in
fuence and accord The board 100 much
control over open market operations.
He also opposed the suggested increase
In assessments on The banks by the
Federal Deposit Insurance Corp.
The association opened four-oay
session with more than 200 bankers
end guests in attendance. President
Frederick P H. Siddons called the
convention 10 order, the credential
committee reporting all member banks
represented. After presenting his sum-
mary of rhe associations work during
the past year. Siddons requested Flem-
ing 10 bring greetings from the Amer,-
csn Bankers Associs ton. During his
remarks. the A. B. A. official said:
The amendments 10 the Federal
Reserve Act provided in Title IL as
passed by the House, contemplate
sweeping changes not only in the 40
miniStration Snd operation OF the
Federal Reserve System. but give The
Federal Reserve Board a control over
tbe volume of credit which can be
extended in this country far greater
than that exercised by the central
hanks of Europe. This control centers
in the board not only power over open
market operations but power to fix
rediscounJ rates 10 be charged by the
regional banks and permits the board
10 raise. without limit, the amount of
reserves which the member banks may
he required 70 carry.
Provides Deficit Mauhiners.
1T may be argued That control over
the volume of credit is necessary in
view of the tremendous excess reserves
in the banks of the country. On the
ether ha nd it also provides ma chinery
by which Government deficits can be
financed in the event the banks and
the public are unwilling 10 continue 10
purchase large volumes of Govern
ment securities. Furthermore, in CEN
tralizing these powers in the Federal
Reserve Board. without The governors
of the regional banks having an ef-
fective voice or vote in the oelibers-
tions snd determinsti tions of Ehe board
business, banking and agriculture. as
now represented on The boards of the
regional banks. are denied an express
sion of their views. True, IL is pro-
posed that there shall be an advisory
committee Of five governors of The
regional reserve banks. but. personally,
do not think an advisory committee
without vote, would carry much weight
IN the boards deliberations and de-
examinations.
The right 10 raise reserves, without
sny statutory limitations. or without
declaring an emergency for DOING so,
under which conditions existing law
permits raising of reserves, wOulo
seriously affect the operations OF
banks, for if he is 10 property manage
his inStitutllriOn and intelligently
shape It's policies IL is necessary for
The banker TO know the maximum re
serves which he will be required TO
cs rrv"
Cites Uncertainties.
At another point in mis- ADDRESS,
Fleming pointed to The great number
OF different services the A. B. A. is
noV giving TO members, declared that
bankers are anxious to make Just as
many sound loans as possible snd
hot rial
heing held back by TOO many proposed
reform legislative measures which
create uncerts inty and hesitation in
the business world II is the desire
Of bankers everywhere 10 do every
thing possible to aid in DstionsI re-
covery
Fleming lsuoed the work of the
District Bankers Association. As
member of the Washington association
and an official of the national ssso-
citation, he said he was highly graft
fed that Of the 81 banks and branches
in the District of Columbia I'VE have
100 per cent membership in the
A. 3. A.. which record is not matched
bv any State in the Union. The next
record is held by New Mexico, whose
IS banks have 81 per cent member.
ship, followed by Utah, which has II
banks with 96 per cent membership"
L feel confident" Fleming added,
that the constructive attitude OF the
bankers OF The District of Columbia
Is, TO A large extent, responsible for
the TACT that there is q growing sp-
oreclatlon on the part of the Gov
eminent and the public of the sin
cere efforts being made by bankers
10 cooperate towards recovery. I
feel that as we have earned the esteem
OF these leaders in the Government
and in business we have rendered q
service 10 every responsible bsnker in
the nation by helping him regain the
preStlge TO which he is entitled"
Cites Accomplishments.
IN referring 10 the accomplishments
Of the District Bankers Association
curing The year, President Siddons
cited the vast amount of detailed
work handled in connection with the
American Bankers Association con-
Vent1on In washington; constant as
sistance rendered washington Chap
Ter, American Institute of Banking.
st its national convention; extensive
sovertising for mOdernizing loans un-
der little l of the national housing
act. commercial and other loans and
Christmas savings accounts; also
radio advertising for housing loans
and licensed mortgages.
The association also assisted the
Federal Reserve Bank of Richmond
in making loans direct to INDUSTRY
Under the Federal Reserve act. Sew
eral banks in the Capital hsve made
such loans and others are cISer con-
Slderation. During the year the
Washington banks contributed hand
somely TO the Community Chest and
the Ereafer Notinno1 Conitol Cop