Evening star., 1935-06-10
BANKS DECLARED
At CROSS ROADS
A. B. A. Counsel Says Fate
of Reserve Principles
Is Up to Congress.
BY EDWARD c. STONE.

BY EDWARD c. STONE.
Banking in America today stands
at the cross roads" subject to the de-
termination of Congress either to
maintain the principles established by
the Federal Reserve act or Ito project
the Federal Reserve System into a
position which will destroy those prin-
'ciples," it was declared by D. j. Need
ham, general counsel, American Bank
ers' Association, speaking before the
West Virginia Bankers Association
convention on the banking bill of 1885,
now pending before Congress.
If title II of the proposed bill In
its present form is enacted. 1t Will,
in my opinion, carry the banking sys-
tenn of America into another period
of experimentation and result in abro-
eating the basic principle of the Sys-
tenn, namely, regional autonomy" Mr..
Needham said. Title II of the bill.
II 1t Is not modified, will establish
indirectly, if not directly. central
bank, which is contrary to the we'll
recognized fundamentals of our bank
ing system.
In my opinion, Congress should not
pass title II without amendments
which will retain the basic principle
of regional autonomy for the Reserve
banks. Titles I and III of the bill
should by all means be enacted by
Congress as soon as possible. Title l
should have a maximum annual rate
of assessment which will permit the
banks to live. Any annual assessment
beyond Lie of l per cent tends to
hinder the banks in their endeavor
10 aid recovery
H. Parker Willis, former secretary
of the Federal Reserve Board, and
now an economist connected with
Columbia University, attacked the
Eccles bill in an address today before
the New York State Bankers ASso-
citation. He took up many of the
points which have already been op-
posed by many of the leading bankers
of the country.
Real Estate Bonds Advance.
Two-thirds of outstanding real es-
tate bond issues secured by eastern
properties registered price increases
during May. it is indicated by an
analysis of the 200 representative Is
sues included in the monthly survey
made by Amott. Baker & Co.. Inc
OF the 200 issues. total OF l3l
increased in price during May and
ia of these advanced from to IL
points. Bid prices of 80 issues were
the same at the close of May as that
at the end of April, while 81 issues
decreased in price during the month.
AS whole. the price averages re-
feet an average increase in market
value during May of AZ per cent for
the entire 200 issues, contributing TO
a total advance of l7.3 per cent since
January l..
Corcoran Apartments first Is,
Washington. led the whole list with
a Jump of II points. National Press
Building first sips were second with
an s12-point advance. Mayfower
Hotel 6s climbed points and Hamil-
ton first 6l2s moved up points dur
ing the month.
N. R. A. Lauded by Watson.
Thomas J. Watson. president of
the International Business Machines
Corp, which has had Washington
Office for many years, lauded the re-
suits of the N. r. A. and secuted the
idea of any extended wage reductions
in a statement made just before SAIL
ing for Europe Saturday.
MY experience with the N. r. A.
convinces me that 1t has improved
our national business ethics. I do
not believe that very many concerns
will now reduce wages or indulge in
unfair practices regarding prices.
he said.
MY confidence in the administra-
ton and in our leaders in Industry.
labor and finance convinces me that
they will work out plan for future
operations on cooperative basis
which will be fair to all concerned.
We should now look forward to
getting American industry on basis
where we cannot only continue the
present wage scale. but increase 1t as
business iustifies." he concluded.
Mr.. Watson will attend the eighth
annual congress of the international
Chamber of Commerce as chairman
of the American section. The con-
eress will be held in Paris June "a
90. More than 1000 delegates from
all the important commercial nations
of the world will confer on vital in
ternational trade relations.
Three Washington bankers are at
tending the annual convention Of the
Association of Reserve City Bankers
at Manchester, VT. They are Sidney
r. Taliaferro. trust officer of Riggs
National Bank: Joshua Evans. lr.,
vice president of the Hamilton Ma
tional Bank, and Wilmer J. Waller,
vice president and cashier of the
same institution. The advance pro-
gram indicated most interesting
meeting.
A glance backward at Washing
tons financial history reveals that
the old Union Savings Bank was
opened just A years ago today, on
Seventh street in the basement under
the Second National Bank. Two days
later, Howard Moran, now vice presi-
dent of American Security g. Trust
Co. Joined the banks staff and before
he was 81 years old became assistant
cashier. Many of the city's older
bankers will recall the institution
which was absorbed by another bank
many years ago.
Several Washington bankers have
already started the vacation season.
One of the most unusual outings is
being taken by James c. Dulin, jr..
treasurer of the American Security
& Trust Co.. who left Saturday for a
months visit to Alaska. He went by
plane. only five changes being neces-
sary on the whole trip.
c. ]. Gockeler, former president of
the Washington Stock Exchange and
an official in the Hamilton National
Bank, was back at his desk today