Evening star. [volume] (Washington, D.C.) 1854-1972, 1935-05-10
FLEMING PLACES
STRESS ON LOANS
Banks Can Lift Earnings
and Assist Recovery,
He Declares.
BY EDWARD C. STONE

Carolina Bankers Association at
Pinehurst yesterday, Robert v. Flem-
ing, president of the Riggs National
Bank and first vice president of the
American Bankers Association. urged
the banks to make every possible loan
to business that can be made with
reasonable safety. in order to boost
recovery and at the same time in
crease earnings for these institutions
He suggested that while bank deposits
now have mounted almost to the
figures attained before the depression,
1t would be we'll to make longer term
loans than has been customary in
the past. The Washington banker
added:
"As the Governments relief pro-
gram expands. it seems to me that
We can look forward to our deposits
increasing even over their present
peak, and should there be an accom-
panying increase in business activity
and demand for loans, deposits
will reach even higher levels. Hence.
I do not think we need fear, for the
present at least, any decline in de-
posits.
I'VE must realize that while the
Government can help by directing
some measures for relief and recovery,
we must help ourselves by doing our
share to give impetus to the Gov
ernment's efforts. We have the same
country, the same factories, and es-
sentially the same people, we had
prior to the depression. and business
must step forward if real recovery
is to be achieved.
The theory that We so often hear
expressed that banks create business
activity, is wrong. Banking can only
make a secondary contribution to
business activity. Bankers have the
facilities and the desire to extend
credit, but business must initiate ac-
tivity by seeking the credit which is
readily available to all worthy Dor
rowers Let it be said for business,
however, I believe business men are
as anxious as bankers to contribute
towards recovery. but I think some
of the trouble lies in the fact that
too many legislative measures have
been proposed for reform which leave
an uncertainty in the minds OF buSi-
ness leaders as to their eventual out
come and effect Consequently, they
hesitate to expand until the probable
effects of such legislation are known"
In discussing Legislative Trends,
Mr.. Fleming summed up the great
amount of work done by A. B. A. Of
ficials and other members. He gave
the reasons for attacks on certain pro-
visions in the banking act of 1885.
outlined suggested changes and de-
voted some time to the increased cost
which may be placed on the banks
in the operation of the Federal De-
post Insurance Corp. Naturally he
gave much of his address to the
sweeping changes proposed for the
Federal Reserve System.
Mr.. Fleming believes that the Sem
ate bill will differ from the House bill
which was passed yesterday. This
means that conferees from the two
branches will have to seek to reconcile
the differences. In the meantime the
A. B. A. leaders will exert every eff
fort to get their suggested amend
ments adopted. I'VE are endeavoring
to protect the interests Of our men,
bers and at the same time do what is
best for the national welfare" Mr..
Fleming asserted.
Institute Officers Elected.
As predicted, j. Earle McGeary of
w B. Hibbs g. Co. was elected pres
ident of the Washington Chapter,
American Institute of Banking, at the
annual election yesterday For some
OF the other offices there were close
contests, resulting as follows:
Paul ]. Settler, American Security
L. Trust Co., first vice president; Will
liam H Laughlin, Washington Loan
d Trust Co.. second vice president;
Joseph r. Fitzpatrick. Second Ma
tional Bank. treasurer; Miss Katherine
w. McCalmont, w. B. Hibbs g. Co.,
secretary: Mrs. Myrtle P. Lewis, Lib
erty National Bank. assistant secre-
tary; B. Bruce Frantz, American Sc
curity g. Trust Co., chief counsel.
Four members of the board of gov
errors were elected as follows: Aubrey
O. Dooley, Hamilton National Bank;
George E. Earnshaw, National Metro
politan Bank: Miss Constance D.
Fogle. Riggs National Bank. and T.
Hunton Leith, Security Savings d
Commercial Bank.
Winthrop G. Batchelder, chairman
of Life Insurance week, announced
final plans today for the campaign
which opens next Monday with a
meeting at $50 o'clock at the Willard
Hotel. More than 400 life under
writers in this city are to share in the
weeks activities. The following COM
mittees have been appointed:
r1,,I, narid ppth,lno 1nra
manager of the Equitable Life Insur-
ance Society of the United States,
chairman; Earle Gawthrop, Equitable;
Gordon Edmonds. State Mutual and
Ted Cook. Massachusetts, Mutual
Programs-J. E. McCombs. general
agent of the Berkshire Life, chair
man; John P. Lynch, New York Life:
Joseph Barbeau, Acacia, and Blanche
Weaver, Jefferson Standard.
Detailed activities-John McElfresh,
general agent of the Connecticut Mu-
tual, chairman; Philip Baldwin. North
western Mutual; F. George Clendaniel,
Northwestern Mutual, and Harold
Kraft, Equitable of New York.
Displays-Charles ODonneli, gen.
eral agent of the Minnesota Mutual,
chairman, y. .. SleldLU, il, Tellu
Mutual; John F. Cremen, Massa-
chusetts Mutual. and William 6 Meirs,
Connecticut Mutual.
American Stores Sales Gain.
Sales of the American Stores Co.
for April amounted to s9,256.393,
against S9,010,725 in the same month
in 1884, an increase of SPAS, 1858, or 81
per cent. For the first four months of
1885 sales totaled s38.354. 100, gain
of S431 1888 over the like period year
ago, or IL per cent. Sales in the
previous month were per cent above
March 1894
Capital Traction SIS opened at SO on
the Washington Stock Exchange today
and closed at 9814 on $500 turn
over. The close was up "A from yes
terday. In the stock division Potomac
Electric Power Sc per cent preferred
moved to the extent of 10 shares at
11414. while three 10-share sales were
recorded of Capital Transit stock at
1872. unchanged from yesterday. Prac-