Evening star., 1935-06-08
BANKERS TO Leave
FOR Al. B. SESSION
Nine Capital Delegates Will
Board Train Tonight for
Omaha Convention.
BIZ EDWARD c. STONE.

By EDWARD c. STONE.
Nine delegates from Washington
Chapter, American Institute of Bank
ing, will leave washington tonight and
travel most of the way by special train
to Omaha, Nebr., to attend the 33rd
annual convention. The delegation
will be led by j. Earle McGeary OF
w. B. Hibbs g. Co., who has Just been
elected president Of the local chapter,
other members Of the party including
Walton L. Sanderson, Hamilton Ma
tional Bank; Paul j. Seltzer, American
Security & Trust Co.; william H.
Laughlin, Washington Loan g. Trust
Co.; Joseph r. Fitzpatrick, Second Ma
tional; Herbert D. Lawson, Washing
ton Loan & Trust Co.; I. j. Roberts.
Riggs National; T. Hunton Leith. Sc
curity Savings & Commercial, and w.
A. Cady, American Security & Trust
Co. In some instances the Junior
bankers will be accompanied by their
wives, whose duty it will be to see that
they do not miss single business ses-
sion.
Early this evening the convention
delegation from Richmond will be en-
tertained at dinner by the Washington
delegates. They will all board the
same train and pick up the special at
Pittsburgh. AS much sightseeing as
possible will be included on the trip.
The weeks program is very busy
one, one of the highlights to be an
address Tuesday by Rudolf S. Hecht,
president of the American Bankers
Association. Other noted speakers are
listed and special conferences will lead
to many valuable discussions.
The convention will be conducted
along much the same lines as those
here last year. Members of the WASH
angton delegation are all institute
graduates, most of them being past
presidents of Washington Chapter.
Mr.. Leith Is a former member Of the
National Council.
Fleming Sees Loan Extension.
The efforts of the American Bankers
Association which are expected to OBJ
tain q three-year extension by joint
resolution of Congress of the provision
In the banking act of 1888 requiring
full repayment by June is Of loans to
bank officers from their own banks,
were described at Indianapolis by
Robert v. Fleming, first vice president
of the American Bankers Association
and president of the Riggs National
Bank, in an address before the con-
vention of the Indiana Bankers Asso-
citation.
This is a matter in which sew
erai thousand bank officers all over
the United States are intensely in
terested. Bankers are quite generally
agreed that banks should not be per-
mitted to make loans to their own
officers, but they are also agreed that
the exact date on which every one
of these loans must be paid should be
extended. Glass legislation" they
term it.
The date originally set for the final
payment of these loans is rapidly
approaching. Whatever action Is
taken must be taken in the next few
days.
EccIes Pleads for Bank Bill.
After hearing George W. Norris,
governor of the Philadelphia Federal
Reserve Bank, lambast the banking
set Of 1885 before the Pennsylvania
Bankers Association, Gov. Mariner
8. Eccles took the same platform and
made powerful plea for passage Of
the bill.
Gov. Norris was particularly bitter
against the requirements that gov
ernors of the Federal Reserve Banks
be subject to approval every three
years by the Federal Reserve Board.
He also condemned the open market
set-up as planned In the proposed
act. Under the proposed bill, the
Federal Reserve Board might be made
up Of college professors with no prac-
tical banking experience, he said.
Gov. Eccles said that unit banks
should be protected in small commu-
mites and added that branch banking
seemed to be the best solution for
some of the ills that have occurred In
the past. Through monetary policy
q great deal can be done to initiate
against the wide fluctuations and de-
.dation, he said. He added:
I'VE cannot operate our banking
system on the assumption that loans
which are good when the national
income Is $85 900 10000 a year will
be sound and good when the national
Income is $45, 5,000, ,000. 900.
ut. Is the condition of the national
economy as a whole which determines
whether loans are going to be sound
or unsound."
From this point, Gov. Eccles pro-
eeeded to expound the necessity for
banks making realty loans and for
giving the reserve banks power to
rediscount such loans.
Mortgage Interest Rates Cut.
The interest rate on all Federal
Land Bank loans through national
farm loan associations will be re-
duced to 81 per cent for all interest
payable in the one-year period COM
mencing July /. 1885, and to 1 per
cent for all interest payable in the
two-year period commencing July /,
1896. On loans made directly by the
land banks, interest will be reduced
to and AZ per cent, respectively, for
these periods, Gov. w. I. Myers Of
the Farm Credit Administration an
uounces.
This means a temporary reduction
Of interest on all Federal Land Bank
loans having installments due prior
to July 1, 1898. Interest payable on
tnstallment dates occurring after June
30. 1898. will be at the original con-
tract rate, which is ~ per cent on
loans now being made through ma
tional farm loan associations, and
varies from to per cent on loans
made prior to April !, 1885.
Since May, 1888, when the Farm
Credit Administration was established
the Federal land banks have made
over 250, GOO first farm mortgage loans
aggregating approximately 81, 1000 ,o0o,
900. This is almost as large as the
amount Of business carried on the
y,r,r,ke nf the hanks m Nav 4 .1Q33