Evening star., 1936-04-23
FLEMING CHEERED
BY BANK OUTLOOK
A. B. A. Chief Praises Cut
in Total as Safeguard
Against Failures.
BY EDWARD C. STONE.

Robert v. Fleming, president of the
American Bankers Association, de-
clared in a Nation wide radio address
last night that there never again will
be a wave of bank failures due to too
many banks. State and Federal Gov
ernment banking officials will see to
that, he said.
At one time there were more than
10000 chartered banks in this coun-
try, far more than there was banking
business to support. Today We have
less than 10000 chartered banks, the
theory having been disapproved that
the more banks the more business
activity.
Speaking on "A National Program of
Development of Banking Service"
the A. B. A. chief expressed great re-
assurance over the banking outlook
for the future, predicting far more
stable and serviceable banking system
than has yet been known. OF all busi-
ness enterprise. banking must be prac-
ticed With the greatest care, because
the banker is the custodian of the
funds OF others.
The American Bankers Association
Is thoroughly aware of the changing
conditions in the banking world, and
is using every means to acquaint Gus
toners with the new banking prob
lens. Regional conferences, attended
by more than 5000 bank officials,
have recently been held with this aim
In view.
Regulation Big Factor.
In America the banking system is
largely the result of laws passed by
the several States and the Congress,
MIR. Fleming added. These laws are
not made by bankers; they are enacted
by representatives of the people. Gov
ernmental authorities. both State and
National. who charter new banks and
enforce banking laws are not ap-
polnted by bankers; they are public
servants. If we are to have wise legis-
lation about banking. as well as EN-
cient and intelligent governmental
examinations and supervision, we
must have an interested and informed
voting public. he said.
There are several mistaken ideas
sbout the structure of our banking
system. Banks do not coin money.
The money of the Nation is coined by
the Federal Government by virtue OF
the power given to Congress under
the Constitution. Neither do banks
issue currency. Nor do banks create
credit; it is true that banks extend
or grant credit. but credit is initiated
with business transactions predicated
On confidence between buyer and
seller, or between producer and con-
sumer, together with faith in the
future, Mr.. Fleming concluded.
d. C. Bank Assets Increase.
Aggregate resources of the insured
commercial banks in the District OF
Columbia stood at 1886. 900 on
December 81, 1885. according to an
abstract of their condition released
today by the Federal Deposit 1nsur-
ance Corp Assets in this amount rep
resented an increase of 11.9 per cent
over the figure shown on December
81, 1884.
OF the assets reported at the end
C. 1885, sl04,734,000 were being held
in cash. as cash items in process OF
collection or as balances with other
banks; S26,712,000 was shown to be
invested in securities fully guaranteed
by the United States Government and
s67.496, 900 in United States obliga-
tions.
Holdings of other bonds, stocks and
lecurities by the commercial institu-
tions of the District of Columbia ad-
vanced from s27,39l 900 to S27,820,-
coo in the interim between December
81, 1884, and the same date in 1885.
In the same period loans and dis
counts rose from s84,365, 900 to $685.
$4,000.
Total deposits were 1898 ,695, 900, an
increase of l4,3 per cent during the
year On December 81, 1885, demand
deposits we're S166, 1852 900 and time
deposits S104,518,000
Nationwide. total assets of insured
commercial banks increased by 10 per
cent in the IL months and were S51,-
000,000,000 on December 81, 1885. The
l4.121 insured banks in the country for
which figures were tabulated hold SO
per cent of the total commercial bank
assets.
Safe Deposit Experts Meet.
More than 200 members of the
safe deposit section of the District
Bankers Association and the Maryland
State Safe Deposit Association held a
joint dinner meeting at the Raleigh
Hotel, last night, Albert E. Fisher
Riggs National Bank, chairman of the
local section presiding. Short ad-
dresses were made by Walter P. Duvall
of the Mercantile Trust Co., Baltimore,
who is president of the National Safe
Deposit Advisory Council and by Ray
II. Troeger, another Baltimore banker,
sociation.
John w. Backer. vice president, and
Brooks B. O'Neill. secretary of the
Maryland association, were also in the
large visiting delegation. Karl w.
Corby and Albert S. Galley officers
in the District Bankers Association,
and Secretary Donald w. Larson were
present. as was Granville B. Jacobs
New York. who is conducting classes
in public relations and public speak,
ing at the Riggs National and Mercan-
tile Trust Co.. Baltimore.
The program included an intensely
interesting tour of the Federal Bureau
of Investigation, Department of
Justice.
First Convention Call Out.
The first call for the eighteenth an
nual convention of the District of Co
lumbia Bankers Association at White
Sulphur Springs, w. Va. May % to
81, was received by bankers and in
vited guests today, signed by Ord
Preston. chairman, General Conven-
ton Committee The convention will
be held at the Greenbrier Hotel, a
special train leaving Washington at
$50 pm. Wednesday, May q, reach
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