Nogales international., 1936-03-14
BANKERS ARRANGING
REGIONAL MEETINGS
Studying New Legal and Eco-
nomic Conditions Affecting
Bank Mana cement
STRESS PUBLIC OPINION
American Bar4ers Ass ociation
Sponsor of MeetingA a. Part of
Nationwide Program Of Bank
ing Development ~. 5.

satF
PHILADELPHIA. - Fifteen hun.
dred bankers from fifteen eastern
states met here in January In two
day conference devoted to discus.
sions on Legislative, lagerial. op;l
Grating and public relations prob.
lens OF the banking business. This
was the first ofla series OF meetings
planned by the American Bankers
Association in its nationwide pro-
gram OF banking development I'M.
der the leadership of Robert v.
Fleming. president Of the associa,
ton. Similar conferences will be
held in southern and western sec.
tions of the country.
ut is the purpose OF these work
ing conferences to bring to associa-
ton members and other bankers
thorough knowledge Of the changes
in banking laws and rules. provide
discussion of better public relations
so that there shall be greater co
operation and understanding be
tween the banker and his customers.
and to give opportunity for q survey
of the problems incident TO the Gov
ernm ent's competition with our
chartered Institutions he said.
To Help Government Quit Banking
The discussions at the conferences
showed that the bankers are ready
to make it easier for the Govern
ment to relinquish many Of its
emergency financial services as
soon as possible by demonstrating
how their institutions are able to
render full banking facilities. ;;.
Bankers generally have reeog,
nized that in times Of emergency
the Government had to come to. the
assistance of the people where
chartered institutions were unable
to do so on account OF such condi-
tons. Mr.. Fleming said. They also
realize that possibly many functions
which the Government is perform
ing are OF a nature which cannot be
handled by chartered institutions
under fundamental principles OF
sound banking.
On tie other hand. he said. I'VE
should survey all emergency lend
ing measures of the Government to
Judge which of these activities can
be properly and soundly taken over
by banks"
; The attending bankers devoted
time to considering the Banking
Act of 1895 and the many related
regulations and discretionary pow
ers UNDER the Federal law. These
were explained by o. Howard Wolfe
of philadelphia, who said he had
found there are forty eight places in.
the act where provision is made for
discretionary power to be exercised
by government officials through
rule or regulation. ..s-.s..>..zs..s,,4..,.,,+-
Bank taxation was discussed by
Charles He Mylander of, Columbus,
Ohio, who declared that pethe aver
age American is vitality interested
in taxation of~banks because sol-H
vency mays depend to large degree
upon the sway in (which the taxing
power is Exercised upon them"
To prove his point he cited earn
ings figures which showed that, in
the United States as whole, ma
tional banks used $14.S9 out of each
500 of nef operating earnings. be-
fore taxessin payment Of taxes: but
in seven Of the twelve Federal Re.
serve Districts the percentage OF
earnings used for taxes was above.
the average. 1t was in practically
these same seven districts that the
greatest number of bank failures
occurred in those hectic years from
1920 to 1888
AS an example of how far taxation
can go, ne quoted official. figures
showing that in 1884 a large number
of small state banks paid on the
average $s4.2O OF every 500 OF op
Grating profits for taxes. Mr.. My
lander urged that there be brought
home to the average American the
self-evide1t truth. that banks, deal;
ing as they do only in intangible
property. are not proper subjects
for properly taxation; that the true
measure Of banks ability to pay
taxes is the earnings it can make.
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