Evening star., 1936-08-24
A. B. A. CONDUCTS
EXTENSIVE STUDIES
Detailed Survey of Federal
Lending Is One of Many
Vital Projects.
BY DONALD B. HADLEY.

BY DONALD b. HADLEY.
Detailed bank researches, covering
all phases of practical operating and
economic facts and conditions related
to banking, are being made by the
American Bankers Association, it was
announced at New York today. The
resulting material, it is stated, is being
placed at the disposal of all State
banking associations, which in many
Instances are extending the researches
of the national association in their
own States as part of the general pro-
gram of banking development being
fostered by the organized banking
business.
Among the most extensive researches
being conducted by the American
Bankers Association is that OF its
Committee on Banking Studies. which
Is making a detailed survey OF Federal
Government lending agencies and pol
icies. The basic material, which Is
kept up to uate by continuing studies,
shows where the Government agencies
get the money they lend, what liabil-
itv the Government assumes, what
subsidy it extends. what return 1t
gets, for what and to whom the money
goes and on what terms it is loaned.
Seeks Facts Only.
"It is not the intention of the COM
mittee to express its viewpoint about
any agency" says the foreword to this
material. Its intention is only to
determine the facts. These facts
properly assembled and presented
should help banks to meet Govern
ment competition if and where 1t
exists. The committee believes the
Government entered the lending field
at a critical period in order to aid
banks and financial institutions. II
the time has come for the Govern
ment to withdraw. it is the duty OF
bankers to demonstrate their readl-
ness to take care of all sound credit
needs"
1t adds that the banks must be
equipped with full factual material as
to the Governments emergency lend
ing activities and practices, and that
full cooperation has been given the
committee by Government agencies in
obtaining facts. Binders of the ma
terial gathered have been placed by
the committee in the hands Of State
association officers and committees of
three members appointed by the State
associations to cooperate with 1t in
carrying on banking research.
Postal Savings Studied.
The Committee on Banking Studies
has also made a survey OF the postal
savings system throughout the United
States to ascertain to what extent it
Is competing with chartered banks.
Questionnaires were sent to banks
In all places where postal savings de-
positories are operated, and over SO
per cent sent answers, which will be
analyzed as a basis for the committees
findings.
The Bank Management Commission
of the American Bankers Association
has compiled and distributed Ma
tion-wide survey covering the prac-
tices followed by banks in analyZing
their accounts and the rates charged
by them for the various services rem
dered to customers. The commission
has developed a uniform plan of ac-
count analysis for the guidance OF
bankers.
Small Loans Stressed.
The Bank Management Commission
has also recently completed researches
In the field of personal income loan
plans and has formulated methods for
installing and operating a personal
income loan department in banks.
This plan contemplates making
loans primarily to individuals and
small business concerns, based upon
the character and assured incomes Of
the borrowers, as distinguished from
the usual basis for commercial
ioans.'" the commission says.
Another far-reaching piece of re-
search, dealing with the revolutionary
changes that have occurred in bank
earning assets in the last two decades,
and especially since the bank holiday
In 1888, is being made by the Eco
nomic Policy Commission Of the asso-
citation. This survey deals particularly
with the shrinkage in the field Of
liquid commercial loans through the
economic changes in the Nations
business methods and in the increase
in investments held by commercial
banks, especially in Federal Govern
ment bonds.
Excellent studies also have been
compiled by the national bank. saw
hgs, State bank and trust divisions.
A. 1. B. Programs Planned.
More than 200 chapters of the
American Institute of Banking are
completing plans to hold simultaneous
commencement programs September 9,
q feature of which will be radio
address by Gov. Joseph A. Broderick
Of the Federal Reserve Board.
The program is being arranged to
honor this years institute graduates
numbering 2,700. Robert J. Farr.
Philadelphia National Bank, is chair
man of the Radio Committee. in
charge of arrangements. More than
100000 men and women actively en-
ployed in banking throughout the
United States are expected to partici-
pate in the exercises Nearly $4,000
bank employees and officers are en-
rolled annually in the study courses
offered by the institute.
National officers of the institute are:
President, Henry Verdelin, First Serv-
ice Corp, Minneapolis: vice president,
Frank R. Curda. City National Bank
g. Trust Co. of Chicago.
The financial district today noted
the passing of John D. Leonard, at
torney, who was organizer of the
Washington Savings Bank, in which
he served as president and vice presi-
dent. He retired years ago from the
bank on account of Ill health. He
died late this morning.