Evening star. [volume] (Washington, D.C.) 1854-1972, 1936-05-22

ing Faces the tuI- u,r Haas
ure," the Wash
lngton financier asserted that through
out the ages the business OF banking
has been severely attacked during
and following periods of depresslons.
This is because banking touches every
phase of the economic life OF the
people. In the past the public has
not understood that where the value
of all assets in a community has
depreciated, it was not the fault OF
the bankers. Worldwide or Nation
wide conditions are beyond the control
of bankers or the banking system.
Those who have made a careful
study of the history of American
banking and the services performed.
have found that even during the
worst depression in the history OF this
country, the banks have rendered
essential and valuable service, the
A. B. A. chief added.
Banking Brought to Public.
Mr.. Fleming reviewed the efforts
pf the A. B. A. during the present
wear to bring the aims of banking
more clearly before the public and
especially before bank patrons. He
said that in old and conservative
England there had been the same
lack of understanding regarding the
real work of the banks. The regional
conferences had marked results in
bringing banking services into clearer
view.
There is a mistaken idea that banks
coin money, he continued. Banks do
not coin money. The money of the
Nation is coined by the Federal Gov
eminent by virtue of the power given
to Congress under the Constitution.
Neither do banks issue currency,
nor create credit. While it is one OF
the principal functions of a bank to
extend or grant credit, yet credit is
Initiated by business transactions based
on confidence between buyer and
seller or between producer and con-
sumner. While chartered banks furnish
credit, credit itself originates in bus
iness.
Haas Paid High Tribute.
These are only few of the fallacies
voiced about banking which bankers
should clear up in the public mind,
Mr.. Fleming said. From observations
at banking conferences, he said, he
was sure bankers were assuming their
share of responsibility and that super
visory officials of Government are will
ing to cooperate in the solution OF
banking problems in the public
interest.
The attitude of the press is more
favorable and there are many other
reasons why the future of American
banking should be faced with con-
fidence.
In opening his address, Mr. Fleming
paid a glowing tribute to Harry j.
Haas of Philadelphia, former president
of the American Bankers Association,
who is still giving very valuable serv-
Ice to building up the Nations bank
Ing interests.
Bond Club Holds Outing.
Members of the Washington Bond
Club and guests to the number of
about 1875 are having the clubs annual
outing this afternoon and evening at
the Burning Tree Country Club. This
was said today to be the largest turn
out the club has ever had at these
annual events, President James H.
Lemon being greatly pleased with the
Interest shown.
Golf, a big mock session of the
Washington Stock Exchange and
dinner were to be among the special
features. Many prizes were to be
awarded by the Sports Committee,
and during the meeting the annual
election of officers was to be held,
with Thomas c. Montgomery, vice
president, Waggaman, Brawner & Co.,
slated for the presidency.
1t was expected that L. Clark Brown
would be chosen vice president and
Chauncy G. Parker, jr, secretary and
treasurer. Both these men have been
officers Of the club during the past
year.
Small Exchanges Favored.
The convention of Associated Stock
Exchanges in Cleveland this week
brought out the fact that the Securi-
ties and Exchange Commission is
strongly in favor of the small ex-
changes. Members of the commission
feel that the small exchanges are i'm
portant because they provide a mar
ket for local securities, as well as a
seasoning ground for securities which
may later be listed in the larger mar
kets.
Evidence of the commissions desire
to build up, rather than weaken. the
smaller institutions was regarded as
particularly important in view of the
growing concern in some quarters as
to the future of these local markets.
Some of the representatives of these
institutions are understood to have
expressed the feeling at Cleveland that
the S. E. c. has not taken their plight
seriously enough. They contend that
the present margin requirements,
while perhaps workable for the larger
stock exchanges, place undue hard
ships on the smaller institutions
The S. e. C. believes that it is up to
the small exchanges to take a hand in
encouraging listings. For example,
one important S. E. c. official in dis
cuSsing the matter remarked about
the listing fees and stable transfer
charges imposed by these small stock
exchanges. If the listing fees were
abolished and transfer charges at least
reduced to a minimum, it was said,
small exchange listings would be en-
coJraged