The Skyland post. [volume] (West Jefferson, N.C.) 193?-1988, 1936-03-05

Studying New legal and Eco
nomic Cont';.;ons Affecting
Bank Management
STRESS PUBLIC RELATIONS
American Bankers Association Sp on
sor of Meetings as Part of Nation
wide Program of Banking
Development

PHILADELPHIA. -Fifteer hundred
bankers from fifteen eastern states met
here in January in two day confer
ense devoted to discussions on legisla
tive. managerial. operating and public
relations problems of the banking bust
ness. This was the first of a series OF
meetings planned by the American
Bankers Association in it's nationwide
program of banking development under
the leadership of Robert V. Fleming.
president of the association. Similar
conferences will be held in southern
and western sections of the country.
1T Is the purpose of these working
conferences to bring to association
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 cooperation and under
standing between the banker and his
customers, and to give opportunity foi
survey of the problems incident to
the Governments competition with oui
chartered institutions" Mr.. Fleming
said in opening the meeting.
To Help Government Quit Banking
The discussions at the conference
showed that the bankers are ready t.
make it easier for The Government 4
relinquish many of its emergency finan
cial services as soon as possible by
demonstrating how their institutions
are able to render full banking facili
ties to the public on sound lines.
Bankers generally have recognized
that in times of emergency the Govern
ment had TO come to the assistance o.
the people where chartered institu
tons were unable to do so on accoun
of such conditions, Mr.. Fleming said
They also realize that possibly many
functions which the Government is per
forming are of nature which cannot
be handled by chartered institutions
under the principles of sound banking
On the other hand. he said, 'wt
should survey all emergency lending
measures of the Government to judge
which of these activities can be prop
erly and soundly taken over by bank:
in their respective communities.
The attending bankers devoted time
to considering the Banking Act Of 1897
and the many related regulations and
discretionary powers under the Federal
law. These were explained by .. How
ard Wolfe Of Philadelphia, who said he
hoo 10 nf tho UoViOnc nlo.nL
in the act where provision is made fol
discretionary power to be exercised BY
government officials through regula
tons.
"Confining the count only to the sec
lions which affect practically ali of us,
| found there are forty-eight places
where discretionary power is given
he said. 1T is a problem Of no mean
Importance, therefore, to master bank
ing law as it is today or may be to
morrow"
Bank Taxation and Solvency
Bank taxation was discussed by
Charles H. Mylander of Columbus,
Ohio, who declared that "the average
American is vitality interested in taxa
ton Of banks because solvency may de
pend to a large degree upon the way
in which the taxing power is exercised
upon them"
To prove his point he cited earnings
figures which showed that, in the year
ended June 80, 1884, "for the United
States as whole, national banks used
$14.S9 out Of each 500 of net operating
earnings, before taxes, in payment of
taxes; but in seven of the twelve Fed
eral Reserve 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, he quoted official figures show.
ing that in 1884 large number of small
state banks paid on the average $34.20
of every 500 of operating profits for
taxes. Mr.. Mylander urged that there
be brought home to the average
American the self-evident truth that
banks, dealing as they do only in in
tangible property, are not proper sub
jects for property taxation; that the
true measure Of banks ability to pay
taxes is the earnings 1t can make"