Evening star., 1937-06-25

loans and finance ph;,;n p.n.or
automobile and
other purchases. Times have changed
and with them the tastes and needs
Of the people, he said.
The Ohio bank official declared
that american initiative has pro-
NOTED new credit needs which SEEM
ingly are being filled, in the main, by
agencies other than commercial banks.
Chattel loan companies, automobile
finance companies, credit subsidiaries
of manufacturing and distributing
credit unions, insurance companies,
investment trusts, Federal land banks
and whole host of Government
agencies are in the field to look after
the financial welfare of the average
American citizen and, as such, are
competitors Of the commercial bank.
In the transaction which brought
about the seeming need for these
other agencies. commercial banks
have been little slow to act"
AS a remedy he urged bankers to
recognize the desire of average folk
to use the amortized plan of pur-
chasing their needs and paying their
debts. Give particular study to those
credit fields served by the Govern
ment and enter into a constructive
customers relation program, he
urged.
Banks Facing "Critical Years"
William r. Biggs, New York banker,
warned his colleagues today they must
prepare for critical years to come"
citing taxes and increased operating
costs as the reasons for his forecast.
He referred to capital as the cushion"
Tor depressionS and asserted:
There have been developments in
the last two or three years and there
are things happening today which
may mean that minor depression
will go long way toward removing
our cushions. and if we are not par
ticularly careful We may find that
even a small depression will entirely
remove the seat as we'll as the cush-
ION.
TT IS the wage factor particularly
which has led me to express the opin-
ton that a relatively small depression
as far as volume of business is con-
cened might go long way toward
bringing bond defaults" He pointed
to demands for increased wages as a
factor which has depressed railroad
bonds, and concluded:
In other words it looks as if the
railroads of the country will have big
ger and better red ink figures In the
next depression.
Never in my judgment have rat
fngS meant less and vigilance more.
No rating system is going to protect
rs from losses In the next depression,
and it is absolutely vital that we
eliminate all questionable bondhold
tngs as this period of recovery
progresses.
Government Bonds Advised.
eThis is time when it is particu-
larly difficult to have opinions regard
ing investments, but I have one par
ticularly strong one which is that
while there are far too many Govern
ment bonds and while banks own too
many of them, they are at least at
present more attractive for average
bank holdings than most long term,
high-grade and medium grade bonds
Of other types.
Il am still convinced that we are
tn period of recovery which should
continue for some time" he concluded.
One Of the speakers at yesterdays
pession was Philip A. Benson, vice
president Of the American Bankers
Association. Banks must be profitable
II they are to be serviceable," he said.
I'VE should have no hesitation in
asking people to pay reasonable
charge for the services We perform.
I believe the public antipathy toward
service charges is rapidly disappearing.
Gov. Holt of West Virginia and Gov.
Peery Of Virginia welcomed the dele
gates. Milton r. Morgan and Ernest
g. Otey are presiding at the conven-
don, which ends tomorrow.
Attending Bankers Convention.
Joshua Evans, jr., vice president of
the Hamilton National Bank, and
Wilmer J. Waller, vice president and
cashier Of the same institution, are
attending the Virginia and West Vir-
ginia joint bankers convention at
White Sulphur. The Hamilton Bank
Is a member of the Virginia or
eanization. Sidney F. Taliaferro, trust
officer OF the Riggs National Bank, is
on the program to conduct one of
the forum meetings
Council in Initial Session.
The first meeting of the Council of
Administration of the District Bankers
Association since the recent annual
convention was to be held late this
afternoon, with President Thomas j.
Groom in the chair. The chief busi-
ness was to be approval by the coun-
ell OF President Grooms standing
committee appointments for this
year. One Or two new committees
are to be added, according to present
plans.
Financial District Notes.
The Securities and Exchange Com
mission has prepared a revised draft
OF rules governing when issued trad
ing, which will be sent to the stock
exchanges for suggestions and criti-
eisms.
George A. Bowles of Virginia has
been elected president of the National
Association OF Insurance Commits
noners. The third annual conven-
tion was held in Philadelphia.
Frederick Shelton, counsel of the
kiplinger Washington agency, ad-
dressed the Graduate School of Bank
ing this week, speaking on the OBJ
3ectives OF the New Deal and on
the political outlook.