Evening star., 1937-05-27

azN Groom has
been acting head
of the association
since the death of Karl w. Corby. His
annual report showed that Washing
ton is enjoying an era Of unusual
prosperity
The attendance of members and
guests is by far the largest since the
economic slump in 1929. Today's ses-
sion was made especially notable by
the presence of Tom K. Smith of st.
Louis, president of the American
Bankers Association, who addressed
the convention on The Banking Out.
look"
Uniformed Public" Needed.
The most effective safeguard
against financial difficulty, Smith
said, is IAN informed public. alive to
the dangers of imitation and aware
that booms are as unhealthy as pan.
les"
The general upward movement in
building activity and the stock market
which has taken place since 1882 Is
not based to any significant extent
on bank loans Mr. Smith said. The
funds upon which this activity is
based are the result Of Government
borrowing. The Government OBJ
tanned cash by sale of securities.
| largely to the banks, and it disbursed
this money in relief and public works
and all its other activities. The
funds trickled down through the
economic structure, and the recipients
deposited them in their bank ac-
counts and thereby sWelled the total
Of deposits. 1t is upon these deposits,
which are owned outright by their
depositors, that the upward movement
in security prices and the upturn in
building construction are based"
In his summary of Washington busi-
sales in the Capital are the highest
on record and the construction Of
houses and apartment units has far
exceeded any previous year. Bank
deposits-demand as we'll as time and
savings-show a tremendous increase,
he said.
Prosperity of Banks.
The welfare and prosperity OF the
banks. he explained, is evidenced by
the fact that, although there has been
a 100 per cent increase in reserve
requirements, not single Washington
redlscount any paper in order to COM
ply with the new requirements.
The banker cited the opposition
among bankers to the postal savings
system, which is considered in direct
competition with chartered banking
institutions, and lauded the new regu-
lations for trust investments in the
District of Columbia. He spoke par
ticularly of the work of the Graduate
School of Banking started at Rutgers
University while Robert V. Fleming,
head of Riggs National Bank, was
president Of the American Bankers
Association.
At Groom's suggestion, the conven-
ton paid special tribute to the memory
of Corby who died while president of
the association this year. The chair
man also spoke Of the deaths Of George
L. Starkey, Clarence F. Norment. Will
liam B. Hibbs and F. r. Horner, all
OF whom died during the year.
Failures Is Per Cent Lower.
Reporting for the Committee on
Commercial Trade Activities, Norman
E. Towson, Washington Loan Il Trust
Co., said that at the end of April ma
tional basic business indices were gem
orally favorable, compared with year
ago. Business failures we're IS per
cent lower, employment had increased
IA per cent and wages 80 per cent,
the cost of living had increased only
per cent, with commodity prices up
liz per cent and retail prices per
cent.
Compared with a year ago, new
bond financing is lis per cent ahead
and new stock financing over 200 per
cent. Turning to Washington, Chair
man TowSon stated that bank clear
ings increased in the Capital by about
20 per cent during 1886 over 1885 and
that commercial and real estate loans
by Washington banks on March 81,
1897, compared with the similar date
in 1886, had increased by S6,348,0OO.
The report called attention to the
great increase in new building opera
tions, repairs and renovations. the in.
crease in automobiles registered in
Washington, increases in telephones in
use, department store trade, and hotel
occupancy, as we'll as a steady ex-
pansion in the number Of visitors in
the Capital.
James A. Soper, Lincoln National
Bank. chairman of the associations
fiduciaries section, presented his an.
nual report showing an unusually ac-
tive year. During todays session,
Hugh Leach, president of the Federal
Reserve Bank of Richmond, was in
troduced. He is special guest of the
association and made few brief re-
marks.
The four divisions of the American
Bankers Association met to select a
nominating committee. The present
chairmen are John A. Reilly, national
bank division; T. Hunton Leith, saw
ings bank; w. L. Koontz, state bank,
and Barnum L. Cotton, trust company.
A series Of sports tournaments under
Chairman A. Scott Offutt was to open
this afternoon. The convention will
be in session five days.