Evening star., 1939-04-14
Big Change Noted
In Money Functions
OF World
Acheson Tells Bankers
Of Differences Over
Theory and Practice
BY EDWARD C. STONE.

BY EDWARD c. STONE.
In the last two decades we have
seen more revolutionary changes in
the basic functions of money than
has taken place in any previous
century of world history, Edward C.
Acheson. associate professor of eco
nomics at George Washington Uni
versity, told about 100 Washington
and Baltimore bank auditors and
controllers at the Wardman Park
Hotel last night. DR.. Acheson spoke
on the subject, Money in Wonder
land"
The speaker declared that the
theory of money which was ap-
parently caught mapping, has Jagged
behind the headlong development of
practical policy, and the serious
spread of this lag has created an
anomalous situation in which we try
to explain the gyrations of Goth
century state" money in terms of
10Th century gold theory Quite
naturally the result has not been
altogether happy, and monetary
theorists are blamed and berated for
mot agreeing
Oddly enough-the layman to the
contrary-the best of the monetary
theorists do agree to surprising eX-
tent in diagnosis. 1t is in the field
of remedy. cure and prevention that
the arguments arise. Here the par
allel between the medical and none
tary doctors ceases to exist, for
although every one is in full agree
ment as to what constitutes physical
health, it is almost impossible to get
a corporal's guard as sponsors for
any specific definition of a healthy"
monetary situation, DR.. Acheson
asserted.
Great Variation in Views.
A currency which is stable in
terms of gold may be wholly sound
from bankers point of view, but
completely alling as viewed by the
farmer who discovers the value of
gold to be rising in terms of farm
products. A money which does not
vary on the exchanges may be the
the exporter may consider an eX-
change rate that maXimizes his
profits as the only really sound one
to be discovered.
Hence by observing the way money
Is made to act in various countries
We may unearth the objectives of the
monetary authority which operates
it, and in the light of this knowledge
explain more satisfactorily the
gymnastics of the European cur
rencies. No longer can we seek the
universal laws" of money there
under to interpret practice. Today
money has become an instrument of
national policy. We must first ex-
anime that policy before passing
judgment on the "soundness" of the
monetary measures, the guest
speaker said.
Gerald E. Keene, chairman of the
auditors section of the District
Bankers Association, presided, the
annual joint dinner meeting with
the Maryland auditors and control
lers drawing the largest Baltimore
delegation since the joint gatherings
were started.
Mutual Fire Elects Officers.
All the officers of the Mutual Fire
Insurance Co. of the District were
reelected at the board meeting last
Monday as follows: President:
Charles Kattelmann; secretary. l..
Pierce Boteler; treasurer, Henry E.
Bittinger. and assistant secretary,
William Reed Macgill.
The election completed eight years
for Mr.. Kattelmann as president, 43
years for Mr. Boteler, eight wears for
Mr.. Bittinger as treasurer and SO
years for Mr.. Macgill
Encouraging reports of the bus:-
ness we're made by Secretary Bo-
teller. this being the 85th year since
the company was chartered by Con-
gress.
Oppose Closing of Exchange.
The suggestion in Wall Street that
1t might be wise to close the New
York Stock Exchange in case of ac-
tual war, in order to prevent a wild
selling wave, does not meet with
favor among Washington leading
brokers.
The market has already had a long
and severe decline, prices have dis
counted great deal of war talk,
many foreign securities have already
been sold in this country, there are
such tremendous stocks of gold on
hand, record amount of credit avail
able. Government controls of the
markets and host of other factors
which lead Washington financiers to
believe that any drastic action would
not be necessary.
Limiting falling prices might be
advisable, they say, as was done in
1914, when the market was reopened.
Limitations at that time proved
highly successful. Closing of the
big board dislocates all other world
markets and is likely to complicate
matters more than help the sltua-
ton, brokers add. The Board of
Governors has the power to close
the exchange, but few brokers here
believe any such move would be
necessary.
Security Bank Staff Dimes.
>AAASSAo ., oAl SCCOLo dllu cS VI
the Security Savings & Commercial
Bank had a banquet and dance
Wednesday night at the Columbia
Country Club on the occasion of the
banks 26th anniversary.
T. HuntoN Leith, vice president
and cashier, presided at the dinner,
talks being made by President
Francis G.. Addison, jr.; Chairman
of the Board Julius l. Peyser and
Vice President Fred Mckee. The
speakers pointed with pride to the
fact that the banks personnel has
seen very few changes in the past
quarter century.
Washington bank clearings for the
week ending Wednesday totaled S25,-
582,98129 as compared with S23,-
7l2,767.62 in the corresponding week
a year ago. an increase more than 7