Evening star., 1939-05-15
District Bankers
Praise Conference
In New York
Outlook Now Bright
Despite Loan Drop,
Economist Asserts
By EDWARD C. STONE.

New York last week. The delega-
ton was headed by Gerald E. Keene,
chairman of the auditors section
of the District Bankers Association.
Arthur j. Linn, as former president
of the national association, took an
especially active part in the three
day program.
While most of the addresses dealt
directly with technical accounting
problems, there were several talks of
general interest, bankers said today.
Perhaps the most notable of these
was given by DR.. Marcus A. Nader
of New York University, who de-
clared that the outlook for the bank
ing business is as bright now as it
ever was, despite changes which
have occurred in recent years. While
admitting that neW times require
new methods, the finance professor
asserted that banking is still the
hub of the industrial and CONNER
cial wheel and will continue to
be So
New Methods Depicted.
Discussing changing nature of
bank operations, Dr. Nader said that
the decline in commercial loans is
not a passing occurrence, but rather
permanent tendency. Place OF
business loans has been taken largely
by investments and to small eX-
tent by capital loans and personal
and consumer loans, he added.
Banks engaged in making the new
types of loans, such as buying of
{yc to1 CyY.o N
personal and capital loans, must re-
alize, he said that the approach to
such loans must be entirely different
from the procedure followed in
financing self -liquidating transac-
tions. The test of such loaning poll
cies will come when business activ-
ity turns sharply downward and
debtors are unable to meet their pay
ments.
mo one in the United States who
fully understands the functions per-
formed by a bank really advocates
the naturalization of the banking
system. The best way to combat
this demand, heard in certain cir
Cles, is to educate the public as to
what a bank is. what it can do, and
what its role in the economic sys-
tenn can and should be-" the eco
nomist concluded.
Office Merger Opposed.
National banks in Washington and
all over the country have received
copies of resolution adopted by the
National Bank Division and ap-
proved by the Executive Council of
the American Bankers Association
at Hot Springs, Va, expressing op-
position to the merging of the Office
of the controller Of the currency
with any other Government agency.
The resolution stresses the fine
service being rendered both to the
banks and the general public by the
controllers office.
Many students of the stock market
have concluded in recent months
that new bear market was under
way, says Col. Leonard p. Ayres in
his monthly review. That may prove
to be the case, but if SO, it will be
most unusual development in the
history of market movements, he
adds.
Insurance Executives Meet.
The occupation section of the
Home Office Life Underwriters As
sociation, of which Harold Davies
of the Equitable Life Assurance So
ciety, New York, is chairman, opened
a three-day session at the Wardman
Park Hotel today. Speakers included
Robert L. Vane, supervisor of op-
tional rating, Metropolitan Life, New
York; Daniel Harrington, United
States Bureau of Mines, and H w.
Tichener, Prudential Life Insurance
Co., Newark.
Discussions will continue through
tomorrow and Wednesday, with sew
eral papers to be presented by lead
Ing insurance executives in the East
with j. D. Williamson, actuary of
the Canada Life assurance Co.,
Toronto, presiding at Wednesdays S
sessions, when such topics as avie-
ton, business insurance, insurance
on the life of wife whose husband
is unlnsurable, and underwriting re-
tirement are scheduled.
New Secretary Plan Favored.
During their present convention
members of the Virginia Bankers
Association are to consider seriously
the employment of a tull-lime sec
retary. Such move has been ia
Vored for some time, as it would
expend the usefulness of the asso-
clatlon greatly. washington and
many of the State associations al
ready have such secretaries, to the
oeclded advantage of the organiza-
tlons. G. w. BeerboWer, a Roanoke
banker, is the present secretary.
One OF the most important re-
ports to be made during the con-
vention will be presented by Thomas
H. Blanton of Bowling Green, as
chairman of the Committee ON
Groups and Clearing Houses. New
clearing houses covering the entire
state are expected to be formed
soon. At the time of the last con-
Ventton only 38 counties in Virginia
had the benefit of such organi-
cations.
Whites Death Shocks Friends.
The death of Harry Perry White,
manager of the Northeast Branch
OF the American Security e. Trust
Co, came as distinct shock to his
many friends in the financial dis
trict. An assistant treasurer, he had
held very responsible position with
the bank for many years. He was
connected with the old Home Saw
ings Bank in the days before that
institution became a part of the
American Security & Trust Co. He
was deeply interested in civic affairs,
In addition to his banking activities.
John K. Mckee, a member of the
Board of Governors of the Federal
Reserve System, is another Govern
ment official expecting to attend the
annual convention of the American
Bankers Association in Seattle in
the fall. Reservations have been
made for at least seven presidents
of Federal Reserve Banks including