Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-09-24
Increasing u. 5. Need
For Savings Seen
ByA. B. A. Speaker
Gilman Tells Bankers
Accumulated Funds
VituI in Crisis
knecisl Dispatch to The Star.

knecial Dispatch to The Star.
ATLANTIC CITY, N. j., Sept.
24-The Nation will have greater
need than ever before for an &C
emulation of savings funds to assist
it through the present world crisis,
A. George Gilman, president Of the
savings division of the American
Bankers Association. asserted here
yesterday in an address before the
divisions annual meeting held as
part of the Goth annual convention
of the American Bankers Associa-
ton.
Mr., Gilman declared that bankers
should continue TO do everything
within their power to encourage and
promote the growth of savings &C
counts in banks to assist the country
In meeting this need.
Il suggest today to this repre-
sentative group of bankers inter
ested in the savings business that
each and every one of US rededicate
ourselves to work to which most
OF us have given lifetime of serv-
ice-to assist and promote the ac-
emulation of savings" MI Gilman
asserted. Never in the history of
our country has there been a time
when it was more important to
stress the Importance OF thrift and
savings. What demands will be
made upon our country in connec-
ton with the present world state of
affairs, no one knows. 1t is safe to
say there will be greater need than
ever before for an accumulation of
savings funds to assist our country
IN surviving any crisis
Sees L. S. Problems.
Whatever the ultimate outcome of
the war in Europe may be, four
major problems directly affecting
Americas economic system are now
developing from the war, Dr. Marcus
Nader New York University pro-
lessor of finance, declared in another
address
The four major problems concern,
DR.. Nader said, the effect on the
banking system OF its tremendous
excess reserves which have accumu-
lated partly as a result of the war,
the possibility Of inflltration in this
country as we'll as abroad. rearma-
ment financing now getting under
way in America, and the eventual
necessity of postwar reconstruction.
1T is fairly certain" he said il
discussing postwar problems. that
the economic reconstruction of En-
rope will be much more difficult
than was the case after the last
war. In the first place, the damage
done to property will be larger.
Secondly American investors are
hardly likely to be willing to place
billions Of dollars at the disposal
of European nations. as they did
after the last war. The standard of
living all over Europe is bound to
be lower, and Europe as whole will
not be in position to purchase
commodities in this country to the
same extent as before the war.
Europe is also likely to be a much
keener competitor in the worlds
markets than was previously the
case.
Cites Gold Situation.
The gold standard has served
the world we'll" Dr. Nader said in
discussing the excess reserve prob
lem, land it operated satisfactorily
so long as the international financial
and political situation was more or
less normal, Complete abandon
ment of the gold standard could only
mean absolute Government control
over all international financial trans
actions, which would mean increased
control by the Government over
banking. One of the major tasks of
the banks of the country. therefore,
is to study. preferably in co-opera-
ton with the Government, the most
feasible scheme Of solving the gold
problem under the various circum-
stances that may arise after the
war, and the problem of returning
TO sound currency conditions.
The second task that confronts
the banks is that of using all their
influence in order that the rearma-
ment program. which already has
had such a decided effect on bust
ness activity, should not lead TO
overexpansion, ultimately bringing
about commodity price initiation.
While. I personally" Dr.. Nader
emphasized, do not foresee any in
flation in the near future, 1 believe
IL absolutely essential for banks.
for industry in general and for the
Government to see to it that during
the period while the rearmament
program is expanding. non essential
work be delayed and that conslo-
cradle volume of capital investments
be postponed for the day when the
rearmament program comes to an
end"
Regarding rearmament financing.
DR.. Nader urged the banks to ad-
yocate as matter OF Treasury policy
that the national defense obliga-
tons be sold to ultimate investors
rather than to institutions. This,
he asserted, is necessary because
when investors purchase the securl-
ties the process merely converts al
ready existing deposits, but when
banks purchase the obligations, 1t
results in additional deposits, the
further increase of which he termed
IL L.,,+ IL