Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-09-25
Bankers Are BACKING
Defense Efforts,
Hanes Declares
Association President
Sees Deficit Financing
As Matter of Concern
By the Associated Press.

BY the ASSocla ted Press.
ATLANTIC CITY, N. j.. Sept. Is.
Robert M. Hanes, president of the
American Bankers Association, said
today the national defense effort
lad the whole hearted cooperation
of the countrys bankers, and called
it an emergency which might recall
the country to stern realities"
mo country can achieve military
defense unless it is economically
prepared - =" he said.
1T is a matter OF grave concern
that we have come to accept deficit
financing as a permanent fiscal pol
icy"
Playing a leading part in discus
sions in the convention Hobbies was
the report issued late yesterday by
the associations economic commits
sion headed by Col. Leonard P.
Ayres. Cleveland banker, The report
said arms spending in the first eight
months of 1917 was q times faster
than in the comparable period OF
1910.
Urging strongly that this rate be
stepped up as the sureSt way to keep
free of war, the report added:
Modern wars are won or lost in
the periods of preparation for them.
Great Differences Cited.
ut did not take anything like as
long in 1917 and 1918 to make num-
tons as it seems to be taking now,
and except in the case of airplanes,
the quantities that We are discuss
ing now seem small indeed as COM
pared with those ordered then.
"Of course, one of the great diff
ferences is that then we we're
actually at war, while now we are en-
gagged in an unfamiliar undertaking
of trying to create and equip pow
erful Army. and great additions to
our Navy, in times of peace. New
ertheless. the discrepancies in the
time element are disturbing"
The statement of the Policy Com
mission paralleled closely an ad-
dress to the bankers, on the OPEN
ing day of the convention, by w.
Randolph Burgess vice chairman
of the National City Bank, in which
he had stressed the necessity of
haste in rearming and charged that
our defense program is laggard,
held back by red tape, teChnicalltieS,
a failure TO put first things first.
Meanwhile, conversations with
bankers from widely separated areas
of the country indicated belief
that the defense program would
bring in its wake a sustained period
of high industrial activity. The
failure of Germany. so far, to deal
a knockout blow 10 Great Britain,
most of those questioned said ap-
peared to guarantee continuing de-
mand for many types OF American
products, including ornaments and
foodstuffs. There seemed unanimlty
among those questioned that the
war now might last al least well into
next year and perhaps much longer.
The internal affairs of the as
ISOLATION likewise occupied much OF
the attention of the delegates early
TODAY. as they awaited the report of
the Nominating Committee on the
new slate of officers.
A split appeared to have devel-
oped between a group lead by A.
P Giannini, head of the Trans
, karol-iron chain Cali
fornia. and another of which Tom
K. Smith, St. Louis banker and for
mer president of the association,
was said to be prominent member.
Hemingway Opposes Smith.
The disputed office was the sec
ond vice presidency. The incum-
bent will become president auto
maticallv two years from now.
w. L. Hemingway. president of the
Mercantile Commerce Bank & Trust
Co. of ST Louis. was the candidate
of the Tom Smith group, which
convention gossip said had large
majority among the delegates.
His opponent was Russell Or.
Smith, executive vice president of
the Bank of America. Mr.. Clan
minis San Francisco institution.
Mr.. Smith charged opposition to
his candidacy was solely on the
ground that I am an officer of
particular Statewide branch bank
ing system
The question of branch banking
has torn the association for years.
but TO date the advocates Of the
unit system Of banking have always
outvoted those favoring chain and
widespread branch banking.