Evening star., 1942-10-13

bank officers and
directors. Presi- Hugh Leach.
dent John A. Reilly presiding.
Mr.. Leach stated that the main
problem confronting bankers IN
! their effort to help in financing the
war is the question of how the Vast
sum needed by the Treasury to pay
for the war effort can be raised and
how it can be raised with the least
danger to the economy OF the coun-
try, both during and after the war.
Mr.. Leach said that from the be-
ginning of the war program 1t mas
been recognized that sizable pro-
portion of war expenditures should
be raised through taxes and that the
remainder, so far as possible, should
be provided through the sales OF Sc
curities to the public and, as for
the latter by far the most desirable
source of funds is current incomes
of individuals.
The work being done in the Dis
trict of Columbia in inducing em-
ployers to install payroll savings
plan and the effort being made to
increase these savings to 10 per cent
of gross payrolls were favorably
commented upon.
Cadman Urges Spending Care.
determination OF the national
spending policy after the war was
urged by Paul F. Cadman, economist
for the American Bankers Associa-
ton. There is only one source of
real wealth, mainly, production, he
asserted. Wealth is not originated
by increasing the velocity of money.
to take wealth from one group and
give it to another creates no wealth.
If there is to be the postwar
recovery, for which every one hopes,
we must set our direction toward
solvency. otherwise deficit financing
will bring us to the bankruptcy
from which recovery would be long
delayed he declared.
DR.. Cadman asserted that what
ever amount of money is necessary
to win the war must be spent, but
the Nation should not lose sight of
the fact that real wealth for eco
nomlc security must be produced
and saved and cannot be "conjured,",
bought or voted"
When Bankruptcy Threatens.
National income is currently es-
tlmated to be at the rate of about
Sis 900 0OO,0 per year.
Considerable difficulty could be
avoided If we would stop talking
about national income as fund"
DR.. Cadman declared. National in
come is a process. 1t emerges every
day from the operation of solvent
; enterprise. 1t is recurrent. The
major part of it is consumed every
; day, irrevocably lost. Only frac-
ton is saved Of this product or
: income, industry makes private
distribution through wages, interest,
and dividends; the Government
makes public distribution by virtue
OF its taxing power. When the
.. Government is dissatisfied by it's
, share it borrows on it's future
share Such borrowing is nothing
less than deferred taxation.
Without solvent business pro-
! duclng wealth and without a solvent
Government living within its income.
security Is a myth, and we might as
well stop talking about it. Economic
bankruptcy threatens when peace
lme governments consume and
mortgage the nations savings" he
asserted.
section Chairmen HOnored.
president Reilly presented badges
10 the chairmen of the three sec
lions OF the association: Auditors
oectlon-D. D. Whitcraft, Riggs Ma
tional. Flduclaries-Aubrey o. Doo-
ley, Hamilton National Safe De-
poSlts-Charles c. Boswell, American
Security & Trust Co.
During the evening Mr. Reillv in
troduced Robert V. Fleming, j. Cliff
lord Folger, H. l.. Rust. ir., and
Wlnslow B. Van Devanter. who
nolo very important committee as
slgnments in connection with the
sale OF War savings bonds and other
wartime securities in WASHINGTON,
Others introduced were Harold
otonler. executive manager of the
ABA; D. j. Needham, general coun-
sci OF the ABA; Lanier P. McLach-
len, as president of the Washington
Board of Trade; William B. Willard
ana willard G. Barker bank officers
now IN the armed services.
"A. Scott Offutt, first vice presi-
oenC OF the association, was chair.
man OF the Arrangements Commits
Tee. the program ending with a
buffet supper.
Savings, Loan Head Named
Ralph M. Cake, president, Eouit.
aole Savings & Loan Association.
Portland, Greg, has been nominated
Tor the presidency of the United
States Savings and Loan League r.
was announced here today. He will
succeed F. S. Cannon, INDIANAPOLIS
Other nominations include John
r. Scott. St. Paul. first vice presi.
oent' w. M. Brock, Dayton. Ohio.
second vice president, and Herman,
r. Celarlus, secretary treasurer. a
position he has held for the past az
years. Since 1910 Mr.. Cake has
oeen Republican national commit
teeman from Oregon.
ID. &. Exchange Speeds I'm. 20
With turnover of 900 sbares ~,
washington Stock Exchange enioyed
Dull market" today, trading OPEN
ing with a transfer of so shares of
Peoples Drug Stores common at ls,
up "a. Garflnckel preferred regis
tered sales of 100 shares at Is. un.
changed. y
Fifty shares of Washington Gas
$3.50 preferred moved at 80. up from
87A, while 10 shares of the SIS pre-
ferred sold at 99h, unchanged. In
the bond division Capital Traction
IS registered $4,000 turnover at
l05A, unchanged. q
August mortgage recordings of
$4,000 or less amounted to $685.
$50, 1000, the Federal Home Loan
Bank reports. In the January
August period total recordings were