Evening star., 1943-09-14
Bankers Head Indicf,
Postwar Emergency
Spending Program
Ey the Associated Press.

NEW YORK, Sept. 14.-W. L.
Hemingway, president of the
American Bankers Association,
said today he hoped that Ameri-
can bankers, prepared to finance
the war for any length of time,
would declare their unwilling
ness to accept responsibility
If third emergency is declared
after the war and another Gov
ernment program Of spending is
undertaken"
Mr.. Hemingway, addressing war
time meeting of the American Bank
ers' Association, said in his prepared
speech: "s We cannot expect
to weather another emergency If we
follow the same course of excessive
spending and taxing (Which we have
followed in the past).'
He said bankers are looked to for
advice and guidance as leaders in
their communities and said "let us
accept this leadership and boldly
denounce as unsound those men and
measures which lead to the destruc-
ton of our American economy and
let us proclaim that energy and en-
terprise, self-denial and thrift pro-
vide the only road to individual and
national prosperity. The same rules
that apply to the conduct of the
individual hold true for the Govern
ment."
Asks Blackout in Politics.
The banking community, Mr..
Hemingway said, despite the fact
that many of them oppose the Pres
t0nt's policy, nevertheless whole
heArtedly worked in furtherance of
his war program.
But, he said, "there is also an OBJ
legation binding the President, and
that is that he not permit men in
his administration to take advan-
tage of the war emergency to per-
manently fasten upon us an econ
omy alien to our tradition.
Il think it not amiss for us also
to ask him to see that politics Is
showed into the background.
For the second time in our gen.
Grafton, destiny has placed Presi-
dent of the United States in a
unique position to render great serv-
ice not only to his own country. but
to all mankind. Let us pray that
this opportunity will not be lost"
Small town and country banks will
have stiff fight to survive in the
postwar world in the face of compe-
tition from Government lending
agencies and banking lenders,
the association was warned by OIL
cials Of small banks.
Emergency Is Past.
Claude F. Pack, president of the
Home State Bank of Kansas City,
Kans., told a meeting of the State
bankers division of the association:
"A few years ago most people took
1t for granted that the Govern
ment's going into the business of
lending money was temporary epi-
sode, due TO the great emergency.
The emergency is long since past,
but the activity of the Government
as money lender in fields competi-
tive with country banks continues
to grow"
Charles w. Green of the Franklin
Square IN. Y.) National Bank urged
small-town bankers to take the lead
In directing present civilian savings
into channels which would provide
q cushion of postwar spending power.
Harold G. Moulton, president of
the Brookings Institution of Wash
ington, private research organiza-
ton, told the bankers:
IF savings bankers are to be in a
position to advise customers, actual
and potential, that savings accounts
are one of the best means of achiev-
ing economic security they must of
necessity nave assurance that this
country will again achieve and main
tain high degree of financial and
price stability.
Fortunately, think the situation
Is not without hope"
80 OF particular interest was
the explicit statement OF Senator
Barkley, Democrat, of Kentucky.
Senate majority leader, on behalf
Of the administration, that the Gov
eminent was committed to a policy
Of reducing the public debt after the
war Is over"
Virgins Seen as President.
A. Lee M. Virgins, president of
the Bank OF Hartsville, S. c., ap-
peared certain of election as presi-
dent Of the association tomorrow.
The Executive Committee met to-
day and changed the constitution of
the association to abolish the office
Of second vice president. The NOM
mating committee placed the name
of Warren Randolph Burgess, vice
chairman of the board of the Ma
tional City Bank OF New York, as
vice president.