Evening star., 1943-06-05
Stable World
NeedsU. ). Aid,
Bankers. Hear
Codmun Declares
Solvent Economy
Will Boost Recovery
BY EDWARD C. STONE.

pared TO hight a billion
dollar war three or four times in
every century, DR.. Paul F.. Cadman,
economist of the American Bankers
Association, said in an address be-
lore 300 Washington financiers at
the MayfoWer Hotel last night.
Speaking on the subject, POST
war International Finance Calls for
Candor," DR.. Cadman declared the
United States Treasury is not in
exhaustible, adding that the device
OF Federally controlled bank reserves
Is both ingenious and useful, but its
limitations are precisely the same
as those which govern the issue of
printing press money. The needs
OF humanity can best be served II
the United States maintains a SOL
vent economy he said, declaring
| that when millions are asking for
bread. this Nations contribution to
world recovery can be made only il
production is maintained.
Bankers Aid Cited.
John A. Reilly, president Of the
District Bankers Association, called
the 25th annual meeting to order
and referred briefly to the brilliant
part bankers have taken in helping
solve the wartime financial problems
OF the past year, the most useful
service being in War bond financing,
! ration banking and in assisting busi-
| neSsmen with problems which thev
had never previously faced. They
have also cleared checks in unlim-
tied numbers and have backed the
war program with huge loans, Mr..
Reilly said.
Preston Delano, controller of the
currency, and Hugh Leach, presi-
dent of the Federal Reserve Bank
OF Richmond. special guests, were
introduced and spoke briefly.
In his forecast of postwar condi-
tlcns, Mr.. Cadman declared that
England and the United States alone
have succeeded in salvaging that
degree of confidence which makes
the pound and the dollar the only
two currencies of immediate signif-
canoe, placing an immense respon-
slblllty on these two nations in the
early postwar years.
DR.. Cadman analyzed the So
called Keyes Plan and the White
Plan, better known as the Morgen-
thau Plan.
Choice for Trade.
| For the second time in a quarter
of century, Dr. Cadman added, we
are faced with the fact that our
debtors can meet their obligations
only in type of payment which we
do not want, or which. at least, we
think we do not want. We are going
TO be extensive exporters, even
though we send as little as 10 per
cent OF our total product abroad. and
some way must be found to achieve
international stability in foreign
exchange. he said.
The difficult thing that America
has to appraise, he continued. is
whether or not she would rather
enjoy short postwar boom oriented
on a future war, or make the trade
| concessions necessary to a longtime
! peace. The painful moment has
come, he said, adding it is particu-
larly painful to a lifelong Repub-
llcan, but it is here. We must so
arrange our tariffs that the nations
whom we want to help will be able
to send us considerable portion of
their goods, he asserted.
History probably will recognize
very large debt to Secretary Hull.
not only for his foresight, but for
his humanity, in working out tariff
agreements which not only hurt us
very little as individual producers.
but which benefited us very greatly
as a Nation, he said.
The recovery of prosperity will
come by production and accumu-
latlon, DR.. Cadman continued. Our
task OF internal reorganization will
| call Tor sacrifices, for a frugalitv
which we have almost forgotten in
a decade of devotion at the shrine
OF spending.
Urges Gospel of Solvency.
production is our hope, but mar
kets are no less vital. he said, adding
that If we will pay the cost, we can
nave both peace and production.
Isolation is myth: we are of the
world as we'll as in it, he contended.
In conclusion. DR.. Cadman de-
clared we need to balance our
budgets, to defer extravagant ex-
perlments in social reform and re-
turn to the gospel of solvency. This
is the hard road, the long road. the
unpopular road and the only road,
he said
Past presidents of the association
were honored at a dinner at the
hotel prior to the opening of the
business session. H. H. Mckee.
| president of the National CAPITAL
Bank, of the East Washington Saw
lngs Bank and chairman of the
Clearing House Association, was the
Oldest past president at the dinner.
He served the association in 1913
Another veteran at the dinner was
George E. Fleming. vice president
OF the Union Trust Co.. who headed
the association in 1915.
/ Past Presidents introduced.
Eighteen past presidents were in.
| troduced to the convention. Among
those not already mentioned were
Maurice D. Rosenberg, Joshua
Evans, jr.; Victor B. Deyber, Fran
ClS ". AuQlSOn, j., ROBERT B. Flem-
ing. Wilmer J. Waller, Lanier P.
McLachlen, c, H. Pope. George o.
Vass, Frederick P. H. Siddons,
Charles H. Doing, Thomas j. Groom,
Hllleary g. Hoskinson, Ord Preston.
A. M. McLachlen and T. Stanley
Holland.
Chairman REILLY introduced Ernest
E. HerraH, l.. Bert Nye and F. G..
Addison, jr., as having attended
every one of the Is conclaves.
RAINY B. Deschner, area director
of the War Manpower Commission,
spoke briefly. Undersecretary Dam
lei w. Bell was given very cordial
greeting.
Memorial tributes were paid to
the late w. Frank D. Heron, vice
president Union Trust Co.; G. Frank
Campbell, late president of the
Anacostia Bank. and George P.
Sacks, late head of the Bank of
bethesda