Evening star., 1943-08-18
Reserve Bank Chief
Asks Support Of
War Bond Drive
BY EDWARD C. STONE.

BY EDWARD c. STONE.
Hugh, Leach. president of the Fed
eral Reserve Bank of Richmond, has
sent plea to all Washington bank,
and all others in the district, urging
the same support of the coming
$4,000, ,00O. 900 third War loan drive
that was accorded the second drive
when Officers and directors served
the Nation so effectively and
achieved such an excellent record"
1t need not be said that the rails
Ing OF so vast sum as Is billion
will require the utmost of devotion
and exertion. Mr.. Leach adds. The
force of this statement becomes more
apparent when it is realized that
the goal must be achieved without
reliance upon the funds of CONNER
cial banks.
Mr.. Leach cites President Roose-
velt's statement that expenses of the
Federal Government for the fiscal
year ending June 80. 1914, will ag-
gregate about 104 billion. OF this
huge sum. 81 billion will be expended
on war activities and the remainder
on the ordinary functions of Gov
ernment. Only 38 billion is expected
to accrue to the Treasury in rev.
enues. leaving about 66 billion to be
borrowed in this fiscal year to pro-
vide for the successful prosecution
Of the war.
Drive for Excess Earnings.
The statement reviews the enorm-
Gus amounts individuals will re-
ceive In income payments this year,
this sum being vastly more than the
amount needed for taxes and avail
able goods and services. 1t is estl-
mated that there will be asdisposable
Income of about AZ billion. which
unless absorbed. is likely to exert
an upward pressure on prices.
While it's basic purpose is to back
up the men at the front in every
conceivable way, through providing
the Treasury with the funds essen
tial to finance the war, the cam
paign has another very important
purpose. namely, the absorption OF
excess purchasing power hanging
over the markets for the diminish
ing supply of civilian goods and
services. In order to win the war
on both fronts, it is necessary that
both purposes be achieved, Mr..
Leach declares.
The drive starting September 9
will concentrate its primary effort
toward securing the greatest amount
possible from individuals. business
concerns and all types of institu-
tions other than commercial banks.
Offerings of securities to banks will
be made separately after the general
campaign, the Richmond Reserve
Bank president adds.
Mcnro Junior Board Speaker
Postwar air transport and the
present role of aviation in preparing
for peace will be the theme of a
luncheon speech by C. Bedell Monro.
president of Pennsylvania Central
Airlines, before the Junior Board
of Commerce tomorrow at the An
napolis Hotel, at 1890.
Mr.. Monro is the youngest presi-
dent Of any major United States
airline and head of the only major
airline with general headquarters
in Washington. A former professor
at the University of Pittsburgh, he
is one OF the veterans of the air
transportation field despite his
youth.
Status Of Banks Unchanged.
Ofncials of the American Bankers
Association at Washington head
quarters see no change in the status
Of bankers as the result of the defer
ment classifications OF the War
Manpower Commission and other
orders recently issued in connection
with the war effort.
Oficials said the new orders pre-
sented no new problems to bankers
who are now doing everything pos
sible to help finance the war, fur
nish funds for war industry. arouse
public interest in the sale Of War
bonds and aid in the control of in
dation.
As noted in the American Banker,
banking jobs are not named among
the 149 strictly deferrable classifica-
tions Of occupation. But banking
work Is also not mentioned in the
"nondeferrable" classifications.
Hence, the problem remains as
before, that of convincing local
boards Of the essentially of banking
service and of the essentially of the
skilled bank man for whom defer
ment may be asked.
More Bankers on Vacation.
Corcoran Thorn, president of the
American Security e. Trust Co., now
on vacation, is basking in the cool
breezes from the New Hampshire
lakes and mountains.
Hans w. Ireland, treasurer of the
American Security & Trust Co., is
another banker on vacation.
David Bornet, vice president of
the National Savings & Trust Co.,
who has been with the Institution
more than IS years, is on vacation
Barnum NJ Cotton, another vice
president Of the trust company, is
passing his vacation in and near
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