Evening star., 1947-10-21
Bankers Hear Pleas
For Credit Restraint,
Speed in Foreign Aid
By Edword c. Stone

"A WdIIliIlS against uIlOTlQleQ III
hatlon and plea for foreign aid
to prevent "the worst" from hap
pening in Europe this winter we're
delivered last night to the District
Bankers Association.
Addressing the financial leaders
at a Mayfower Hotel meeting were
M. S. Szymczak, member of the
Board Of Governors of the Federal
Reserve System. and Eugene Meyer.
first president Of the International
Bank for Reconstruction and De-
velopment and board chairman of
the Washington Post.
Mr. Szymczak urged 260 members
of the bankers association to apply
restraint on further credit expan-
sion.
Large Risks Incurred.
Under present conditions. he
pointed out, banks are incurring
large risks in private credit expan-
sion and they should be constantly
aware OF these risks.
Banks that conserve their credit
resources and stubbornly maintain
a high degree of liquidity will have
less to regret and fewer losses to
write off than institutions that ride
the crest of the inflationary tide, he
declared. This is particularly true
of banks specializing in real estate
and consumer credit. but also ap-
plies to extensive business and agri-
cultural lendings, the speaker de-
clarcd.
Alertness will do much to reduce
the undesirable effects on banks
when imitation comes to an end and
is followed, as it will be. by defla-
ton, he asserted The business of
banks is to make loans and they
should not give up their proper
sphere of activity but should be
doubly cautious at this time, the
Reserve Board officials said.
Meyer Urges Foreign Aid.
Mr.. Never, back from a European
visit, declared that, if the United
States does not enable the Western
Europeans to escape wholesale star
vation and freezing, then the worst
will happen"
Mr. Meyer cited two rather obvi-
GUS reasons" for Europe's plight:
THE rapid deterioration of the
financial and economic situation OF
Western Europe. and the increasing
aggression of our wartime ally the
well-named great Bear called Rus
sia.'
If temporary stop-gap aid for
Western Europe is absent and If
"as result Europe starves and
freezes this winter, there will Ger
tainly be chaos and confusion" he
said, continuing:
I am not sure the result will
necessarily be Russian communism
as seems to be generally assumed
But know that circumstances will
push Europe to one extreme or an
other, and in either event create a
situation vastly more difficult TO,
us to deal with"
New ABA Chief Introduced.
Richard A . Norris, association
president, introduced Joseph M
Dodge, new president of the Ameri.
can Bankers Association, on hi.
first visit to the Capital since his
Atlantic City election.
A framed testimonial of apprecia
ton was presented to S. William
Miller by members of the luncheon
group for his services last year AZ
head of the association.
Horace F. Stokes made a report as
chairman of the Commercial Trade
Activities Committee, showing i'm
pressive business expansion in the
Capital. Such business indicators
as bank deposits, bank clearings
building activity and department
stores sales show marked advances
he said. He pointed out. however
that there are more failures this
year and traffic on the transit lines
has fallen off.
Resolutions offered by Robert V
Fleming were adopted in honor of
the late Hilleary G. Hoskinson
senior vice president of the Riggs
National Bank