Evening star., 1951-06-07

Between April
sSss "a. 1850. and
MIR. Bisselle. April 9 this
year, date of the latest bank call,
Washington bank deposits in
creased $50 million to q total Of
$1,147, 100000, while resources
jumped $88 million to 81 ,234, ,000,-
600, Mr.. Bisselle pointed out to
$50 bankers and guests at the
opening session of the associa-
tion's 33d annual convention.
Rehecting the high level of busi-
ness activity here, the banks
holdings of Government and cor
porate securities declined some
$23 million, while loans increased
some $64 million in the same
period. he declared. Capital funds
of the banks rose IS million.
Pointing to drastic changes and
some dislocations in the economy
since the Korean outbreak and
the start of the defense program,
Mr.. BiSselle added: "One of the
major problems to be battled on
the home front, and one in which
bankers have vital responsibility,
is the frightening threat of inf1a-
ton.
Serious Inroads Seen.
'Inf1ationary pressures of the
past decade have made serious
inroads on the purchasing power
of the dollar. Those persons liv-
ing on pensions and retirement
incomes, or on fixed salaries, afe
feeling the pinch now.
Imitation is a race nobody
wins.
"As bankers, we have a tre-
mendouS stake in this battle. One
of the weapons at our disposal is
the Voluntary Credit Restraint
Program which was formulated
under authority of the Defense
Production Act of 1850, by repre-
sentativeS of the Federal Reserve
System, banks, insurance COM
panies and investment bankers,
and now includes mutual savings
banks and savings and loan as
sociations."
Mr.. Bisselle, senior vice pres
tdent of the Riggs National Bank,
represents Washington banks on
the regional committee for the
Fifth Federal Reserve District.
Among the highlights of the
last year, Mr.. Bisselle pointed to
legislation increasing coverage of
the Federal Deposit Insurance
Corp. from $4,000 to $4,000 for
each depositor and a dividend
credited to member banks amount
ing to around Sc per cent of each
banks assessment. This credit
afforded welcome relief to banks
bearing FDIC costs, he said.
A deferred Posting Statute,
adopted by Congress for District
banks, was another forward step,
Mr. Bisselle said. He praised
Francis G. Addison, jr., president
OF the Security Bank and chair
man of the associations Law and
Legislative Committee. for his ef-
forts on behalf of this and other
legislation.
Another matter of Importance,
he declared, was the decision of
the District Court of Tax Appeals
placing all Washington banks on a
comparable basis for payment of
the gross earnings tax. National
banks and trust companies, which
had been assessed 6 per cent on
gross earnings without deduction
of savings interest, were allowed
the same basis as State banks or
savings banks per cent on gross
earniugs-after deduction of say
ingS interest. AS a result, sub
Stantial refunds will be received
by the banks, he pointed out.
Praises Cooperation.
Mr.. Bisselle praised Robert H.
Lacey, chairman of the COM
mittee responsible for open
ing large new quarters of
the association during his admin
istration, and to George M. Fisher,
immediate past president, in whose
term arrangements for the build
ing were made. He also praised
the valuable work of Eldridge D.
Kendrick, association secretary,
and the cooperation of the news
papers.
He didn't forget an old friend,
Edward C. Stone, who retired late
in 1850 as financial editor of The
Star. This was the first time in
many years that Mr.. Stone was
not at the convention, and Mr..
Bisselle expressed the associations
appreciation for his friendship
and long service.
Samuel c. Redman, jr., assist
ant vice president Of the Lincoln
National Bank and president of
Washington Chapter, American
Institute Of Banking, reported a
successful year, despite slight
decline in membership and STU
dent enrolment.
While membership of TAB and
student enrolment of 518 were
slightly behind the previous year,
this condition was reflected in
most chapters throughout the
country, Mr.. Redman said.
Brown Hits Administration.
Secretary of the Army Pace who
was scheduled as a guest speaker
at the opening session, Cancelled
the engagement last night to an
swer a call to appear at con-
gressional committee hearing.
His place on the program was
taken by Constantine Brown, for
eign affairs columnist of kThe
Washington Star. originally scned-