Evening star., 1951-06-08
Powell Praises Help
Given by Bankers 10
Credit Restraint Plan
By Donald B. HodIey
Sfor Stoff Correspondent

BY Donold b. nooiey
Stor Staff Correspondent
HOT SPRINGS, Va, June g.
Oliver S. Powell, member of the
Board of Governors, Federal Re-
serve System, and chairman of
the national committee directing
the Voluntary Credit Restraint
Program, today praised the strong
backing given the program by
bankers and other lenders.
However, he told the District
Bankers Association, in conven-
ton at the Homestead here. that
much Of the work so far has
been organizational and educa-
tional and that plenty remains to
be done, in view Of prospects for
increasing inflationary pressure
on the national economy in COM
ing months
Mr.. Powell urged the bank
ers to talk to business customers
individually.
Explain the Program First.
Another suggestion: First ex-
plain this program to your direc-
tors and keep them informed as
to how it is affecting your own
bank and community. Your di-
|rectors are men Of affairs in your
city, and their explanations in
their circle Of acquaintenances
will save you much strain and
possible loss of customers.
Follow the advice of the Amer
ican Bankers Association and
send copies of the Voluntary
Credit Restraint Program to your
commercial customers. A few
days ago, President Shelton OF
the ABA wrote to all banks ask
ing that this be done. The re-
sponse has been tremendous.
The program has not been in
operation very long and two i'm
portant restraining influences
came to bear at the same time. he
added.
THE top-heavy retail inventory
situation" he said, began to be
apparent with the dropoff in re-
tail sales before Easter, and the
March and April declines in the
Government and corporate bond
markets exerted a chilling inf1u-
ence on credit expansion.
However. / deem it something
more than a coincidence that the
sharp counter-seasonal weekly in
creas, in commercial and indus
trial loans at reporting member
banks ceased with the week OF
March 81"
Gap to Be Larger.
Referring to inf1ationary pres
sures, Mr.. Powell said the gap
between goods for civilian con-
sumption and the supply Of pur-
chasing power Fl 1omises to be even
larger as the months go on.
The Treasury's plan for exten-
sion of maturing E bonds deserves
the fullest support, and bankers
can help by informing customer.
of the advantages offered by the
plan, John A. Reilly, president OF
the Second National Bank. told
the convention. Mr.. Reilly was
chairman of the Districtl War FL
nance Committee for the third
fourth and fifth war loan drives
Constantine Brown, columnist
for The Washington Star. also
was to address the bankers today
A feaure Of today's program
was an address on banking prob
lens by Frank N. Totten, vice
president Of the Chase National
Bank of New York, who flew here
from the national convention Of
the American Institute Of Bank
ing at Pittsburgh.
Albert s. Galley, vice president
of the Lincoln National Bank, who
has served as association treasurer
for 38 consecutive terms, and Sec
retary Eldridge D. Kendrick gave
their annual reports. Walton L
Sanderson, vice president Of the
Hamilton National Bank, first vice
president of the association anc
slated to become the next pres.
ident at the annual election TO-
morrow morning. presided at the
session.
Two guests Of the association
Maple T. Harl. chairman Of the
Federal Deposit Insurance Corp.
and Hugh Leach, president of the
Federal Reserve Bank of Rich.
mond, were welcomed to the con.
vention and responded with short
talks.