Evening star., 1952-06-12
nfIationarYP Peril
Remains Stronq,
Bankers Told
Hamilton Official
| Warns D. c. Group
On Deficit Financing
BY Donald B. HodIey
Financial Editor of The Star


HOT SPRINGS. Va, June H.
Despite buyer hesitancy in many
lines of business. the threat Of
imitation remains, Walton L.
Sanderson, president of the Dis
trict Bankers Association, said
here today.
He spoke at the opening session
of the associations 34th annual
convention at the Homestead. Mr..
Sanderson is vice president of the
Hamilton National Bank.
In response to consumer resist
ance and slower turnover of in
ventories. the Government has
suspended regulation w, shelved
the voluntary credit restraint pro-
gram for the time being and modi-
fed regulation X. Mr.. Sanderson
pointed out.
However. he repeated a recent
warning from C. Francis Cooke,
president of the American Bank
ers' Association, that the Federal
Government is faced by deficit
financing for the rest of this year,
and that the inflationary impli-
cations must not be overlooked.
Critical Period Possible.
Mr.. Sanderson also underscored
Mr.. Cookies estimate that there
is reason to believe the period
ahead will be a critical one and
that it is good idea to have an
insurance policy when "inf1am-
mables are stored in the barn"
I'm my opinion, there is good
common sense in this warming"
said Mr.. Sanderson. I'm view Of
this condition, the Federal Reserve
Board has requested that the VOL
untary Credit Restraint Program
continue on standby basis, in the
event developments should require
its reinstatement without delay"
A moderate decline in District
bank deposits in the first three
months of 1852 was the result
largely of Federal and local tax
payments said Mr.. Sanderson.
He reported March 81 total Of
81 ,236, 100000 was $22 million be-
low the all-time peak of $1.258,-
100000 on December 81. 1851. But
it remained $50 million above levels
Iof the call on April 8, 1851.
Ralph H. Mittendorff, assistant
treasurer of American Security g.
Trust Co.. followed Mr.. Sanderson
on the program. with a report of
chapter activities in it's 51st year.
Membership reached 816, high
est total since 1923, Mr.. Mitten-
dorff reported.
Cites Power of Women.
Georgia Neese Clark. Treasurer
of the United States. reminded the
bankers that women constitute a
great driving force for good in a
free community.
What a different world we
would be living in today if the
noble women of Russia and China
were free to make their yearning
known and felt, if we could but
reach the heart and mind of the
women towering behind the cur
tain raised by brutal, power -crazed
men," she declared.
In the United States, she pointed
out. women control 70 per cent OF
the private wealth. including more
than IS per cent of the saving ac-
counts.
In a light vein, Mrs. Clark
twitted the bankers for fond men,
cries of the gold standard and
told them that even in Colonial
Virginia when tobacco was money,
its value had to be protected by
production quotas and destruction
of natural surpluses.
Money From Mulberry Bark.
She remarked that the Great
Khan of China made his fiat
money from the inner bark of the
mulberry tree, using precisely the
system we are using today" But
there was no trouble with infla-
ton, she said, because any one
who tinkered with the currency or
refused to accept it at face value
had his head chopped off
Robert v. Fleming, president
and board chairman of the Riggs
National Bank, will serve as chair
man of the convention Nominating
Committee, President Sanderson
ANNOUNCED at the close Of the
morning session. Bruce Baird.
president of the National Savings
& Trust. will be chairman of the
Resolutions Committee.
With ideal weather, golfers faced
"a busy afternoon. The annual
presidents reception is scheduled
tonight.