Evening star. [volume] (Washington, D.C.) 1854-1972, 1959-06-07


eminent lending programs In
Government efforts to maintain
growth, the District Bankers A
In q resolution at the Gle
convention at the Homestead. h
return Of loan and credit func-
tons to private Institutions. the
announcement Of private
financing in all areas and the
removal Of statutory limits on
interest rates.
It expressed belief that this
would be in the long-run public
interest. It pledged support to
the American Bankers Associa-
ton in seeking to attain these
detectives.
Direct and guaranteed or in
sured loans to non-governmen-
tai enterprises have risen from
Sill billion in June, l945, to SIT
billion in June, 1858, and are
expected to reach $l05 billion
by June. 1860. the resolution
pointed out.
Stability Threatened
Conceding that some of the
detectives Of these loans are
doubtless desirable, the resolu-
ton said they have introduced
rigidities into the financial
structure that constitute a
long-range threat to economic
stability and realization Of the
economic potentials of the
Nation.
"The programs for the most
part have been developed on
the premise that credit was not
readily available from private
lenders on reasonable terms.
The word reasonable usually
meant lover interest rates and
low interest does not attract
savings in SUFFICIENT volume to
achieve a suitable rate Of
growth in the economy"
Activities Of these programs
have been partly insulated at
times from flexible credit mar
kets, it was emphasized, and
therefore, served to impair ef-
fectiveness Of monetary policy,
complicate the problems of
Treasury debt management and
weaken the ability Of fiscal and
monetary authorities to pursue
the twin detectives Of financial
stability and economic growth.
Other Resolutions OKd
Four other resolutions were
presented by Robert c. Baker,
president of American Security
& Trust Co.. and resolutions
committee chairman. They
were adopted unanimously by
the convention.
The Federal City Council
and the Terminal Committee,
Inc, were praised for leader
ship in endorsing construction
Of a proposed $3.50 million CEN
ter in downtown Washington to-
be called the Federal City Gem
ter. The association pledged
all possible assistance in ex-I
pediting this project and ex-I
pressed hope that all remain
ing Government clearsnces will
be granted as speedily as pos
sible.
Another resolution pointed to
the steady influx Of national
groups into the District of CO.
lumbia for the establishment
Of headquarters here. This
trend has become so well es-
tablished and clearly defined
as to stamp the Capital City
definitely as q logical and de-
sirable center for these i'm
portant organization, it said.
1t pledged support toward the
fullest development Of this
trend.
Fowler Is Praised
The association also praised
Walter L. Fowler for an un-
scheduled talk Friday calling
for support Of a proposal by
the District Commissioners of
a new policy to govern fiscal
affairs Of the District govern
ment. The resolution author
lied creation Of an association
committee to study the pro-
posal.
The Commissioners proposal
was that Congress itself pro-
vide for the levying of District
taxes, pay them into the Fed
eral Treasury and then appro-
PIRATE all funds necessary to
maintain the Federal City as
1t should be maintained.
A final resolution commended
association officers and CON-
mittees for their work on the
last year.
Justin B. Bowersock, execu-