Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-06-07

RASo-AAS "a S~4S Nv odAl
today.
Addressing the. opening ses-
sion Of the associations 44th
annual convention at The
Homestead. Mr.. WilIett point
ed out that the unfavorable
balance has amounted to S13.5
billion and the loss of gold re-
serves totaled So billion in the
last four years.
by variety of Government
actions, annual losses in 1861
were cut by one-third and the
gold outflow by one-half over
the previous year, but the ad-
ministration has not yet as
serted itself fully on behalf of
the really effective long-range
solutions to the problem" said
Mr.. Willett. who is vice presi-
dent Of American Security &
Trust Co.
In the final analysis, the
balance of payments of deficit
will be overcome only if the
balance of international trade
can be turned decisively in our
favor. Lower tariff walls will
provide us with the opportun-
ity, but prices must be kept
at competitive levels and the
productivity of our industry
must be greatly increased" he
continued.
Urges Wage Stability
Prices can be kept down
only if the full force of the
Government is brought to bear
on leaders of organized labor
to forego demands for increased
compensation not justified by
increased profits and produc-
tivity.
Increased production de-
ponds on a more skilled and
conscientious labor force and
the ability of industry to OBJ
tain capital through investment
tax credits and or increased
depreciation allowances"
The competitive race for
savings has forced most banks
to raise interest rates on time
deposits to the higher permits
able rates ranging up to 4 per
cent and at the same time de-
mand for credit has been less
than expected, Mr.. Willet re-
ported. This has exerted real
pressure on bank earnings, he
said.
: Funds Lack Outlets
Institutions seem, at the
moment at least, to be accum-
ulating funds at a more rapid
rate than they can find out
lets and it would appear I'M
likely that the Federal Reserve
would move toward a more
liberal credit policy until there
is either a substantial pickup
in demand for credit or more
evidence of upward pressure on
prices" he declared.
Those responsible for man.
agement Of the public debt are
to be commended for their real
istic approach to the refund
ing problem and for their over
all pursuit of a sound money
policy" he continued.
THE national economic out
look has darkened somewhat
since the first of the year. The
oft predicted business boom has
failed to materialize and the
economy has not shown antici-
pated vigor.
Buying Power Rises
However, buying power of
the Washington area has moved
upward as reflected by first
quarter figures, which show
employment and payrolls sig
nificantly above last year and
unemployment down by more
than six per cent"
With the addition of Fair
fax County National Bank and
the National Bank Of Maryland
to associate membership, the
associations membership has
risen to 26 banks with 100
banking offices in the last year,
he reported.
Member and associate mem
Der banks had $94 million more
deposits and $103 million more
total resources on March 81
than on June 80 last year and
a large part of the deposit in
crease was from time and saw
ings deposits. District bank de-
poSits were up 51a per cent
from a year ago and loans
were up almost 7 per cent on
the latest condition call, he
said.
Regulation Streamlined
James ]. Faxon, Controller of
the Currency. told the bankers
his office has cut down time
required for handling Of appli-
cations for new bank branches,
mergers and new charters by
streamlining procedures since
he toOk office 1oSt neran1hoT