Evening star. [volume], October 25, 1934, Page A-4, Image 4

About Evening star. [volume] (Washington, D.C.) 1854-1972

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PRESIDENT MAKES
STABLE PRICE PLEA
International Policy of Ar
riving at “Steady Values”
Is Praised.
■y the Associated Press.
Out of President Roosevelt's address
to the American Bankers' Association
there arose today clear indications
that the administration hopes for in
ternational harmony on a policy of
arriving at price stabilization "as
quickly as possible.”
In a speech in which he challenged
the banking fraternity last night to
speed the flow of credit, the President
Included this paragraph:
"With respect to international re
lationships, I have been glad to note
the growing appreciation in other
nations of the desirability of arriving,
as quickly as possible, at a point of
steadiness of prices and values. This
objective of a greater steadiness we
have constantly kept before us as our
national policy.”
Special significance was attached to
this because sources close to the
administration expressed the belief it
was one of three salient points in the
speech. They did not elaborate on it,
however.
The remarks on price stabilization
are not a pledge for currency sta
bilization which many bankers desire.
Many of the 4,000 delegates who
crowded Constitution Hall to listen
regarded the speech as leaving the
door open to whatever monetary
strategy may be deemed advisable to
attain the desired price level and
then keep it stable.
Managed Dollar Wish.
It was recalled that the President
has expressed a wish for a dollar that
would remain steady in purchasing
power over a long period—in other
words, a managed dollar.
The other point stressed as salient
was his challenge to the banks to "re
sume their responsibility” and expand
the flow of credit.
Francis Marion Law. retiring presi
dent of the Bankers’ Association,
which concludes its sixtieth conven
tion tndav said of the Presidents
speech:
"Out of the suggestions made by
the President and Mr. Jackson Rey
nolds (who also spoke) there can
and should be worked out a sound
program of far-reaching co-operation
between the Government, the banks
and the other groups named by the
President, the kind of program that
would be a real contribution to the
cause of recovery."
Other bankers received the speech
with comments that ranged from "ex
cellent" to "disappointing."
One high authority said privately
before the speech that bankers hoped
for assurances as to budget balancing
and private profits.
The President said nothing about
the budget, but he did enunciate a
belief in private profit the words that
"wealth should come as the reward
of hard labor of mind and hand. That
Is what we call the profit system.”
The speech was not critical in vein
and its tone was friendly. Some dele
gates had previously spoken a hope
that the President would "pat us on
the head.” This, the President did
not do, but neither did he attack, and
members of the association were
quick to recall praise and pledges of
other government officials as indi
cating the administration's attitude.
Reynolds, president of the First Na
tional Bank of New York, introducing
the Chief Executive, said he regretted
there was "evidence of misunderstand
ing between many of our country’s
bankers and those whose duty and
responsibility it is to administer the
affairs of the country.”
He said he wished to ask three
questions, to be answered by the
"secret selves” of those present; the
answer to the first would be unani
mous, he said, but there would be
varied answers to the other two. He
asked them as follows:
"Is it avoidable that either through
private philanthropy or the appropria
tion of public funds the destitute, un
fortunate and unemployed must be
cared for?
Want Budget Balanced.
“Second; (And I put this question,
I know, to men who, from high mo
tives and deep conviction, believe, as
I do, that the solvency of this Nation
and the prosperity of its people rest
on a balanced budget.) May we not
be in error in expecting too early a
date at which, even with the strictest
economy and integrity of administra
tion, the budget may be balanced;
and can any one of us fix a precise
date when such balance can be at
tained without fear that our prophecy
■will be made ridiculous by subsequent
events?
"Third: (And I put this question,
I know, to men who passionately be
lieve. as I do. that without monetary
stability we face chaos.) If any one
of us had the grave responsibilities
and duties of the President of the
United States, and were facing, as he
Is. international monetary instability
abroad and diverse demands for in
flation at home, would we at one
stroke both tie our hands vis-a-vis
the currencies of Europe and the
Orient and risk consolidation into
one irresistible program the inflation
ary demands here, by making a state
ment today that the very definite
stabilization of the dollar, effected last
January and since maintained, should
stand for all time and under all cir
cumstances?”
Mr. Roosevelt, prior to appearing
before the bankers, canceled all late
engagements in order to devote the
time unin. :rruptedly to the prepara
tion of his address, his last scheduled
speech before the congressional elec
tions. Contrary to usual practice, he
decided against broadcasting it by
radio.
Constitution Hall, where the Presi
dent spoke, was jammed, and an over
flow meeting was arranged in ad
joining Continental Hall, to which
the Chief Executive's remarks were
carried by loud-speaker.
Roosevelt Urges Bankers to Take Lead in Recovery ,
DEPOSITORIES DECLARED 1(1 STRONG POSITION THROUGH POLICIES.
THE text of President Roose
velt’S address last night be
fore the American Bankera’
Association:
I am glad to be here tonight at your
Invitation to speak to you Informally
about some of our common problems.
As many of you know by personal ex
perience, it is not a new thing for me
to talk with bankers. I have been
seeing many of your number almost
dally during the past year and a half.
And let me make It quite clear that In
these meetings I have not done all
the talking.
I have been a good listener and X
have asked many question^. I have
found there Is the striking lsck of
unanimity of opinion among bankers
that characterizes many other groups
in the country. It has been my pur
pose to seek out underlying agreement
in the opinions that bankers have
expressed.
Unity of Purpose Aim.
A true function of the head of the
Government of the United States is
to find among many discordant ele
ments that unity of purpose that la
best for the Nation as a whole. This
is necessary because Government is
not merely one of many co-ordinate
groups in the community or the Na
tion, but Government is essentially the
outward expression of the unity and
the leadership of all groups.
Consequently the old fallacious no
tion of the bankers on the one side
and the Government on the other as
more or less equal and independent
units has passed away. Government
by the necessity of things must be the
leader, must be the judge of the con
flicting interests of all groups in the
community, including bankers. The
Government is the outward expression
of the common life of all citizens.
What is a bank and what are its
relations with the people? Why do the
people, through their Government, su
pervise banks? The people put their
money into banks. They do this in
order to protect it and in some cases
to have it earn a small income. It
costs money to provide this service,
and therefore the banks are permitted ;
to invest these deposits in order to pay j
their expenses and to provide a rea
sonable profit to their stockholders, j
The public has no means of knowing i
whether the bank is making safe in
vestments, so it turns to its Govern
ment to supervise the bank. Govern
ment has accepted this responsibility.
Purpose Threefold.
In its relation with bankeis the 1
purpose of Government should be
threefold. First, to promote the con
fidence of the people in banks and
banking in view of the important serv
ice that banks and banking may per
form for the people as a whole. Sec
ond, to make this confidence a real
and living thing by assisting banks to j
render themselves useful and worthy j
of this confidence through wise super- j
vision. A third purpose now offers ,
itself, and I wish with all earnestness :
to press this point tonight.
Government should assert its lead
ership in encouraging not only the
confidence of the people in banks, but;
the confidence of the banks in the
people. In March, 1933, I asked the
people of this country to renew their
confidence in banks. They took me
at my word. Tonight I ask the bank
ers of this country to renew their con
fidence in the people of this country.
I hope you will take me at my word.
I need not recount the situation of
| the banks in the Spring of 1933. I
I found that the restoration of banking
activity Itself was my first responsi
. bility on assuming office. It was nec
essary that the Government throw
itself squarely into the task of bring
ing back to the banks the deposits of
the citizens of the country. As a re
sult of my appeal the people responded i
by restoring their confidence in the
banks of the United States.
Built Banks Strong.
The primary purpose accomplished,
it became necessary that the Congress
and the administration enact measures
to build up the banking structure so
that it could once more provide sup
port for the economic life of the coun
try. Moreover, it had to be built, and
we built it strong enough so that It
could resist future stresses and strains.
Government found it necessary to
create and get under way new emer
gency credit agencies and to use to
the fullest extent the already existing
Reconstruction Finance Corporation.
These credit agencies moved with he
roic energy, and it was a source of the
Utmost satisfaction to find that when
the Federal Deposit Insurance Corpo
ration went into operation the bank
ing structure had regained a very
considerable amount of Its strength
and its vitality.
I think it is only fair to say that
never since the formation of our Gov
ernment has such a task been achieved
in so short a time. Happily, the pres
President Roosevelt addressing the American Bankers’ Association.
—A. P. Photo.
ent security of our banks bears wit
ness to the wise course that we
pursued.
I find almost general agreement
among bankers that these agencies
must continue until such time as the
banks and other private credit agen
cies are themselves able and ready to
take over these lending functions.
And when that time comes I shall be
only too glad to curtail the activities
of these public agencies In proportion
to the taking up of the slack by the
privately owned agencies.
Security of All Rescued.
I venture to suggest to you that
when the history of these years comes
to be written, while the closing and
the reopening of the banks will occupy
a prominent place, even greater in
terest will be centered in the fact that
within a few months not only was the
banking structure strengthened, but
the great governmental lending agen
cies went into action and also saved
from disastrous deflation, liquidation
and loss a vast portion of the farm.,
homps, railroads and corporations of
the Nation. This definitely rescued
the security and happiness of all of us.
Just as it is to be expected that the
banks will resume their responsibility
and take up the burden that the Gov
ernment has assumed through Its
credit agencies, so I assume and ex
pect that private business generally
will be financed by the great credit
resources which the present liquidity
of banks makes possible. Our tradi
tional system has been built upon this
principle, and the recovery of our eco
nomic life should be accomplished
through the assumption of this re
sponsibility.
The present steady and unmistak
able revival of public demand for goods
and services should provide the assur
ance necessary to the financing of in
dustrial life. The Government is
bending every effort through the
Treasury, the Federal Reserve System,
the Reconstruction Finance Corpora
tion. the Securities and Exchange
Commislson and the Federal Housing
Administration to facilitate and en
courage the revival of private invest
ment. I commend the objectives of
the Housing Administration to your
immediate consideration, but at the
same time I ask you to note that all
of these new agencies are seeking
consultation and co-operation with
you bankers.
Revival to Reduce Burden.
While there lies before us still the
necessity for large expenditures for
the relief of unemployment, I think
we should all proceed in the expecta
tion that the revival of business ac
tivity will steadily reduce this burden.
I am grateful to know of the expres
sion of belief, public and private, of
your members that the speed that we
shall make toward this objective is
something that no one has the wisdom
or the hardihood to estimate. This
recognition reflects a growing appre
ciation of the problems resting upon
a responsible Chief Executive.
With respect to international rela
tionships. I have been glad to note
the growing appreciation in other
nations of the desirability of arriving,
as quickly as possible, at a point of
steadiness of prices and values. This
objective of a greater steadiness we
have constantly kept before us as our
national policy.
The fact that American business
men and bankers are devoting more
and more individual study and at
tention to the wider problems of our
Nation and of International affairs
Is manifesting Itself In many ways.
It seems to me that this Is a very im
portant development.
Let me make it clear to you that
the Government of the United State*
has dally and even hourly contact
with sources of Information which
cover not only every State and section
of our own country, but also every
other portion of the habitable globe.
This information is more complete,
Informative and accurate than that
possessed by any private agency.
I need not tell you that true wealth
is not a static thing. It Is a living
thing, made out of the disposition of
men to create and to distribute the
good things of life with rising stand
ards of living.
Means for Growth of Wealth.
Wealth grows when men co-oper
ate; but It stagnates in an atmosphere
of misunderstanding and misrepresen
tation. Here, in America, the material
means are at hand for the growth
of true wealth. It Is In the spirit
of American Institutions that wealth
should come ss the reward of hard
labor of mind and hand. That is I
what we call a profit system. Its
real fulfillment comes In the general
recognition of the rights of each
factor of the community. It Is not
In the spirit of partisans, but part
ners. that America has progressed.
The time la ripe for an alliance of
all forces Intent upon the business of
recovery. In such an alliance will be
found business and banking, agricul
ture and Industry, and labor and cap
ital. What an all-American team
that Is! The possibilities of such a
team kindle the Imagination—they
encourage our determination—they
make easier the task,! of those In
your Government who are leading it.
The Nation does not merely trust
or hope that we will do our duty—
the Nation la justified In expecting
that we will do our duty.
RAP ATPRESiDENT
HELD UNJUSTIFIED
Representative Hancock Declares
North Carolina Banker’s Opin
ion Is Not General.
Criticism of President Roosevelt by
Robert M. Hanes, North Carolina
banker, does not represent the ma
jority of the State’s bankers, according
to Representative Hancock, Democrat,
of North Carolina. i,
In a statement. Hancock took Issue
with a speech made Monday by Hanes, !
president of the Wachovia Bank St
Trust Co., of Wlnston-Salen, before
the American Bankers' Association In
which Hanes said the President im
plied that American bankers had not
done their part toward aiding recovery.
Hancock, a ranking member of the
House Banking Committee, who Is also
attending the A. B. A. sessions, said:
••• • • Bob's thrust at the best
friend the good bankers have ever had
was in my judgment both uncalled for
and unjustified. • • •
"Those who are criticizing the spend
lng program should realize that i
America is worth approximately twice
today what it was when Mr Roosevelt
took the oath of office and that the
utimate cost to the taxpayers Is prop
erly chargeable to the old rather than
to the New Deal."
Hancock said since enactment of
deposit insurance there was no neces- I
sity for banks to keep a large per
centage of their assets liquid, aserting: I
“And the institution that continues
this policy, which Is doing more to
retard recovery than all other factors
combined, will In time suffer a serious
loss of prestige and public confidence."
SUSAN B. STURGIS
fTEADS BANK GROUP
Other Officers Are Elected
as Women's Association
Ends Sessions.
The Association of American Bank
Women late yesterday chose Miss Bu
san B. Sturgis of Boston as president,
concluding a three-day convention at
the Mayflower Hotel. She succeeds
Mias Agnes M. Kenny of Milwaukee.
Other officers chosen Included Miss
Anne Houston 8adler, New York City,
vice president; Miss Ellen L. Whitney,
Boston, recording secretary; Miss
Ethel T. Gammons, .West Newton,
Mass., corresponding secretary, and
Miss Sara J. MacLeod, Cleveland,
treasurer.
The following were named regional
vice presidents: Mrs. Doris B. Bryant,
Quincy, Mass., New England division;
Miss Henrietta J. Fuchs, New York
City, Middle Atlantic division; Miss
Annetta G. Foster, Grand Rapids,
Lake division; Miss Mabel D. Robson,
Atlanta, Southern division; Miss Ma
tnllde M. Woltjen, St. Louis, Mid
western division; Mrs. George F. Ar
nold, Houston, Tex., Southwestern di
vision, and Miss Jennie Taylor, San
Francisco, Western division.
Miss Sturgis spoke briefly in ac
cepting her new office.
Prior to the business session, the
delegates met for luncheon in the
Sulgrave Club and heard Miss Helen
3arloss, special assistant to the At
torney General, discuss the Income
tax, and Miss Mae Benson of the
Federal Housing Administration, speak
of that organlza .ion's woric.
CONVICTIONS REVERSED
Chicago Bankers Get New Trial
on Fraud Charges.
8PRINGFIELD, 111., October 35 <>P).
—The conviction of John Bain, for
mer head of a Chicago banking chain
ind one-time political power, and his
associates, on charges of accepting
leposlta at the West Englewood Trust
Sc Savings Bank when it was In
lolvent yesterday was reversed by the
State Supreme Court and remanded
to Cook County for a retrial.
Convicted with Bain and sentenced
to terms of one to three years each
were his son, John H. Bain, and his
son-in-law. W. Merle Fisher.
Bain's 13 banks closed in 1930.
The State charged that the collapse
■>t Bain's holdings cost Chicagoans
ibout S40.000.000.
Plans Lusitania Salvage.
A Glasgow. Scotland, firm plans to
lalvage the Lusitania.
PRICE CUT SOUGHT
Reduction in Lumber Costa Asked
by Hardwood Industry.
MEMPHI8. Tenn., October 25 MP).—
An approximate decrease of 14 per 1
cent in minimum code lumber prices
was recommended to the National
Control Committee of the Lumber
Code Authority here last night by
leaders of the hardwood Industry.
The recommendation was taken un
der advisement by the Control Com
mittee, headed by C. C. Sheppard
of Clarks, La.', and It In turn will
report to the N. R. A. in Washington.
I
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' Foot Htalth H tad quart *r$ j
523 Uth St. N.W.
■ Ground Grippar i Dr. Kahlsr i ;
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*traoi mark u. m. PATS. hoi. i rro.irr and i.mr iot : 4
USt£y£/ik. ice cream PUMPKIN
with a JACK O’LANTERN FACE
This novel Hallowe'en ipedal it made
entirely of Breyert Ice Cream. The cen* ‘1.25
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decorations ... Children will love it.
Alse an assorted company of Individual ko
craam portion* masquerading a* witches, cots,
owls and the like ... at $2.40 the dezen.
Order from your Breyer Dealer 4B hour* la
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■SAMBA"
PAY AS LITTLE AStl WEEK
Jordan's offers another household time saver combination.
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Arthur Jordan
PIANO COMPANY
1239 v 6 Street ■* Cor. 13 ~ N.W.
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Upper: Miss Susan B. Sturgis,
president.
Lower: Miss Anne Houston
Sadler, vice president.
4 mos ’it’ Andy Get
R. F. C. Loan of $2
On6Cattle Mo"*gage*
Comedians “Touch”
Directors to Assist
Weber City,
lr the Associated Press.
Amos and Andy yesterday tapped
he R. F. C. for a loan of $3—and
[ot It.
Accomplishing In a few minutes
what usually takes big business men
weeks to do, the radio comedians
»lmly stepped Into a meeting of
the board of directors and before
anybody could protest, outlined their
proposition. They are old friends of
Chairman Jesse Jones.
"Gemmen of the Deconstruction
Finance Corpulatlon,” Intoned Amos,
Me and Andy wants to borrow two
dollars. We Is building Weber City.
“Dls is a model city where candi
dates fo' office can make speeches
when they ain’t got no chance to
talk no other place. We gives you
as security a cattle mo'gage on de
taxicab, our pussonal note, and Andy's
hat. And we wants de two bucks
right now.”
In his most serious manner. Jones
declined the hat as not meeting the
Government's standards for collateral.
He accepted the taxicab mortgage,
however, and ordered the check
drawn. The startled members of the
board agreed, then the comedians
left to keep an appointment at a
local theater.
I BETTER VALUES CANNOT <
BE HAD IN FOOTWEAR! >
We’ve gone the limit in
assembling to sell for $6.50, X.
a line of shoes that is incom
parable at the price. ^
We illustrate one model—a com- ^F
£ bination of black kid and auede. There
Vare many others. Size* to assure the
proper corrective fit (or every foot.
EDMONSTON & CO., Inc. <
CARL M. BETZ, Mgr. <
^ 612 13th St. |
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Firat Gratia Silky
SAROUKS
9x12 $175 °o
4x7 $69°°
Baat Quality Silky
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