| Show BANKERS RAP b GOVERNMENT I. I COMPETITION Federal Meddling With Private Private Private vate Business Is Attacked ATTEND CONVENTION Utah Financiers Financiers' Convene at ai Bryce Canyon By y JOEL L. L PRIEST JR Telegram Financial Editor BRYCE BRYCE- CANYON June 15 More 15 More than Utah bankers meeting in annual convention Friday at Bryce canyon lodge overlooking this famed scenic spot heard pleas for discontinuance discontinuance discontinuance discon discon- of government competition in business and for free play for lor individual Initiative with removal of ot government imposed While avoiding direct criticism of specific new deal policies two speakers championed the cause of Individualism They were George B. B Roberts vice president of the National National National Na Na- City bank of New York a guest speaker and H H. E. E Hemingway president pr ident of ot the Commercial Security bank of Ogden and president of ot the Utah Bankers' Bankers association E. E G G. G Bennett vice president and general manager of the First SecurIty Security Security ity Corporation system system and a director of the Federal Deposit Insurance c cor cor- tola told the morning of v workings of r the d deposit posit insurance law Banking Act Praised Addressing the morning session Albert C. C Agnew counsel for the Federal Reserve bank of San Francisco Francisco Fran Fran- Francisco cisco described the banking act ol of tl 1933 as the most constructive and important banking legislation since the adoption of the federal reserve act of ot 1913 The expectation of making a profit prof il ilis is still a necessary and desirable part of oC our economic system and as lS such encouragement should be given to tc this most natural and powerful of ot all aU Incentives of economic activity Mr Roberts told the afternoon session Talk about the necessity of priming the pump has resulted In depreciation of the currency spending spending spending spend spend- ing of ot billions of ot dollars from the treasury and other schemes to help b business get on its feet Cites Recovery Problem The difficulty is however that a good many of these schemes chemes have been loading business S down with increased increased in in- creased taxation and production costs and is not encouraging to business businessmen men who already are having about all they can do to keep out of tf the red and supply employment for tor the workers dependent upon them He urged removing of government Imposed obstructions and permitting business to utilize natural economic forces for Cor establishment of ery cry The problem of recovery recover Is not one of attempting radical and disturbing disturbing disturbing dis dis- dis- dis chan changes es in an economic system tem tern that on the whole has served us well ho he said but rather of helping helping helping help help- ing business work out new exchange relationships which will wm restore the equilibrium and enable the different Continued on Pate Pore Three BANKER RAPS U vii u. S 8 MEDDLING Federal Competition With Private Business Is Denounced Continued from Page Pace One groups of oC the thc population to trade with one another again Pleads for Individualism The system which will accomplish accomplish pUsh this most rapidly is the one which allows free play for lor individual initiative and the fullest flexibility for lor makin making adjustments not one which involves industries in all sorts of codes codea and overhead controls Mr Hemingway in his annual address ad ad- dress said lasting recovery can cm be achieved only on the solid foundation of the earning power of or capital and md the productive capacity of labor not through government spending The law of supply and Ind demand Is b the great adjuster leveler and equalizer equalizer equalizer equal equal- izer over a period of time he said The government can fix lix prices but it cannot compel industry to operate without profit nor the consumer to buy at a fixed price Individualism is being to government domination of ol private industrial affairs The public pub pub- lie lic spending spendin agencies having a po po- lending power of ot ten billion dollars should be curtailed and government government government gov gov- competition against private capital rapidly discontinued Utah Banking Sound He said Utah banking has never had a sounder situation in its history than obtains at It this time Mr Agnew interpreted the 1933 banking act b by sections declaring il ilis it itis itis is fundamental law controlling in large de degree ree the business of banking in the United States It is highly expedient for rol state te banks to become members of ot the thc federal federal federal fed fed- eral reserve system or become national national na na- banks he said Gradual unification uni unification uni uni- of ot banking in the United States under one system of oC control Ls is a consummation dev devoutly to be wished Unified control as encouraged encouraged encouraged aged by the banking act is distinctly a step in the right direction and nd through it many of or the loo loose e. e and dangerous practices permitted in inmany inmany inmany many st state stale tc systems will vill b be eliminated eliminated na ted Deposit Insurance Lauded Mr Bennett described the Federal Deposit Insurance corporation as the prime factor in restoration of depositor depositor de do- confidence in the banking structure and as a permanent part of the American banking system It is now necessary to give some attention to the feeling of ot the banker and the stockholder If it the individual bank jank is to serve in the best capacity the needs of the community he said You cannot expect normal normaj functioning functioning functioning from the tho banker if jf there is isan isan an nn sent fear whether real or fancied that his interest and that of th he the stockholders rs of ot his bank may be used completely for fer matters over which they have no control such as ashe the he extreme possibility of ot the unlimited liability feature of the permanent perma perm neat Dent insurance fund Lund as provided Inthe in inthe the he banking act of or 1933 He explained the llie temporary fund has been extended for another year ear to July 1 1935 with per cent guaranty of deposits increased from 2500 to He lie reported that all Utah banks are members of the insurance corporation corporation corporation corpo corpo- ration and that the banks banks' have accounts account totaling of which I or 46 per cent is insured under the 2500 2500 guaranty limit William R. R Morehouse vice president president pres- pres dent of ot the Security First National bank of Los Angeles told the afternoon after acter noon meeting that a wave of oC false rumors has been dispelled and that millions of person are arc beginning to discover the truth regarding the banking situation Mistake Charged In my opinion he said our bank ers made milde a serious mistake when they quietly submitted to a lot of lied fied abuse Their silence conveyed the impression that they were guilty Instead of at quietly submitting we should have stood our ground and defended all that is good in our busi ness Other speakers were John U. U Calkins Calk ins iris governor of ot the federal ie reserve bank of ot San Francisco who spoke this morning and the following who were on the afternoon program W W. S. S Emms of Salt Lake City president of the trust section of ot the Utah Bankers Bankers' Bankus' Bankus Bank Bank- ers ers' association Will C. C Wood vice president nt and manager Bank of ol America National Trust and Savings association of ot Oakland Melvin H H. assistant vice vicc president First National bank Chicago J D. D H H. Harris president ident of oC the Bank of ot St SL Gcorge George welcomed the delegates I this his morning mornin and F. F M. M cad cashier el of the Utah Savings and Trust I company of Salt Lake ake C Ct ty re re- re i 4 S |
