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Show ! BANKERS ARilAHGIHG REGIONAL MEETINGS Studying New Legal and Economic Eco-nomic Conditions Affecting Bank Management STRESS PUBLIC OPINION American Bankers Association Sponsor of Meetings as Part of Nationwide Program of Banking Bank-ing Development PHI LA OKI. PI 1 1 A. -Fifteen hundred hun-dred bankers from fifteen eastern states met here in January In a two day conference devoted to discus sluns on h'Kislnilve. managerial, op era tins and public relations prob lems of the hanging business. This was the first of a series of meetings planned by the American Bankers Association in its nationwide pro gram of banking development un der the leadership of Robert V Fleming;, president of the associa tion. Similar conferences will be held in southern and western sec tions of the country. "It is the purpose of these working work-ing conferences to bring to associa tion members and other bankers a thorough knowledge of the changes-in changes-in banking laws and rules provide discussion of better public relations so that there shall be greater co operation and understanding be tween the banker and his customers and to give opportunity for a survey of the problems incident to the Gov ernment's competition with our chartered institutions" he said. To Help Government Quit Banking The discussions at the conference showed that the bankers ore ready to make It easier for the Govern ment to relinquish many of its emergency financial services as soon as possible by demonstrating bow their Institutions are able to render full banking facilities. Bankers generally have recog nized that in times of emergency the Government had to come to the assistance of the people where chartered institutions were unabh to do so on account of such condi tlorra. Mr. Fleming said. They alsc realize that possibly many function! which the Government is perform ing are of a nature which cannot be handled by chartered institutions under fundamental principles of sound banking. On the other hand, he said, "we should survey all emergency lending lend-ing measures of the Government to judge which of these activities can be properly and soundly taken over by banks." The attending bankers devoted time to considering the Banking Act of 1935 and the many related regulations and discretionary pow ers under the Federal law. These were explained by O. Howard Wolfi of Philadelphia, who said he haci found there are forty-eight places In the act where provision is made for discretionary power . be exercised by government officials through rule or regulation. Bank taxation was discussed by Charles H. Mylander of Columbus. Ohio, who declared that "the aver age American Is vitally Interested In taxation of banks because sol vency may depend to a large degree upon the way In which the taxing power is exercised upon them." To prove his point he cited earn ings figures which showed that, In the year ended June 30, 1934, "for the United States as a whole, na tional banks used 514.89 out of each $100 of net operating earnings, be fore taxes, in payment of taxes; but in seven of the twelve Federal Reserve Re-serve Districts the percentage of earnings used for taxes was above the average. It was in practically these same seven districts that the greatest number of bank failures occurred in those hectic years from . 1920 to 1933." As an example of how far taxation can go, he quoted official figures showing that in 1934 a large number of small state banks paid on the average $34.20 of every $100 of op erating profits for taxes. Mr. My lander urged that there be "brought home to the average American the self-evident truth that banks, deal Ing as they do only In intangible property, are not proper subjects for property taxation; that the true measure of a bauk's ability to pay taxes is the earnings it can make." |