BANKING BILL
Men and Bankers Agree
Objecting to Political Con-
trol Over Banks.
ARE SUGGESTED
ical Domination of Federal Re-
serve Board Declared to Be
Undesirable for Depositors
as Well as Their Banks.
D. C. -- Business
and bankers alike who have up-
before committees of Con-
to present views regarding the
Act of 1935 have found com.
cause for criticism lu those pro.
which they agree would create
for undesirable political con-
over the Federal Reserve System
thereby over individual banks
bout the United States. They
made the point that this undestr-
condition would affect depositors
even more than the banks
view has beau stressed In critl-
the Chamber of Commerce of
States, and the question of
control over banking was the
theme of a statement presented
S. Hecht, President of the Amer-
Bankers Association, who up-
before the Senate Sub-Commit-
on Banking and Currency hearings
Mr. Hecht declared that his or.
is actuated by a desire to be
to Congress "iu enacting effec-
aud workable banking legislation
interests of all our people." He
In part:
it is finally decided that it is nec-
to e~:y this legislation through
seas L we are strongly of the
that special care should be
to keep our credit control and
mechanism free from any sort
considerations.
a making tbis statement I do not
to appear to question the pro-
of the Government's exerting a
amount of control over banking
so far as they affect the na-
currency and general monetary
Nor do we object to broad pew-
supervision over the operation of
banking institutions because of the
responsibilities they carry,
it conies to such matters as
granting of credit and the making
by our banks, these are
usiness policies that sure-
not be under the sole control
board so constituted as to be de-
upon partisan or political con.
under any administration.
The Basis o| Sound Credit
real conditions that create the
for the ex;~ansion or contrac-
of credit arise from the needs of
industry and trade the'm-
wholly Independent of the ad-
policies of the party which
to be in power. We feel that
linanclal requirements of the na-
business constitute a continuing
that is not related to
changes. The fundamental
of sound credit do not vary
variations In public thought. All
teackes that the quality of
is sound only so long as It Is
purely on the requirements of
business. It is not sound when
considerations or motives in-
Into its composition.
Banking Act would centralize
Federal Reserve Board at Wash.
means aimed to control the sup-
of mouey in the country, which
includes the sum total of currency
circulation and demand deposRs in
| banks which become current
checks. The powers which tt is
to give the Board are intend-
It to influence the quantity
deposit money through open
operations, the discount rate
reserve requirements.
The Need for Independence
~'Phat Is the reason why we are so
In favor of making the Fed
Reserve Board a body of such in
and prestige that It would
renmved from all politl
influence and dlctatlou. Its
should be free to study and to
In accordance with the needs and
lltlons of agriculture, industry and
The policies of the board shouhl
to reference to the politics or the
ea in politics of the national ad
ratl ~n.
our studies of the bank bill, we
strongly impressed with the
that it would set up a situation us.
, Which the Federal Reserve Board
its Policies might be subject to con
from the political admlnistratlon
s country. In saying this I do not
[e that it is the intention of the
mt administration to bring about
Undue control over the nation's
mechanism. The point Is that
bill passed as now proposed, op.
for control would be there
use of the present or whatever
administration might be in
criticisms of the bill are not
therefore, at the'motives of the
administration, but they are
impersonal and non-polltlcal
axe aimed entirely at the basic
involved."
:: Desirable Changes Proposed
study by his organization,
said, had resulted in a num.
iof suggestions for constructive re-
in the bill which he submitted
On the other hand, he de.
elated ~that many of the changes pro
-posed by the act in existh,.g laws "are
of a constructive nature aud sb~ui6
have the support of bankers, it the
method of appointment and the ienure
of office of the members of the Federal
Reserve Board, iu whose hands it Is
planned to concentrate greater powe[
than ever before, could be so altered as
to insure, as far as possible, the abso
lute independence of the Board from
partisan or political consideratious."
tie added :
Honored by Flower
Supreme Court of Banking
"Since the passage of the Federal Re-
serve Act over 20 years ago, opinion In
Congress and among bankers has been
striving towards the ideal of making
the Federal Reserve Board a body of
such independence and prestige that It
might be described as the Supreme
Court of Finance and Banking. We be-
lieve there is greater need now than
ever before for realizing this ideal."
R. S. HECtIT
Mr. Hecht emphasized that It is "the
genuine desire of the banking frater-
nity to be helpful and constructive iu
making suggestions in counectieu with
this pending legislation. The chauges
we are urging are we believe essc, atiul
to the coutinued independence oI the
Federal Reserve System."
"We have made it clear that we do
not object to a measure of public con-
trol in the national interest for proper
coordination of our manifold credit
operations," he said, "and we do not
believe the sponsors of the legislation
desire any political domin~tiou over
these activities through our Federal
Reserve System.
"Under such circumstances we feel
that our recommendations should be
favorably acted upon because they
would enable the reconstructed Federal
Reserve Board to function freely as a
nonpolitlcal body actuated only by the
dictates of sound financial and eco-
nomic policies conceived in the inter-
est of all of our people.
"The adoption of our suggestions
would both place operatiou of the Fed-
eral Reserve System wholly and dis-
tinctly apart front the fluctuations and
vicissitudes of political conditions and
free from undue influence by banking
opinion only. Such a solution would
thus have a stabilizing and confidence
inspiring effect on the entire busiuess
situation."
Banks Rapidly Reduce Debt
Although the sum of $1,860,000,000
has been advanced to banks and trust
companies by the Reconstruction
Finance Corporation since it began op-
erations in February, 1932, dowu to
April 30, 1935, these institutions have
repaid, no l~ss t_ka_n $1,340,000,000, or
Lucllle F. McMillln, the only woman
member of the United States civil sere.
Ice commission, pho[ographed with the
'azalea named in her honor. The flow-
er Is named Lucille McMillin Azalea
and is known by the scientific name of
Azalea Rntherfordi. It is a salmon
color and was developed by tile staff of
the b.tanical garden in Washington.
~lGre' than 72%.This rate of repaymeut
is reported as being considerably in ex-
cess of that made by any other type of
borrower.
Loans were authorized by the Recon-
struction Finauce Corporation to 7,396
banks and trust companies In an aggre-
gate amount of $2,350,000,000, but of
this :ram $345,000,000 was withdrawn or
cancelled and $140,000,000 has not yet
been taken out by the borrowers.
Simplification of Bank Checks
New York.--In a bulletin issued by
the Bank Management Commission of
the American Bankers Association,
plans are described for carrying on the
simplification of bank checks, notes,
drafts and similar instruments in re-
spect to size and uniformity of arrange-
meat of subject matter.
Detailed recommendations for this
end were formulated by the associa.
tion about ten years ago, the bulletin
,~ys, and promulgated by the United
States Department of Commerce among
banks, business houses using large
numbers of checks, commercial statl~a.
ors and lithographers. As a result about
85 per cent adherence to the recom-
mendations was brought about. The
present bulletin, which describes the
standard specifications in full, is Issued
to maintain this high level of adher-
ence to the recommendations.
National Bank Notes
Changes In our money on the scale
of about $800,000,000 are now going on
through the retirement of national
bank notes. This is reflected in Increas-
ing deposits in the~.Treasury of lawful
money to replace bonds held against
outstanding notes which will require
some time for withdrawal from circula-
tion.
The change In the currency will re-
quire a considerable shift of bank funds
in many cases, but it is doubtful if so
large a volume of currency has ever
tbeen retired and replaced In any coun-
try with so little disturbance.
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~ll_ i "; ...................... .illlm~, . ' :---~_ L~ ...... L L~t
UNIFORM INTERNATIONAL
SUNDAY
CHO01.
By REV. P. B. FITZWATER, D. D.,
Member of Faeuny, Moody Bible
Institute of Chicago.
~, Western Newspaper Union.
Lesson for June 16
CHRISTIAN STEWARDSH IP
LESSON TEXT---Deuteronomy 8:11-
18; II Corinthians 9:6-8.
GOLDEN TEXT---It is required In
stewards, that a man be found faith-~
ful.---I Corinthians 4:~.
PRIMARY TOPIC--Sharing God's
Gifts.
JUNIOR TOPIC--Joyoue Use of God'=
Gifts,
INTERMEDIATE AND SENIOR TOP-
IC--What Does Stewardship Mean?
YOUNG PEOPLE AND ADULT TOP°
IC--Praetieing Stewardship Today.
I. Warning Against Forgetting God
(Dent. 8:11-18).
God Is forgotten.
1. Through plenty (vv. 12, 13). It
ls always true that in time of pros-
parity the people forget God.
2. Through pride (vv. 13, 14). The
natural tendency of the human heart
when visited with abundance Is to be
lifted up with prlde.
3. Through self-confidence (vv. 15-
:18). The inevitable result of pride Is
self-confidence. The children of Is-
rael arrogated to themselves the power
to get wealth. It is ever so that ma-
terial prosperity turns the natural
heart away from God as the source ell
blessing.
II. The Sin of Robbing God (Mal.
3:7-12).
One of the sins of Israel which
brought upon them the chastising hand
of the Lord was that of withholding
the tithe. The prophet assures the
people that their bringing Into the
storehouse their tithes and offerings
would be responded to by God In
sending them abundance.
III. Talents Are to Be U~ed for
God (Matt. 25:14-30).
1. The distribution of the talents
(vv. 14, 15), This distribution was
a sovereign act, giving to each one
of his own servants hls own money.
2. The employment of the talents
(vv. 16-18). Two put to use the
talents given them, resulting In doub-
ling their value. One hid his talent.
3. The accounting for the talents
(vv. 1~}-30). The Lord later demand-
ed an accounting from each one of the
servants. The ones wbo had been
faithful were not only pralsed but pro-
moted, while the one who hid his
talent was not only reproached bu~
also suffered the loss of the talent
given him.
IV. Giving Should Be Systematlo
(I Cor. 16:2).
This instruction concerning giving
Is based upon the glorious doctrine
of the resurrection of Chrlst. The one
who has come under the power of the
resurrection of Christ will be both sys-
tematic and liberal In his benevolence&
The standard for Christian glvlng Is
not tile tltbe, hut "as God hath prns-
pered him.'.'
V. Principles of True Benevolence
(II Cot. 8:1-9:15).
1. Examples of true Christian glv-
,ing.
a. The source of true giving (v.
1) Is said to be tile grace of God,
~whlch means that: the disposition to
!give freely of one's possessions mus~
ibe created by the Holy Splrlt. b.
They gave from the depths of their
poverty (v. 2), and their unstinted
'gifts thus became richer in meaning.
'c. Their willingness surpassed their
ability (v. 3). God reckons gl~s by
ithe degree of willingness, not by the
iamonnt given. ~d. They were Insistent
:on being allowed the privilege of giv-
Ing (v. 4). Christians ought to be
taught thai giving of their means Is a
high privilege, e. Tlmy first gave
themselves to the Lord (v. 5). The
only method of raising money which
has God's sanction is a consecra*.ed
band In Its own pocket.
2. Emulation in giving urged (II
Cor. 8:6-15). Paul used the gen-
eroslty of the Macedonian church as a
means of stimulating liberality ~lth
the Corinthians.
a. Not as a command (v. 8). Giv-
Ing which has God's sanction must be
not only spontaneous, but liberal, b.
As a proof of the sincerity of love
(v. 8). Love is benevolent action
toward tbe one loved, e. As the com-
pletion of their harmony of Christian
. . 1S
E
knocking at your
Shall Your Local Electric Service
Become a Federal Political Football?
Unless the Whecler-Rayburn Bill, now pending in Congress, is defeated you~
local electric service aud rates will bc regulated and controlled by political
officeholders in Washington.
Instead of private ownership with its local control, local citizenship, local'
taxpaylng, it would be "remote control" by Federal commissions and bureaus.
It would make of the electric industry with its half a million employees, a
political football, to be kicked about, with the electric user the loser.
Taxes have already been increased more than a billion and a half dollars
during thc past twelve monthg. Additional Federal bureau activities mean
even greater tax burdens . . . FOR YOU!
The Wheeler-Rayburn Bill would not only end local regulation and increase
cost of government but it would greatly handicap and hinder your local elec-
tric company. It would abolish the holding companies which have been one
of the most important factors in the building of our excellent record of rate
reductions and good service.
Because of the drastic provisions of the Bill many of the local companies
would not be able to survive and governme,u ownership would undoubtedly
follow. It would bc thc first step toward national socialism.
As in all such socializtic ventures, the people would pay the bills in higher
rates, poor service, or in higher taxes... ~ometimes all three. To create more
jobs and bring back better days government must encourage private owner-
ship; investments must bc protected; individual rights must not be destroyed.
ItI you are iu accord, you can help by writing
to yonr Senators and Represantative in
I
Washington, advising them you are opposed
to the 1Vheeler-Rayburn Bill.
exas Power & L
3:30 p. m. on this date will mark the 3rd Trades
Association of Malakoff for 1935, at which time
• Everybody from everywhere is entitled to participate in this free
cash distributi0n--all you have t0 do is to be a alak0ff patron.
character (v. 7). Tile Corinthian
church abounded In spiritual gifts, but time to start now. Ask any merchant
needed the grace of liberality for the
I harmonizing of thelr lives, d. Chrlst
an example of self-sacrifice (v. 9). whose name appears in this adv., he will
Christ was rich, but for their sakes he
became poor. e. Gifts to be accept-
be glad to tell you about the whole plan.
able with God must be from a willing
if you have not been here before, come along---you'r~ just in
!
mlnd (vv. I0-12). fi Every Christian'
should glee something (vv. 13-15). •
3. Enconragement fo glve (11 Cor.
'9:6, 7).
a. The volume of reaping Is based
On
these
Trades
Malakoff
merchantg
offer
upon the sowing (v. 6). b. There Days,
should be a heart purpose (v. 7). e. many bar~ains in all lines of merchandise .... bring
Giving should not be of necessity (v. O!
7).(v. 7).d" God loves a cheerful giver your wh e want-lint here and you will save money
--------- by shopping around. Whether or not you win a
All Are of God
Activities commonly called non-re- cash award, you will find it profitable to spend the
liglous---sclence, art, literature, Indus- day in Malakoff, so come along anyway And if
try---all tome from the same God. "" *
Their autonomy must be respected in there is something you need, remember that
the sense that there must be no at-
tempt at ecclesiastical control over
them.
It Will Pay You To---
%ire
Life Is not made up of great sacri-
fices, of great duties, but of little
things. Smiles and kindness Wen
habitually are what wtn and priers,
the heart,---Sir H. DarT.
I I. I ....
Events
Are Sponsored By
these Nerehants
m
Payne's Economy Store
Weir's Pharmacy
Tanner Motor Company
itarbour's Grocery
Royall Chevrolet Co.
Kirby & Sons
Payne's Drug Store
City Cleaners
Gulf Grocery & Market
Gentry's Grocery
Flagg Drug Store
Paul's Place
Jackson's Garage
I III II I II I•11 Jl
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