J6MASDD GRANE HUD A FLASHLIGHT / By JOHN G. LONSDALE f President American Bankers Association WE ALL remember the story of Icha bod Crane and the headless horse man. There was the dark form by the side of the road? thundering hoofs on tho Sleepy Hol low highway ? and Iehabod flee ing in confused terror before this terrible monster. If Iehabod had only known that his hobgoblin wan an inventive rival disguised with a a pumpkin head, John G. Lonsdale 'ie would have had a good laugh and gone on with tho business of van quishing his competitor. What Iehabod really needed was a modern flashlight. Then he would hay-3 discovered the trickery at once. Many business meu need the flashlight of analysis to uncovor the hobgoblins in their business ana then they might sit back and laugh at their rival;! who hesitate to investigate and learn the truth. At this time, when business and J banking are making strenuous efTorirj 1 to have a clear vision ahead, it is espe cially Important that the power of re search and analysis be employed to ?' their fullest extent. When these twin i brothers of good management have | been prersed into service in all fields, ' I am confident we shall see a further ! lessening of periods of stress. How ever. I b?lievo business in general hai le.-rned the valuable lesson that any prosperity that is not leavened with a litM? adversity would not seem basi cally safe or sound. RESERVE SYSTEM'S DIVIDENDS ANALYZED Bankers Find Increased Pay ments to Member Banks Would Be Small Inducement. Various proposal"? that memb'er bankr. in the Federal Reserve System should participate more largely in ii:> net earnings tlu'augh an increase in the dividend rate above the present fixed 6 per cent "would be a very small financial inducement" to thorn, it is declared in a recent study of thia subject by the Economic Policy Com mission of the American Rankers As sociation. This is shown, the commu nion says, by a theoretical forecast, on the basi3 of the post six years, of ad ditional earnings ihat would b'> dis bursed to member banks di"imr tho next six years under two plans intro duced in bills before the United States Senate. "The Fletcher bill provides that Federal Reserve Bank earnings, after present G per cont dividends to mem bers and completion of a 100 per cent surplus, should all be distributed as extra dividends to the stockholder banks," the report says. "If the earn ings of each Federal Reserve bank were distributed among its own mem bers there would be no extra divi dends in the Boston, New York, Phil adelphia, Cleveland, Chicago and San Francisco districts during the next six years, but the other "six Federal Reserve Banks wou^ pay annual ex tra 3 at the following rates: Richmond, 6 0S per cent; Atlanta, 4.09 per cent; St. Louis, 3.50 per cent; Minneapolis, 9.,it per cent; Kansas City, r>.4S per cent; Dallas, 4.83 per cent. "If the earnings were pooled and paid out to all members in all districts each member would receive an aver age annual extra dividend of ,78 per cent. Under this plan no franchise tax as now would be paid by the Fed eral Reserve Banks to the Federal Government. Another Plan Analyzed "The Glass bill would provide that, after present 6 per cent dividends, one-half the remainder should be paid to member banks as an extra divi dend with the residue going to sur plus and Federal Government as fran chise tax. The average annual extras to members would be as follows: Bos ton District. 2.51 per cent; New York, .48 per cent; Philadelphia, 2.05 per cent; Cleveland, 2.09 per cent; Rich mond, 3.26 per cent; Atlanta, 4.67 per cont; Chicago, 3.20 per cent; St. Louis, 2.02 per cent; Minneapolis, 4.75 per cr>nt; Kansas City, 2.74 per cent; Dal ii. 3. 3.31 per cent; San Francisco, 1.S7 p >r cent. "If these extra funds were pooled the result would be an extra average an t. lal dividend of 1.73 per cent for each n. ember. Under this plan the system would still pay as now an annual fran chise tax, amounting to $1,941,996 on the average." By way of concrete instance, the report says, a member bank having capital and surplus of $200,000, there f-;-3 holding Federal Reserve Banlc stock amounting to $6,000 on which it Is receiving $360 under the present 6 per cent dividend arrangement, would with the addition of each 1 per cent to the dividend rate receive an addi tional Income of $60 a year. "It each member bank will figure out for Itself the dollar-and-cents gain It would enjoy we are confident 11 will be agreed that the gains are small as against the economic disadvantages' which can be pointed out," it con cludes. SEES HEAVY CUIMS ON FUTURE BAHKEES American Bankers Association Official Declares That Banking Changes Creating Large B?n'c Systems Will Call for Broader Social Viewpoints. Larger scale group or branch bank ing will inevitably bring a new era of banking organization and operations to the United States anil bankers will have to develop "ncconceptions, new administrative methods and new eco nomic views," Rmloir S. Heclit, Chair man of the Econom'e Policy Commis sion of the Americr.a Bankers Associa tion, recently told the members of the American^Institute of Banking. The institute is the educational sec tion of the association and he empha sized the point that the new era in banking demanded "that we must stcp up our education so that banking shall :ie fortified for new responsibilities." What the Future Calls For "We must broaden our social concep? ion of banking," Mr. Hecht said. "Mot inly for the technical operations of the :ew banking must we fit ourselves, bat , loth as individuals and an organized irofossion we must charge ourselves J vith serious consideration of the so cial problems that are involved. Al ready we hear murmurings and fears and dciibts as to whether the changes that arc coming about in hanking in Mie extension of group and branch sys tems do not constitute the looming of a new financial menace, a monopolistic threat not only to ilie individual unit banker, but to the financial liberty of society in general. I am stating these things merely as fr."ts that must be taken into consideration in our studies. "Public opinion car.iiol be ignored by any business, least, of all by bank ing, which is admittedly semi-public in character and is, therricre, subject to special supervision by the cons'; i tnted authorities. If banking develops tendencies that give rise to public fears, we must so conduct ourselvs as to reassure all doubts. "For this is true.?that business sre reeds only by serving society?that no business can permanently prospar which iloes not both render service to the public and at the same time con- j vince the public that it is rendering that service. Banking, therefore, must take cognizance of what the public is ; s;?jvJng of this new era in its develop ment. "It must be part of the technique of modern banking administvaliop, whatever form our enlarged intuitu- , tions take, to avoid the creation of | monopolies.*or even the appearance of sncii a centralis ion of financial power as to be able to exercise an \ n- ? uue influence over public or private j finance or other lines of business. The pub'ic's rielil to the safeguards of fair comnrt'rion must ln? ob-ei vod. Must Preserve lnd;vit!jal Injtiaiiva "It i --ft p'' o 1"? ? ? "'i ? : asement that individual initiative and opportunity shall he mr.ii'.'ai" d. If America has oulsi-iopcl other nations in the distribution .if ti>e 1:"n fits o? its progress, it is due to the ur-t th?t" there are no barriers oi' social caste or business tradition ag;::nst p Jvrmce mont for character, ahilliy, a"d therefor at the request of the! owner, Mrs. Roy Painter, I will, 011 the 7 day of duly, 1930, at 2 P. M., at my shop in Sylvn, Jackson Coun j ty, North Carolina, offer for sale and sell to the highest bidder for cash at public auction, the following describttd property: (hie 15 jewel Benrus Watch, Move ment. Number . t This the 24tli day of June, 1930. RAYMOND (JIJ:NNT NOTICE OF SALE OF PERSONAL PROPERTY; Under and by virtue of seetioiri 2435 of the Consolidated Statutes' of North Carolina, for charges for ?repairs thereon and materials furn ished therefor at the request of the riwner, Charley. Keid, I will, on 1 ,the 7 day of Julv, 1930, at 2 P. M.,' at my shop in Svlvn, Jackson Conn-;' ty. North Carolina, offer lor sale i and sell to the highest bidder lor cash at public auction, the following i described property: - . j Cne 7 jewel Waltli; in Watch, ; I Movement number .18001772. (j This I he 24th day of June, 1930. jj RAYMOND (HjKNN 1 j NOTICE OF SALE OF PERSONAL PROPERTY!j Under and by virtue of section!: 2435 of the Consolidated Statutes'; of North Carolina, for charges fori! repairs thereon and materials I'uni- j ished therefor at the request of tlicj I " owner, J. I>. Ifyingarre:, I will, on ;: ,the 7 day of July, 1930, at 2 l'. M., jj at: my shop in Sylva, Jackson Conn-1 j ty. North Carolina, oiler lor saleij and sell to the highest bidder I'oi | | cash at public auction, the loll wing!; described properly: \ ). ?[ One 7 jewel VValtham Watch, j: Movement Number 21219705. Thi> the 24th day of June, 1930. RAYMOND (JLKNN ' = NOTICE OF SALE ! OF PERSONAL PROPERTY I'nder jiikI l?y virtue of section 24.55 of the Consolidated Statutes of North Carolina, for charges for repairs thereon and materials fum-1 tishcd therefor at the request ol the, owner, I. W. Deitz, I will, on ; it he 7 .lav of '.Inly, 1930, at 2 I'. M., at my shop in Sylva, Jackson Coun ty, North Carolina, offer for sale ami sell to the highest bidder for cash at public auction, the followingj described property: One 7 jewel Elgin Watch, Move-i ni?.:? Number 1S24K793. 'i'lu> I he 24ili da\ oi .I uue, 1930. ! I.'AYMOM) C.LENX NOTICE OF SALE OF PERSONAL PROPERTY/ Cmler ami by virtue of section 2435 of tiie Consolidated Statute, of Vortli Carolina, for charges forj repaiis thereon ami materials fum-; ished therefor at the request of the owner. K. 00h I)rRING / riiE HOT WEATHER THE BEST OF FRIITS AND 8YRFPS?PI RK AND DEUCIOrS?GO TO MAKE OCR FOrNTAIN FAMOrS Buchanan Pharmacy J. D. COWAN, Proprietor