Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-12-31
BANKS ARE, STRONG.
BUT FACE ISSUES
Have Supplied Ample Credit at Low Price, but Meet
Hostile Criticism-Sound Central Banking Poll.
cics Needed to Avoid Dangers

present eligible. Some action seems
10 be called for as "A feature OF 1928.
a Conspicuous Failure.
one p"ihe In which tho banking
system Of the United states has
scored a conspicuous failure as
demonstrated by the experience OF
the past year or more is seen in cou-
hcction with foreign trade. Not only
nave we neglected Il great oppor-
tuniiy To develop foreign trade. hut
! our system OF branches has appar-
! entity been unsatisfactory in It's
methods and management. az illuy-
tratcd by the decline in the number
al such foreign branches and the
l"ss"ninG volume Of foreign business
which cur bliks have been willing To
take ON. In this the Federal reserve
system has also been at fault. since
1t has failed TO do anything to helm
foreign trade. except occasionally to
discount come bills growing out Of
foreign business when stated In
terms OF dollars. Reports from
abroad. originating with trustworthy
/, observers. seem To demonstrate tn.
fact that there is only "A lcsscning
regard Tor our banking and financial
system IN other countries and that
our withdrawal from branch under
tax inSS and the contraction Of tho
'"iuh" OF business relating To
foreign trade have been fully noted
iscwhcrc and have tended to cur
tail such standing AK we already had
IN financial markets at large. How
to correct this and 10 get back into
the business Of providing for our own
foreign trade appears TO he Quite as
much Il problem at tho close Of 1872
az II ever was before. but il liz a
problem which obviously will have
10 be settled in some way and at no
very distant date.
Farm Credits Present Dangers.
\ fresh adjustment of tho banking
system 50 as to provide for what Is
called farm credit seems also TO he
practically certain within the near
future. The tinltcrinC which has AL
ready been done through the War
Finance Corporation and through
various temporary cxpcd!cnts Of one
sort or another has made little
chang" In the methods OF financing
farmers OF cattle raiscrs and does
not seem likely t. produce much. Tho
war Finance Corporation is drawing
near its end. wbIlc at tho same time
tho power 90 the radical bloc in Con-
Grcss is being "Ncrt"d towards tho
getting az broader credit facilities
for tho farmer. To this In the an
Strd"t no on" objects. but. on the
contrary. every one approves Of IL.
Thc difficulty is found when enor,
- mad. To mud out exactly what f.
wanted ns means Of providing for
the farmers necessities
Is to this there is apparently no
consensus OF opinion ana tho danger
90 the tiation grows on, of tho
fno' that nearly all farm credit
schemes appear to base thcmsclve.
urpn u" idea ot making long term
or doubtful pancr automatically
eligible AT reserve banks. thereby
compelling tho commercial enter
|tis"s 20 the savers and investors OF
'h" country 10 carry, through the
medium ~ baking. credits which
or" OF some what questionable vail
Any aud which therefore should he
srrutiniz"d with exceptional care.
-. course, j; this should be done
b. ugh legislation ana IL the provi-
>i"u> thus enacted into law should
~" actual.' carried into practice, the
consequence would he to put our
banking syS"m into the frozen"
condition which has been so fire.
Iucntly complained Of in times past.
This danger both in thc legislative
form and afterwards In tho admins
frhtiN" aspect would clearly have TO
he met by the banking system with
IN 4 short time.
Good Fortune Versus Good Ranking.
The success OF tho United States
in its fnancia: policy OF late wears
has been the outcome of rare good
fortune rather than OF really can
ah'e banking. TIL" accumulation Of
gold Ia tho United States has been
automatic and not the outcome Of
nc aHhn;ation OF our financial policy
{" tho situation in other countries
tn" overcoming Of imitation after the
Mar was rendered possible by The
TACT thai We had at that time :, can.
abI" set of men in positions of fnan.
ciai authority under the government
ana ~ their determination to pre-
vent absolute disaster from occur.
rug as result OF continued price
imitation. For all these reasons we
have gone throu: II the wear 1870
with less suffering and with greater
ana faster progress towards recon,
Strnction than perhaps any other
country. Apparently We are now an
proaching situation where much
more capable management o. our
oahkinE system will be necessary
hecauSc larger and more serious
problems must be faced while at tho
same time this situation comedies
Win 4 state OF things. domcstically
speaking. in which there is serious
danger OF political interference or
even attack upon the banking svs
tenn This comes just at a juncture
when serious decisions must be taken
and when therefore there is need Of
unusual support and countcnancc on
the part Of tho executive.
The first months OF 1ao3 will throw
light upon certain of these nucstiop.
ana with this amount Of Information
IN hand it will then be possible To
'rcscc much moro clearly a d posi-
lively The steps which must he taken
by the banking community in the ef-
tort to protect itself against danger
as we'll IS in tho attempt to render
inc service necessary for the
STRENGTHENING and defense of exist
ing conditions.
c. l'2"' by y. Y. Evening Post. Incl