San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-01-01
Banks in Strong Position
They Have Supplied Ample Credit at Low Price but
Meet Hostile Criticism and Sound Central Bank
ing Policies Will Be Needed to Avoid
Dangers.
BY II. PARKER WILLIS
Professor of Banking. Columbia University.


some districts might be sufficiently
numerous to hurt the system very
badly by diminishing its prestige. This
would be especially true in view OF
the fact that Congress is just now en-
deavoring to extend the borders Of the
system by letting down the bars TO
| the admission of state banks that are
not at present eligible. Some action
seems to be called for as a feature of
1922.
A Conspicuous Failure.
One point in which the banking sys-
TEN of the United States has scored a
conspicuous failure as demonstrated
by the experience of the past year or
more is seen in connection with for
eign trade. Not only have we neglect
ed a great opportunity to develop for
cign trade but our system Of branches
has apparently been unsatisfactory in
its methods and management, as il
Illustrated by the decline in the number
of such foreign branches and the
lessening volume of foreign business
which our banks have been willing TO
take on. In this the Federal Reserve
system has also been at fault, since it
has failed to do anything TO help for
eign trade except occasionally to dis
cunt some bills growing out of
foreign business when stated in terms
of dollars. Reports from abroad,
originating with trustworthy obser-
vers, seem to demonstrate the fact
that there is only a lessening regard
for our banking and financial system
in other countries and that our with
drawal from branch undertakings and
the contraction of the volume Of bust
| ness relating TO foreign trade have been
| fully noted elsewhere and have tended
TO curtail such standing as we already
had in financial markets at large. How
to correct this and to get back into the
business of providing for our own for
elgn trade appears 10 be quite as much
! OF problem at the close OF lo-z as u
ever was before, put II is prop,ru,
when obviously VIII nave 10 DC Setue1
IN some way ana at no very uls'ant
date.
Farm Credits Present Dangers.
A fresh adjustment of the banking
system 81 as IN nrovide for what is
called farm credit seems also TO be
practically certain within the near
| future. The tinIerinp which has al
ready been done through the war
! Finance CORPORATION and through va
rious temporary expedients of one sort
or another has made little change in
the methods of financing farmers or
cattle raisers and does not seem likely
IN produce much, The War Finance
| CORPORATION is drawing near it's end,
while Mt the same time the power of
tbe radical bloc in Congress is being
exerted towards the getting of broader
credit facilities for the farmer. To
This in tho abstract no one objects,
but. on the contrary. every one ap-
proves of it. The difficulty is found
when effort is made to find out exactly
what is wanted as means of prOvid-
ling for the farmers necessities.
Az IA this tbero 10 annarpntlv no
consensus Of oninion and the danger
NJ tho situation grows ont Of tho fact
that peorIv ali farm credit schemes
annear n base Themselves nnon the
idra Of making long term or doubtful
rpnor outomo ticaIIy eIioihIo at Rcserve
hanks thereby comnnIIing rho com
merciaI enternrises or the savers and
investors of tbe country n carry
tbrougb tho Medium of borking cTed-
its which arc Of somewhat onestion.
obIo yoliditv aud which fbcrcforn
| bn nj wifi
carc nc course r. tbis sbonIJ he domo
tbronoI 1eoisIotion and if Tho nro,,i.
sions thus cnocted into law, should bc
sctnoIII, carriod into nroctics tbo con.
someone's would no ~ nrt our bsnE-
inc system into +be "froZon" copJ;tion
which hos heer 90 frnnnartIy com.
nIained of in limos mast Tbis DANCER
botb in tbo IogisIa+iTo forr, and oF,or-
wards in Tho oJn,iristrat;yo osnoo+
ra,,IJ oIoori,. La 80 H. ~. H., tLo
Lo,,Lir. s,,stor, ,,.itbi,, IT. ,ir,'o NV
, 60 49,, -
" nUO ror'uno sersuS uood nanhihg:
He SUCCESS OF lDe cHl,eu states III
, - no l'i.an'lai poIlty OF IaIe years mas
peen Ine ou'c0lne OF rare good 'ior-
L suns I"lnr ,r tnah OF Irah5 Capao,G
IAN sung inS accumulation OF eolu
III tne Ihlted states mas peeh auto
lnatlc ana not me outcome OF the
auuptulloii OF our llhahcial pollcy 10
lhe sl'uatloh III oIher countries. Inc
oNerconliIts '3i uliiailon atier the war
was rehuered possible by the TACT that
we had at mat tlmc capable set OF
men IN positioh OF financial autnor-
ly uh9er the government ana OF thelr
ue,erntIhatIoh 10 prevent absolute as
aslef rom occurring as result OF con-
..nucu price llllalloh' for az 'heSe
/ i'"SoltS We Hn'' Suut iHl"uSn INC