Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-14

All Federal financial officials con-
cerned with the 100000, 900 banking
pool for the rediscounting Of frozen as
sets are waiting to see how much Of
1t is actually going to be used. They
will be surprised II it is extensively
drawn upon. The effect of the project
devised by President Hoover and the
| banks was intended to be mainly pSy-
| Geological. That the plan has already
mad that precise repercusSion is un-
doubted. AS distinguished Treasury
parsonage puts it to this observer: I'm
certainty has all of a sudden been sue
| ceeded by certainty. That is every
thing" Applying this statement the
official explained that what the aver
age bank with SLOW paper" needs is
| the assurance that in case of necessity
it can go to Federal Reserve Bank
| and realize on 1t. 1t wants to know, in
| other words, that the money is there,
II and when required. In the early
days of the war the Treasury estab-
lished $135,000.000 cotton loan fund.
| Only about one loan, and that was un-
der 100000, was ever called for. The
Treasury about the same time created
a 100000, 900 gold fund for use by allied
| Europe. Just one transaction, 500 :
| 600. took place. and even that amount
didn't get very far afield, as Great Brit
ain had the money sent to Canada.
x X X
Two-thirds of all the banks that have
failed in the United States since jan
u3ry /, 1890 were Small-caliber insti-
buttons. A very large number consisted
of national banks with the minimum
of $4,000 capital permitted by the law
CT 1900. Under such conditions as have
existed since the Fall of 1929 it became
physically impossible for concerns with
such sic nder resources to weather the
storm. The inevitable result was that
they went to the wall in dozens. The
American banking structure that re-
mains is immeasurably sounder for the
disappearance of most of the banks
that had to close their doors. Once
withdrawal of deposits by nervous men,
berS of the public has ceased and hoard
ing come to an end, the banks OF the
United States will be in position to
stand any strsin they're likely to face.
The 400 clearing house associations of
the country, with more than $47,5O0,-
600, 900 of deposits. are back of the great
Credit Corporation just organized. Back
of those billions-if necesSary-will
stand the Federal Finance Corporation
which President Hover may ask Con-
gress to authorize. These are the psy-
Geological factors which have restored
banking confidence during the past
week as If by magic.
4 X y
One of the most eloquent addresses
heard in Washington in many day
was delivered by M Dantes Bellegarde,
Haitian Minister to the United States,
at the Carnegie Peace Endowment
luncheon for the Pan-American COM
ta1 ~ Dali VIII a
in what one of his hearers called
"Sorbonne Partisan" French. He has
the sonorouS diction, fire and gestures
of a BRAND. Apologizing for not talking
English, the Haitian said that after
all French is only English badly 20
nounced." One of M. Bellegarde's
statements which had news value to
most of his audience was that the
French troops who fought at Yorktown
in 1881 came almost entirely from Haiti,
the island at that time being French
colony. NJ Bellegarde is the diplomat
who had a run-in with Smedley Butler
last Spring in connection with the
Haitian fort capture which brought the
late Marine general one of his con-
eressional medals of honor.
Secretary Stimson's release Of the
hitherto unpublished report OF the Root
Mission to Russia in 1917 synchronlzes
with the appearance Of book entitled
Americas Siberian Adventure" The
author is Mai Gen. William s. Graves,
u. S. A., retired, who commanded the
American Army that was sent to ST.
beria in 1919. Through the volume. for
which former Secretary of War Newton
D. Ba,.er writes a foreword, runs the
suggestion that our armed Intervention
in Siberia would have been far less
ingiorious episode if the State Depart
ment had kept Its hands of purely
military affairs. Gen. Graves, in a
frank and detailed account OF the ex-
pedition. exposes the ruthlessness of the
japanese in pursuing their own aims
despite previous agreement with the
United States.