Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-27
RESULTS OF LAVAL
VISIT HELD VITAL
French Deposits in America
No Longer Subject to With
draWaI Without Notice.
BY MARK SULLIVAN.

The immediate advance in Aneri-
can financial and business stability as
result of M. Lavals understanding
with President Hoover, while very real.
Is comparatively slight compared to
| favorable developments that have
arisen in our own country. Neverthe-
less, the consequences of M Lavals
visit are important and concrete.
France has had for a long time
some hundreds of millions Of dollars
! in gold and other forms Of money
and securities on deposit in New York.
The deposit was in terms that per-
mttted withdrawal at any moment
without notice. Under the 'jumpy"
condition of financial nerves that has
erupted In large areas all over the
world recently. this condition was Just
little disturbing to leading American
bankers. They had no need of the
French deposits and could let them
go without concern. Nevertheless, the
mere act of q sudden withdrawal
| might, in the present condition of the
worlds nerves, cause comment or
action not advantageous to the United
States. Moreover, the French, during
the September period of strain on the
Bank OF England, had withdrawn gold
from London at times and under cir
cun1stances which led bankers all over
| the world to feel that the French are
sometimes subject to sudden impulses
to withdraw their deposits and put
them In their own stocking.
French People Hoard.
1t should be added that the French
government has been reproached for
this rather more than is just, for the
government cannot always control the
actions Of its own people; and the fact
Is that within France itself there is
going on boarding of gold and bank
notes by individuals somewhat like that
which went over America like q wave
some weeks ago.
In any event, If the American bank
ers had felt perfectly free to speak their
minds to the French, they probably
would have spoken somewhat as fol-
lows: we are glad to have your de-
posits. At the same time we did not
solicit them and can get along quite
comfortably without them We don't
mind sending gold to Europe. On the
contrary, 1t is our wish and our advan-
vantage to do so. We do not, however.
like sudden Withdrawals of large guam
titles. If you wish to leave your de-
posts with us, we should like to be
assured they will not be withdrawn
suddenly without notice"
Fix Withdrawal Dates.
Something like this has actually been
effected as an incident of the visit of
M. Laval and his financial advisers,
and the French deposits in American
banks are now attended by terms fixing
definite future dates before which they
cannot be withdrawn
This is but one of several events of
the past few days which have brought
practically to an end a general move
ment not only in France, but in most
OF Europe, which expressed itself in the
sale of American securities and other
wise in some strain upon the American
credit structure
This favorable development in Eu-
rope Is. however, slight compared to
the organization all over the United
States of the local branches of the new
ollllon-dollar National Credit Corpo-
ration proposed by President Hoover
three weeks ago. The effect Of this
organization upon local banks every
where may be suggested in part by a
SupposititiouS Illustration A bank in
Detroit or Grand Rapids or Battle
Creek. Mich, might hold a mortgage
Tor 500 900, signed by Henry Ford and
secured by a deed to all Ford'S real es-
tate, together with the entire capital
stock OF the Ford Motor Co. as COL
lateral. The bank holding such a de-
cloeoly prime security cannot redis-
count IT with the Federal reserve sys-