Evening star., 1932-10-05

ing true in every city in America and
in the world. That We would expand
credit to offset the contraction brought
about by boarding and foreign with
drawals., That we would strengthen
the Federal Land Banks and all other
mortgage institutions. That we would
lend to the farmers for production.
That we would protect the insurance
companies, the building and loan as
sociations, the savings banks, the coun-
try banks and every other point OF
weakness. We determined to place the
shield Of the Federal Government in
front Of the local communities in pro-
lection Of those in distress and that
We would increase employment through
profitable construction work with the
aid OF Government credit
Asked Unity Of Action
On the Sd Of october, last year.
called to Washington the leading
bankers of the country and secured
from them an agreement to combine
the resources Of the banks to stem
the tides They pledged themselves to
$500 900, 900 for this purpose. On Oc-
tober s, I called in the leaders OF
both political parties. I placed be-
fore them the situation at home and
abroad asked unity Of national ac-
tion We published a united deter
mination to the country. The people
drew a breath of relief, the ship
swung to more even keel. but by the
lst of December the storm had grown
in further intensity abroad and the
menace became more serious than ever
hofn he nf
in December 1 laid before it a pro-
gram of unprecedented dimensions to
meet an unprecedented situation.
The battalions and regiments and
armies thus mobilized for this great
battle turned the tide toward victory
by July. The foreigners drew out
most Of their money. but finding that
the American dollar rang honest on
every counter. in new confidence they
are sending it back. Since June S275,-
0O00 900 Of gold has flowed back to us
from abroad Hoarders in our own
country, finding our institutions safe
guarded. have returned S250.0000 900 to
the useful channels of business. The
securities held by our insurance COM
panies, our savings banks and our
benevolent trusts have recovered in
value The riils OF credit are ex-
panGing. The pressure on the debtor
to sacrifice his all in order TO pay is
relaxing Men are daily being re-em-
ployed. If We calculate the values Of
this years agricultural products COM
pared with the low points, the farmers
as whole are. despite the heartbreak
ing distress which still exists, a bill
lion dollars better off. Prices have
long way TO go before the farmer has
an adequate return. but at least the
turn is toward recovery
Held TO Stability
have been talking Of currency, of
gold OF credit. of bonds, of banks, of
insurance policies, OF loans. Do not
think these things have no human in
depreciation. The happiness of 120,-
900, 600 people was at stake in the
measure to enable the Government TO
meet its debts and obligations. in saw
ing the gold standard, in enabling
$500 banks insurance companies,
building and loan associations and
multitude of other institutions to pay
their obligations and ease pressure
upon their debtors. These institu-
tions have been rendered safe and
with them their 30,000000 depositors,
policy holders and borrowers. More
than half of all of them were in the
Midwest 500 in your own State of
Iowa. Had they gone down. the shock
of their failure would have carried down
with them every man and institution
who owed money and the whole en-
ployment and marketing fabric of the
United States I wish I were able to
translate what these perils. had they
not been overcome. would have meant
TO each person in America. The finan
cial system is not alone intrusted with
your saving Its failure means that
the manufacturer cannot pay his worker,
the worker his grocer, the merchant
cannot buy his stock Of goods, the
farmer cannot sell his products. The
great clock of economic life would
stop. Had We failed, disaster would
have translated itself into despair in