Evening star., 1932-11-05

\AO IL V L ~
bring himself 10 ask for assistance
from the corporation in which he had
so lately been a director, but 1t was
upon the insistence OF the two Demo-
cratic members Of the Reconstruction
Board, sitting in the Federal Reserve
Bank meeting in Chicago, and upon
the insistence of the leading Democratic
banker of Chicago, who was then mem
toned as a candidate for the Presi-
dency OF the United States, and upon
the insistence In New York City Of the
leading Democratic banker and lead
ing Democratic manufacturer, also
mentioned for the Presidency, upon in
sistence OF the other Democratic men,
bers of the Reconstruction Corporation
that this was no case of the personal
feelings Of Gen. Dawes or the effect
upon my administration, that 1t was
solely a case Of national necessity, and
those men then and there jointly Of
fered to take the full responsibility for
the action.
These men acted not because they
were Democrats or Republicans, but
because they were loyal citizens Of the
United States. The situation demand
ed broad vision and comprehensive un-
derstanding of the problem, instant de-
cisdon, bold and courageous action. Only
by this was a major disaster averted
And may tell you that not only were
these loans adequately secured, but irl
the ordinary course Ct business they
are being paid of.
The constant Misrepresentation OF
this epis ode for political purposes by
Democratic politicians is slandel
| Nf Iayr tyy yo1
as cruel injustice to Gen. Dawes. II
is a characteristic example Of the char
acter Of this campaign. 1t Is an In
suit to the Americn people to substi-
tute this sort of political action fol
competent discussion of the grave Is
sues which lie before our country.
5000 Smaller Towns.
And I may tell you that this Is but
one of six similar episodes in great
financial centers Of the United States
the direct result of the shocks and fears
which we received from the collapse
of foreign nations. But such action by
our Government agencies has not been
limited to great financial centers. In
over 5000 towns Of populations under
$4,000 the Reconstruction Cooperation
has had to intervene to save their banks
under similar circumstances. Beyond
that, they have made loans to insurance
companies with $4,000 900 policyholders
loans to 1876 building and loan associa-
tionS with over a million and a halt
members, loans to several hundred farm
and home mortgage companies, agri-
cultural credit associations, live stock
credit corporations, all of them for the
purpose of preventing the less of hun
dreGs of thousands of homes and farms
and the destruction of their family life.
The totals today aggregate millions of
men and women who were not for
gotten.
may also remind you OF one thing
in respect to these loans. The law re-
quires that they should be made on
adequate security. The loans have been
so made. Large amounts have been
repaid. 1t is net burden upon the
taxpayer But it is the salvation of
millions Of jobs to men and women.
have gone into this matter at such
length to illustrate to you by actual ex-
ample what the operation of the Re-
construction Corporation has meant
This is an example of the meaning OF
my oft-repeated phrase about the use
by the Federal Government Of the full
power Of its credit in time Of great ma
millions CT families.
The Democratic candidate for Presi-
dent has since the beginning of the
campaign been going up and down the
country criticizing the Reconstruction
Corporation and maintaining that its
actions have been for the benefit OF
large corporations and not for the bene-
fit of the ordinary citizen
Can he honestly believe that in the
incident I have described to you and
in the countless similar cases the &C
tion was taken for the benefit Of the
bank and not for the depositors and
borrowers? If he does not so believe
then say in all solemnity that his
action in fostering a spirit Of discon-
tent in a political campaign by the use
of erroneous information merits Just
condemna ton.
Met Only by Silence.
One of his first utterances to this
effect was Immediately challenged by a
prominent citizen Of his own State, a
former superintendent of banks, who
him the real facts and requesting a
retraction Weeks have now elapsed
and that request has been met only by
silence upon the part Of the candidate.
Now I wish to picture to you an
other episode in this supreme battle
to protect the American people, the
last fortress Of stability in the world,
but at the same time to extend a help
ing arm of assistance to another great
naticn
In the latter part Of May a year ago
Ambassador Sackett made an emergency
journey from Berlin to see me to pre-
sent to me the desperate situation of
the German people. His evidence
showed that under the burden of un-
bearable debts and the cost of war that
great nation was rapidly Gisintegrating
and the people desperately discouraged.
They had made courageous effort to
meet these obligations, but their dis