The Omaha guide., 1932-08-06
Political
MIR HOOVER AND THE
MAN
By CAPTAIN
"a Capital New Service Featurel

The Reconstruction Finance Corp
Grafton was conceived by President
Hoover and his advisors. The Repu-
bIican party sponsored it, and Demo-
Gratis faced with the necessity Of fall
ing in line, submitted 70 it. News-
papers everywhere have been crit
licking its functions. They have said
that Il is operated just for the bene-
fit Of big bankers and corporations,
that It doesn't help the man in the
streets. President Hoover they have
Fa5d doesn't understand the little fel-
low. All Of that is campaign talk. 1t
is not true, but it is hard to talk to
the average man and prove that the
Reconstruction Finance Corporation is
one Of the many agencies suggested
by the President which IS aiding him
directly and indirectly.
For once il will be possible in I
very few words to show that those
VINO praise the president for initiating
the Reconstruction Finance Corpor-
alton know what they are talking a
bout. For once it is possible to point
directly how the little fellow is act
ually helped. The story Is this: In
a certain city there is a CERTAIN bank,
Both city and bank will not be named.
but any reliable person challenging
the facts can have them. The bank
was a Negro institution which cater
ed 10 several thousand small deposit
ors-little fellows. Accounts ave
aged probably two hundred dollars to
a person Not much, but in these
hard times for any Of the thousands
Of depositors Of the bank to have lost
their savings would have been to have
seriously handicapped them. Not
only would this have been the result
on individual depositors. but if the
bank had failed the entire Negro
community would have suffered. Cci-
ored merchants would have been I'M
able TO make small short loans %
carry on their business, the citizens
IN the community would have Deen
unable to pay their bills or borrow
money to tide them over, less would
have been spent and the entire com-
munity would have been d~emoralized.
The bank, itself is a fine little in
stitution, run by men with nerve and
honesty But fortunately a false ru
NOR that the bank had failed, COUP
ed with the failure Of white banks
started a run on the bank. Like
other banks, this one kept only a
normal cash reserve; having placed
most Of the depositor's money out in
investments. 1t was difficult to get
cash They were good for the money
but it was in partially frozen assets,
the sale Of which at this time would
have meant a huge loss and ultimate
failure Of the bank. In short the
bank was faced with failure. which
would have been a crushing blow to
the Negro community.
Many steps were taken, but one Of
the most significant, both for the
moral effect it had as well as the act
ual effect, was a loan from the Re-
construction Finance Corporation.
There is practically no question that
without that loan, speedily arranged
for with the government officials. TIE
bank would have failed, and an entire
Negro community, not only deposit
ors, but eolored business and profes-
sional men who make their livings
off depositors. and. the families of all
these people. would have been dealt
a crushing and disheartening blow.
This is the work of the corporation
conceived by President Hoover. Ger.
tainly this type of work comes as
close to keeping hunger away from
little children as all the high flown
phrases Of Franklin d. Roosevelt a.
bout forgotten men," This Is actual
help in the only way the government
can help individuals, unless we are
going to declare a national payday
and give money to everybody who
asks for it. 1t is a type Of work that
reaches the humblest person in the
community. And it is but one Of
hundreds Of plans for the rehabili-
alton Of the country. To this type
Of SANE leadership Negro voters every
where should pledge their support.
BOLD JOHN GARNER DODGES