Evening star., 1932-09-02

Publication of the list of institutions
receiving loans from the Reconstruction
Finance Corporation has not interfer-
ed with the course of business, In the
judgment of the press. The advisa-
bility of the policy of publicity for such
aid Is still a matter of dispute, however.
1t Is attested in comments that the
operations of the Finance Corporation
have been beneficial, and In some in
stances have prevented damage from
the depression.
THE list published" according to the
Jersey City Journal independent Repub-
lican), "refutes the contention ofpolitical
critics that the Reconstruction Finance
Corporation was helping the big fell
lows but not the little fellows" The
journal contends that "the publicity
policy Is the only really proper course
to be followed in matters which effect
public money" and concludes: The
confidence of business men everywhere
should be increased upon having re-
vealed in detail how large numbers of
institutions, which might otherwise be
forced to sell their securities at ridic-
ulously low prices, have been able to
borrow ready cash with which to meet
current obligations and at the same
time to preserve intact their invest
ments."
The commercial banking commit
ments alone" in the opinion Of the In
d,anapolis News independent Republic
am. bore on the private affairs OF
about $4,000. 600 Of the 40, 900 900 Ameri-
cans that are depositors. The feeling
of stability thus encouraged tended to
revive confidence, obviously, In the re-
manning 25,00o,o00. The aid provided
in the insurance, mortgage and railroad
field unquestionably was similarly fruit
tul. In quieting the elements Of disrup-
tion. the corporation cleared the path
for positive progress toward recovery"
-
"The fact that 70 per cent of the
banks to which loans have been made
are in towns Of less than 5000 popu-
lation is convincing refutation OF the
charge that because bank is small 1t
stands no chance of receiving help,
AYERS the Charleston (W. Va Daily
Mail independent Republican,. The
Cincinnati Times-Star Republican, re-
marks that, while there are some large
amounts, most bank loans do not ex-
ceed $40, 900" and that they prtoect the
savings of small depoSitors iE small
soundly managed banks" The Kansas
City Star independently, holding that
when there Is recounted the story OF
a return to better days in America,
the Reconstruction Finance Corporation
will need to be accorded an ample and
highly creditable showing" declares
1T is shown that the great majority OF
borrowing banks are in the small towns
institutions that are closely linked with
community life, that all banks aided
have a total of 100000 depositors,
that 100000 farmers have received in
dividual loans and that uncounted mil
lions of insurance policy holders, mem
bers of building and loan associations
and others have been assisted"
Fortunately" says the Charleston
Is. c. Evening Post (Democratic)
banking conditions throughout the
country nave so greatly improved in the
past few months that the publicity fea-
ture does not offer the threat 1t for
merly did" That paper ADDS: Never
theless, 1t is an undesirable feature, and
If it is mandatory in its terms, Congress
should get rid of 1t at the next session. u
The Chicago Daily News independent
offers the judgment: IF the publicity
furnishes political capital for either
friends or foes of the administration
doubtless full advantage will be taken
Of 1t. If, however, its effect Is to weaken
the credit of institutions which needed
help and got 1t. the result will be mis-
chieyous at q time when the Federal
Government and innumers bile private
agencies are putting forth extraordinary
efforts to bring about a general revival
OF businesSfonfidence."
'cThe information concerning oanx.n