Evening star., 1932-03-09

Of industry slowed down. Industrial
establishments throughout the Nation
factories, stores, builders, every type of
legitimate and sound enterprise-found
it increasingly difficult to carry on.
Hundreds Of thousands Of men and
women were laid off to join the grow
ing and distressful army of the unem-
ployed. The bread lines grew longer"
Based on Patriotism.
The appeal to return idle dollars to
work, Mr. Noyes said, was based on both
patriotism and enlightened self-in-
terest.
Praistng the soundness of Washing
tons financial institutions, Mr.. Cola
day explained how recent legislation.
including the Reconstruction Finance
Corporation act and the Glass-Steagall
banking act, afford facilities for keep
ing both the Government revenues and
the funds of the individual citizens in
the most efficient circulation.
The member banks Of the Federal
Reserve System are todSy in a greater
state of hquidity than ever before in
our history" he declared. 'All good
paper held by them as security for loans
made by them and all investment Sc
curities held have now an immediate
CASH dllQ Oil IOAA-
vertibility into cash without the neces-
sity of throwing them upon the open
market at sacrifice. There is no need
for any depositor to have any anxiety
over the safety of his deposit in the
banks of the District of Columbia"
While calling attention to the attrac-
tiveneSs Of baby bonds" Mr.. Colladay
frankly told his hearers that it would
not pay any one who has money on
deposit in savings bank drawing per
cent interest to withdraw that money
and put it into baby bonds, which
draw only 2 per cent interest, and it
would not pay any one to withdraw
money from an ordinary checking ac-
count in bank, which does not draw
any interest, and with that money buy
baby bonds drawing 2 per cent inter
est, because he would not be able to
use the money from day to day by
writing his checks to pay his bills.
Meet Special Need.
The baby bonds meet the special
needs of those people who are holding
small amounts of money, varying from
$50 to $500, not on deposit in a bank
and wish to invest the saTe in the
highest possible kind of security and
dL Gllc SAINT Jllllc IeCeLNG d NGly ulUueI
ate rate of interest, per cent, there
on
You may ask how the purchase of
a baby bond will place money in cir
culation, said Mr. Colladay. II an
swer that the money with which you
purchase the bond from your bank will
remain in your bank if it is a Govern
ment depositary, or il. it takes the
necessary steps to qualify as Govern
ment depositary. Thus your money
would be available in the Washington
banks to be loaned to Washington busi-
ness men. who would thus be enabled
to go forward with their business and
would give employment to people who
otherwise might remain idle"
Mr.. Kaufman warned that "the
owner of boarded savings is inviting
danger through fire loss or theft He
is oepriving himself of the fair interest
which his money is entitled to earn"
said the speaker, land by depriving his
community of its right to use these
funds he is aggravating local business
and credit conditions on which his own
financial we'll being or even the security
of his own employment is dependent"
Fortunately said Mr.. Kauffm ann.
"the relatively healthy condition of
business and banking in Washington
has resulted in a minimum of boarding
in this locality Yet it is estimated
that several million dollars have gone
! into hiding in this city, and these must
be removed from the army of unem-
ployed money.
VIII Strengthen Resources.
"The return to circulation of boarded
! funds will further tend to strengthen
hqnkin0 in