Evening star., 1932-02-05
FINANCE CORPORATION IS HELD
AID TO BUSINESS CONFIDENCE
Statistics Company Believes New Govern
ment Agency Will Prevent Further Bank
Closings and Benefit Security Markets.

poration has used more than minor
portion of it's funds. II and when the
American public believes that all bank
deposits are safe, from that moment
they are safe.
On the other hand, If each individual,
and particularly each banker, sits back
and refuses WhOlehearted cooperation
with the Reconstruction Finance Cor
poration it WilPbe utterly impossible for
this corporation, this group of men, or
any other corporation or group Of men,
to prevent banks from failing.
From the standpoint of the banker,
the mere existence of this corporation
should remove from his mind sufficient
worry, as to the liquidity of his bank,
so that he will again become a banker.
He should Immediately demonstrate
that he Is as courageous as he would
expect those men to be. Relying upon
their help in case he is SO unfortunate
as TO experience a run in the near fu-
ture, he will start to operate his bank
first by granting whatever sound loans
are being asked for in his community.
Having met these pressing needs, he
should give further evidence of his
courage by the purchase Of as many
sound bonds as he can afford to carry.
Many sound bonds are available today
at prices which will certainly not be
duplicated in many years, if confidence
in our general credit structure is re-
stored within the next 80 OF 60 days.
The banker should also recommend
to those of his depositors and clients
who normally are investors that they
purchase similar bonds for their private
accounts. There is no good reason why
he should not go so far as to suggest
that he will make normal collateral
n fhnSa nf
his customers who wish to make such
commitments.
The individual or corporate investor
should also purchase the kind and type
of securities which ordinarily meet his
particular requirements In those few
cases where the individual feels justi-
fed in borrowing to increase his total
commitments, this is the time to borrow
on reasonable margin.
The individual who Is practically OBJ
ligated to take action today is the
"hoarder" ."
Under the conditions which have
prevailed in the past, there has unfor-
tunately appeared to be justification
for the withdrawal of funds from some
Of our institutions. There has never
been any excuse for the retention of
those funds in currency except in those
few cases where the individual was so
unfamiliar with security markets that
he did not understand that the pur-
chase of short tarm United States
Government securities would give him
not only as great security. as he had
in the currency itself, but also an
income.
Immediate Purchases Advised.
With the assurance that the Recon-
Struction Finance Corporation should
give us as to the safety of bank de-
pOsltS, it now becomes disgrace, and
a stigma should attach to the person
who continues to hoard currency. Ger
tainly those who still have some doubt
as to the ability or willingness Of this
corporation to take care Of their par
tiCular bank can have no possible eX-
Cuse for not purchasing United States
Government short term securities or re-
depoSting through the United States
Postal Savings if they are of the type
who cannot afford to take any risks
And business men and ordinary in
veStOrS should consider the purchase
of an average list Of sound bonds. In
less our credit structure is due for a
complete collapse. and that now seems
an utter imposSibllity, such an oper-
alton will undoubtedly prove to be ex-
tremely profitable.
We unheSltatingly recommend that
bankers. investors, and particularly
"hoarders" purchase Immediately bonds
which may comply with their indlvid-
ual requirements as TO quality, ma
turity, etc.