The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-12-11

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All rights Of republication Of al other
matter heretu are also reserved.
Money for the Banks
Announcement BY the Reconstruc-
ton Finance Cooperation that It has
taken e22Ooo0oo In stock Of banks a..
tiliatsd With the Northwest BANGOR
poration brings to light that many
bankers are not enthusiasts about
this "help' which the government y
giving them. To b quite frank. they
do not regard It . help ct I'll but g
IN added burden upon tho banking
business
TO understand this, y = necessary
% 60 to thu bottom Of the govern
ment effort and understand Why this
money d being offered TO thu banks.
It oil begins With the governments
recovery efforts. Despite the multi
iarious public activities, 1t = neoes-
sary to keep Ia mind that what the
government really u trying 70 do =
70 stimulate private business. In it,
effort 70 do %. # has encouraged tho
banks to loosen up h their loauing
policy. TO support this more liberal
attitude. It u pouring money into the
banks to encourage them.
But tho Job q tho banks = 70 find
safe and profitable places to make
these loans. and Just there appears
ths ~ IN tho ointment The banks
~ thsy azs willing 70 loan money to
IN borrowers who can meet the con.
ditions which sound banking pre-
scribe. These. n short. aro that the
bank b protected from los and that
Tho borrower b able 70 pay hack the
loan, with Interest, whsn tho note be-
comes due.
This Is reasonable enough. Banks
are responsible 70 their depository.
who expect thar money On damaud.
II they cannot pay when asked to do
90. the bank closes. And few things
arc moro useless than Q busted hank.
As . general thing. everyone favors .
liberal loaning policy. but II such IN
attitude win break the hank Il had
better b avoided.
= = =
With these things IN mind, hear
ths story Of . leading North Dakota
banker. who was commenting-pri-
vately and bitterly-on tho dilemma
1aced BY our banking institutions.
We have" hs said, plenty u
0ooey IN our bank to make loans.
We would b glad 70 put 4 ont at
interest, Tor " have to pay in
tosst On our deposits . well .
upon tho money which the gov
egnment proposes to turn over to
Most hanks have had to take
ooaDes, but those which remain IN
business aro On . liquid basis and
- n position 10 loan money e
- borrowsr y sntttled b . loan
n . fair business basis.
nut who wants ~ Many bua-
0ossss and farmers axs 20 hard
pgesssd that they nsed money and
- would like % loan \ 10 them,
bub ~ cannot 1gnoco the fact
t1aa4 W might not ct II back.
~ cannot Just slve our dspoi-
1oeT money away.
~Ths situation n osr livestock
Industry shows what I mean. The
evog1Se farmer with livestock
mt getting enough profit wi3en
- sslls 70 buy . three-csnt post.
- stamp Few 90 setting
Tho cost q feed and labor. AZ
present petoes ttey are listening
0att3o 1ne lsss than nothing. Thsy
1sO oetually eplng into The ho1s.
There INT any ssnse 81 loan.
ng ua0nsy - a sntespeise Hko
Nhet because uaogs Hhaly tlaao
anA + wiu Just turn out to b .
IN Dveryons smdsfstaods taat
an6 @ Tho ysquests 1oe loans
have dyoppsd OH. Whist "a IN
% know = how W - eolng %
eet this new money into ctruula-
tion when ~ already have mona1
- can't safely loan
= = =
That statenneut illustrates about O
well . anything could. tle dtuetion
created b present prices and tlae
business inertia q The last lsw years
~ Il applies % loans 1og farm pro-
duction Il may u local % our own
section a tho eount1y. but farming 4
Tho only major business - know and
+ 4 6oeGnt aboogD III surplus eapl-
~ availa11e tA0o - IN elhss
p1aeoD whlfo - 1enGv Nm - ~
1nGidental1y. = oasls 1oms 1ohE q
- money qu1gl1on, abeub w41ieh ~
80 hnneA - fn,aeh lAAnlv. n wna,A