Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-08-02

ing preferred stock, to pay 5 per cent
cumulative dividends, payable serni-an-
nually out of net earnings, ne SAID:
"If dividends are not earned, they Will
accumulate, but not be payable except
from net earnings"
ZONES said a billion dollars, or even a
half billion dollars, of added bank CAPT.
tai can be multiplied many times in
the extension of credit" He added:
Ample bank credit will not only
strengthen the banks and make 1t pos
sible for them to respond to the credit
needs of the country, but it Will
strengthen the morale of the bankers
and both are necessary II we are TO con-
duct our banks in harmony with the
recovery program"
Saws Stockholders Safe. -
Jones said the plan Of retirement
together with the low dividend rate
should make it possible for nearly all
of the preferred stock sold to the
corporation to be fully amortized in 20
years without depriving the stockholders
of dividends on their common stock in
the meantime.
This can be done without increasing
the tax burden" he added. THE Gov
eminent will be co-partner with the
banks with a limited return OF per
cent. which is well above the cost OF
money to the Government, but an at
tractive rate to banks that can use
added capital" -,
Jones said the stock purchase would
make the benefits of the Glass-Steagall
bank reform act more extensive ana
the deposit insurance feature less
burden
Some bankers. he said, were afraid
to sell such stock for fear 'neighbors
and competitors would gossip about
them to the effect that their banks
were in a weakened condition and that
they had to appeal to the Government
for help"
largely On false pride or unWarranteo
fear" he emphasized.
Called Great Compliment.
"As a matter Of fact. for the Gov
eminent to be willing to buy stock IN
a bank and advertise to the world that
it is a partner in that bank is the
greatest compliment and source OF
strength that could come to any bank.
And as fer the critical neighbor, he is
not entitled to decent place ia So
ciety."
Jones said the corporation, in CO.
operation with the controller of the cur
rency and State banking authorities,
was doing everything possible to release
frozen deposits and bring about the
rehabilitation Of closed banks"
He emphasized no political influence
was necessary to obtain the benefits
offered by the corporation.
The full text of Mr.. Jones address
follows:
The world is as much startled as 1t
is encouraged by the recovery in COM
modify values and other values that
the President has brought about in tho
short period of four months.
The world is equally surprised at the
extent to which these increased values
have been reflected in improved condl-
tions-improyed business and improved
morale.
In fact, we are living in new world,
and pause to wonder how many OF us
had any sort of conception as to what
the President meant by his new deal"
And also wonder how many Of us had
any real faith in his ability to bring
us so quickly out of the depths Of de-
spair into which we had descended.
In great measure what has been &C
complished up to now is the result OF
confidence in the President and conf
dence in the stability of our country and
our Government More it is the accepted
belief that the President is determined
to keep on cranking the engine until
1t goes.
NOW-Une ETGSlQellL Gall luII l4oLl tAiC
leadership. He can provide the means
and the facilities But it is up to the
rest of uS-to you and to me-to carry
on, to follow his leadership with faith
each of us-to put the best Of our
abilities, whatever our part OF the JOB
may be, whether on the farm, in the
factory, in the store, in the bank, or
in the ranks of labor.
Holding back, waiting to see If it Is
ill., h. o1or1f IN o0NlU-
ing the brakes while at the same time
giving gas to the engine. Obviously
this is not cooperation. The Presidents
program will be much quicker OF &C
complishment if all take hand and
help in the scheme of everybody back
to work" Indeed, it is the patriotic
duty, as I am sure it will be the pleas
ure, of every citizen to cooperate to
the fullest possible extent in carrying
out the plans and programs initiated
by the President.
Many leaders in business and Indus
try. in banking ane perhaps in labor,
will probably feel that the program out
lined for their particular business or
sphere in the general scheme will be
unavoidable, or not as they would de-
sign it. But we must all recognize that
there is but one leader-the President
of the United StateS-and that failure
to follow his course and to cooperate
with his program will be exactly like
the failure or refusal of a soldier IN
time of war to obey his commanding
officer
No perfect plan for adjusting every
branch of business can be promulgated
in a few weeks time but by willing CO.
operation. whatever plans are put into
effect can be rearranged and refined
If experience proves the necessity for
correction.
With four years of disastrous business
results of economic hell" as the Pres
1dent himself termed it in his radio
address of July a. without centralized,
constructive leadership, such as we are
now so fortunate to have, all business,
all industry all banking and all labor,
organized and unorganized. should ac-
cept with good grace and without hest
tation the plans, the suggestions and
the leadership that President Roosevelt
IS furnishing This applies to big and
small alike, to business of all kinds
agriculture. railroads. public utilities,
distributors. merchants, banks, and in
fact to every phase Of our economic
life
1t requires a willingness to compose
ones views with the views Of others,
to take ones place in the general scheme
of our national life, to accept leader
ship and to assume an ordinary bust
ness risk.
To halt and to wait will not help.