The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-03-15
Foeeign Representatives.
SMALL SPENCER, BREWER
(1ncorporateN
NEW YORK BOSTON
System Must Change

CHICAGO NEW YORK BOSTON
System Must Change
Present conditions doubtless will re-
suit in q thorough revamping Of the
banking business. Depositors are 60
ing to insist upon security. II the
present trends indicate anything. it
ID evident that commercial and in
vestment banking will be divorced.
Leading financiers agree that more
safeguards must be established to pro-
tect at all times the interests of the
depositors.
But banking to continue must be
profitable. How to direct the various
banking services into profitable chan
nels Is q problem to be worked out
under the new scheme Of things.
Recently certain service charges
have been assessed against depositors
and interest rates on deposits reduced
in IN attempt to put banking opera
tions on more substantial basis.
Fur years disastrous competition
among banks resulted In many free
services and contest for deposits by
upping interest bonuses beyond safe
and conservative levels.
Then followed the war and post
war speculative periods. Not only
bankers but millions Of depositors
started out on . financial Joy ride,
the like Of which this nation had
never before seen. Unfortunately
bankers, being only human, took
chances along with their depositors
and borrowing customers. They all
rode the high tide Of paper pros
perity.
AL know what followed. Since,
there has been . frantic attempt to
maintain inflated values. Bankers,
aided by the United States treasury,
worked for more than two years to
protect the people against their own
folly. The breaking point came when
depositors realized that many banks
were unsound and that governmental
policies to save some OF the wreck
were not functioning as had been ex-
pected. A national political campaign
retarded all remedial plans. A stale
mate resulted. Over night millions of
depositors sought to convert their &C.
counts into gold or currency. There
was nothing to do. in face of this
raid. but to shut down all banks and
force the hoarders and raiders into
the open.
The bank holiday is now being
lifted gradually. How long banks can
function depends upon the confidence
Of the people. With tight federal con-
tr6l over the banks Of the nation and
none but sound banks functioning, de-
posttors should put fear aside. Bust
ness q usual should be the motto
every where.
There is wealth untold In this ma
ton. Money and credit exist in
abundance. Confidence must be re-
stored. Reconstruction will go for
ward Is fast . there is public CO.
operation.
That confidence is returning rap
idly Is attested by the return OF gold
and currency to the federal reserve
banks. From New York came stirring
reports Of the parade Of hoarders to
the federal reserve centers to return
nancy which had been in hiding-a
pd1icy which contributed most potently
to present conditions.
IN great centers as well as small
towns. this boarding has been in
progress for two years. The federal
government Is determined to force
this medium Of exchange back into
It Is the life blood of
trods.
nut back Of III this Is the feeling
Of confidence Ia the leadership at
Warrington. & that morale can be
maintained. this nation should soon
b back to normal blsi,s.ss condition..
On can sense = feeling Of optimism
, desire to follow II only wise leader.
ship points the way.