The Washington times., 1933-03-13
FA| TIL,
AIR PLEA Of
ROOSEVELT
President, in Radio Address
To People, Tells How
US. Saved Banks


Praising the American people
for their fortitude during the
bank holidays, President Roose-
velt, over the radio last night,
explained the various moves made
by the Federal Government, and
promised to restore the weak
banks by reorganization, as well
as to reopen the strong ones.
The President pointed out in
1rticular that fear should not
grip depositors and citizens be-
cause only the banks in the II
Federal Reserve cities were to
open todap.
Many Openings Delayed
Banks in the $50 clearing house
cities are to open tomorrow, md
the remainder Of them Wednes-
day, Mr.. Roosevelt declared, but
he pointed out that this arrange
ment depended, upon the success
Of the Federal fiscal agents in
checking the conditions of the
banking institutions.
Many sound banks, he indi-
Gated, may not open on the
designated days, merely because
of the physical impossibility Of
examining the vast number of
them in the time allowed.
Reorganization Of the weaker
banks, Mr.. Roosevelt said, would
be made with the aid of the Fed
eral Government.
Few Beyond Saving
He was careful to suggest there
were banks that could not be
saved even by reorganization and
with the aid Of Federal funds and
guidance, but these he declared
were few in proportion. He de-
clared:
1--WE had . bad banking situa-
tiOn. Some of our bankers had
shown themselves either incOM-
petent or dishonest in the han
ding Of the peoples funds.
They had used the money en-
trusted to, them in SpeculatiOnS
and unWiSe loans.
"ThiS was, Of course, not true
in the vast majority of our
banks, but it was true in enough
of them to shock the people for
. time into q sense Of insecurity
and to put them into q frame of
mind where they did not diff
ferentiate, but seemed to as
sumo that the acts of a COM
parative few had tainted them
all.
"It was the Governments job
to Straighten out this situation
and do it as quickly as pos
sible-and the job is being per
formed.
CREATING SOUND BANKS
There will be no losses
that possibly could have been
avoided; and there would have
been more and greater losses
If we had continued to drift.
/ can even promise salvation
for some at least of the sOrely
pressed banks. We shall be
engaged not merely in reopen
ing sound banks, but in the
creation of sound banks through
reorganization.
"After all, there is an ele-
ment in the readjustment Of
our financial system more inn
pOrtant than. gold, and that is
the confidence of the people.
Confidence and courage are the
esentialS of success in carry.
ing out our plan.
'YOu people must have faith:
you must not be Stampeded by
rumOrS or gueSSeS. Let us
unite in banishing fear. We
have provided the machinery
to restore our financial syS-
tenn; it is up to YOU to support
it and make it work.
UNDERMINED FAITH
In opening his 15-minute talk
from the White House, Mr..
Roosevelt drew an elemental pic
ture Of the methods by our
banks operate, and then ex-
planned why the banking holidays
were declared as soon as he took
office. He said:
Because Of undermined con-
fidence on the part of the
public there was q general rush
by large portion Of our pOpu-
latiOn to turn hank deposits
into currency or gOld-a rush
50 great that the SOundeSt banks
cOuld not get enough currency
to meet the demand.
"The reason for this was that
on the spur Of the moment it
was impossible to sell sound
assets and convert them into
cash except at panic prices.
"ThiS bank holiday, while re-
suIting in many cases in great
incOnvenience, is affordinR us
the opportunity to supply the
currency necessary to meet the
situation. No sound bank is a
dollar worse off than it was
when it closed its doors last
Monday. Neither is any bank
which may turn out not to be
in q position for immediate
opening"