The Washington times., 1933-03-13
PUBLIC BANKING
SEEN GOAL Of
ROOSEVELT
BY TIMES FINANCIAL EDITOF

BY TINES FINANCIAL EDITOR
The members of one small
group, anyhow. believe they know
where President Roosevelt is
headed in the final fitting Of bank
ing to the requirements of the
reconstructed economic system he
promises in the new DEAL"
For the most part they were
classmates and college associates
of the scholars now known as the
Presidents closest economic ad-
visors. Some in World War serv-
ice met Mr.. Roosevelt when he
was the right hand man of Jo-
sephus Daniels in his fight to curb
the ruthless profiteering on the
Navy.
In Strategic Positions
They now hold responsible edu-
cational, institutional, commercial
and governmental posts, and are
Of varied political allegiance. They
probably are in position to guess
pretty accurately at some of the
things in the Roosevelt mind.
Briefly, their symposium follows:
Economists recognize credit, the
hfeblood of modern business, as a
community creation to which all
productive agencies, from ditch,
digger to steel-maSter, contribute
in kind and degree.
It is illogical that society should
permit some of its competing units
to organize a numerically infin-
1tesimal inside group to monop-
olize credit and, for restricting it's
use, collect a private profit toll
from every productive element in
the population - manufacturer,
merchant, farmer, professional
and general worker.
Incapacity Demonstrated
Such a group, loosely integrated
In the American banking system,
in practice has demonstrated it's
incapacity to direct and control
this extremely delicate credit in
strument, upon the proper use Of
which the fortunes of all business
men and the well-being Of every
body SO largely depend.
Specifically, some of the bank
ers have demonstrated their un.
fitness for this great trust by per-
mitting and encouraging the pill
ing up here of a funded debt, in
bonds, preferred stocks and real
estate mortgages, conServatively
estimated at 1920, ,000, ,O00, 900. This
is more than go per cent of the
highest estimated capital wealth
OF the United CtateS at the peak
Of so-called prosperity early in
1929.
Impossible Interest Burden
They have cinched the demon
stration by imposing on this al
most astronomic sum an annual
interest charge of some $11, 1,OOO,-
100000. This is about one-third
Of the estimated $4,000. .00O, 900
combined total of wages and sal
aries, business, civil and fiduciary
income in the United States last
year.
Completing this demonstration
of alleged private banking inca
pacity, only general mention is
necessary Of the fat interest, dis
counts, fees and commissions,
restrictions and exactions imposed
in financing current commercial
transactions, manufacturing en-
terpriSe and agricultural produc.
tion.
President Roosevelt knows all
this. Further, he has evidenced
great concern at the fearSome
burden of taxation required to
service the public debt, national,
State and municipal which. at 3d.
COO, 100000 is only about one-sev-
enth of the total and bears the
lowest interest rate.
If Uncle Sam we're his own and
the public's banker, he could
abolish all forms of national
taxation, though this is not at
issue; halve the entire funded
debt, governmental and private,
and correspondingly the carrying
charge. With the remaining half
of the annual 100000, 900 he
could pay all National Government
costs and have a surplus with
which to retire the balance of
the national debt in a few years.
The profit on properly liberalized
commercial loans would be pure
velvet.
President Roosevelt's course
may result finally in the abolish
ment of private and the Substi-
tuition of public banking as one
prime remedy for the ills of our
social system.
The dead wood must be cut out
If our form of civilization is to
survive, and private banking, &C.
cording to the above thesis, is
the deadest wood existent, eco
nomically and-very important
politically. today.