The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-03-02
Simpler Financial Methods
Are Required, Declares
Motor Magnate.
DELAY DETROIT ACTION
Auto Maker May Be Asked
to Cancel Agreement to
Run Institution.
BY JAMES c. AUSTIN
United Press stan Correspondent

SllbeAeN lIle DSlIOlI X SltU-
alton because of inSistent urgings
of bankers representatives and be-.
cause Of a conviction that simpli-
fed banking is needed in America.
He felt that he would be able
to help iron out what he believes
are some Of the wrinkles in the
national banking fabric.
Ford made clear his views on the
national banking situation in an
interview with the United Press.
His banking theory is based on
a belief that there should be two
kinds of banking.
In the first, depositors would put
their money in the bank for service
and safe keeping. They would pay
a small sum to the bank for the
service and receive no interest. The
banker would not lend the money.
The second would be for de-
poSitorS who desired a return on
their money. Such a bank would
lend to productive enterprises.
He hoped to put these theories
into practice in Detroit; a hope he
has not abandoned despite the fact
that authoritative word has gone
around that those in control of the
First National-Detro bank, one of
two which Ford on Sunday agreed
to take over, would ask to be re-
leased from their agreement.
This word came after Senator
James CouzenS, Ford'S Did business
partner, had conferred with bank
erS and then with Ford. The &C
tuating cause of the changed plans
of the First NationaI-Detroi group
was not clear. A strong clement in
the directorate, however. is known
to trown upon the Ford plan.
Holds Old Position
Ford, looking much thinner than
usual, his tanned face contrasting
with the silver grey of his nair,
reiterated that he had not receded
from his original position with re-
gard to taking over the banks.
After an investigation, 1 offered
to organize two new banks to take
over the assets and perform the
AOAlOblOl1O VI bllC OlO DdIlhN. L UldQ
the offer and it was accepted. 1
indicated, as exactly as I could, the
nature and character of the banks
that I would operate.
They would be banks for the
people and banks for the assistance
and aid of productive business. If
there is any desire on the part Of
any of the banks involved to with
draw from their acceptance of my
offer, they have not SO advised me.
We are ready to proceed, provided
they can do as they agreed.
L want to make my position clear.
I was not keen about going into the
banking business. I am an auto
mobile manufacturer.
Ideas Well known
MY position and my ideas re-
garding banking are well known.
But when I repeatedly was asked to
create these new banks I decided to
do so. If obstacles develop, if con-
ditionS change or attitudes are
switched, I still retain my position.
I stand for a balanced banking Sit
uation in Detroit"
Commercial Detroit frankly re-
garded the situation as one in which
the old-line eastern banking inter-
ests, the sO-called Wall Street
banks" are fighting bitterly to pre-
vent Ford from becoming the DOM
inant banking power of the Detroit
area.
America needs simplifed bank
ing" said Ford. During what I
call the crazy age in America, when
all sense of values was distorted in
the scramble to get money by spec
ulation and not by work, too many
banking directories apparently
were selected on a country club
basis and vice-presidents on their
strength as social assets. Banking
needs men, and always has needed
men, with the keenest sense of the
social responsibilities of their posi-
ton.
Banking Called Service
Barking is not a business in
which great financial returns al
come to the bankers. Banking is
a service.
Money, by itself, was not the
cause of the depression. Money is
not enough. The depression came
because of our state of mind: out
Of the fact that thousands of people
had come to believe that the way
to make money was through plung-
ing on stocks or commodities, in
stead Of producing the goods and
creating wealth by work.
Il am not opposed to the o
called Wall Street banker or to
Wall Street. In many ways, in my
Judgment, their services are re-
quired. They are, in a way, the
scavengers of commerce.
when a concern gets out of date.
or inefficient in its management,
they go to These banks for relief and
they clear them up and get rid Of
them. Sometimes money is lost
in the process, but that is generally
SPECTATORS money.
Debris Is Cleared
"The definite benefit is that the
uelO mas een feared up and the
commercial debris removed. Some
times suckers are caught, and, by
that progress, gain an experience
that's invaluable to them later on.
Il believe that there should be a
type Of bank that is purely for
savings in which money is deposited
with the assurance Of absolute
safety at all times. On this money,
no interest should be paid the de-
positor by the banker. On the con-
trary the banker should receive a
small fee for handling the fund.
For men who are ready to take
a degree of risk, who have con-
fdence in the banking structure and
its management, another type Of
bank should be created in which
money should be loaned on pro-
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