Evening star., 1933-11-02
BANK COOPERATION
IS URGED BY JONES'
R. F. c. Chairman Outlines
Plan of Recovery in Radio
Forum Address.

EUIuIiI HuUI cSSs
Reporting widespread cooperation Of
clearing houses and banks in the PreSl-
dents plan to strengthen the capital
structure of banks to increase credit,
and bolster the recovery program, Jesse
H. Jones, chairman of the Reconstruc-
tion Finance Corporation last night
recommended that all banks in the
country, whether they needed new cap
ital or not, should cooperate.
Speaking in the National Radio
Forum, arranged by The Washington
Star and broadcast over coaSt-to-
coast network of National BroadcaSting
Co. stations, Mr. Jones said it was the
Presidents belief and wish that all
banks should participate in the program
1t is his opinion" said the speaker
that every bank in the United States
should participate in order that all may
be regarded as equally patriotic and
equally cooperative in his recovery
program"
Many Banks Cooperating.
"A great many banks have felt that
they did not need any additional capt.
tal," he said, but most of them are
cooperating in the program, and
willingly following the Presidents lead
in his determined fight to bring us back
to normal existence"
Allaying fear" that the Government
would endeavor to dictate the manage
ment of banks, through the purchase of
preferred stock or capital notes by the
r. F. c., Mr.. Jones declared there is
no intention whatever on the part OF
the President, the Secretary of the
Treasury or the r. F. C. to assume the
responsibility of the management OF
banks"
Chairman Jones told also of efforts
OF the r. F. G. in other fields. While
special attention is being given by the
Deposit Liquidation Board, part of
the r. F. c. to banks closed during
1898, the speaker said loans are being
made as regular function Of the R.
F. c. to receivers of banks closed before
January l, 1853.
Sketches New Program.
Briefly sketching the enlarged scope
of the R. F. c., Mr.. Jones said the
corporation wants to do everything that
1t can to meet the legitimate demands
of industry, cooperating under the N
r. A. and is encouraging loans for this
purpose. 1t wants TO strengthen the
banking system and to free deposits
which now lie frozen in closed banks at
the service OF no one. 1t desires to be
of benefit to agriculture through loans
on commodities 1t intends to fulfill
its functions in connection with the
Presidents monetary plans, and his
plans to increase the price of commodi-
ties. For instance, today the Recon-
struction Finance Corporation, under
the authority vested in it by the PreSl-
dent, has authorized the Federal Reserve
Bank of New York to dispose of the
notes of the corporation and take in
payment foreign gold imported after
November /, 1888"
The text Of Jones address follows:
Before going into the subject of my
address, I want to say a word about the
President, as ! see his course.
7 am more impressed each day with
his determination to do the thing he
started out to do-to bring us perma-
nently out of the condition of doubt
and uncertainty, of fear, or whatever
is the cause of the conditions attendant
upon us during the past four years.
His strength, his spirit, his endurance
and his great understanding of men and
things, at home and abroad, is a source
Of constant amazement to me.
My part is to administer, to.the best
Of my ability, the agency within my
charge, the Reconstruction Finance Cor
poration, so as to carry out his policies
and keep step with his plans.
We 60 to him with our problems
daily-the Department Of State, affect
ing the entire world, the Treasury,
which must provide the funds to pay
for all the things we are doing; every
member of the cabinet, eacn having an
important charge, and a program cut
lined by the President himself.
In addition, there are the Public
Works Administration. the N. R. A. the
Federal Relief Administration (espe-
cially the agricultural program normal
and extraordinary the farm admins
traitor with his many functions. the
Tennessee Valley Authority with its op-
erations, the railroad co-ordinator ca
very important goVernmental 1unction,
the Home Owners Loan Corporation,
the Director of the Budget, who must
keep the books in balance.
All Are Given Attention.
All of these and more confront the
President. Strikes, codes, threats, back
seat drivers and what not-thousandS
of suggestions from one source or an
other-these all come to him, and all
RGU SGSScollOiIo al
ways positive decisions when necessary.
Imagine this program if you can, and
you will have fair picture OF the daily
life of Franklin Delano Roosevelt, Presi-
dent of these United States.
I am glad of the opportunity which
The Washington Star National Radio
Forum has placed at my disposal to dis
cuss problems confronting the Recon-
struction Finance Corporation, and es-
pecially some of its more recent activi-
ties, because of their Importance to the
Presidents recovery program.
Increasing the bank capital structure
OF the Nation through the purchase OF
preferred stock and bank capital notes
and freeing deposits in closed banks is
our most important immediate function,
unless it be the part We are to play in
the Presidents plans for increasing the
price of commodities through the sale
Of our notes for gold.
The battle gainst the economic forces
which caused the depression is major
engagement, fought on many fronts, re-
quiring absolute coordination and con-
slant effort.
Agency Is Pliable One.
The functions of the R. F. c. form a
part of the whole structure which Pres
ident Roosevelt is seeking to erect. This
Is not just measure of relief. but in
tended to insure the future of .an the
people. The r. F. C. Is perhaps the
most pliable agency at the command of
the President. Through it credit re-
Quirements for many purposes can be
met.
Banks are the natural source OF
credit, but until fear and uncertainty
are dispelled, banks will be tinid and
more than ordinarily careful in ex-
tending everyday credit.
Need for capital credit is beginning
to be felt; capital credit to meet capital
maturing obligations, and capital credit
for carrying on new projects ano
financing agriculture and industry. Ger
tainly no one will challenge the state
ment that the restoration of credit tc
its normal channels and customary
functions is one Of our most important
problems and no means of bringing
hi I0yt 1n