Evening star., 1933-09-06
Bankers and the N. r. A.

President Roosevelt, in a message tt
the American Bankers Association meet
ing in Chicago, declares that never be-
fore has there been greater need ol
courageous bankers in this country
The President rightfully points out that
if national recovery is to take place
there must be adequate loans to indus
try and commerce. Further, he ex-
presses his confidence that the bankers
of America will be equal to the task.
All is not beer and Skittles between
the administration and the bankers,
however Francis H. SiSson, president
of the American Bankers Association
and vice president of the Guaranty
Trust Company of New York. has sharp
ly criticized Government officials who
blame banks for not lending to industry
These Government officials, Mr.. Sisson
said, are seeking an alibi for failure of
the N. r. A. The administration
through the message of the President.
and more particularly through the ad-
dress delivered to the bankers by Jesse
H. Jones, head of the Reconstruction
Finance Corporation, have plainly told
the bankers that the duty of the bank
ers is to provide the sinews of war on
the depression and that if they do not
do so the Government will do the bank
ing business.
The demand for increased credits for
industry in the recovery drive of the
administration is understandable. Un-
less credits are provided, industry is
helpless. On the other hand, the de-
mand for safe banking in a country
that has just gone through a period of
disastrous banking is equally impress
sive. The bankers are occupying a hot
spot. They are likely to be damned if
they fail to make loans and to be
equally cursed if they loan TOO freely.
The times call not only for courageous
banking, but for wise discrimination in
banking. The country is backing the
administration, however, in its recovery
program. Indeed, it is depending
strongly on the success of that program.
1t will not do for the bankers to hold
aloof. Besides, some of the bankers
who are now carping in their criticism
of the N. R. A. failed utterly to call
halt on the terrible overexpansion of
credit and gambling in the years prior
to 1880. On the other hand, they joined
in that imitation which in the end
brought the country to the verge of
ruin.
Furthermore, there is a large amount
of criticism by bankers of the legislation
put through by the Congress at its
special session to tighten up the bank
ing laws, legislation which was vigor-
ouSly fought by many of these bankers.
This attitude on the part of the bank
ers is not calculated to inspire greater
confidence in the banks and their
directors on the part of the public. One
of the provisions of the Glass-Steagall
bank law to which these bankers take
particular exception is the clause
guaranteeing bank deposits IN part.
They urge that the operation of the
deposit guarantee be postponed beyond
January /, when it is expected to be-
come effective, largely in the hope that
if it is postponed it may be repealed.
The bankers have the wrong slant if
they believe that the public will listen
to their arguments against the guaran-
tee of deposits or to their criticisms OF
the law which separates commercial
and investment banking. The attitude
taken by the American Bankers Asso-
citation will be watched with more than
usual interest by public which has
suffered greatly at the hands OF bankers
in recent years.