Red Lodge daily news combined with Carbon County news., 1933-10-04
GOVERNMENTAL INCONsISTENCY

Much comment has been heard in recent weeks regard
ing conflicting policies of various government depart
ments. No branch of business has suffered more seriously
from the Inconsistencies of governmental supervision and
policy than the banks of this country. Just now the whole
banking structure is the subject of much debate and a
lot of loose talk in high places-talk that would better be
unsaid and from sources that should know better.
There is government demand that the banks shall be
both liquid and liberal, that they shall be both loose and
tight, that they shall be generous with loans and vet that
they must always be ready to meet the demands of their
depositors. Banks should loan their money out and keen
it in the vaults at the same time. There are demands
and from government sources-that the banks shall helm
to make "easy money! and at the same time the bankers
are aware of the club that is welded by the bank exam
liners who throw out all slow or frozen loans and the bank
ers must have a constant eye on the regulations of the
Federal Reserve banks covering paper for rediscount.
In other words, the banks of the country are damned
if they do and damned if they don't"
Nor are the bankers being permitted to solve the prob
lem for themselves. For weeks they have been the butt
OF snap-Judgment criticism and half-baked advice. Some
government officials in the NRA have been demanding
that the banks ''loosen up' so that loans can be made to
concerns willing to increase their overhead and expand
their payrolls. AT the same time the treasury DEPART
ment' which only SIX months ago showed the banks what
II can do to them, is everlastingly pounding the bankers
to get themselves in sound condition and stay there. If
demands that they "slough off, bad assets and slow
paper and above all cautions them not to be caugbt AGAIN
IN the condition they were in last winter.
The banks cannot listen to the NRA and the treasury
at the same time and they cannot heed the conflicting adj
vice and requests of both these government agencies.
After all, the bankers responsibility is not so much TO
lhose who desire to borrow money as it is to the deposi-
tors who have entrusted the banks with their cash. I'm
doubleday both divisions of the government which now
are scoldlng the bankers are wrong in their extreme no.
sltlons. There is a sensible common ground which the
bankers OF this country are themselves seeking to reach
LII is the position where with safety to the depositors thew
can make loans to stimulate business. But the paner thew
accept must be sure and certain. The governments bank
examiners have been unreasonable in their requirements
OF the banks and those who now would scatter banking
broadcast in the hope of stimulating business
are just as absurd.
In the meantime banks and bankers are suffering a lotl
OF undeserved criticism that is not helping at all in theI
monumental task of restoring public confidence in orr
observation-disclosures Standard.
What the farmer would like to have is dollar wheat to
go with the new N. r. A. dollar shirts.
Inc average small boy is hoping that the new oil code
Will cut down the production of castor oil. too.