The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1933-10-06
Plight of Banks

All T1gnt6 OF TepUOlC0tlOn OF al Otuex
matter herein are also reserved.
Plight of Banks
Gen. Hugh johnson Of the MIRA
stepped on . very sore toe when he
criticized banks for not Mberalizing
credits.
It may have been part of the bally
hoo Of which there has been too
much OF late. BE that - It may, the
plight Of the banks u such that the
dig was ill-advised and not justified
BY facts.
President Roosevelt's greatest serv-
Ice to tho nation in these trying
hours is the optimism Of his leader
ship. Progress has been made through
his ability to take much Of the des-
pair out Of the depression. The BEN
official effects Of the MIRA have
been largely psychological. The peo-
pie needed something to raise chins a
little and put smile on faces. That
was an important and . first step
toward recovery.
The president has recognized this
value Of the NRA publicly. He
realizes that the great battle lies
ahead and we all must march shoul-
der to shoulder as good warriors In
the fight, but we must utilize our
reasoning powers as We travel along
We can't substitute brass bands and
bunting for logic.
It is generally accepted that the
results Of the NRA are largely depen-
dent upon expanding credits and an
early announcement In Washington of
what the monetary policy Of the gov
eminent is going to Be.
Mr.. Johnson's fling at the banks
was unfair and ill-timed.
It doubtless did not have the back
ing OF those who are formulating the
Roosevelt policies.
30 many governmental agencies
have invaded the banking field with
in the last decade it is rather sur
prising that any private credit reser-
votrs are left. The trend has been
toward government banking and If |
this tendency persists. our banks will
ultimately be reduced to the position
Of money changers and collecting
agencies. That Is what too many Of
them are today. Try and get q quick
loan from some Of them and find out
for yourself.
Don't, however. damn the banks.
II they grant doubtful credits they
ara playing largely with your money.
Recent Investigations whipped up
public indignation over easy credits.
Hundreds of state and national banks
dried up by reason Of easy credits ac-
companied by = deflation unequalled
tn the financial history Of this nation.
With billions Of deposits frozen In
closed banks or financial institutions
operating on q restricted basis, 1t
would seem that now Is q most inbp-
perfume time for Gen. johnson to ask
. great extension Of commercial
credits. 1t Is simply not in the pic
ture for the banker who wants to keen
the doors Of his institution open or
evade the penitentiary.
Until the federal administration !
determines what its currency policy is
going to be, credits will be restricted
and commercial expansion viii be
limited. The banker must know what
kind Of q dollar he is going to get
back for the one he loans It Is nee.
essary, too. for the businessman toi
know currency trends before he
starts upon policies OF expansion in
production or distribution.
No one wants to end up holding the
sack for financial policy which to
dsts has not been announced and may
not be sound.
SAFELY over this dollar crisis and
on sound financial ground again. bus
Iness can forge ahead. This peogress |
VIII be aided b. the kind Of spirit -.
Elected BY the MIRA but simply the
viii to do y not enough.
The American people. IKE al peo-
psss. need the enthusiasm Of : great
cause. The whipped up momentum Of
The MIRA has helped. but after the
din Of bands and paradss has sub.
Itdod there ars certain economic
fundamentals that cannot safely b
Ignored.
0aitiug the banks II this eaasreencyl
y hardly "a good tasts. to ~ the
let.
An Offset Lesiba /
Iho9e who have witnessed brush
Hrs II Griffith park Or the canyons |