The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1934-11-16
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National Topics Interpreted KB fTTHW@
by William Bruckart MEnhSn3NfV
by William Bruckart

ed as sound banking ruling, and has.
told the banks they may loan more
than 10 per cent provided the amount
loaned above 10 per cent is guaran-
teed by the Reconstruction Finance
corporation or the federal reserve
system. Treasury officials think this.
will encourage banks to extend addi-
tional credit.
1t happened that on almost the same
day that the treasury policy was an
nounced, one of the largest banks in
the United States reported privately
that one of its vice presidents had re-
turned from a six weeks scouting trip.
in an effort to find places where it
could loan money. This man visited
important cities in 10 states. He Is
a practical banker and he is thor
oughly acquainted with the means of
approach to potential borrowers. But
his six weeks tour netted one loan ap-
plication.
That banks report may sound silly
because there are so many people that
need money. Yet, it must be remem-
bered that bank is trustee for the
funds placed in its care by its depos-
itors and it cannot hand out money
with reckless abandon. 1t must feel
reasonably sure that there will be
repayment, and this was the thing
which the banks vice president failed
to find. There were plenty of individ-
uals and corporations that needed
money but they had no security to Of
fer and little to guarantee that they
could repay the borrowed funds.
Financial experts, therefore, are not
unduly excited about the latest treas
ury ruling which was released with
much gusto and with statements that
this will free "many hundreds of mil
lions' to business. / am told that the
banks are chock-ful of loose cash. Re-
ports to the treasury certainly indicate
that to be fact. But when borrowers
who need money have no security and
when business is at such low ebb
that only the minimum of funds is
needed, believe it can hardly be said
that the bankers are wholly to blame.
The bankers have been vigorously crit
icized in the last four or five years
and obviously a considerable spanking
was due them. On the other hand, 1
think it is a plain statement of fact
that you can no more force people to
borrow than you can make a horse
drink after you have led him to the
trough.
Senator Gerald P. Nye, North Da-
kota Progressive Republican, has start
ed on a speaking
Unusual tour that, as far as
Speaking Tour I can find, is with
out precedent. The
senator is chairman of the special SEN
ate committee named to investigate
the munitions, aircraft, and shipbuild-
ing Industries, to determine whether
these businesses have been active in
fomenting trouble between the nations
of the world. The committee has held
hearings covering a period of three
weeks, and the hearings will be re-
sumed later with the prospect that
they may run on for many months.
Senator Nye is making series OF
six speeches in the United States and
one In Canada, dealing with the ques-
ton Of who really starts wars. He has
announced that he desires to tell the
country how nations are driven into
conflict and the inference is, of course,
that he believes munition makers and
others producing material for war are
at the bottom of the heap.
But the point is that Mr.. Nye per-
sonally Is an advocate of government
ownership of all plants now engaged
in the production of anything used in
wars between nations. He is authen-
tically reported to have a draft of leg
islation In mind which he will present
to the forthcoming congress. He is
not alone in holding this belief for at
least four other members of his COM
mittee entertain the same general
trend of mind. There are seven men,
bers of the committee so that 1t is ap-
parent the Nye plan will have a ma
jority of that committee supporting II
If and when 1t is presented to the SEN
ate.
l have examined records rather COM
In an effort to discover
whether ever before any senator or
of the house had gone out to
the country with an appeal for support
L. tel a,
such as this. The committee had three
or four months more of investigation
ostensibly to ascertain all pertinent
facts. Despite the fact that the SEN
ate has voted money for the committee
to make this investigation and the
money will be spent at hearings. Sen
ator Nye has proceeded to make known
his views In advance
Disclosures made by the committee
thus far have been accepted general
ly, think. as showing there was some
fire as the cause of the smoke. Ger
tain testimony given before that COM
mittee linked some of the American
munitions makers with foreign inter-
ests whose designs were OF a political
character. It was shown how some
of the foreign agents had attempted
to provoke trouble between nations OF
Europe and the logical assumption is
that If such activities occurred In two
or three instances, they must have oc-
Cured in many others Nevertheless,
there is considerable amount of crit
icism heard in Washington about Sen
ator Nye's plan of action because, 1t
is contended by these critics, ii Is
hard to see how the senator can con-
duct an unbiased investigation after
having committed himself in this I'M
eQuivocable way.