Evening star., 1934-11-04
Political Campaign Brings
Some Confusion on Trade
Problems.
BANKERS PUSH PLANS
FOR GREATER HARMONY
Cooperation With Roosevelt Pol
icies Makes Further Progress
at A. !. B. Convention.
BY CHARLES F. SPEARE.

b1 thhhLES r SfEhhE.
Special Dispatch to The Star.
NEW YORK, November An a
democracy the most difficult period in
which accurately to appraise the con-
dition Of national affairs is during a
political campaign. We should, there
fore, get nearer to the truth of things
after Tuesday. Then the strength or
weakness of the various situations that
have been confusing the country will
be exposed and attention can once
more be directed to the main business
Of re-establishing confidence and ce-
menting those relations between
bankers and the Washington admin
iStration that are SO essential TO in
dustrial progress.
There is little doubt that a sincere
effort is being made to effect what
bankers like to term "modS vivendi"
with President Roosevelt. Further
evidence of this was given this week
at the convention of the investment
bankers at White Sulphur Springs.
The slogan Of this gathering was Let's
Stop Complaining and Get to Work"
| Ralph T. Crane. the newly elected
president of the association, indicated
that this organization was eager to
avoid conflict with the Government
on monetary and fiscal policies and
that q lialSon 10 cooperate with
Washington would be established.
Too many bankers are still try
ing TO pick to pieces the speeches Of
President Roosevelt and Jackson Rey-
nolds at the American Bankers As
sociation Convention and to nurse old
grudges. They would gain in public
respect if they abandoned this atti-
tude and made vigorous attempt TO
bring about general concilation and
believe what those in authority tell
them. For illustration. the idea of a
central bank was as explicitly denied
last week as could be. but in spite Of
| this Wall Street again excuses its do
| nothing policy on the score of the
| probable setting up of an institution
| that would remove the privately owned
bank from its present sphere of in
tiuence.
Bankers Face Opportunity.
This is the psychological time for
liIC W PAOAAiObC dAlA NNb'AAN
the spirit of cooperation with the
administration. They are in the best
position to do so since March, 1888.
1t does not require great insight into
public affairs TO realize that Wash
ington is deeply concerned over the
lag in the recovery program. Whether
the bankers are in part responsible
for this. in their attitude toward old
loans and new applications from bor-
rowers. is not important. The
strategic advantage they now hold is
in being called ON by the administra-
ton to support situation that 1t
recognizes as unsatisfactory and in
making the most of this opportunity.
Whether fairly or otherwise, the
feeling has gained currency that the
banks are not inclined to lend out
their deposits, preferring to build up
high ratios of cash and Government
securities. BY judiciouS publicity
methods, this sentiment could be dis
PEELED. The metropolitan banks un-
doubtedly have made overtures to
| their old customers. offering them
credits on easy terms. The invest
ment bankers have found no difficulty
in assembling funds for employment,
but borrowers are said to be reluctant
| to negotiate new loans. Here is an
impaSSe that does not seem reasonable
or warranted and which would be
broken if the public and private
parties to it would make conciliation
and cooperation their major effort.
Assuredly there are enough chan
nels through which business concerns
and individuals can borrow at no
great risk to the private lender and
no considerable tax on the debtor.
One fair criticism Of the Govern
ment's lending policy is that, in its
effort to attract borrowers. it is let
ting down the bars too far and grant,
ing concessions that promise trouble
this is the ruling just made that
banks may lend over the statutory
limit of 10 per cent of capital and
surplus to one borrower. BY exceeding
this ratio many institutions found
themselves in deep water long before
the moratorium.
Imitation Moves Opposed.
Such incidents as have occurred
In Washington this week have denied
the prolonged threat Of imitation. The
proposed plan Of one OF the extreme
infiationists was courteouSly consid-
cred and abruptly dropped. Undoubt-
edly there will be a strong left ele-
ment in the new Congress. but the
present attitude of the administration
does not square with the idea that
it will be the one controlling WASH
ington's monetary policies this Winter.
The relief program and the adminis-
tration Of the N. r. A. are both UNDER
going a change to more moderate
basis, which should encourage the
business world and make the banking
element more disposed to engage in
new commitments.
Phe late Summer reaction in the
heavy industries is reflected this week
in the September quarter statements
Of the United States Steel Corp. and
those of several of the independents.
Quite generally manufacturing profits
in this three-month period were well
below those Of the June quarter and
of year ago. This has had its ef-
feet on stock market sentiment. Re-
tail trade just now Is tagging after
an active Fall season and as prepara-
tions are being made for the holiday
demands. Iron and steel figures this
week show a gradually creeping up Of
the ratio of production to consump-
ton.
With the unsatisfactory conditions
prevailing in various industrial CEN
ters, it is some satisfaction to find
that october dividend payments were
Is per cent in excess of those last
year and that. for the 10 months
to date, they have shown a gain OF
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