Evening star., 1934-05-04

they don't bother
as to how or p
why. "'' LAW
AS matter of fact there are tan
gible evidences of recovery on every
hand, and recital of these does not
constitute ballyhoo. The Federal Re-
serve Board officially states that
prices, wages, business activity and
production are each back to the
highest peak since early in 1881. Cash
income being received by farmers
throughout the country from the sale
of farm products is something like
63 per cent more than it was a
year ago.
Commercial failures in the United
States are being cut almost in half
as compared with the same period
last year. This chambers Foreign
Commerce Department reports that
''the steady decline in both export
and import trade was definitely
checked in the middle of 1888 and
was replaced during the last half of
the year by substantial recovery
movement"
huge fayment OF DeDtS.
Enormous liquidation of debt has
taken place during the last two years
and the Importance of this can hardly
be over estimated, Mr.. Law continued.
The Department of Labor reports a
gain of $4,000 in industrial employ
ment during March alone the greatest
increase in factory employment for
any March since 1920. The National
Industrial Conference Board says there
are still 100000 idle workers. Last
year the number was 100000.
Such indiceS as the bond market,
steel operations, railroad orders, lum-
ber production, automobile sales and
textiles show marked improvement.
Last, but by no means least. among
favorable factors is the improved con-
dition of the banks themselves. 1t Is
doubtless true that the banking struc-
ture of the country has never been in
a sounder, stronger and more liquid
condition than it is today. Authority
for that statement is the controller
of the currency.
The Reconstruction Finance Corpo-
ration, under Chairman Jesse Jones.
has pumped new lifeblood in the
form of capital into thousands of
banks throughout the country, and
will continue to do SO as long as there
is need "In my opinion this has been
the most valuable and far-reaching
of all the recovery measures" Mr.. Law
said.
The Federal Deposit Insurance Cor
poration guarantees in full bank ac-
counts of 81 per cent of our bank de-
poSitors and up to $4,000 on the re-
manning 3 per cent. There seems to
be rather general agreement that the
President was wise in his recon-
mendation to the Congress that the
temporary insurance plan be extended
for year, thereby affording oppor-
tunity for study of its operation in
practice as a guide for setting up
whatever permanent measures may
appear desirable.
The Insurance Corporation has been
in operation for four months and only
one small suburban bank failure has
occurred within its membership, and
that was case where official en-
bezzlement was charged.
Unfavorable Factors Cited.
Factors favorable to recovery have
been spoken of, the A. B. A. chief
asserted, but it would be folly to blink
at certain dangers which lie ahead.
Many thoughtful men are genuinely
concerned over the cost of recovery.
They fear that the taxes necessary for
repayment of these expenditures will
be a great burden and hindrance to
business. There is point undoubt-
edly beyond which business, either
large or small, can not be taxed if 1t
Is to live and prosper.
We can not keep on and on spend
ing and taxing, said MIR. Law. There
must be limit to the demands made
on the Treasury. Highly inflationary
measures are pending in Congress, but
this country could make no more
tragic mistake than to embark on un-
controlled imitation Enduring pros
perity lies in hard work, self-denial,
thrift, integrity and avoidance of debt
Then, in conclusion, the distinguished
banker added:
"Our salvation lies with the
American people-not with Washing
ton. In the years preceding the de-
preston most of us. whether we re-
alize it or not, had delusions of grand
eur. If we have learned better and
if we are beginning to think and plan,
the depression has not been altogether
in vain.
"As for the man who sits in the
White House, am convinced not only
sNf nNy-i<
age, but I am also sure that he has
within his breast an unalterable pur-
pose to maintain the spirit of true
democracy and to adhere to the vital
principles of sound business and social
economics"
Building Association Elects.