The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-10-24
JONES PLEADS WITH
GROUP TO SUPPORT
RECOVERY PROGRAM
'Indisputable Evidence to Show
Undue Timidity on Part
Of Finance
STRESSES GOVERNMENT AID
Tells Association Credit Must
Be loosened to Beat
Depression
STRESSES GOVERNMENT AID

washington, Oct. 24.-(R-The ma
tons bankers were asked by the Roo
sevelt administration Wednesday to
lend more Nberally-even to the ex-
tent Of making "loans they would not
ordinarily wish to make" and loans
that will need to be INDUCED"
Jesse H. Jones, chairman Of the
Reconstruction Finance Corporation,
which was organized to save banks
and businesses earlier in the de-
preston, made this plea before the
American Bankers association con-
vention.
Though bankers say they have
been eager to lend, Jones declared
there was "indisputable evidence"
they have not done 50 as freely Is
they could.
The Texas banker told his COL
leagues that the dollar is the best
money any patriotic American can
have" and pledged the governments
aid in an effort to loose the flood
gates Of credit.
There no longer is danger" he
said, land the banker must do more
than his full share toward national
recovery"
TO Reduce Examinations
As a token Of good faith, the chair
man indicated he would move to re-
duce the number Of hank examina-
tions to one year. He expressed
the opinion that bank examination
should be more lenient.
He stressed the governments new
campaign to refinance mortgages
through finance companies using gov
eminent funds, and otherwise ex-
planned the attempts to thaw credit.
He threw q bouquet to most Of the
delegates in urging that more control
over banking be given the country
banker-most Of the delegates are
from comparatively small banks. He
said "the country banker still Is TAX
ing his cue from the city banker,
and that is probably the reverse OF
what it should be. II we are to have
remote control, let's reverse It."
The chairman also held that Q
further decentralization Of credit
control Is worthy Of consideration"
There still Is great deal Of con-
centrated power" he said, land con-
gress might look further into the
question Of interlocking directors and
control by influence"
This remark apparently applied to
big city bankers, who often have
been the RIG chairman's target.
Enumerates Agencies
Jones enumerated the agencies
available to the banks.
with q great abundance Of credit
and credit facilities available" he
said, banks chock full Of money:
the right to discount longtime paper
with the federal: to borrow from the
federal on all kinds Of collateral; &C.
cess to correspondents anxious to
lend; and the RFC ready to lend on
favorable terms, or to furnish capital
stock at SIS per cent for five years
and per cent thereafter until re-
tired from profits-banks should
make loans that they are willing to
carry for several years."
After advising the banks to re-
examine their capital. and to Dor
row from the 4.FC II more was need
ed, the chairman said:
such g course would not only
provide the banks with ample CAPT.
tai to meet all contingencies, but
would enable them to be more
lenient with their present borrowers,
and to make additional loans In aid
Of recovery; some Of which they
would not ordinarily wish to make.
Il am not suggesting that they
make questionable loans, but loans
that will need to be INDUCED"
Too Many Moratoriums
The chairman agreed with past
criticism by bankers that there have
been too many debt moratoriums.
and added:
1.-THE way to avoid more Of them
Is for bankers and other lenders to
continue to show leniency and dis
play an attitude Of friendliness to-
ward deserving and honest debtors
until conditions improve.
/ You may think you are doing this,
but one thing that Is retarding re.
covery Is that people want to get
out Of debt, and until they can Be
made to feel comfortable about their
debts. including what they owe the
hank, they will be slow to undertake
&any new obligations.
i lone way to help in creating en-
tployment Is to encourage borrow
Hing by people who have demonstrate
I'd their ability to use borrowed money
Eprofitably, under normal conditions"
The chairman cited figures to show
mat 50 per cent Of actual cash loans
nade by the RIG have been repaid.
md declared:
This is indsputable evidence that
lou can. and could have made loans
ou have been unwilling to make. and
hat the loans will be repaid With
ut pressure, for the RIG has not
breed . single collection"
Pledges Of active cooperation and
cnsultation with the Roosevelt ad-
ninistration are being formulated by
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