Evening star., 1934-02-06
BANKERS WARNED
OF FRECOVERYP PART
R. F. c. Head Tells New
York Association Members
They Must Aid.
b. the Associated Press.

b. the Associated Press.
NEW YORK. February 6-Jesse H
Jones. chairman of the Reconstruction
Finance Corporation. has warned
banks and bankers they must assume
| their full share in the recovery pro-
gram.
Addressing the sixth mid Winter
meeting OF the New York State Bank
erS' Association yesterday. Jones told
his audience if they failed to provid ,
proper credit for private enterprise.
there can be but one alternative
Government lending
The Government had no thought Of
dictating management of banks. ne
said. He called his address An Ap-
/ peal to Follow the Presidents Lead -
Banks Not Lending
! The common cry almost every
where he said, is that the banks
are not lending. Your Representatives
! in Congress continually get it. and
! there is a persistent demand upon
them TO authorize the r F. c. to
make direct loans. Unless deserving
borrowers can get credit at the banks
| you need not be surprised if Congress
yields to this pressure"
Up until few days ago" the
chairman continued, I'VE justified our
course with one excuse or another
: But now that the President and Con-
ereSs have acted on our money. there
is no longer any valid reason for hesi-
tation, and the Government should
not be forced to become the banker
for every deserving borrower in the
United States Let's quit worrying
about the dollar-it's the best money
in the world
Jones. who took the lead some
months ago in persuadng the large
banking institutions throughout the
country to issue preferred STOCK and
capital notes for sale to the R. F. c..
explained the motive behind the plan.
and sharply took to task bankers of
the ''critlcal' type. who place their
own selfish interests and profit above
the puolic good and refuse to partici-
pate IN the plan
No Thought of Dictation.
In so far as the r. F. c. is con-
cerned" he asserted "the Govern
ment had only two objects in view in
its preferred stock program One to
strengthen the banks in the interests
of depositors, and the other to place
banks in such strong capital position
as to enable them to assist in the
recovery program by providing legiti-
mate credit for agriculture, business
and industry.
There is no thought of debating
management. or of coercion, as to
bank policies or bank investments. l
would be less than frank, however, il
1 did not say that President Roosevelt
would be greatly disappointed if the
banks do not assume their full share
in the recovery program by perform
ing all of the functions that banks
are intended to perform. and that. OF
course, includes providing credit
where credit is needed and can be eX-
tended with reasonable safety. Too
stlict credit rules and too short ma
TURTLES will greatly hinder recovery.
4 should like especially to call at
tention to the example President
Roosevelt has set for uS-the example
of courage. confidence, neighborliness
and action. l doubt if there is a
parallel in the history of the world,
and by that very courage and con-
fidence. action and determination, he
is succeeding There is no ally he
needs quite so much to achieve and
maintain the recovery program as
the banker. In fact. as / see 1t. II
the banker fails to grasp his oppor-
tunity and to meet his responsibility,
there can be but one alternative
Government leading"