Evening star., 1934-10-28
Courageous Note Sounded
by Reynolds and Clears
Way for Cooperation.
SHELVES STERILIZATION
AND BUDGET PROBLEMS
Housing Drive Produces Marked
Results in Industry, While
Trade Holds Gains.
BY CHARLES F. SPEARE.

BY CHARLES +. SPEARE.
Special Dispatch to The Star.
NEW YORK, October 27.-The ad-
dress to his fellow bankers by Jackson
E. Reynolds, head of the most conserv-
ative bank in Wall street, was of deep
er significance this week than that
made by President Roosevelt a few
moments later tc the bankers conven-
ton in Washington. 1t sounded a
new and courageous philosophy and
answered questions which 1000 bank
ers had come to the Capital to hear
settled to their satisfaction.
The bankers were amazed to hear
one Of their group say these questions
could not be disposed of out Of hand
even by one so well informed on the
state of the worlds pulse as the Chief
Executive of the United States.
The persistent demand of the bank
ers has been that the President should
fix a date when the budget will be
balanced and indicate the point at
which definite stabilization of the
dollar will be effected. To prophesy
concerning the former might make
the prophet ridiculous, Mr. Reynolds
said, while to fix the dollar at a speci-
fic figure, in view of instability in for
eign currencies and insistence on in
fiation at home, would be risk that
no one in the position of President
Roosevelt would be likely to assume.
Bankers Change Views.
1t is most important that support
of President Roosevelt's cautious policy
in the handling of complex monetary
situation should have come out of the
heart of Wall Street. For, while Wall
Street has been critical of the admin
istration, the deep bitterness toward
the Roosevelt policies, being evolved
in the Treasury, the R. F. c. and the
Federal Deposit Insurance Corp, Is
that of the interior or country banker.
He went to Washington with a good
sized chip on his shoulder and started
in early to lambast the Government.
Jesse Jones of the r. F. c. said in
his speech to the convention: The
country banker is still taking his cue
from the city banker" So, when the
respected head Of Wall Street in
stitution pleads fer considerable for
the President, the A. B. A. member
from the interior is likely to take a
less prejudiced view of the conduct Of
national affairs.
There will be cynicism and skepti-
cism expressed regarding the effort Of
Wall Streets representatives to bring
about an entente cordiale with Wash
ington. Men do not abandon their
business or political preiudices easily.
But, if one will carefully read the
statements made at the bankers con-
vention by the retiring head of that
organization, by the chiefs of the Re
construction Finance Corp. and the
Federal Insurance Deposit Corp, and
finally by Mr.. Reynolds, head of the
First National Bank of New York,
and by President Roosevelt, he will
better appreciate the need for a coali-
ton as the most probable means of
establishing recovery. He will also
learn Of the splendid foundation on
which the banking structure of the
country rests today and from which
1t should be able to build TO higher
and broader proportions.
The business judgment Of bankers
has been much affected in the last
18 months by the loss of personal
fortune and of local prestige, by Sights
coming from the departments which
examine their accounts, by political
feelings, by timidity caused by poor
judgment in making loans or in past
purchases Of securities, and by the
complex that liquidity is the corner
stone on which strong institution
should rest. They also have been
enervated by the bogey of a Govern
ment that some day would take away
their jobs.
Housing Drives Results.
A chapter might be written ON the
way to initiate recovery from the
statement this week of Clarence w.
Woolley, chairman Of the American
Radiator & Standard Sanitary Co.
He was on the starting line when the
national housing act went into effect
August 10. He saw its possibilities
and did not allow the prejudices of
business associates to interfere with
his acceptance of them. As a con-
sequence, he tells how his sales in
creased 40 per cent in the first go
days and are now running rs per cent
over those of last year. Mr.. Woolley
describes himself as always having
been q rank Republican" who Is now
filled with gratitude 10 the Govern
ment."
The F. w. Dodge CorporsSion this
week reports q 100 per cent gain in
rehabilft projects so far in 1884,
A close analysis Of home repair and
modernization expenditures to date
indicates that these provide so weeks
of work at SO hours a week and 40
cents an hour for nearly so 900 men.
The greater confidence that was
shown in business circles a week ago
continued into this week. 1t ought
to expand, as the Importance Of the
cooperative spirit displayed in
Washington seeps into the public con-
sciouSness. Retail sales have been
showing gains of about 10 per cent
over a year ago and several times
that amount In certain favored dis
trictS. Bookings In the iron and steel
trade have risen slightly, though they
are still disappointingly small. Pow
er output is per cent higher than in
October, 1888. The level Of commod-
ity prices has been falling again, as
imitation fades from the speculative
picture. Food values and wages are
down.
On the fifth anniversary Of the
1929 panic, the contrasts with that
year are tragic. On the other hand,
those with March, 1888, are cause for
congratulation.
Copyright. 1934)