Evening star., 1934-04-19
Pay-Off for Closed Banks s
Promises Spirited Contest

gantic spending program of Chair
man Jones Of the r. F. c. stands
forth as glaringly inconsistent in the
light Of the desperate attempt to block
the very measure which would spread
the most good to the greatest number
Of people. Mr.. Jones has approved
every recovery proposal to date save
this one-possibly because it did not
originate with the administration
forces. The people will back the 100
per cent pay-of now and call those
who try to defeat it to account at the
polls later. There must be no let-up
in the effort to get the pay-off bill
through Congress. 1t is legislation
vitally needed in national emer-
gency."
THE country would be greatly bene-
fitted" thinks the Gary Post-Tribune,
by this new money going into cir
culation. Even though a loss is suf-
fered by the Government, the benefit
to recovery should be so valuable as
to make the loss of slight Importance
Besides. if We get a real recovery
there may be no loss" The Erie (Pa.)
Daily Times holds that the legisla-
ton will Immediately increase pur-
chasing power and consumer de-
mand"; that ''it is by far a more
tangible and positive stroke toward
recovery than all the experiments.
That paper adds that sit assumes,
with simple honesty, that the Govern
ment has a duty and that is to pay
the depositors of all closed banks"
The idea that assets which now
cannot be sold for anything like their
real value" says the Akron Beacon
Journal, can, in few years, be sold
at that value, thus permitting the
Government to get it's money back,
Is the very essence of the Mcleod bill.
1t has reasonable ring. And this
brings us to the immense benefits
which the Mcleod bill, whether it be
just or unjust, indisputably would
work in the country at large at this
time. It would mean practical, i'm
mediate relation through raising the
purchasing power of the Nation. It
would stimulate trade, industry, en-
ployment, by putting that new buying
power into the hands of those who
would use it. And the very act Of
pumping that purchasing power into
business would itself aid immeasura-
bly, in lifting security and realty
values to point where the Govern
ment could be assured that its thaw-
ng-Out action would not leave il
holding the bag for assets failing to
improve in value. That the bill faces
rough time is certain. That Roose-
velt Is opposed to it is reported. That
fatal flaws may be discovered II it
goes under the microscope in debate
is possible. 1t remains a hope, how
ever, and one that can materialize
into great impetus for recovery"
Payment Of these depositors is a
matter CT justice" in the opinion Of
the Philadelphia Record, which adds:
The good faith of the Government
is at stake. President Hoover told
people to keep their money in their
banks. President Roosevelt closed all
the banks and decided which should
reopen. The Government assumed
responsibility for the peoples de-
posits then; 1t should meet that re-
sponsibility now. More important, how
ever, as the Record has emphasized
and re-emphasized, thawing Of those
deposits means the release of a vast
pool of purchasing power that now
is Stagnant. 1t means that those
20 million depositors will have money
instead of bank-book entries. It
means they will have confidence in
stead Of despair. And the effect Of
their buying power upon our indus
trial machine will be the strongest
influence yet exerted In behalf Of re-
covery."