, 1934-12-31
The World
AT Glance
10y LESLIE G III
Central Press staff Writer

10y LESLIE EfCHEL
Central Press staff Writer
NEW YORK. Dee. 3I.-Reduction
OF the maximum interest rates
that banks may pay TO depositors
may drive some idle money into IN
gestn,ent. At least, that Is q govern
ment expectation How much. no.
bocy knows.
The Ieceral reserve board direct
Cd that ? IL per cent shall be TIE
maximum which could be pai6 ON
any thrift and time deposits ~
banks which have insured deposits
which means virtually AL banks.
In New York City. thrift interest
rates have been much lower than
that for some time-and there has
been no decrease IN deposits
Belief is expressed IN New York
tEat increased spending may re-
suit IN smaller communities
Banks. OF course. cannot find safe
investments for their funds al rates
which VIII ear money. There IL a
plethora OF money for Lending puT-
poSes-but the normal channels re-
main frozen.
Wall Street constantly calls for
the opening OF the capital secur-
tiles markct"-meaning a less Sc
we're capital securities regulation
law.
Passing IL On
some banks. Ia reducing interest
PAID or deposits, also have reduced
Interest exacted on mortgageA
In brief. Idle money means low
or interest rates all around.
This has been an unusual holiday
season in the world OF money. Cir
culatlon failed 70 rise 70 anything
Like seasonal heights. And check
Neutrality-suspicious. called the pa
rometer OF neutrality-suspicious. 70
decline. Yet retail trade increased
considerably over last year.
Maybe people ard corporations
have decided 10 Law away" o.
hoard-until personal security or
business security becomes more ap-
parent.
The trend il worldwide. except
IA EnglaDd-wAere trade and sec
urities have continued advancing
N an orthodox manner
Postal savings Rate
Postal savings banks still pay two
per cent-5ut banks are making a
determined effort To force that rate
down 70 n or n and q half per
cent.
Bankers say tire government can
not afford 70 pay two per cent.
The government manages 10 pay
two per cent by ~exacting ? Ia per
cent from banks where a. deposits
postal savings money.
Cooperative state
A cooperative commonwealth Is
e~nYizoned b. one commentator II
President RooSeTeltS 70-year plan
Is carried through. The writer Is
Thomas w. Phelps, chief OF the
Wall Street journals Washington
bureau, Wno says.
"ForeShadOwing Legislative recon-
mendat.ons involving RECOMMENDATION
on "A broader scale than heretofore
publicly aVoWed by any OF the New
Dealers. the National Resources
Board. including h=E the cabinet.
has unanimously reported 10 the
president q loRR--ange plan for the
nation.
"A giSion OF the United States as
a vast cooperative enterprise cen
trally directed Is outlined by the
board IN its prospectus for conSerF-
III and utilizing the natural re-
sources OF America as the heritage
OF Lie whole nation.
Human resources and human
values = more significant than
the land. water and minerals on
which men are independent. the
report asserts. IL follows that the
social clrectIveS back OF such tech
meal programs should be develop
cd b. persons competent BY training
and point OF view To Appralse the
human values involved
The signerS state their Alef IN
the great Importance OF this study
and the initiating step toward the
accomplishment CT the broad pro-
gram outlined.
The program outlined makes
clear The shift from emergency to
permanent planning that Il now
occurring IN the minds Of admin
istrati0n leaner1
Tie proposal o set Nd 4 Imam
clal balance sheet for the federal
government seems 10 foreAhRdcw
new method u government book
keeping or the na6ik Of ~offsetfinR
mounting federal deotE by aSaetk
acquired through government lend
ina and spendlns. rhe old-fashion-
ed income account paid attention
only 70 revenues and expenditures"
Trade Pact?
In these days OF extreme nation
allsm III virtually al countries. that
which Is abnormal Is likely 10 be
declared patriotic
Thus. when nations Try to re-
sumo normal trade relations. 70 re-
lfTe distress among the masses OF
III countries. prejudice and nation
aESm sweep aside the efforts.
And treaties that ought 10 be ne
gOtIzted tn the open ae negotiated
seoeTtly by frightened and timid
politicians who pull the strings OF
~staterraft.
We quote a ANAL piece from al
London paper.
-Lseutenart Cclonei Colvllle. Sec
retary OF 0verSeNs trade. refused TO
diFulge Tn the house ot commons
last night Whetksr the government
were planning d trade agreement
with America.
The government. be sad. 'must
Dc the judge of which countries
they intend tO open negotiations
with, and II a not in tsc public
Interest 10 MAKE n premature dis