The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1934-10-25
Federal Lending
To Cease Soon
As Possible
Message Meets Hopes Of
Bankers Excepting
AS to Budget
BY ARTHUR F. DEGREVE
United Press Staff Correspondent


WASHINGTON, Oct. rs. (UP)
President Roosevelt promised
the nations bankers last night
that he would curtail the activities
of federal lending agencies as soon
as private capital displays it's will
ingness and ability to meet the
credit demands of business and
industry.
Facing nearly 1000 members
of the American Bankers Asso-
citation, the chief executive reaf-
firmed the faith of the people in
the profit system and in the the
DRY that business generally should
be financed by private capital.
Until privately owned agencies
take up the slack in credit, how
ever, Mr.. Roosevelt said govern
ment lending units would continue
to function.
81 find almost general agree
ment among bankers that these
agencies must continue until such
time as the banks and other pri-
vate credit agencies are them
selves able and ready to take over
these lending functions" the pres
ident said.
"When that time comes, I shall
be only too glad to curtail the
I activities of these public agencies
in proportion to the taking up of
the slack by privately owned agen-
cies."
The address, looked upon as one
of the most important pronounce
ments of the chief executive since
he took office, was entirely con-
ciliatory in tone. In contrasted
sharply with a porto nof his last
"fireside" talk which inferentially
criticised the bankers for their
alleged lack of cooperation with
the government in its recovery
drive.
The chief executive made no
mention of creating a central
bank. Earlier in the day at a
press conference he smiled away
queries as to whether he was con-
sidering establishment of such an
institution. The possibility of
such action has worried bankers
for many months.
Likewise, he did not give his
listeners any indication of his
budget balancing plans. Mr..
| Roosevelt pointed out plainly that
large expenditures for the relief
of unemployment still were ne
cessary but added:
81 think we should all proceed
in the expectation that the revival
of business activity will steadily
reduce this burden"
To those of his hearers who have
been hesitant about making bust
ness and industrial loans under
the "new DEAL" Mr.. Roosevelt
said:
"The present steady and unmis-
taxable revival of public demand
for goods and services should pro-
vide the assurance necessary for
the financing of industrial life"
To those who have criticized the
"new deap as "socialistic" and
a threat to the profit system, he
said:
| TT is in the spirit of American
| institutions that wealth should
come as the reward of hard labor
of mind and hand. That is what
we call the profit system. It's
real fulfillment comes in the gen.
eral recognition of the rights of
each factor of the community"
The time is ripe, the president
added, for an alliance of all forces
intent upon the business of re-
covery.
"Tn such an alliance will be
found business and banking, agri-
culture and industry, and labor
and capital" he said. What an
all-American team that is! The
possibility of such team kindle
the imagination-they encourage
our notwithstanding make
easier the tasks of those in your
government who are leading it."
The message touched lightly on
the subject of international rela-
tionship and did not mention cur
rency sterilization as such.
81 have been glad to note the
growing appreciation in other ma
tons of the desirability of arriv-
ing, as quickly as possible, at q
point of steadiness of prices and
values" the president observed
"This objective of a greater steed-
ness we have constantly kept be-
fore US as our national policy"
Mr.. Roosevelt in opening his
address explained that he had been
| Continued on page four)