The Waterbury Democrat., 1934-10-25

I nesa not recount the situa- tion of the banks in the Spring. of 1883. I found that the restor- ation of banking activity itself was my first responsibility on assuming office.
 It was necessary that the gov- ernment throw itself sQuarely in- to the task of bringing back to the banks the desposits of the citizens of the country. As a re- suit of my appeal the people re- sponded in the banks of the ,Uni- ted States.
 The primary purpose accom- plished. it became necessary that the Congress and the adminiStra- ton enact measures to build up the banking structure so that it could once more provide support for the economic life of the country.
 Emergency Credit
 Moreover, 1t had to be built and we built it strong enough so that it could resist future stress es and strains. The government found it necessary to create and get under way new emergency credit agencies and to use to the fullest extent the already exist ing Reconstruction Finance Corporation.
 These credit agencies moved moved with heroic energy, and it was a source of the utmost satisfaction to find that when the Federal Deposit Insurance Cor poration went into operation the banking structure had regained a very considerable amount of its strength and it's vitality.
 think it is only fair to say that never since the formation of our government has such a task ben achieved in so short a time. Happily the present secur- ity of our banks bears witness to the wire course that we pursued.
 find almost general agree ment among bankers that these agencies must continue until such time as the banks and other private credit agencies are them selves able and ready to take over these leading functions; and when that time comes I shall be only too glad to curtail the ac- tivity of these public agencies in proportion to the taking up of slack by privately owned agen- cies.
 venture to suggest to you that when the history of these years comes to be written, while the closing and the re-opening of the banks will occupy a prominent place, even greater interest will be centered in the fact that within a few months not only was the banking struc- ture strengthened but the great governmental lending agencies went into action and also saved from disastrous deflation, liqui- dation and loss a vast portion of the farms, homes, railroads and corporations of the nation.
 Credit Resources
 This definitely rescued the se- curity and happiness of all of us.
 Just as it is to be expected that the banks will resume their responsibility and take up the burden that the government has assumed through it's credit agen- cfes, so assume and expect that private business generally will be financed by the great credit re- sources which the present liqui- dity of banks makes possible.
 Our traditional system has been built upon this principle and the recovery of our econo- mic life should be accomplished thorugh- the assumption of this responsibility. The present steady and unmistakab1e revival of public demand for goods and services should provide the as- surance necessary to the financ- ing of industrial life.
 The government is bending every effort through the Treas ury, the Federal Reserve System, the Reconstruction Finance Cor poration, the Securities and Ex-