The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1934-12-14

oluCc Iudt Is uOL 10 Ue, UuSlucSS 10
hoping, If not demanding, that the tax
burden upon it be held within the pres
ent confines in order that 1t may not
be under any further handicap while
searching for solid foundation upon
which to expand.
President Roosevelt and his emer-
gency administrators believe they have
hit upon new and
money for productive plan to
the Needy give money out to
those who need it.
They are about to embark upon a pro-
gram of encouraging personal loans,
loans by banks to individual men and
women and to guarantee repayment of
a portion of each loan made.
1t is viewed as exceedingly interest
ing that national government, or any
other governmental agency for that
matter, should embark on such policy
because there are those who hold it to
be dangerous precedent l have done
considerable research work regarding
this proposal and have failed to find
in the records any such move in the
history of important nations of the
world. 1t is, therefore, undoubtedly
one of the most highly experimental
steps yet taken in this maelstrom Of
recovery plans.
Announcement of the scheme was
made by James A. Moffet, federal hous-
ing administrator, who described it as
marking "a new era in American busi-
ness" 1t is true that there are certain
types of banking institutions that have
made individual, or so-called charac-
ter, loans where no collateral security
was offered by the borrower and where
only the good name and the record of
the individual warranted extension of
this credit
Mr.. Moffet said that this character
loan idea would prove to be "the very
foundation" of the home modernization
program which he is administering.
He described the action as one predi-
Gated upon the governments absolute
confidence that the average American
will keep his promise to repay what
he borrows."
Nor is that position as much of a
jump in the dark as it at first may
SEEM" said Mr.. Moffet. "As usual,
Uncle Sam knows what he is doing.
Before offering to insure these loans,
he consulted the country's records on
installment buying. He also asked what
had been the experience of the few
banks who up to last spring had made
character loans. From the banks and
from commercial organizations selling
on the installment plan, he learned
that the average American is honest,
and that the loss from character loans
was just little more than three
fourths of per cent"
1t is not the fact that the govern
ment found the average American to
be honest, however, that is exciting
comment among Washington observers.
1t is that the government is encourag-
ing loans to individuals, some of whom
obviously will suffer the ordinary fate
and be unable to repay them. 1t takes
no stretch of the Imagination, there
fore, to see how easily this course of
action might lead directly into politics
and observers here are watching the
experiment closely with that thought
in their minds.
1t is now believed that the world
ny1rf will ho cntf1nd Iafnifa1xy
early in the next
World Court session of congress.
Issue The foreign rela-
tons committee of
the senate, which must pass on such
treaties, has an agreement to send the
resolution of United States adherence
to the world court to the senate early
in January and, according to present
indications, the administration can cas-
lily muster enough votes to adopt that
resolution.
Pressure for American utilization
with the court is stronger now than
it ever has been before because of the
disturbed world political situation, the
breakdown of the naval limitations
treaties and the tendency among ma
tons to split up into groups for ar
rangement of balance of power. 1t
has been plain for some months that
the European nations, for example, are
determined to align themselves in
groups of two or three or perhaps four
as a protective measure In case of
war. All of this is visible to the Amer
lean government and it Is anxious to
be a member Of the world court in
order to participate in settlement or
attempted settlement of any of the dis
putes arising between the group ma
tons.
Observers here take the position
that American adherence to the world
court would have far greater signifi-
canoe throughout the world now than
it would have had earlier because of
the revival of discussion as to whether
the United States should enter the
League of Nations. 1t will be recalled
that President Wilson's proposal to join
the League of Nations precipitated one
Of the most bitter controversies in
which the senate has ever been en-
gagged. 1t subsequently, rejected the
plan and little more has been heard of
1t until this fall and early winter.
Now. there is what appears to be
determined movement on foot for the
United States to join the league and
some of the proponents of American
adherence to the world court believe
that a vote to join the world court
will carry the United States one step
nearer to utilization with the league It.