The midland journal. (Rising Sun, Md.) 1885-1947, 1934-04-27
F.,
DEFINES BANKERS
PART IN RECOVERY
Head Of American Bankers AS
ISOLATION Assures the Presi-
dent of Confidence and
Desire to Cooperate
Among Bankers


WASHINGTON, D. c. = President
Roosevelt in his address before the
NRA conference here on March 5 an.
nounced that he had received the fol-
lowing telegram from Francis M. Law,
President of the American Bankers AS
ISOLATION:
'On this your first anniversary please
allow me in behalf of the country's
banks to express our full confidence
and our sincere desire to cooperate in
your courageous efforts to bring about
recovery.**s The banking structure of
the country is sound and liquid and
banks have never been in stronger po
sition to function effectively. Condi
tions have improved to the point where
1t is no longer necessary for banks to
be super-liquid. There is a definite
call now for banks. not to extend loose
credits or to make improper loans. but
for most sympathetic attitude toward
legitimate credit needs and for recog.
milton of responsibility for their proper
and vital part in the program of re.
covery."
The Soundness of Banking
In an address before recent trust
conference of the associations Trust
Division in New York, Mr. Law said:
"A depression cannot long survive
sound banking structure If the banking
structure is responsive to legitimate
needs and functions in a way that is
virile and alive. The most cheering fact
of the present situation is the knowl.
edge that banks are in strong position.
Recovery. even to the most pessi.
mistic, is no longer myth or rumor,
nor is 1t merely psychological. Album.
dant evidence and proof lie on every
hand-tangibIe proof. With a return of
confidence the wheels have begun to go
round and great many well managed
businesses may look for profit during
this calendar year with fair assurance
at least. For what has been achieved
let us thank the President, who has
labored with courage and patience and
vision. Let us thank the Congress,
whose members during the emergency
have put the public welfare above par
tisanship. Let us thank one hundred
twenty-five million of our own citizens
who have refused to be stampeded, but
rather who have kept alive the divine
spark of faith and hope.
CouSe for Cnnfdanca
eve may reasonably expect that the
recent action of the government in sta
bilizing the dollar will have marked
tendency to encourage industrial and
other business commitments. Business
men need not be so exclusively engaged
In taking counsel Of their fears now
that uncertainty does not haunt them.
Much has been said about the loos.
ing of credit by banks. During the acute
period of the depression hanks for the
most part have not been lending nor.
mally. nor should they be blamed. With
public confidence shattered the banker
was properly concerned in liquidity,
having in mind his primary obligation
to pay off deposits. The situation has
improved to the point where super
liquidity no longer seems necessary,
Conditions have materially changed.
Banks will desire. for every reason. to
return to more normal lending policy.
This means sympathetic attitude and
a recognition of responsibility for his
proper part in the program of recovery
by the banker as he passes upon and
meets sound credit requirements Of
business as it swings into and con.
tinues on the upward turn"