Evening star., 1934-11-27
Coordination of All Loans
Greeted as Encouraging Step

Satisfaction is expressed generally
over the action Of the Roosevelt ad-
ministration in creating committee
for coordination Of the loaning ac-
tivities of the Government 1t is ex-
pected to produce curtailment OF
public expenditures, and to give
greater opportunities for the use of
private funds for the development OF
new business.
Attention is directed by the Phila-
delphia Evening Bulletin to the re-
ports Of plans for expansion of public
works as a means Of giving employ
ment. and that paper concludes that
this would require billions of Federal
funds, and its natural complement
would be the reduction of other pro-
grams of extraordinary Government
expenditure, whether In cash outlay
or in the provision of credit funds" "
Action on the loaning side is believed
by that paper to encourage private
business enterprises"
"The committee headed by Secre-
tary Morgenthau." according to the
Richmond News Leader, 'is expected
to ascertain by January l, 1885, the
budgetary needs of all the agencies.
Included in the plan are the Recon-
struction Finance Corporation and the
Federal Reserve Board, in so far as
the latter has been engaged in making
direct loans to industry. There are
suggestions that the system of inter
mediate credits that will be
repaid in from to IS years-will be
extended"
There is no doubt" says the San
Francisco Chronicle, that the Gov
ernments move toward retiring from
the banking business will give conf
dence and stimulus to private banking.
Also it will give confidence to business.
And it is from business and industry
that the demand for credit must origi-
nate. If the administration is cor
rect that business improvement is the
reason for the curtailment of Govern
ment credit agencies, the fact Of the
Governments retiring from the field
should accelerate natural recovery"
1--WE have turned the corner and
business is on the upgrade. is the in
terpretation of Government moves by
the Manchester, N. H., Union, while
the Portsmouth, Ohio, Times holds
that President Roosevelt apparently
is ready to gamble on the possibility
that private lending agencies are
capable Of resuming their function of
advancing credit" The Winston
Salem, N. c., Journal asserts: The
issue lies in the hands of the banks
and business. Business has insisted
that the Government has been tres
passing in Its own peculiar field. II
it has, 1t has been because private
business failed to function properly
for the benefit of the masses. The
Government will turn the field back
to business as soon as the latter dem
onstrates the ability to meet the re-
quirements Of the task"
"A large measure Of satisfaction may
be obtained" according to the Kansas
City Star, from the statement that
there has been repayment Of nearly
half of the $4,608 900 900 that the Re
construction Finance Corporation has
lent to banks, railroads and other cor
porations to tide them over the most
severe period Of the depression. The
report does not include loans to in
surance companies and individuals.
More than q billion dollars advanced
by the Government lending organiza-
ton, which has gone for emergency
relief, probably will not return to the
Treasury, but will continue to be a
part Of the Government debt. Some
Of the direct loans probably will have
q prolonged existence before liquida-
tion, but It Is reassuring that so large