Evening star., 1934-10-25
Reply to Roosevelt's Ease
Credit" Plea Asks Bal
anced Budget.
"PROSPECTS OF PROFITS
MUST JUSTIFY RISKS"
David Lawrence Speech Assailing
New Deal Heard as Ses-
sion Closes.

A double-barrelled reply to Presi-
dent Roosevelts challenge to Ameri-
can bankers came today at the closing
sessions of their convention in the
form of resolutions demanding a bal
anced budget and report that bank
lending was dependent upon business
At the same time, the Bankers AS
sociation, concluding its convention al
the National Theater, adopted a reSo-
luton pledging cooperation with the
Government. The President had called
upon the bankers to demonstrate their
confidence in the American people.
His speech evoked both favorable and
adverse criticism.
Just before adjournment. the
Economic Policy Commission OF the
association presented conclusions that
american business will again become
a good customer of American bank
ing when the prospects for business
profits promise to justify the risks OF
borrowing. The initiative must be
that of the business man. 1t cannot
be that of the banker"
The concluding session OF the con-
vention saw the bankers rise to give
a vote of appreciation for speech by
David Lawrence, editor of the United
States News, in which he assailed the
policies of the Roosevelt admins
tration.
There was no discussion on the
resolutions adopted today.
Applause Greets Speaker.
Applause greeted Max B. Nahm OF
Bowling Green, KY, chairman of the
Resolutions Committee, when he read
that section of the report declaring
the American Bankers Association
believes that the establishment OF a
balanced national budget at the earll-
est possible date is essential to the
national welfare and an important
factor toward world recovery.
In asking assurance" that the
Government intends to bring its ex-
penditures within incomes as soon as
feasible, the bankers apparently hao
in mind some further expression from
the White House, for this same idea
previously has been advanced from
high quarters within the organization.
The resolution recalls, however, that
this principle was enunciated in the
Presidents message to Congress last
January.
Along with the recommendation for
budget balancing, the association rec
ognizes the fact that emergency ex-
penditureS'' must be made as needs
arise, but emphasizes expenses can
not be allowed to exceed incomes in
definitely"
There was no note of disagreement
with any administration policies in
the resolution, which recalled that
the bankers had co-operated toward
recovery and pledged themselves to
continue this cooperation. The res
olution expressed faith in the pres
ent banking structure"
Text of Resolution.
The text of the report of the Reso-
lutions Committee follows:
Many constructive changes have
taken place in the Nations banking
structure during the past year.
Throughout this period the American
Bankers Association has lent its as
sistance in manifold ways to the
Government in formulating sound
measures and has constantly fostered
among its members the spirit OF Co.
operation and service in behalf of re-
Covery. We pledge ourselves to a
continuation of such cooperation.
Banks today are in a strong posi-
ton and eager to cooperate in the
normal expansion of business enter
prise. We have faith in the present
banking structure, composed OF the
Federal Reserve system with It's aoe-
ouate credit and currency functions,
the mutual savings banks with II
billions of deposits, and the State
and national banks with SO bill
lions of deposits. These institu-
tions are capable and anxious to meet
every legitimate credit need of in
dustry. commerce and agriculture.
Reports indicate encouraging signs
that business is now beginning to seek
greater volume of bank credit, which
has been and is available for its use
1t is to be hoped that to steadily
increasing degree industry and trade
will avail themselves of the compre-
hensive banking facilities which both
the Government authorities and bank
ers are recommending that they util-
tze.
The American Bankers ASSocia-
ton believes that the establishment OF
a balanced national budget at the
earliest possible date is essential to
the national welfare and an important
factor toward world recovery.
While thus declaring our conviction
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