The Bismarck tribune., 1934-11-07

NAS0As Ou1 6QpSSlSUtly ~ MvV4tS0 sup
porting the treasury, lending freely,
and avoiding criticism CT the admin
istration8 policies. however sound or
unsound they may be.
At the convention halls the I'D.
dresses Of the bankers were at first
critical and antagonistic. Later they
became remarkably pacific and con-
ciliatory. Nevertheless, the closing
resolutions indicate no retreat from
the opening opinions. For. while they
diplomatica.ly emphasize the need
for continued cooperation with the
government. they none the less plainly
record the Importance Of business
initiative Ia borrowing. sound. bank
ing policies, and 4 balanced budget.
The latter, it Is contended, will elm
mate inflationary fears. increase en-
ployment, expand credit. and by ex-
ample reduce the extravaganza Of
local and state governments and bring
taxes more In line with the ability to
pay generally.
Resolutions Were Untamed
But the resolutions give little evi-
dence Of the influence Of the presi-
dents remarks. Drama ti0ed as they
were, the statements are on the
whole as elusive g smoke on q windy
day. TO many people they seem like
an astrologer's report, except for the
dignified, suave displeasure which
accompanies them. In many cases
definiteness has to be read into
vagueness. and reality into empti-
ness. An Interpretation drawn at one
point in the address seems to vanish
in what can be deduced from remarks
II. other parts. On the one hand. the
speech seems to be an overture Of
peace between private banking and
government policy. At the other ex-
treme it appears to be only . yelled
warning that the failure Of money
changers to lend literally. to support
a growing deficit and to tolerate an
unstable dollar is tantamount to
sowing the wind to reap the whirl-
wind" Quite obviously, however,
praises for the money-changers In H.
nancing over half of the national
debt are conspicuous by their ab-
sence. And. as some editors observed.
the radio l'ublic was rot invited to
the hatchet-burying ceremony, al
though 1t was tuned In when the
chips flew in the inaugural address.
Economically speaking. there seems
to be some reason for the banking
community being disturbed with an
unbalanced budget. Did not the new
administration in 1888 promise . bal
anced budget and q IS per cent re-
duction therein? On the other hand,
there is some political logic in the
Democratic contention that relief ex-
penditures must necessarily continue,
and that the budget remain, there
fore, unbalanced until business &C.
tivity is revived sufficiently to reduce
unemployment. Nevertheless, the ad-
ministration. Intentionally or other
wise, seems to overlook something,
which at least Is . possibility. Briefly,
the revival Of business Is predicated
upon return Of confidence primarily
In the soundness Of the governments
policies.
Trustees Of Confidence
But to the president the bankers
appear to he the trustees Of conf
dence. To him the banks are the
handspring Of business activity and
the bankers the springwinders Of in
dustry. Like clock hands, business
men must respond, being necessarily
impelled to stir themselves when the
pendulum G. credit Is started. . Or.
like robots they must take on an ap-
pearance Of activity when the credit
button Is released. This attitude Is
certainly pathetic, II not indeed cause
for great uneasiness. Surely there Is
justification for considerable impati-
ence with men, who. protesting to be
leaders Of Whatever political faith,
adhere to such ideas.
The truth Of the matter Is that the
bankers simply cannot expand credit
OF their own volition. and even II they
could, to do 80, as suggested by Jesse
H Jones, would be hazasdous. But It
Is assumed, and 1t Is expected-in
fact, there Is the demand-that the
business horse be watered at the
trough Of banking credit. Seemingly,
it. Is Of no concern whether the horse
wishes to be led, or whether tho bank.
ers wish to lead the horse. Business
must be financedl
NJ, ss~r3sa-v h>av avAlDa e. vSoAkn 1Ne~N kAN1aa
loans and to make their borrowers
feel more comfortable about their
debts. Mr.. Jones becomes the true
apostle Of upsound banking. II not,
indeed, Of insane banking. Not only
are the bankers urged to be the prime
movers Of industry. but the prime
carriers and the handmaids q well.
But with the lessons OF the last boom
period 30 familiar to them, and with
the ghosts Of the Kreuger and insult
episodes still stalking tho land, the
bankers left washington hesitating
to throw discretion TO the winds for
the sake Of political prestige. even
though business could be enticed to
contract for q line Of credit. The
only consolation they had was con-
tained In three vague concessions.
The president paid his respects to the
profit system. to the undesirahility Of
perpetual government lending, and to
the ultimate reduction In relief ex-
penditures.
OF Liberals 100000 inhabitants
about 10000 are said to be civilized.
The real name Of Loretta Young.
screen star, is Gretchen Young. She
was born January 8, 1918.