Evening star., 1935-11-13
Reassuring Bankers.

President Roosevelts letter to the
American Bankers ASSoCiation-sent
through Jesse H Jones' chairman of the
Reconstruction Finance Corporation
commented upon the strong position OF
the banks of the country today. The
banks are in that strong position so long
as something does not happen to Govern
ment credit. No less an authority than
Senator Carter Glass of Virginia. former
Secretary of the Treasury, has pictured
the banks of the Federal Reserve Sys-
tenn as holding Government securities
In huge proportions. And Lewis Douglas,
former director of the budget in the
Roosevelt administration, has shown the
manner in which Government securities
have been sold to the banks and how
these transactions have helped TO boost
the size of bank deposits.
The President said to Chairman Jones
in his letter that he hoped the members
of the American Bankers Association
would take full advantage of the bank
ing act of 1885 and provide credit.
Credit. he said. should be accorded on
sound basis to business and industry and
real estate. The banks for long time
have been ready to advance money to
business and industry, provided, OF
course, the enterprises to be financed
were sound. Industry, ignorant, and
perhaps fearful. of what it was TO ex-
perience in new legislation designed to
control industry and curb profits, igno-
rant of what might happen TO the man
aged" currency of the country, has been
wary about investing in new enterprises
or extending those already existing.
In effect, the Chief Executive is telling
the bankers and business that there is
no longer reason to be afraid; that the
time has come for the banks, business
and the Government to go ahead to-
eether on the road to complete recovery.
The bankers and business may be par
doned # they recall the story OF the
mother, her small boy and goat. The
boy would not so out into the yard, he
said. because he was afraid of the goat.
You know there is no such thing as
fear, John" said the mother. Yes re-
piled the small boy. But, mother, what
want to know is, does the goat know it?"
The President not long ago promised
business a breathing spell" His re-
mark was interpreted as meaning that
there would be a let-up in legislation af-
fecting business. There have been various
opinions as to what may be expected
from the new dealers when the breath
ing spell" comes to a conclusion. Fer
%ently some persons hope that the
breathing'spel will be permanent. But
they are not sure.
The members of the American Bank
ers' Association are vitally interested in
recovery. They are tremendously inter-
eSted in seeing the Government balance
hts books. bringing expenditures and re-
ceipts into juxtaposition. They are in
terested, as every American must be,
In the credit of the Government and its
continuance on firm basis. Not only
does it mean an increase in business for
the banks, but it means preservation it
self
Cooperation between the banks busi-
ness and the Government, as the Presi-
dent has said, is a great need for the
solution of the problems of the country
ha he ~ oF
three. The whole tenor of the Presi-
dents message to the bankers assembled
in annual convention is reassuring. 1t
Is in line with his promise to business at
the close of the last session of Congress.