Evening star., 1935-11-14

tSOIlG4Ilucu 1IOiIl THSJ FdSe.j
corporations less was producing a
rather lop-sided prosperity.
Heavy Goods Lag.
"In the past three years." the
report said, there have been large
increases in the consumer purchas-
ing power of great numbers of our
population.
They have been due to such factors
as wage advances in most lines of
employment, to increased agricul-
tural incomes. and TO the heavy dis
burSementS Of the Federal Govern
ment for public works. for the re-
financing of farm and urban mort
cages and for relief.
The part of our national productive
economy which has not made salts
factory progress is that which includes
construction. and the making of dura-
Bile goods"
Capital Issues Shrink.
1t said the chief reason for lack of
PAONeNlAVAA VA SANAA tAA4AAtc 40 Alld44A
featuring plants and their machinery,
ships and locomotives, pipe lines and
bridges, cranes and ore docks was that
there has been nearly complete
shrinkage in the flow of new capital
issues by corporations
The commission regarded the "huge
. accumulated shortages Of the depres-
sion period as constituting a great in
dustrial opportunity, and our vast
excess bank deposits as the means by
which We may avail ourselves of that
opportunity"
The bankers declared business had
genuinely improved for farmers, re-
tail merchants, hotel keepers, enter
tainment managers and most news
papers, but that 30 per cent of our
workers are idle. and their numbers
have not changed much during the
past two years"
The report was signed by Leonard
P. Ayres, vice president Of the Cleve-
land Trust Co., chairman, and by the
other committeeman.
The hope that interest charges
would be pared in order to put large
bank reserves to work was expressed
yesterday in Washington by Mr..
Roosevelt. who agreed expanded bank
ing activities would play an impor-
tant role in the recovery campaign.
if properly used. Unless this money
is released within reasonable time.
he added, the large deposits would
slow up recovery.
Bankers attending the convention
greeted President Roosevelts state
ment with assertions that banks were
lending money much below the Presi-
dents prescribed per cent level.
j. r. Cain, vice president of the
Omaha National Bank and past presi-
dent of the National Bank Division
of the American Bankers Association,
said:
"A good many loans are being
made with us at rates under per
cent. I would say that they run from
As TO 5 per cent. We have had a
moderate rate in the Middle West
for some time. There is not much
housing construction in our section
presently, but there is plenty Of talk
of it in the air."
Thomas j. Davis, president of the
First National Bank of Cincinnati.
said:
In our section would think that
6 per cent was the exception because
Of the plentitude of funds, especially
In the urban communities. Consid-
cradle new housing is in prospect and
real estate mortgage loans are being
taken care of by banks, insurance
companies and other lending institu-
tionS without difficulty when the value
warrants"
Carl M. Spencer. president OF the
Home Savings Bank of Boston, Mass,
and president of the National Asso-
citation of Mutual Savings Banks,
said:
"I come from New England and the
interest rates are coming down there
as conditions permit. Money Is being
furnished at rates satisfactory to bor-
rowers. There is not much housing
construction under way as yet"
w. D. Ferguson, president Of the
Thomas County Bank, Colby, Kans.,
declared:
I'VE are just little country bank
and I am just grass root banker
out West. Our loans won't average
per cent. I think that the Presi-
dent, in saying that interest rates
have got to come down, is giving
US . slap In the face"