Evening star., 1935-02-04

The recommendation of Chairman
Jesse H. Jones that the Reconstruc-
tion Finance Corporation be continued
for a two-year period has the approval
of large majority of the newspapers
of the country.
1T is probable" says the Buffalo
Evening News. that little or no oppo-
sition will develop in Congress against
Jesse H. Jones' proposal that the Re-
construction Finance Corporation be
continued in operation for two years
more. Originally organized by Pres
ident Hoover to combat the forces of
depression, it has functioned with sig
nal success. Criticism Of its directors
has not been lacking, but the general
!, opinion seems to be that 1t has well
fulfilled its purpose Of aiding private
industry by means of governmental
loans in period of grave financial
emergency. =" So long as conserva-
tive and competent financiers exercise
due care in extending needed loans
to private industry. the r. F. C. will
not find its enemies in House or Sen
ate vocal"
To the jamestown IN. " Post "it
appears that 1t fulfills such a useful
purpose that 1t Is imperative to con-
tinue 1t for a while. While the or
ganization has drawn on the Treas
ury to the extent Of more than two
billions in order to carry on its
work." the Post continues, Its oper-
ations have been so successful that 1t
Is thoroughly equipped to continue its
aid without further drafts on the
Government Golfers. It is expected
that it will be able to meet all future
demands from funds repaid by bor-
rowers. It is thought that even this
drain will not consume all that is
available"
On the other hand, the Newport
News Daily Press asks: What OF
private capital? Why not give it an
opportunity togo back to work? Why
continue the r. F. c. when the vaults
| of the Nations banks are being
cracked wide open by idle money?
The Grand Forks IN. Dak) Herald
says: During the early period of the
| corporations activities there was
much cynical comment to the effect
that the loans which it was making
were in effect gratuities from the
Government which would never be
| repaid. This criticism has proven
baseless. Loans have been repaid,
and in large volume" Altogether" !"
the Kansas City Times declares, "the
! question of extending the r. r. G. is
! distinct from such question with
| reference to most of the New Deal
agencies. ANY governmental unit that
can show q profit ought to have spe-
cial consideration"
business on grand SCALE" according
to the Indianapolis Times, land 1t
serves the needs Of the very interests
that agitate loudest to take the Gov
ernment out of business. Each con-
servative agitator, 1t seems, has his
own private reservations. He is
against Government in business on
principle, but favors 1t In practice
when it is grist for his own mill.
Banks, insurance companies, rail-
roads, mortgage houses, building and
loan associations, home owners, farm
owners and industries of many types
have eagerly partaken Of Government
credit" continues the indianapolis
Times. Indeed, If the Government
had not come TO the rescue. our
whole system probably would have
collapsed. And at the bottom Of the
debris would have been the bank de-
positors, insurance policy holders and
others whose financial interests are
riveted into the private credit struc-