Evening star., 1938-02-07

were on the directorate Of the State
Rank Of st. Charles. ILL.,. were faced
with . situation similar to that Of
most Of the banks of our size through
out the country The industrial situa-
tion in our little city was equally
critical. After a survey of the situa-
ton, we primed our local pump by
placing nearly s50O,0O0 in the bank to
make 1t completely solvent. To aid
our industries, the services Of indus
trial engineers were secured.
There were is diversified industries
manufacturing various products.
After analyzing their problems. hnan-
cial and otherwise, we determined on
q systematic and practical manner to
give them relief:
Il. Good management was en-
couraged
q. Efhcient methods were intro
duced.
IS. New products were brought out
-. Financial credit was given to the
full extent Of the present banking
laws.
IS. Outside private financial aid was
given to some extent.
"One outstanding example is with
one Of these industries which formerly
produced fiat irons. then changed to
wrought iron smoking stands, and
finally to modern furniture.
Pay Roll Nearly Tripied.
''This industry was operating in
Ave small units. It was consolidated
into one unit It's profits in the
meantime increased considerably and
its pay roll was nearly tripled. With
out adequate help this particular
manufacturing plant would have had
to curtail It's production and cut its
force from $50 to $50. Because Of
financial assistance, technical advice
and good Judgment, its pay roll now
runs around 75o employees.
THE results of the assistance thus
rendered were as follows:
Il. BY 1884 to 1888 St. Charles in
dustrial employment increased $50
per cent over 1882.
-. by 1896 to 1897 industrial EN-
ployment increased 400 per cent over
1892 and $50 per cent over 1929
u. The population increased from
$500 TO 1900.
-. Post once receipts increased
approximately $50 per cent over those
In 1885. The plans and ALLEGATION
Of 1879. A new post once Wa built
had TO b changed because of the in
crease In business. A Treasury on
cial stated at tho time that st.
Charles Post Office receipts showed
the largest increase per capita of any
city In the United States.
IS. About 800 employees from other
cities were employed in St. Charles
industries last year st. Charles tech
nically had more than taken care Of
its unemployed problem.
e. The Better Business Bureau
some three months ago rated ct.
Charles in hrst place Of all cities in
Illinois on purchasing power per
capita.
~. The city treasury has large
surplus Of caAh.
g. The most modern sewage dis
posal plant in America has been built
and paid for in cash out of city funds.
g. The electric power demand is
equal to the average city Of 1880
population. The city owns it, own
power facilities. The rates are rs low
for industrial uses as any in the
United States.
Surplux Tax Hardship.
What Ia the problem now? First,
the undivided surplus tax is working
. great hardship. Second, Inadequate
credit arrangements. because of the
stringent banking regulations. now
prevail while excess cash is carried
in banks which cannot work for pro-
ductive enterprise"
Mr.. Norris here interrupted his
narrative to point out that 1T is only
fair and hitting to state that the one
reason the aforementioned bank was
able to become solvent was due to the
fact that one large corporation ian
Eastern oil company continued to
pay dividends out of surplus which
had been accumulating over a period
Of years" He adds:
"As . direct result Of this fortu-
nate circumstance. hve small indus
tries were aided In continuing their
payrolk. Indirectly, the result was
far-reaching because the merchants
were benefited by the payrolls thus
kept intact, to say nothing Of the
depositors' money which was saved.
Two Of the industries in the city were
likewise aided through relatives Of
thsir management who were able to
plsdge securities Of other large cor
porations for loans With the Federal
AAssrve Bank and = large Chicago
hank"
Small Loans Necessary.
Mr.. Norris told the President that
the moral Of this tale WAS the need
for small loans to industries and that
what vss good fortune in this In
stance was by no means matched by
such good luck elsewhere because the
help from the dividends Of large
corporation through . single family
interest was probably not available
elsewhere. He believes therefore in
small loans to industry along the lines
Of the insurance plan in the housing
Law. His conclusions are: a
There is unlimited talent in our
small industries to produce new prod
uets. Proper capital facilities for small
industry are not open from private
sources today Our college students
must be absorbed in small industry
as well as large industry. Small in
dustry Is the life blood Of hundreds
Of communities In the United States.
Cash IL available in banks through
insured loans for industry; the de-
positors can b safeguarded and the
Government not add 10 IT. indebted
naas. The housing program would Be-
s&tmulstsd and present =. II. A. loans