MONETARY POLICY

Manawatu Standard, Volume LIV, Issue 281, 26 October 1934, Page 7

MONETARY POLICY

BANKS AND PEOPLE. IN UNITED STATESi GOVERNMENT NOT TO ENCROACH.

(United Press Association-—By Electric Telegraph.—Copyright.) WASHINGTON, Oct. 25.

President Roosevelt, speaking tonight before the American Bankers’ Association, assured bankers that the Government does nut intend to encroach on their field.

The President made four points, which were received with much satisfaction by bankers. They were: That the activities of Government agencies now in the banking field will be curtailed ; that ail should proceed in the expectation that a business revival will steadily reduce the burden of caring for the unemployed; that this and other nations are adhering to the objective of steadying prices and values; that a profit system based on the theory that wealth should come as a reward of hard labour, was the spirit of American institutions.

“The time is ripe for an alliance of all forces intent on the business of recovery,” the President said. “In such alliance will be found business, banking, agriculture, industry, labour and capital.” The President called upon bankers to have confidence in the_ people and “resume their responsibility” to the public. He said : “I ask the bankers of this country to renew their confidence in the people of this country. I hope you will take me at my word.”

He gave no inkling of his future monetary or other plans, as many had expected.

The President asserted that he had found “agreement” among bankers that the Government’s emergency credit agencies should continue to lend until banks are “able and ready to take over these lending functions.” Many saw as something in the nature of a challenge these added words: “When that time comes I shall be only too glad to curtail the activities of these public agencies in proportion to the taking up of the slack by privately owned agencies.” FAVOURABLE BALANCE. INFLOW OF MONEY. WASHINGTON, Oct. 25. An inflow of 920,000,000 dollars in gold and 30,000,000 dollars in paper currency during the first six months of 1934, while exports exceeded imports by 173,000,000 dollars, left the United States one of the most favourable balances on international trade and financial transactions reported for several years. The Department of Commerce reported that exports totalled in value 1.036.000J300 dollars, and imports 863,1700,000 dollars.