BANKING POLICY IN U.S.A.

Timaru Herald, Volume CXXXVIII, Issue 19940, 26 October 1934, Page 9

BANKING POLICY IN U.S.A.

PLAIN STATEMENT BY PRESIDENT

APPEAL FOR UNITY OF PURPOSE

United Press Association—By Electric Telegraph —Copyrigh t

(Received October 25, 7.10 p.m.) WASHINGTON. October 24. President Roosevelt, speaking tonight before the American Bankers’ Association, assured the bankers that the Government does not intend to encroach on their field. The President made four points, which were received with much satisfaction by the bankers. They were: — That the activities of Government agencies now in the banking field would be curtailed; That all proceed in the expectation that the business revival will steadily reduce the burden of caring for the unemployed; That this, and other nations adhere to the objective of steadying prices and values; That a profit system based on the theory of wealth, should come as a reward of hard labour, which was the spirit of American institutions. “The time is ripe,” the President said, “for the alliance of all forces intent on business recovery. In such an alliance will be found business, banking, agriculture, industry, labour and capital.”

Appeal to Bankers

The President called upon the bankers to have confidence in the people, and to “resume their responsibility” to the public. Mr Roosevelt 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.” The President 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 the banks are “able and ready to take over these lending functions.” Many saw something in the nature of a challenge in 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 slack by privatelyowned agencies.”