Show DEFUNCT UTAH BANKS TO GET FEDERAL CASH Loans From Reconstruction Finance Corporation to toBe toBe toBe Be Available TEST CASE IS PLANNED Move Will Give Depositors More Dividends Defunct Utah banks will be able to obtain loans from rom the Reconstruction tion Finance corporation which will wm help them pay additional dividends to o depositors Governor George H R Dern Hern said Friday upon his return from rom the thc cast Governor Go Dern said there is some doubt about the receiver of a bank I having laving the power to negotiate loans 1 for or the bank but that he hc hoped to tOI take ake a case into one of the courts immediately immediately im- im im- im mediately and have the matter set set-i tied led He Hc said he discussed the matter I a wIth Wilson Tilson McCarthy Utah attorney attorney ney and director of the finance corporation corporation cor- cor cor l and had been assured that the he reconstruction leaders would take a vcr very liberal view of the thc assets assets' which banks would offer According to Mr McCarthy the thc Reconstruction Finance corporation will accept securities at something like ike their normal value This would mean that a lot of assets which have been een hitherto considered as frozen I would become liquid he said I FUL POLICY This policy will be helpful to communities com corn whose assets have been greatly reduced by the thc lowering of I agricultural prices as well as to banks banks holding such paper Governor Dern stressed the point j that the first thing which must be bc bedone bedone done one in Utah is to determine fully the thc power ower of receivers of banks and then make preparations to secure the proffered prof ered benefits I Scarcity of money because of hoarding by banks and by the pub pub- lie ic Friday was given as the cause for or existing economic conditions by Governor Dern The Thc public is hoarding on account oL of f unwarranted lack Jack of confidence in m inic inthe the ic banks Governor Dern said and the he banks are hoarding to be pro pre pared ared to meet the withdrawals of the thc public publiCo I The Thc governor fo left S- S S Lake Lale Febuary Feb Feb- uary 3 to attend a meeting of the thc executive committee of the national governors governors' conference in Albany N. N Y and later met with several financial finan- finan cial al leaders in New York and md Wash- Wash ington OI OPTIMISM T ns FELT While there has been no marked change in business conditions there is a more optimistic feeling that the thc stage is bein being set for improvement according to lo Governor Dern The uThe country needs two things he said Confidence and credit and there can be bc no credit until there is confidence This situation has become clearly recognized and a definite program pro pro- gram grain is being developed that should push the thc business machine far off oll the dead center where it U has been stuck so long Stabilization of bonds the liberal d on Pace Pue Two DEFUNCT UTAH BANKS TO GET FEDERAL CASH Continued from Page Pace One policy of the Reconstruction Finance corporation and the Glass bill which is desi designed ned to release a great volume of credit will ease the whole financial structure and will ill re suIt sult in placing much additional money moncy in circulation he asserted AID TO BUSINESS i These and other steps will revive i confidence bring money out of hiding hid ing resumption of normal nor nor- mal mat business activities and improve values the governor o said ald Governor Dern was ms optimistic over progress bein being made in Washington on the silver situation where he said a foundation is bein being laid for future action The unanimous opinion of or those who arc are actively at work on the silver sil ver vcr question is that advocacy of bi bit at a fixed ratio at this time would probably retard the rehabilitation tion of ot silver as money he declared Reverting to politics the governor said Franklin D. D Roosevelt governor of New York is still in the lead in the cast as the Democratic choice for president over such prospects as Speaker Garner Newton D D. D Baker Governor Ritchie of Mar Maryland land and andAl andAl andAl Al Smith LAUDS MCCARTHY I I was delighted to hear many favorable favorable fa comments in irs Washington about the excellent showing already alread made by Mr McCarthy as a member of the Reconstruction Finance corporation corporation corpo ration Governor Dern said His are aggressive and intelligent work is winning him hi high h praise in all QuaI It is another case of oC a Utah man m making good The governor observed that there is little or no sentiment in the house committee on public lands land in favor of ol the proposal to turn the surface ot the unreserved public domain over to the states He appeared before the committee while in Washington Mrs George H H. Dern wife o of the governor who accompanied him on his eastern trip remained in Sioux City Iowa Mrs Derns Dern's mother Ida B. B Brown now of Sioux City is seriously seriously seri seri- ill Mrs Brown made her home with the Derns in Salt Lake for a number of ot years |