Show V THE THC DAILY NEW YORK ORK Financial tt l Whirligig Written V for Tb The Telegram By JAMES McMULLIN NEW YORK YORK The The New York banks arent aren't nearly as worked up as you'd think about Jesse Jones' Jones latest plan for direct loans to industry by the R. R F. F C. C Instead of howling murder about government encroachment on their business business business busi busi- ness they are wearing somewhat the expression of a clubman in an easy chair watching people outdoors battle a storm Jones' Jones idea involves advancing working cap cap- ital not ital-not not commercial credit in the usual sense sense sense- to sized middle-sized companies for a term of years Theres There's no rio doubt that many concerns need it if they are to weather higher N R A costs But the banks say ay if Uncle Sam wants that kind of business he tan have it They dont You hear plenty of dour predictions about what will happen happen happen hap hap- pen to Sams Sam's money The banks cherish the hope that if the R. R F. F C. C does tackle this type of credit they will no longer be under fire for refusing to do so They really think the Jones plan is more a criticism of the securities act th than n of them Credit Conditions Improving I Conditions for straight commercial credit are slowly but steadily improving although the figures dont don't reflect it yet The delay is partly because of industry's hesitation to borrow until code hearings are completed and labor troubles thrashed out The rest is directly traceable to Washington's tons slowness in calling off permanent deposit insurance and extending the temporary provisions Its It's hard to realize outside how large this looms in bank calculations S S S SIn In case you wonder how come the R. R F. F C. C is going in for broader loaning plans without asking for more money heres here's part of the an an- an By July all the New York banks banks and and some others which others which sold debenture debentures to the R. R F. F C. C in order to cooperate with the bank capital expansion idea will retire the debentures deben deben- tures turcs by repaying the R. R F. F C. C That will make around difference in in n the funds at Mr Jones' Jones disposal Capable Envoys The New York bank envoys to the Fletcher- Fletcher Rayburn hearings hearings W. W. W C. C Potter and Percy Johnston were Johnston were surprised and pleased by their Washington reception An unsought invitation tion from senators friendly friend friend- ly to New York was the cause of their ap ap- ap Insiders comment that they were a arand grand rand team for the purpose Both are heads of institutions unscathed by senate committee rev rev- Potters Potter's whole banking experience has been in New York Johnston was was' with a Kentucky Kentucky Kentucky Ken Ken- tucky bank and served as bank examiner examiner- traveling about for about for a dozen ye years rs Potter is calm and of matter Johnston is inclined to dramatize The balance in backgrounds and worked well The informed now take it as certain that sections of the Fletcher Rayburn burn bill objectionable objectionable objectionable to the banks will be eliminated New NewYork NewYork NewYork York gives ives the envoys more cre credit it than they are willing to claim for themselves A Aviation and Utilities Local aviation circles will concentrate their fire ire on two features of the new airmail bill It may sound odd but competitive bidding is one The established systems want the government to specify a flat rate rate even even a low and one and and then award the business to the lines which have routes and facilities already developed Naive Perhaps But you will see one of the most strenuous selling campaigns ever staged to put over the idea that those who have made the investment are entitled to first con con- This move has Wall Vall streets street's warmest backing even outside aviation circles because the precedent precedent precedent-if if established established could could come in very handy in later arguments between the government and larger financial setups set set- ups ups such such as utilities But keen neutral observers observers' predict theres there's as much chance of cuttin cutting competitive bidding out of the bill biB as of electing Gandhi president of the stock exchange The second focal point of attack is the mandatory mandatory man man- dawry ban against officers or directors serving more than one company Aviation interests know its it's impossible to get this thrown out en entirely entirely entirely en- en but would like to see it left heft to the discretion discretion discretion dis dis- of the I. I C. C C. C or a special aviation com corn mission A commission might possibly be reasonable reasonable rea rca about such things There will be surprisingly surprisingly surprisingly sur sur- little protest against the divorce of operating lines and manufacturing companies Old Guard Reactions You might think the New York old guard would gloat over t the presidents president's apparent de defeat defeat de- de feat fent on the bonus in m in the house and on the St. St Lawrence seaway in the senate But theres there's nary a gloat Even the staunchest opponents of ot the administration concede that the former was meaningless political mending fence-mending and the latter purely a sectional matter Therefore these setbacks evoke no cheers dicers C C 5 Local Republican circles are gathering statistics statistics statistics sta sta- sta- sta to prove that Canada has progressed as asfar asfar asfar far along the recovery trail as the United States State Of or course without benefit of the new deal Copyright McClura N Newspaper Syndicate |