| Show I Private Loans to Small Plants Urged by R F C as War for Aid NEW YORK March 6 Loans lP-Loans IP Loans to s small all manufacturers engaged in m war work can be made safely and it is preferable that such credit be extended by private banking sources Charles B B. Henderson chairman of the Reconstruction Finance corporation said Friday The head of the governments government's big lending agency talking to 1026 bankers from New En England land and the middle Atlantic states assembled assembled assembled as as- for a war credit clinic under sponsorship of the American Bankers' Bankers association said It is as preferable and desirable that these small manufacturers use the customary banking channels channels channels chan chan- nels to finance their credit needs for It is not the policy of the theR theR theR R F C to compete with banks and other lending institutions It is our opinion that you can safely make these lo lopes loans ns either cither in whole or in part Our experiment with them has been satisfactory Need Billion a Week Pointing out the war effort was scheduled to require about 1 1000 a week of which the government government gov gov- government must borrow about halfA half A A. L L. M M. Wiggin second vice president of the association and president of the Bank of Hartles- Hartles ville S S. S. S C C. asserted The chief bottleneck and principal principal prin principal prin- prin cipal threat to financing the war warin warin in the ways that will accomplish the task and at the same time preserve the credit structure is the failure on the part of bankers and administrators of government alike to reorganize the astronomical ical size of the financing job to tobe tobe tobe be doneIt doneIt done It It is one that commands the full cooperative effort of all financing financing- agencies public and private vate Without that the effort can cannot cannot cannot not succeed except at the cost of ofa ofa ofa a sound credit structure The complete complete complete com com- mobilization of the financial resources jf of f the nation public and private is required for the job Organized effort in the sale of defense bonds to the public must be intensified the sales effort should be carried into the home of every dollar types of securities should be designed ned to attract into the treasury all available available available avail avail- able investment funds Hopes to A Avoid void Inflation Inflation Warren B B. president of the Lincoln National Bank and Trust company Syracuse N N. NI Y I declared that while most wars breed inflation this country probably probably probably ably will avoid its it's more dangerous forms during the present conflict It is as difficult he said to to assume that any measure will be undertaken to expand credit to the extent that it will exhaust our resources resources resources re re- re- re I sources as it is to assume a virtual virtual vir- vir vir- vir ual collapse of government credit its ts power to tax and the abandonment abandonment abandonment aban aban- of all reason by business banks anks the federal reserve system and the treasury If this is ever to happen which seems inconceivable it will wille be e years hence hence- It would be senseless senseless sense- sense less ess to base any present credit assumption assumption asumption as- as on the basis bass that it will happen |
