Show National Topics Tonics Interpreted by William Bruckart a 1 Washington The The end of June statements of ot all the banks of ot the thet t country are now Bank Deposits a matter of ot r rec- rec Increase ord and surprisIngly surprIsIngly surprisingly nearly all nil of of- the Individual banks have shown Increases In the deposits and resources over oyer a year ago ngo A AC Ac C couple JPe of ot the largest banks In New NewYork NewYork NewYork York showed such astounding Increases increases In in- creases In deposits as compared with June 1933 But Irrespective of the Increase In deposits de de- posits that posits that Is the money actually In possession of ot the banks banks almost almost none of them disclosed any Increase In the total loans now v outstanding In Inc Ind d the rule was a n. decline from June SO 30 1033 1933 Banking authorities In the government government government gov gov- and outside tell me these h b figures on deposits and resources clearly Indicate an Improvement In Inthe Intile inthe the tile general banking situation The I Federal Reserve board In Its latest review of ot conditions declared the banking structure was on on a much firmer foundation Yet the fact that the banks have not made loans Is being bing b Ing seized by a certain segment lit i poUt politicians and alleged economists economists mists as proof that the Ule banks are not d doing ing their part From very high quarters In the administration we hear Int Intermittent yelps elps that the banks are are not operating co-operating and are arc not attempting not to loan money This condition as they construe It Is being be ing used as the excuse for the existence exIstence exist- exist ence of numerous of ot the govern govern- t loaning agencies and for other activities s under the New Deal that result In getting money out Into the country The circumstances In the decline of ot bank loans however Is to my mind not such as the critics of ot the banks claim It must be remembered tiered first of all that bankers when they hey make loans are arc putting out money belonging to you and to other depositors They must be reasonably reasonably reason reason- ably suro of ot getting it back bac even though we we do have now the Federal Federal Fed Fed- eral cral Deposit Insurance corporation that Is supposed Is-supposed to prevent losses for for- forthe or the depositors Bankers therefore therefore there there- fore forc are willing to make loans of the vast sums of Idle cash their banks hold If It they can only find someone who will put up security guaranteeing a return of the tho borrowed borrowed borrowed bor bor- rowed funds While some of ot the critics of ot the theM M bankers ankers have been continuing their attacks I note statements from the Public Works administration from I the Reconstruction Finance corporation corporation corpor corpor- I from the Home Owners' Owners Loan corporation and the Farm Credit administration among others which show chow very clearly that the govern- govern rj nt nt nf or Its agencies Is unwilling to tomake tomake tomake make loans unless unless' It can foresee a n reasonable chance for repayment Just the other day the Public Works Works' administration withdrew an allocation of some for construction construction construction con con- of a bridge In Chicago o C a because according to Public Works Administrator Ickes the political subdivision of ot that city having lunIng Jurisdiction jurisdiction Ju ju- on was unable to provide a of or repayment of that loan Every day local units of the Home Bome Owners' Owners Loan corporation are turning d down wn applications by home lome own owners rs who seek government money through mortgages on their property to to aid them In whatever distress they find themselves The same some statement ment may be made respecting respecting respecting re re- re- re loans by the Reconstruction tion Finance corporation In Its dealings dealIngs dealIngs deal- deal Ings with Industry Lately ly the various Federal Reserve Reserve Re- Re serve banks Issued a weekly statement statement state- state ment went of ot their operations and only three of the twelve reserve InstItutIons Institutions institutions reported having made loans to Industry I have Inquired In numerous quarters quarters quarters for reasons reasons why borrowers were so few The Why Borrow Borrow- consensus Borrow consensus given gh-en b o who ers Are Few me by men should know Is that there there- ar are two distinct reasons for the small amount of loans beIng being be be- ing made by banks s and of or course th the same reasons may apply appl In th the case of ot government loans except that the government has beet known to put out money In place place- from which It ft probably never wll be returned One of the reasons r ir mentioned was that Individuals anti firms who most need money have hap n nothing but their own signed obligations obligations ob ob- to put up as ns a guarantee Obviously If tr an on Individual or a cor corporation has no resources the note of that Individual or that corporation corporation corporation corpora corpora- tion Is little of-little value however hon hon- honest honest est and well intentioned the borrower borrow borrow- er may be T second reason and one that 15 fulte te Important Is the lack J-ck of ot confidence which business men tell teU me exists to a large extent In commerce com corn merce coerce and d Industry Whatever Is the basis for this lack of ot confidence Is not a matter of concern In this discussion but Its Ils existence seems to me to be a matter of the gravest Importance Whether taxpayers are arc afraid of or orthe the burden In levies which they can f foresee Is the tube reason for their hesitancy hesitancy hesitancy hesi hesi- tancy Is not now wholly apparent Many observers are convinced It Is Isan Isan isan an influential i factor There Is also the question which one hears so soi 1 i often asked Where and how far tar does the New Deal Intend to go In socialization and reform It seems to be obvious be-obvious obvIous that each of ot these ant and perhaps others are factors standing In the way of ot a sound expansion o of bushless under the recovery reco plan In the meantime the federal government government gov gov- eminent Is iss Is going ahead with Its Us program to spend our wa way out of the depression Hero Is one Item to show what Is happening This road building has hns resulted In the coI construction of ot enough miles mUes moro than of of new highway highway highway high high- way almost to encircle the earth This money was voted by congress In the last session as a means menns of I creating work Proponents of ot the i appropriation and administration authorities hold that the earmarked ed for road building would provide thousands of new Jobs Bureau of ot public roads figures figures fig fig- ures Indicate that this has been the tile result but I find many observers who are wondering whether the amount of money that has hns been paid to labor for highway construction construction construction tion has been a proper proportionate part of the total set aside when the purpose was solely the making of Jobs Total figures by the public roads office show that miles mUes were completed and In use on July 1 of ot this year and that miles were under construction with the probability that they will be e In use by the end of 1031 1931 Contracts have hae been awarded the Ule bureau has said for the construction of about 1000 1900 miles more and work o- o on othis this portIon portion portion por por- tion will be under way In the late summer It us used d to be assumed th that t when economic conditions were below I I pal par many own- own Still Use ers of automo- automo Their Cars biles bites would dispense dis dis- dis pense pease with their machines until they were better situated sItuated situated sit sIt- financially Such however seems not to have ha been the case In Inthe Inthe inthe the last year Automobile regIstrations registrations registrations regis regIs- while they Uley declined In 1033 1933 continued to remain at an unusually unusually unusually un un- un- un usually high figure as compared with recent years Official O statistics statistics statistics statis statis- tics show that motor vehicles were In use last year This is only 1 per c cent nt below 1932 1032 The Tho decline from 1931 1031 to 1932 1032 was larger but the point Is according to officials that the decline was vms very ery small The authorities Insist that the reduction In totals total motor vehicles In use as compared with 1032 1932 should be considered as hardly hardly hardly hard hard- ly noticeable when the whole country country country coun coun- try and the whole number of moter motor vehicles vehicles- Is considered Although I have not the official statistics concerning concerning con can the sales of ot new cars ars last year responsible responsibIle sources Inform me that this business was very much Improved and they add also that the sales for 1034 1934 in the first six months have been exceptionally high This would Indicate that a great many individuals have found money in some way rvay or another which they could spare for a new automobile Washington observers lately have noticed an nn Increasing tendency among conservatives throughout the country whether Democratic or Republican to align themselves under one banner The movement as yet is much In the embryo butI but I am told by various observers who are acquainted with political trends that the alignment Is taking a rather rath rath- er definite shape S Another factor and Influence that thatis is noted now to be at work Is the gradual concen- concen Conservative of business busi- busi Trend ness In Interests on the conservative I side of ot political questions under the New Deal Washington has heard lately of efforts being made which would result In the molding of business Interests or the spokesmen spokes spokes- men Into a compact organizatIon organization or or- i as a means of combating policies of ot the New Deal re regarded ard d dby by business leaders as radical In character It Is too earl early to attempt to forecast forecast forecast fore fore- cast as to the scope of this move nevertheless It Is quite apparent that a n concentration of ot this strength Is under wa way Not Nol only will these men and interests oppose e. e expansion of such policies as NUA NItA and anel the AAA but they are organizing ing to fight the tho Increasing ever burden of taxation and to oppose extension of government go In bust busi ness It lt is a matter of oC record of course that the tendency of ot government policies In the United States since I the World war has bas been steadily to the left Conservatives have been unable thus far fur to check this trend largely largel because the conservative conservative conser- conser element never has stood to to- gether It Is Important and significant significant cant therefore that for the first time we arc observing the development development develop elop ment of a conservative organization tion In this country which has the avowed purl purpose sq of turning the American government back somewhat some some- what lint to the right and as the leaders leaders leaders lead lead- ers describe It back again to the Constitution as It was originally drawn I I Western Newspaper r Union |