| OCR Text |
Show BEAR RIVER VALLEY LEADER, THURSDAY, JULY 27, 1933 How All the People Played a Part In Building Nation's Credit Structure Banker Describes the Way Loans and Securities of Banks Are Based on the Hopes and Plans of All Classes Values Dependent on Public's Ability to Meet Obligations By FRANCIS H. SISSON, , : i , , PrekiJent American Bankeri Atsociation in The Forum be Informally described working people of the nation were may CREDIT hopes, plans and good Infully employed, while wages and saltentions converted Into present pur aries were steady and generous, while chasing power. The prices of commodities were strong and while the minds of the people were farmer, the manudominated by faith In the 'future and facturer, the merchant, the home confidence In one another. buyer, the purcGreat Change Came to the Nation haser of household Then suddenly, almost as if the sun goods, the Investor bad lost part ot its vitality, itself and the speculator changed. Foreign markets everything all borrow at times. failed and Industry slackThey plan to repay ened. A disappeared. all in kinds of comrapid drop with the earnings valuer set The in, modity earnings of of their crops, probusiness tell. Unemployment develceeds of the sales of oped. Wages and salaries went down. their goods. InDomestic markets shrank. Fear becomes from their came r. h. sisson general. The securities markets wages and salaries panlc-riddas the prices of or profits from the resales of their became stocks and bonds to fractions withered securities at enhanced market values, of their former values. It was the each as the case may be. of human The greater part of these various greatest disintegration forms of credit is obtained by the bor- - plans, economic conditions and worldly values that history bad ever witnessed. rowers directly or Indirectly through These destructive changes cut right of the expansion the loans and invest-- ' the qualities and values of the through ments of the banks. It Is this which creates the notes, securities and mort--, loans and investments, the notes and securities in the banks. Business men gages in the portfolios of the banks. and manufacturers could not repay The banks are able to extend these notes to the banks as due. Many their loans because a great many people de--I units and corporations governmental posit money with them. defaulted the payments on their bonds. Even under the best conditions the underlying real estate mortplans of a small percentage of borrow- - Property became worth less than the face gages ers go wrong through mistakes, hard of the mortgages. The market values luck or dishonesty, and the Judgment of standard securities became less of the banker in such cases is proved than the banks had paid for them as into have been at fault. vestments by the after event or accepted them at as coThe losses caused under such condf" llateral for customers' loans. uons are orainarnv u v met hv runrta This meant, in fine, that the ability set aside out of the earn in es of th of borrowers to carry out the future nanus ror just cms purpose and do not plans and good intentions, that affect the money of the depositors, who hopes, I have defined above as the b .sis of seldom hear anything about such credit, had become impaired to a far losses. extent tha- - had ever before ocgreater In the vast majority of cases and in curred in the nation's history. The rethe overwhelming volume of business losses could not be absorbed by involved the confidence of the bankers sulting the banks alone out of the normally in their customers and the confidence funds that had been set aside of the customers in their own ability ample the against expectancy of a certain into carry out their plans and obligations evitable of human plan? percentage to successful conclusions are wholly gone wrong. justified. This is the normal economic Banks Showed All Reasonable Care situation end it constitutes the condi- It was in loans and investments, tions under which the use ot credit whose values thus became so unfore-seeabl- y adds to public welfare and progress. impaired, that the banks, in all The Faith of the Banks in all good faith, in all confidence, Such wa3 the structure of hopes, good reasonable care and good Intentions and common confidence in humanly had entrusted the billions of one another that existed among all judgmentof dollars deposits which their cusclasses of the nation's community life tomers had entrusted to thtia. when the series of economic shocks Those loans and investments were, began to shake the nation's social fab- under all normal conditions, as good as ric in 1929. The people had deposited gold itself. Indeed, if the banks Inbillions of dollars with the banks be- - stead had filled their vaults with gold cause they had confidence in tbem. The bars, and then some unknown cosmic banks had loaned large volumes of ray had transmuted tbem into lead, the these deposits on farm and home mort- results would have been scarcely more gages and on notes cf manufacturers, startling than the depreciation that business men and finance concerns, and was caused in the assets of the banks had invested In thf standard securiby the unforeseeable economic forces ties of the nation's corporations, state which permeated and debased them. ana local governmental units and the The inevitable result wiiihat, when national government itself, because the banks urgently needed the money they had confidence in the citizenship they had entrusted to those assets, so and business condition of the nation. that they could meet the unreasoning Their mortgage and other loans to demands of their depositors, they could owners ot farms aggregated $6,500,000,-000- . not get it back. Loans on urban real estate were It was not that our banking system 14,000,000,000. Loans to individuals seand methods were of themselves weak cured by U. S. Government, municipal or reprehensible, apart from the rest and corporate securities totalled of the life jf the nation, as has so much Loans to Industrial and been made to appear. commercial enterprises in connection It was not that our banks were perwith the production and distribution of meated with incompetency or disthe nation's infinite varieties of goods honesty or with lower standards of amounted to almost $19,500,000,000. business ethics than were the other Investments n Federal, State and muforms of human activity with which nicipal bonds were almost $6,000,000,-000- , their own fate and activities were inand in various kinds of railroad extricably interwoven, as, it almost and corporate securities $11,000,000,000. seemed at times, there was a concerted These made total loans and investnational conspiracy to lead our people ments of $58,000,000,000. to believe. This great credit structure was built The great fact of American banking while the country was at peace, while is that It shared fully in the plans and the farms and factories were produc- hopes and 'mzards of the American peotive, while the nation and the world ple, and when those plans went provided great active markets for their wrong, the banks carried their share outputs, while the earnings of all kinds of the burden and suffered their share of enterprise were large, while the of the misfortune. EASTTREMONTOtf PAGE FIVE ouv RIVERSIDE Mrs. P. E. Ault Mrs. 'Tin Woodsman" J. O. Hadfield :x: Mr. and Mrs. E. O. Wilcox of Logan, were Friday visitors of Mr. and Mrs. Mrs. Glen Walker spent a couple of days in Ogden last week. George Abbott. Verl Henrie of Garland, was the Mr. and Mrs. O. L. Brough, Mrs. George Brough and Mr. and Mrs. Geo. speaker at the Sunday evening meetBeal spent the 24th of July in Brig- - ing. Mrs. Lena Tubbs saner two solos ham City. The ladies enjoyed the din jI accompanied by Edna Mae Ward. Mr. and Mrss Joel Tubbs of Hol-- J ner and picture show given them by brook, were calling on friends and rela the Daughters of the Pioneers. Margaret Pack of Tremonton, was tives the first of the week. Mr. and Mrs. Geo Bowcutt were fish a week end guest of Katherine Abbott. in Blacksmith Fork canyon, over a few ing Bernice Brough entertained , of her friends with a slumber party the week end. Mrs. Laoyd Cravens and son, Kay, of Thursday night. They enjoyed an Salt Lake, spent the past week here early swim and breakfast. with Mrs. Craven's father, Geo. Hales. a was Wra. Haslem of Lewiston, Mrs. Leon Hales was the guest of week end guest of Miss Leona htr parents, Mr. and Mrs. Gunderson Mr. and Mrs. George Abbott spent at Brigham last week. lone Udy is spending the week at the week end at Monte Cristo. Mrs. Charles Peterson, Arlene Peter j Fortage with friends. Mr. and Mrs. Edward Tubbs and son and Mrs. Lottie McComb and chil son, Blame, of Ogden, were week end River Bear in the 24th dren, spent guests of Mrs. Francis Tubbs, City. Mrs. J. IL Ward and daughters, EdMr. and Mrs. Calvin Kay went to Ug den canyon, Saturday and brought na Mae and Amanda, and Mrs. Lena back a load of Epworth Leagures, who Tubbs, Mrs. Marion Hales and Margery Ward spent Wednesday at Blue had been attending institute. Mr. and Mrs. Henry Morrison of Creek as guests of Mrs. Ora Hyer. Mrs. Hyer and family were TuesBurt, spent Thursday with Mr. and day and Wednesday guests at the J. Mrs. Thomas Kay. Mrs. Charles Peterson had as dinner H. Ward home. Portage played ball here Sunday and guests, Sunday, her niece, Mrs. Leroy Checketts of Providence and brother, defeated the local boys 2 to 7. Mrs. Gertrude Hermanson of Salt Charles Checketts of Weston, Idaho. Mrs. P. E. Ault accompanied Miss Lake City is spending the week at the Izola Jensen, demonstration agent, of A. Forsberg home. Mr. and Mrs. Oscar Forsberg and Logan, on a tour of the valley, TuesMrs. Herald Peterson and children day. They visited most of the H club leaders and then attended the went to Salt Lake Sunday. The Fors-berj MAKE GOOD OR WE DO Fronk Chevrolet Co. Phone 21 Tremonton, Utah w When You Think HARDWARE j The J. O. Hadfield family attended the Jensen family reunion which was held Saturday at the Orson Jensen home in Bear River City. Mr. and Mrs. J. A. Capener of Salt Lake City, were here over the week end with their sons.Leland and Ray. They Give Only Temporary Relief From Constipation and Biliousness, Because They Have No Effect Whatever on the Liver or Its Production of BQe. Bile Is nature's laxative and your stomach and bowel require at least one quart of fresh bile every day to keep them clean, pure, free from fermentation, gas and disease germs. When your liver bwomes sluggish the bile stagnates and stops flowing freely. The contents of year bowels become the breeding place for germs and poisons; your food does not direst it just ferments and decays in the bowels. The blood absorbs these poisons and yon suffer from constipation, gas, sick headaches, biliousness, nervousness and soar stomach. Sargon Soft Mans Pills remove th oauie of this condition in aatun way. They ore not like any ot.. r' medicine yo'i have ever are so icct. thorough ...... tr. there is nothing about them to remind you that you have ever takm a medicine, and noes remarkable of all you gradually reduce the dose until you no longer require a laxative at all. Unless you have tried Sargon Soft Mass Pills yoo can have no idea of the effects produced by this natural cleansing of your liver and bowels. It, makes you feel years younger, strong-erhealthier and happier. It brings back life and color to faded eyes snd cheeks, restores the appetite and sound digeation rives you a new outlook on life itself. Insist on gennlne Sargon Soft Mass Pills. Don't b misled. There are only two generally recognized which will actually stimulate a torpid or slngglsh liver to rleanae and purify Itself by Increasing Its production of bile. Hargon Soft Mans s. Pills contain both of these sub-t.tnre- ;: - Vr tor a fall 30-.i or writ a. a -- (.!, ) trestneat I. WUtta, gcott DnJg At Im tho-sand- TI we will YES , HQS! trade for your old ones Assooiated Gasoline and Oils SERVICE LEA'S LEA DUNN. Prop. ...UTAH TREMONTON ) The trouble with steel alone is that it stands just so much shock and punishment. Steel alone is also inclined to rumble and rattle. BUT when you put the two together a heavy, staunch steel body over tough, solid hardwood rhen the hardwood reinforces the steel and vice versa I And the result: the strongest, safest type of body, such as Fisher builds for Chevrolet. NOTENOUGH! CHEVROLET 16-cyli- n- All b. Flint, ptiot I. a. and aaf ? tct Why is it that every and der car in America has bodies of steel reinforced by hardwood? Why is it that every make of car selling for over $4000 uses bodies of exactly the same type? Why? For the same reason that Chevrolet uses it exclusively. Because every test and every experiment have definitely proved: STEEL ALONE IS .. . lull it fSi 1 . I ' - V " c MOTOR CO., DETROIT, MICH. Michigan. Spooial aquipmant amtta. Low ialhatad ptksaa O. M, A. C. tarm: A Qanaral Motor Vatua. i, v " A t ', ' I yMzt:': v t "J zp&Zf tZX&tS &l-- - 1 , fn. a 1. 9- "l an-- , r if i j. .a M t;. 1 i l i l.'. M jma , l - TREMONTON ,, rww, f mi hi ..IkMiWMMM. FRONK CHEVROLET CO. PHONE 20 B ot little visitors to Enchanted Island, the children's paradise at sv Century of Progress. No longer to Nick bothered by rusting Joints, for, like the other figures on th tatand, the "Tin Woodsman" is a&ad of pressed wood. Behind him in the picture is the "Scarecrow. neither strong enough, nor safe enough, nor quiet enough for the body of a quality car like ia their sction that sab-stanc- es CHOPPER, the "Tin ell known to readers of tn famous Ox books, is greeting T Timn r n srni ft "ir 1 Ma&f' NICK Mr. and Mrs. H. B. Wilson, and daughter visited at William Petersen's home on Sunday. A good crowd from Eiwood enjoyed the convention at Garland, Sunday. gs V -j- "Everything To Build Anything Phone 11 '445 to565 It Takes More Than Salts, Calomel, Mineral Waters, Oils, or Laxative Pills To Arouse a Sluggish Liver m THINK WILSON 4-- returned home Tuesday. county leader's meeting at Tremonton The J. O. Hadfield family attended in the' evening. Mr. and Mrs. R. G. Brough, Dona the Jensen family reunion which was held Saturday at the Orson Jensen Brough and Mr .and Mrs. Jess Garfield and children motored to Logan home. Mr. and Mrs. Oscar Forsberg and and Providence, Monday. Dona Jean Abbott had her tonsils, Mrs. Herald Peterson and children removed the first part of the week. went to Salt Lake Sunday. The Fors bergs returned home Tuesday. She is recovering nicely. j l.ihu.iii.iij i |
