Show ea 11 national topics interpreted by william bruckart NV washington ashington the end of june statements of all of the banks of the coun 0 try are now a mat bank deposits Deposit ster of record and increase surprisingly nearly all of the individual banks have shown increases in deposits and resources over a year ago A couple of the largest banks in new york tork howrd such astounding increases in deposits deposit sas as compared with june 1933 but irrespective spec tive of the increase in deposits that Is the money actually in possession of the banks almost none of them disclosed any increase in the total loans now outstanding indeed the rule was wag a decline from june 30 1033 banking authorities in the government and outside tell me these figures on deposits and resources clearly indicate an improvement in the general banking situation the federal reserve board in its latest review of conditions declared the banking structure was on a much firmer foundation yet the fact that the banks have not made loans Is being seized upon by a certain segment of politicians and alleged economists as proof that the banks are not doing their part from very high quarters in the administration we hear intermittent yelps that the banks are not cot operating cooperating co and are not attempting to loan money this condition as they construe it Is being used as the excuse for the existence of numerous of tho the government loaning agencies had for other activities under the new deal that result in getting money out into the country the circumstances in the decline of bank loans however Is to my mind not such as the critics of the banks claim it must be remembered first of all that bankers when they make loans are putting out money belonging to you and to other depositors they must be reasonably sure of getting it back even though we do have now the federal deposit insurance corporation that Is supposed to prevent losses for the depositors bankers Can kers therefore are willing to make loans of the vast gums of idle cash their banks hold it if they can only find someone who will put up security guaranteeing a return of the borrowed funds while some of the critics of the bankers haie been continuing their attacks I 1 note statements from the public works administration from the reconstruction finance corporation from the nome home owners loan corporation and the farm credit administration among others which show very clearly that the government or its agencies Is unwilling to make loans unless it can foresee a reasonable chance for repayment just the other day the public works administration withdrew an allocation of some for con st ruction of a bridge in chicago because ca use according to public works administrator ickes the political subdivision of that city having jurisdiction was unable to provide a guarantee of repayment of that loan every day local units of the home owners loan corporation are turning down applications by home owners who seek government money through mortgages on their property to aid them in whatever distress they find themselves the same statement itlay be made respecting loans by the reconstruction feriance corporation in its dealings with industry lately the various federal reserve banks issued a weekly statement of their operations and only three of the twelve reserve institutions reported having baying made loans to industry I 1 have inquired in numerous quarters for reasons why borrowers were so few the consensus why borrow given me by men ers are few who should know is that there are two distinct reasons for the small amount of loans being made hy by banks and of course the same reasons apply in the case of government loans except that the government has been known to put out money in places from which it probably never will be returned one of the reasons mentioned was that individuals divi duals and firms who most need money have nothing but their own 8 signed obliga obligations tiong to put up as a guarantee obviously it if an individual or a corporation has no resources the note of that individual or that corporation Is of 0 little value however honest and well intentioned the borrower may be the second reason and one that Is quite as important Is the lack of confidence which business men tell me exists to a large extent la in commerce and industry whatever Is the basis for this lack of confidence Is not a matter of 0 concern in this discussion but its existence seem to me to be a matter ot of the gravest importance whether taxpayers are afraid of the burden in levies which aney can foresee la Is the reason for their hesitancy Is not now wholly apparent many ob observers servers are arc convinced it Is an influential fluent ial lal factor there Is also the question which one hears so often asked where and how bow tar far does the new deal intend to go in socialization and reform it seems to be obvious that each of these and perhaps others are factors standing in the way of a round expansion of business under the recovery plan in the meantime the federal govern ment dent Is 13 going ahead with its program to spend our way out of the depression here la 13 one item to show what Is happening this road building has baa resulted in the construction of enough miles more than of new highway almost to encircle the earth this money was voted by congress in the last session as a means of creating work proponents of 0 the appropriation and administration authorities hold that the earmarked for road building would provide thousands of new lobs jobs bureau of 0 public roads figures indicate that this has haa been the result but I 1 find many observers who are wondering whether the amount of money that has been paid to labor for highway construction 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 road office show that miles were completed and in use on july 1 of this year and that miles were under construction with the probability that they will be in use by the end of 0 1934 contracts have been awarded the bureau has said tor for the construction of about 1000 miles more and work on this portion will be under way in the late summer it used to be assumed that when economic conditions were below par many owners of an still ethl use too biles would dis their cars can pense pease with their machines until they were better situated financially such however seems not to have been the case in the last year automobile registrations while they declined in 1933 continued to remain at an unusually high figure as compared with recent years Off official lelal statistics show that motor vehicles were in use last year this Is only I 1 per cent below 1932 1032 the decline from 1931 to 1932 was larger but the point Is according to officials that the decline was very small the authorities insist that the reduction in total motor vehicles in use as compared with 1932 should be considered as hardly noticeable when the whole country and the whole number of motor vehicles Is considered although I 1 have not the official statistics concerning the sales of new cars last year responsible sources inform me that this business was very much improved and they add also that the sales for 1934 in the first six months have been exceptionally high this would indicate that a great many individuals divi duals have hare found money la in some way or another which they could spare for i a new automobile washington observers lately nave noticed an 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 but I 1 am told by various observers who are acquainted with political trends that the alignment Is taking a rather definite shape some months ago I 1 reported in these columns the belief of many political leaders that mr roosevelt as president was definitely engaged in the formation of a roosevelt party that would adhere strictly to liberal standards assignments which the president has made the legislation which he has proposed and his general attitude on social matters coupled with an absolute disregard of old time democratic principles has laid the groundwork for the regrouping of voters under a liberal and conservative all alignment n it Is to be noted in this connection that mr roosevelt Is continuing to expand his liberal doctrines under the guidance of some of the political leaders heretofore held to be radical members of the two old parties another factor and influence that Is noted now to be at work Is tile grad lia ual I 1 concentration of conservative business interests on trend the conservative side of political questions under the new deal washington has haa heard lately of efforts being made w which would result in the molding of business interests or the spokesmen into a compact organization as a means of combating policies of the new deal regarded by business leaders as radical in character it la 13 too early to attempt a forecast as to the scope of this move nevertheless th eless it Is quite apparent that a concentration cent ration of this strength Is under way not only will these men and in teresta oppose expansion of such policies as and the AAA but they are organizing to fight the ever increase ing burden of taxation and to oppose eten extension slon of government in business it Is a matter of record of course that the tendency of government policies lo in the united states since the world war has been steadily to the le left ft conservatives have been unable thus far to check this trend largely because the conservative element never has stood together it Is important and significant therefore that for the first time we are observing the development of a conservative organization in this country which has the avowed purpose of turning the american government back somewhat to tho the right and as the leader describe it back again to the B tt it was originally drawn 0 by br newspaper paPer unto |