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Show THE RICH COUNTY REAPER. RANDOLPH, UTAH GOVERNMENT BANK UNSUITED TO II. S. White Russian Army Trains in Jugoslavia THE SAME COUNTRY By Would Serve Politics Rather Than Business Needs, Says R. S. Hecht, Citing Previous PRESIDENT V. FLEMING There is a growing appreciation, both on the part of the people and the Government. of the earnest and sincere efforts being made by bankers to aid in recovery. It is desirable that we miss no opportu- Experiences. QUOTES ROBERT Vice President, American Bankers Association JACKSON nity to foster public understanding of the bankers Extent and Diversity of This Country Presents Different Situation From Europe and Makes Regional Banking Necessary. problems. We are living in an age of complex and upset economic WASHINGTON, D. C. A refutation of arguments in favor of a government-ownecentral bank system for the United States is presented in a statement by R. S. Hecht, President of the American Bankers Association, based on exhaustive studies of European central banks. He also points out the disastrous consequences of previous central bank experiments in the United conditions. Our affairs are closely inter - related not only within the confines of our own borders but extend to other countries throughout the world. d The Greatest Difficulty States. I think the greatest difficulty Our present regional Federal Reserve System under private ownership is infinitely better for. this country Most of the 100,000 White Russians who found a refuge in Jugoslavia following their defeat by the Bolshevists, than would be a government-ownereside in Belice. Thirty thousand of them, with their old banners, drill daily as meticulously as they did in and controlled, central bank, Mr. own country in the days of the czars. Hecht says. If history teaches us any thing, it is that it is almost certain that a central bank so owned would be run to meet the varying exigencies of the government in power rather than to serve the commercial needs of the d now their FOE country. Central banking has been tried twice in the United States, but was finally abolished because the credit control which the central banks exercised became objectionable and unpopular, he goes on to say. What Andrew Jackson Said The continued existence of the Second Bank finally became a bitter political issue and President Jackson succeeded in abolishing it," Mr. Hecht says. Permit me to quote from his farewell address: The immense capital and peculiar privileges bestowed upon it enabled it to exercise despotic sway over the other banks in every part of the country. From its superior strength it could seriously injure, if not destroy, the business of any of them which If you might incur its resentment. had not conquered; the government would have passed from the hands of the many to the hands of the few; and this organized money power, from its secret conclave, would have dictated the choice of your highest officers. . The forms of your government might, for a time, have remained, but its living spirit would have departed from it.' When the Wilson Administration considered banking reform It carefully kept away from vesting central banking powers in a single institution and instead introduced the regional idea by creating twelve reserve banks located in different economic and geographical sections of the country, Mr. Hecht says, a plan that has worked exceedingly well because the separate banks are under the guidance of men chosen on account of their intimate acquaintance with the problems and needs of their territories. He continues: respective ' The great size ' and diversity of America tends to make a central bank undesirable. The central banks of Eu rope such as the Banks of England. France and Germany, cover areas not as large as some of our states. A central bank in the United States on the other hand would be called upon to ad minister the financial policies of an area larger than all of Europe, in tfhich there are quite a number of cen- lH(9U) Of(9Ub FOUR MAGAZINES ... -- HeWSPAPSR 4 ft MAKING IT HARDER IN PNC FULL YEAR ail 5 FOR BANK ROBBERS mta j BARGAIN OFFER Mechanical Devices That Impede the Work of Bandits De- SN-- 1 THIS NEWSPAPER PATHFINDER (.52 issues) 1 1 1 1 COUNTRY HOME POULTRY TRIBUNE scribed by Bankers year year year year World 0 Wemans Capper' Farmer 0 Etude Music 0 Junior Homo Magazine Magazine 0 Pictorial .... 0 1 year Mid-We- We guarantee this offer to bo exactly as represented. Renewal subscriptions will be ex- tended for the proper time. Subservient to Popular Demands Moreover, history ha3 proven that any banking system entirely owned ON GUARD MAIL YOUR ORDER TODAY! Gentlemen : Enclosed find $ for which send me special offer No. SN-- 1 and the magazine I have marked with an (X). I NAME STREET or R. F. D. TOWN AN ARTIST, TOO STATE Stock of Central Banks Usually Privately Owned Of all the central banks at present existing there are only four whose stock is owned by the government. The new est central bank is that of Canada, which opened its doors only a few, months ago after a most exhaustive study had been made of the experience of all nations with the result that the 3tock of the Hank of Canada is privately awned. Doctor Qulsltor Do you talk in your sleep? Henry N Peck Only when my wife asleep at the same time. of the public or the banks. This position. he added, is well understood by the President and the leaders In his Administration for we have been absolutely frank with them In all of our discussions and have missed no opportunity for emphasizing that In our opinion no banking system will, in the long run. be sound if it is dominated political entirely by the administrations. We should do all we can to keep our banking mechanism as far removed from partisan politics as possible. Ah, in springtime I suppose an art- ist like you wanders out to admire s and violets." the Ssh, Im a cubist. Just now the thing to admire is a pile of bricks. TRY AN AIRPLANE cow-slip- DECEIVING The impediments which the hard working bank robber now meets in plying his trade among small as well as large banks are described by James E. American Baum, Deputy Manager Bankers Association in charge of its Protective Department, in an article in Banking published by his organization. Protective equipment will minimize if not prevent loss, Mr. Baum says, such as the silent automatic type of alarm, approved tear gas systems, several styles of bandit resisting enclosures and timelocks, or safes equipped with timelocks, which can be set for intervals of a few minutes. "The silent automatic alarms operate the beginning of a holdup and through actions carried out by the bank employees in obedience to the bandits own commands. They are adaptable to the smaller banks which continue to he easiest targets for bank robbery. Tear Gas Systems "Tear gas systems have their advanprotective units tages as where outside aid is inconvenient or too remote from the bank to be effective. One objection to the use of tear gas in preventing holdup is the need of pressing a lever or button to discharge it Although this necessary action seems too much to expect of the victims in a crisis where their lives are in jeopardy, the fact remains that tear gas systems have defeated bank robbery. Its deterrent value Is also Important. Different styles of bandit resisting enclosures are available. The lock manufacturers also produce timelocks which can be set to open at Intervals of five minutes or longer. These locks are especially adapted for attachment to small safes or chests for safeguarding surplus funds while the bank is open for business." in Agriculture and Industry Returns for the first quarter of 1935 industrial corporations publishing juarterly reports show net profits 31 per cent more than for the same in 1934. The total farm value of all Important props, exclusive of livestock, rose in 1934 to $4,782,423,000, as compared with 14,114. 265,000 In the previous ye lor ever-changin- g .... As- sociation Official AND ONE OTHER MAGAZINE LISTED BELOW Mark the publication desired with an (X). tral banks. and dominated by the government usu ally demonstrates much greater ability in aiding expansion of credit than ir putting on the brakes at the right time to prevent undue inflation by restrain ing and contracting credit. This is easj to understand because in times of de pression everyone is urging the govern ment to make money and credit eas; and to encourage expansion. On the other hand, it always has been and always will be a difficult task for any government to call a halt in time of apparent prosperity because in the very nature of things the govern ment would be very sensitive to public criticism and would hesitate to take any action which would tend to curtail business activity. It is such undue susceptibility to popular demands which makes government banking inherently weak. Our studies show that jf all the cen tral banks at present existing there are only four whose stock is (owned by the government. The newest central bank is that of Canada, which opened doors only a few. months ago after .most exhaustive study; had been made of the experience of all nations with the result that the sjtock of the Bank of Canada is privatejy owned., The American Bankers Association , Mr, Hecht says, is Convinced that a cen tral bank would not be in the interest m we have to overcome in America today is due to our impatience with the progress we are making towards recovery. We must realize that while the Government can help by directing some measures for relief and recovery, we must help ourselves by doing our share to give impetus to the Governments efforts. We have the same country and basically the same businesses, factories and people we had prior to the depression, and business initiative must step forward if real recovery is to be achieved. The theory we often hear expressed that banks create business activity is wrong. Banking can only make a supplementary contribution to business activity. Bankers have the 'acuities and the desire to extend credit, but business must initiate activity by seeking the credit which is readily available to all worthy borrowers. Let it be said for business, however, that business men are as eager as bankers to contribute towards recovery. I think some of the trouble lies in the fact that too many legislative measures have been proposed for reform which leave an uncertainty in the minds of business leaders as to their eventual outcome and effect. Consequently, they hesitate to expand until the probable effects of such legislation are knowii. The marriage game Is like golf. Indeed In what way?" 1 It looks so easy to those who havent tried it Its all right to talk about hitching your wagon to a star. Well? But the question now is where can a fellow park an automobile? 12,882,195 " . |