Show 0 I 1 national topics interpreted by william borucka rt washington the end of june statements of 0 all tho the banks ot of the country are now canh bank deposits a matter of roc rec increase ord and surprisingly nearly all ot of the individual banks have shown increases in the deposits and re resources r s over a year ago A couple of 0 the largest banks la in new york showed such astounding increases in deposits as aa compared with june 1933 but irrespective of the increase in ID deposits that Is the money actually in possession of the banks almost none of 0 them disclosed any increase in the total loans now outstanding I 1 indeed the rule was a decline from june SO 30 1933 banking authorities in the government and outside tell me these figures on deposits and resources learly clearly indicate an improvement in the he general banking situation the federal reserve board in its latest review ellew of conditions declared the banking structure was on a much firmer foundation yet the tact fact that the banks have not made loans Is being seized by a certain segment ot of politicians and alleged economists as proof that the banks are not cot doing their part from very high quarters in the administration we hear intermittent yelps helps that the banks are not 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 the government loaning agencies and 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 la 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 fed eral deposit insurance corporation that Is supposed to prevent losses tor for the depositors bankers Can kers therefore are willing to make loans of the vast sums 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 have been continuing their attacks I 1 note statements from the public works administration from the reconstruction finance corporation from the 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 construction st of a bridge in chicago because according to public works administrator ickes the political E subdivision u of that city having jurisdiction ris diction was unable to provide a guarantee ua rantee 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 abe them in whatever distress they find themselves the same statement may be made respecting spec ting loans by the reconstruction F finance 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 made loans to industry I 1 have inquired in numerous quarters for reasons why borrowers were so few the why borrow consensus given ers era are few me by men who should know Is that there are two distinct reasons for the small amount of 0 loans being made by banks and of course the same reasons may apply in the case of 0 government loans except that the government has beer beeb known to put out money in placer from it probably never wll be returned one of the reason mentioned was as that individuals an anfe firms who most need money have nothing but their own signed obligations ligat ions lons to put up as a guarantee obviously it if an individual or a cor po horation por atlon ration has no resources the note of that individual or that corporation la Is ot of little value however hon bon est and well intentioned the borrower may be the second reason and one that to la quite important Is the lack of confidence which business men tell me exists to a large extent in commerce and industry whatever Is the basis for this lack of confidence Is not cot a matter of 0 concern in discussion but its existence seems to me to be a matter of the gravest importance whether taxpayers are afraid of the burden in levies which they can foresee Is thi tb reason for their hesitancy Is not now wholly apparent many observers observer are arc convinced it Is an influential factor actor there Is also the question which one hears bears so often asked where and how 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 0 a sound expansion of 0 business under the recovery plan in the meantime the federal government Is going ahead with its program to spend our way out of the depression here Is one item to show what Is happening this road building has resulted in the construction of enough miles more than I 1 2 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 the appropriation find and administration authorities hold that the eat earmarked marked for road building would provide thousands of new jobs bureau of public roads figures indicate that this has been the result but I 1 find many observers who are wondering whether the amount of 0 money that has been paid to labor tor for highway construction hiis has been a proper proportionate part of the total set aside when the purpose was solely the snaking making of jobs total figures by the public roads 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 1934 contracts have been awarded the bureau has said for the construction of about LOW 1900 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 own still Us ers of automo their cars lilies s would dispense with their machines until they were better situated financially such however seems not to have been the case in the last year automobile registrations trat ions while they declined in 1933 continued to remain at an unusually high figure as compared with recent bears Off official iclal statis statistics show that motor vehicles were in use last year this Is only I 1 per cent below 1932 1032 the decline from 1031 1931 to 1032 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 1032 should be considered as hardly noticeable when the whole coun try and the whole number of moter vehicles is considered although I 1 have not the official statistics concerning the sales of new cars last year responsibile sources inform me that this business was very much improved and they add also that the sales for 1031 1034 in the first six months have been exceptionally high this would indicate that a great many individuals have found money in some way or another which they could spare for a new automobile washington observers lately have noticed an increasing tendency among conservatives throughout the country whether whet lier democratic or republican to align themselves under one banner the movement t 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 another factor and influence that Is noted now to be at work Is the gradual concen conservative of busl trend ness ss interests on the conservative side of 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 into a compact organization as a means of combating policies of the new deal regarded by business leaders its as radical in character it Is too early to attempt to forecast as to the scope of this move nevertheless it Is quite apparent that a concentration of this strength Is under way not only will these men and interests oppose expansion ot of such policies as and the AAA but they are organizing to light fight the ever increasing burden ot of taxation and to oppose extension of government in business ness it Is a matter ot of record of 0 course that the tendency of government policies in the united states since the world war has been lj to the left conservatives have been unable thus far to check this trend largely because the conservative element never ling has stood together it Is important and significant therefore that for the first time we are observing the development of a conservative organization in tills this country which has the avowed purpose of turning the american government back somewhat to the right and as a the leaders describe it back again to the constitution as it was originally drawn ca C western newspaper union |