V.gabond Editorials

Bv Jack Dionne

The closing words of the farewell address delivered by President Roosevelt before leaving for his- long Pacific vacation were-"Let us make it (the United States) and keep it, God's Country." Sorry, Mr. President, but I must disagree with the first Part of that prayer. Let us keep it' indeed; but MAKING it God's Country? No! That was done by better men ! To me and to most other loyal Americans THIS HAS ALWAYS BEEN GOD'S COUNTRY FROM THE FIRST DAY ITS FLAG \^/AS EVER FLOWN; AND SO IT IS TODAY; AND SO, PLEASE GOD, IT SHALL ALWAYS REMAIN, IN SPITE OF POLITICS OR PARTIES-MICE OR MEN. You are a good man, Mr. President, a sincere, loyal, and splendid man, and no doubt you'ie doing your best. But a predecessor of yours in your high of;Ece, one George Washington, surrounded by an infinitely better, wiser, and safer group than that which surrounds you, and directly inspired -I am perfectly convinced-by a God of infinite wisdom, laid the foundations and wrote the rules that made this God's Country. So WE donft have to make this God's Country, Mr. President t Greater men by far than live today, with an inspired vision and a perfect faith, did THAT for us long ago. And so long as we stand upon the platforn THEY built, and abide by the rules that THEY made, it shall always remain as it IS today-God's Country. Let us rather hope with an abiding hope, and pray with the fervent faith of our fathers, that when YOU step down from that high office once filled by Washington, this dear land of ours which has been consecrated for generations by the blood tlf heroes, will be no less God's Country than it has been throughout its past history.

**rl

The President of The American Banhers Association in a recent nation-wide radio hook-up talked in behalf of banks. "There never was a time," he declared, "\rhen a borrower was more welcome at a bank than he is today"'

That certainly settled l"".nrlo** that has been perplexing my mind. I'd been wondering what to make the feature funny story of my next book of jokes' NOW I KNOW!

,trt*

He was a little guarded in his remarks, however' He declared that the banks are most anxious to loan the money with which their vaults are piled so high. But he didn't talk about credit. As the Two Black Crows used to say-"He didn't do that."

,Fr**

In the old days banking business was done on credit. Today it is done-if there is any-on collateral. You used to take your diploma of good character and sound rnoral risk, together with your sound statement of a going business, and go down to the banker and get a line of credit.

*t:t

Try that today! If you should decide to do so, take one other article along. Take a good, big, stufred pillow. Lay it on the front sidewalk in front of the bank door. That's to land on when they throw you out. **'f

They tell the one about the fellow whose credit had always been good, and whose business was going along, but who had to have a loan or lay off his help. He decided that he would go to the bank and get it, like people used to do. At the door of the bank he told a friend about it. Then he walked in. In two minutes he came tumbling out. The friend picked him up. lle was kind of befuddled. "What happened?" the friend asked. "I'm not certain," replied the would-be borrower. "I know he called me a so-and-so, and I think he hit me twice."

However, that's the "-*nlti

The rule is the banker who rnet the would-be borrower with such courtesy' tact, and diplomacy, that he was out of the bank and three blocks away before he discovered he hadn't got the loan.

*rt,f

There are really just two methods of getting money from a bank today. One is the Dillinger-Barrow method. That one is not be recommended. It's crude, dangerous, and in the long run is unprofitable. It's like the drunk at the 'theater ticket window who was told they had only box seats left. He refused to buy a box seat. "Why not?" asked the ticket seller. "Lincoln bought a box seat," said the drunk, "and look what happened to hirn." ,t d( r|<

The second method I spoke o{ for getting money from banks, is less dangerous, but more difBcult. The difEculty is that very, very few people today possess the sort of collateral you have to have to loosen up bank cash. You take a thousand dollars worth of some collateral so valu- able and so liquid that even a back-street pawnbroker would snap at it like a big-mouthed bass at a sparkling minnow, and take it down to your bank. They will tie it on the back of a note for about two hundred and fifty bucks, take out the interest in advance, give you a free lecture on the care of rnoney, and escort you to the door with a self-directed panygeric on the generosity of banks in extending credit in times like these.

An honest banker-the; r: i"rr, plenty of them-told me the other day that we can hope for no considerable further improvement in conditions in this country until we terminate this present situation in which the United States Government is practically the only borrower.

***

If you will read the financial statements available you will discover that bank deposits are mounting. Most banks are in liquid condition. You will find that the Fbderal Reserve Banks are piled mountain high with Government securities, and that the tide rises week by week.

AND YOU WILL FIND dHET COMMERCIAL LOANS HAVE BEEN DECREASING WHILE ALL

THIS ACCUMULATION HAS BEEN GOING ON. The July first figures lying before me show that they decreased $219,000,000 from January to July first, 1934. *t*

So long as the Government continues to hold out these desirable securities, the banks will continue to buy them, will pay for thern by setting up deposit credits, and will continue to lend-practically speaking-to the Government and there only. And the vicious circle that for more than four years has denied private business and private enterprise the credit needed to do business and employ men. remains unbroken. *,*r<

Real recovery will come when millions of unemployed go back to work; and they will go back to work when billions of idle money-and the idlest money on earth is money invested in tax-free Government bonds-go back into genuine activity; and so long as the chief movement of money is from the banks to the Government and from the Government back to the banks, things can't pick up much. Artificial infusions are only temporary; we need a builtup blood-stream. rt**

We need credit. And credit must be built on confidence. And confidence is still lacking. Business is afraid. And a look about will convince even the most cheerful optimist that business has a right to be. Last year when the philosophy of "redistribution of wealth" (pure socialism in any language or in any land) and other contingent isms

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