There are two simple facts.
First, the federal government is about to spend one billion dollars
as an immediate loan on the frozen or non-liquid assets of all
banks closed since January 1, 1933, giving a liberal appraisal to
those assets. This money will be in the hands of the depositors as
quickly as it is humanly possible to get it out.
Second, the Government Bank Deposit Insurance on all accounts up to
$2500 goes into effect on January first. We are now engaged in
seeing to it that on or before that date the banking capital
structure will be built up by the government to the point that the
banks will be in sound condition when the insurance goes into
effect.
Finally, I repeat what I have said on many occasions, that ever
since last March the definite policy of the government has been to
restore commodity price levels. The object has been the attainment
of such a level as will enable agriculture and industry once more
to give work to the unemployed. It has been to make possible the
payment of public and private debts more nearly at the price level
at which they were incurred. It has been gradually to restore a
balance in the price structure so that farmers may exchange their
products for the products of industry on a fairer exchange basis.
It has been and is also the purpose to prevent prices from rising
beyond the point necessary to attain these ends.
Pages:
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52