Bank Credit and the National Recovery Program
Increases in costs of labor and materials under the President's industrial recovery program and his monetary policies have enlarged the needs of many business enterprises for short-term credits with which to carry on their operations. Complaints that banking institutions, from which such credits are ordinarily obtained, are following an ultra-conservative policy and are withholding needed credits have been heard in increasing volume since the President's Reemployment Agreement went into effect on September 1 of this year.
Whereas commodity prices and business activity have both increased more than 20 per cent since the low point in March, available statistics indicate that commercial loans by the country's banking institutions have risen less than 10 per cent. Excess reserves of member banks ...