National Affairs: That Spells Depression

As chairman of the Republican National Committee, fuss-budgety little Senator Simeon Davison Fess of Ohio went through last year’s Congressional campaign assuring voters that the Depression was worldwide, that President Hoover was not to blame. Many a voter did not believe him, helped to reduce to paper-thinness the Republican majority in Congress. Since then Mr. Fess has had little to say about economic conditions.

Last week the Republican National Chairman revealed how he had fared personally during hard times. To a constituent he wrote:

“The one thing lacking is confidence in our financial institutions. For the life of me I don’t see how you can cure this lack of confidence but, like the mumps, it must work itself out. Last week I asked a banker to loan me $6,000 to be applied on the building of a new home. The banker threw up his hands and said: ‘Oh, Senator, we can’t make any loans at present. While we are sound, we must remain in a liquid condition.’

“I informed him that it would be necessary for me to take out my deposits in the loan associations. Applications to three associations in which I have deposits sufficient to build the house met the same response. This meant I could not use my own money. That case is typical throughout the U. S. That spells Depression.”