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Henry Ford Gives An Interview About Situation Banking Still Insists There Should Be Two Kinds of Banking -In One Depositors Would Ask No Interest and Money Would Not Be Loaned - Second One Would Require Interest and Loans Could Be Made vised me. We are ready to proceed BY JAMES C. AUSTIN provided they can do as they (Copyright 1933 by United Press) agreed. Detroit, Mar 2-Henry Ford enwant to make my position tered the Detroit banking situaclear. I was not keen about going tion because of insistent urging into the banking business. I am of bankers' representatives and bean automobile manufacturer. My cause of a conviction that simpliposition and my ideas regarding fied bankings needed in America banking are well known. But when He felt that he would be able to I was repeatedly asked to create help iron out what he believes these new banks I decided to do are some of the wrinkles in the so. If obstacles develop. if condinational banking fabric. tions change or attitudes are Ford made clear his views on switched, I still retain my posithe Detroit and on the national tion. I stand for a balanced bankbanking situation in an interview ing situation in Detroit. My interwith the United Press. est in seeing that such a position His banking theory is based on a is maintained in Detroit will rebelief that there should be two main unabated regradless of what kinds of banking. may arise tomorrow or later in reIn the first depositors would put gard to my plan to establish two their money in the bank for sernew banks in this city. vice and safe-keeping. They would Commercial Detroit frankly repay a small sum to the bank for garded the situation as one in the service and receive no interest. which the old line eastern bankThe banker would not lend the ing interests, the so-called "Wall money. street banks' are bitterly fighting The second would be for deposito prevent Ford from becoming tors who desired a return on their the dominant banking power of money. Such a bank would lend to the Detroit area. productive enterprises. 'America needs simplified bankHe hoped to put these theories ing' said Ford. During what I into practice in Detroit; a hope he call the crozy age in America when has not abandoned despite the fact all sense of values was distorted that even while he was talking in the scramble to get money by to the United Press representaspeculation and not by work, too tive, authoritative word was gomany banking directorates were ing around that those in control of apparently selected on a country the First National Detroit bank, club basis and vice-presidents on one of two which Ford on Sunday their strength as social assets. agreed to take over, would ask toBanking needs men and has alday to be released from their ways needed men with the keenest agreement. sense of the social responsibilities This word came after Senator of their position. James Couzens, Ford's old business "Banking is not a business in partner, had conferred with bankwhich great financial returns can ers and then for two hours or more come to the bankers. Banking is had talked with Ford. The actua service. The minute a bank is ating cause of the changed plans primarily run to make money it of the First National Detroit group becomes a poor bank just as the was not clear. A strong element in minute that a great surgeon bethe directorate, however, is known comes obsessed with a desire to to from upon the Ford plan. make large sums of money out of Ford, looking much thinner than his proefssion he becomes distinctusual, his tanned face contrasting ly a poor surgeon. with the silver grey of his hair, reiterated that he had not receded "Money, by itself was not the from his original position with recause of depression. Money is not gard to taking over the banks. enough. The depression came because of our state of mind: out of "During the last week representatives of two big Detroit banks the fact that thousands of people came to me not once, but three had come to believe that the way times, and stated that it was imto make money was through possible for them, under the condiplunging on stocks or commodities tions imposed, to reopen the closed instead of producing the goods and banks," he said. creating wealth by work. I "Then after an investigation "I'm not opposed to the sooffered to do what was demanded called Wall street banker or to I and organized two new banks. Wall street. In many ways in my made the offer and it was accepted. judgment their services are reWhen I made it I made my posiquired. They are in a way the scavtion clear and I indicated as exengers of commerce. When a concern gets out of date or ineffiactly as I could the nature and the I character of the banks that cient in its management they go would operate. to these banks for relief and they "They would be banks for the clear them up and get rid of them. people and banks for the assistSome times money is lost in the ance and aid of productive busiprocess but that is generally specness. If there is any desire on the ulators' money. They were ready part of any of the banks involved to take a speculative chance in to withdraw from their acceptance the proposition. The definite benefit is that the field has been cleared of my offer they have not so adup and the commercial debris removed. Sometimes suckers are or replacing old ones. There may caught and by that process gain an be no immediate need for funds for experience that's invaluable to such purposes but the city wishes them later on. to be prepared for emergencies. He "We are going to have to change cited the Platts Mills bridge as an radically our attitude toward monexample. A new bridge was supey and its function in our composed to be built there, but demercial life and toward banks. crease in heavy traffic over the "I believe that there should be structure to and from the Bristol a type of bank that is purely for Company has caused postponesavings in which money is depositment of action. Mayor Hayes also ed with the assurance of absostated, in connection with this prolute safety at all times. On this posed structure, that before the money, no intere st should be paid death of the late Professor William the depositor by the banker. On H. Bristol he had agreed to give the contrary the banker should rethe city a like amount for a new ceive a small fee for handling the bridge. Now the Bristol company fund. is not interested in the proposition "For men who are ready to take nor is the city. a degree of risk. who have confiIt was decided that the bill givdence in the banking structure and ng the city permission to petition its management, another type of the Reconstruction Finance Corbank should be created in which poration for a $2,000,000 loan in money should be loaned on prony emergency should be held up ductive enterprise. pending action of congress on the "All unused bank balances, after right of the R. F. C. to loan funds a certain figuré, should be taxed to o cities or towns. bring them out of the vaults and There was just a brief discussion into active business so that the of the bil! delaying the date of money would become an asset in payment of temporary loans two commerce and industry. weeks, namely from June 1 to June "Most of our conceptions of in5, to permit the city to finish its ax collections and transfer necesterest and debt are wrong or unsary funds. invest money in a productive businatural. If a man determines to Edward Udelowtiz. recording secretary of the Waterbury Propness enterprise it seems to me erty Owner's league, Atty. Hector wrong immediately to burden the business with an interest charge Aurary, George Lasky, Anthony Mazaika, and James Pugliese, all on the money he invests. The f Waterbury arrived in the comowner of the money has his alter native. He could decide to loan mittee room at 2:05. disappointed ton participating in the hearing. the money out for interest return At press hour they were still conor he could put it into productive business and get his return erring with committee members hoping : have the meeting reon this money from the profit he made out of the business plus the opened that they might present heir opposition to the proposed increasing value of the business measures. as it continues successfully."
