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Story
September 26, 1931
Hyder Weekly Herald
Hyder, Alaska
What is this article about?
C. R. Stephenson, president of the American Bankers Association, states that despite two years of economic depression, no financial panic like 1907 has occurred. Banking remains stable, supporting business, though unemployment is the major issue, urging quick reemployment of workers.
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No Financial Panic
In spite of the general economic breakdown of the past two years, there has been no semblance of a financial panic, such as occurred in 1907 and in other years of depression, according to C. R. Stephenson, president of the American Bankers Association.
Formerly a marked recession of business resulted in money panics, suspension of specie payments and kindred disasters. None of these elements of a real financial panic has been seen during the present depression. The banking structure as a whole has not been shaken, in spite of many failures of small banks. At all times the banking and credit machinery have been able to extend support to business and manufacturing.
Mr. Stephenson declares that banking and corporate finance in this period of depression are unflinchingly taking their portions of the short rations that the nation's need for readjustment demands. Interest rates, security yields and corporation dividends have all dropped to levels that constitute drastic reductions in the compensation of capital.
The greatest public problem today is unemployment, he says, adding that unemployment is the worst wage cut that the worker can suffer, and the worst cause of business stagnation. His conclusion is this:
"The sooner we can get our masses of workers back to work on almost any terms the better it will be for both capital and labor."
In spite of the general economic breakdown of the past two years, there has been no semblance of a financial panic, such as occurred in 1907 and in other years of depression, according to C. R. Stephenson, president of the American Bankers Association.
Formerly a marked recession of business resulted in money panics, suspension of specie payments and kindred disasters. None of these elements of a real financial panic has been seen during the present depression. The banking structure as a whole has not been shaken, in spite of many failures of small banks. At all times the banking and credit machinery have been able to extend support to business and manufacturing.
Mr. Stephenson declares that banking and corporate finance in this period of depression are unflinchingly taking their portions of the short rations that the nation's need for readjustment demands. Interest rates, security yields and corporation dividends have all dropped to levels that constitute drastic reductions in the compensation of capital.
The greatest public problem today is unemployment, he says, adding that unemployment is the worst wage cut that the worker can suffer, and the worst cause of business stagnation. His conclusion is this:
"The sooner we can get our masses of workers back to work on almost any terms the better it will be for both capital and labor."
What sub-type of article is it?
Historical Event
Curiosity
What themes does it cover?
Misfortune
Survival
Triumph
What keywords are associated?
Financial Panic
Economic Depression
Banking Stability
Unemployment
American Bankers Association
What entities or persons were involved?
C. R. Stephenson
Story Details
Key Persons
C. R. Stephenson
Event Date
Past Two Years
Story Details
C. R. Stephenson asserts no financial panic has occurred in the current depression unlike 1907, with stable banking despite small failures; unemployment is the key problem, advocating immediate worker reemployment.