CHAPTER VI.—SHOTS IN THE ARM

THE NATIONAL CREDIT CORPOBATION

THE alarming number of bank failures during the autumn of 1931 and the growing mistrust of the dollar abroad induced the government, after a long period of inaction, difficult to understand or condone, to take cognizance of the adverse banking situation and to adopt remedies for buttressing the collapsing unit banking system. No broad vision in their concept of the problem was manifested by our then leaders, however. They believed even then that bank failures were a passing phase caused by poor business conditions, and particularly by the temporary panic fright of the people. They proceeded on the assumption that, if some scheme could be invented to restore confidence, our financial ...

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