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Hokitika Guardian, 24 February 1933, Page 4

A BiUBF survey of events in tlie United S'ates during last year was made by Mr Charles E. Mitchell, chairman of the National City Bank of New York, in his address at the annual meeting of the bank last month. “A year ago the entire business world was in a state of confusion and alarm for which there was no parallel in contemporary history,” he said. “The years of war and of credit and price inflation had created a vast structure of indebtedness, international and domestic, and the calamitous fall of prices in both commodity and security markets had weakened the foundations under it. The banks crisis of the summer of 1931 in Central Europe, followed by the suspension of gold payments by the 'Bank of England, had given a shock to confidence throughout the world, which broke down the entire system of international credit. Tn this sitrfatiton, the most immediate need was to overcome the panic and check the destructive deflation of credit caused by it. Resort was had in America to emergency measures, bv broadening the powers of the Federal Reserve Banks and establishing the Reconstruction Finance Corporation, the latter for providing support at strategic points in the general economic system. Tt is gratifying to be able to sav that the measures have nidified all reasonable expectations. Thanks

to tlic.se defensive measures in cheeking bank failures a»<l in providing ample supplies, of credit, to the demonstrated impregnability of tire dollar against ail onslaughts at home and abroad, and to the common sense of the American people in rejecting all proposals menacing to the monetary system, the panic has been overcome.”