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October 26, 1934.
Dr« Vlner
Sr* ^ccles

Viffo. reference to the attached file, I do not beliove the Credit
utility Ccr..:....;•, Inc., co^ilc* be described asfcfl-geney conducting an
industrial baiiki
. H%a businens, ft* I understand it, would
be bettor defined as en Industrial finance company. In the public mind,
banking is associated with the depositing or money and the drawing of
checks, even Bore than it is in the extending of credit*
There is Bcithl q
I the buslnee* B £ purchasing and discountI l&stallaant notes cavirin;- ?alcs of rarlona trpe^ e:/ avidiinecy to
industry* Such
I
. • • nee eo
'
ends very
:
largely or. •
credit for VM
tch to carry on operations« 'Rie
company pr t
cushion ! the f o n Bf m adeqoata ratio of capital
;
and surplus. They usually d
i rates f"or the credit w i c h
d
they provide, costs whlcb ind 'vy can 112^affc»pd I
? under the present
••y-'O o?" fli • - •
"

conditions«

which -

;

art ^ "

I

"

0

• •'

•

t h o s e coapaiiies

rf:te.

The country ca
ect to get SRK$h lapr<yveiasnt in. the business
of the heavy industries If it met
1 upon the usual installment
credit financing*