TO HASTEN RECOVERY

Evening Post, Volume CXII, Issue 86, 8 October 1931, Page 13

TO HASTEN RECOVERY

NEW CREDIT ORGANISATION THAW miOZM ASSETS United Press Association—By Electric Telegraph—Copyright. '.-, WASHINGTON, 6th October. The formation of a new credit or* ganisation lo thaw out frozen assets, the broadening of the facilities of the Federal Farm Loan Board, and the "liberalisation" of the rediscount provisions of the Federal sys»* tern were proposed by President Hoover at a conference with business and congressional leaders. The President's object is to stimulate the nation's economic recovery. Tho President said that his group of proposals were being offered genera ally for the improvement of the busiI ness situation and specifically, in the hope of counteracting the "foolish. alarm of certain sections of the people in the United States which has bee« accompanied by wholly unjustifiable withdrawals of currency from the banks." - J, He asserted that the present lack of confidence and co-operation was due to a "wholly abnormal situation." He stated: "Our difficulty is the diffusion of resources and our primary need ii to mobilise them." , .■ GENERAL AGREEMENT. It is stated that there was a general agreement on all points on which legiilation eventually will be necessary, and the Democratic Senators and; Eepresentatives expressed 'their willihgneM to go along with the President's pro* posals. • . ■ Suggestions for extending the moratorium on inter-Governmental obligations were briefly touched upon, but no agreement was attempted. It is understood that the moratorium extension proposed may not/receive serious consideration until President Hoover has discussed it with M. Laval, Premier of France.. , , - ;: Included in President Hoot** proposal is the creation of a balf-billion-dollar corporation by private I bankers to take up the frosen paper of .insolvent banks and other Institutions, and to give elasticity to the i credit situation. . ■•■■> If necessity requires it, [ President Hoover said, he would recommend the creation of a finance corporation of • similar character and purpose to the I "War Finance Corporation, with available .funds sufficient for any legitimate call in support of credit.