U.S.A. CREDIT CRISIS

Hokitika Guardian, 8 October 1931, Page 5

U.S.A. CREDIT CRISIS

(United Press Association--By Electric Telegraph.—Copyright.)

WASHINGTON, October 6

The formation of a new credit organisation, to draw out “fiozfcii" assets, and the broadening of the facilities of (he Federal Farm Loan Board, and the liberal.sat.on of the pre-dis-count provisions of the Federal ue suae system, were proposed by President Hoover for an economic recovery at his conference with congress.onal chiefs. It is -stated that there was a general agreement on all of the points on which leg islation will eventually be necessary. ~ • Democratic Senators and Representatives expressed their, willingness to go along with the President’s proposals.

HOOVER’S PLAN

TO TAKE OVER SMALL BANKS

WASHINGTON, October 7

Included in President Hoover’s proposals, is the creation of a half billion dollar Corporation, by private bankers, to take up the frozen paper of insolvent banks and other institutions so as to give elasticity to the credit situation, and, if necessity requires, Mr Hotlver said he would recommend the creation of u Finance Corporation of a similar character and purpose to the War Finance Corporation, with available funds sufficient for any legitimate call in support of credit. ANOTHER BOOM IN WALL STREET. - NEW YORK. October 6. To-day there was the heaviest buying movement in stocks since the announcement of the Hoover debt moratorium in June. It raised the prices of leading shares from one to sixteen points. Following on yesterday's sharp declines, and a week of ‘‘bear’’ markets, ;the rise to-day is attributed to news that the Stock Exchange is rallying to further control short selling, by demanding a written explanation for each short sale and also to the Washington announcement that President Hoover has called important Congressional leaders, bankers and real estate men for a conference to discuss the business situation. The sales to-day totalled 4,300 thousand shares.