AMERICAN FINANCES

Hokitika Guardian, 8 October 1931, Page 5

AMERICAN FINANCES

WITHDRAWALS FROM BANK. INDUSTRY SHORT OF CREDIT. (United Press Association.—By Electric Telegraph.—Copyright.) WASHINGTON, October 7.

President Hoover following the conference already cabled to-day made an early morning statement outlining a group of proposals, which are offered generally for the improvement of the business situation and specifically in the hope of counteracting what he termed “the foolish alarm oi certain sections of the people in the United States,' which is accompanied by a wholiy-unjustifiahle withdrawal of currency from the banks.” Mr Hoover asserted tliat the present lack of confidence and of cooperation was due to a “wholly a bnormal situation.*’ Tbe President stated: “Our difficulty is tbe diffusion of our resources. Our primary .need is to mobilise them.”

The President proposed a definite programme, which bankers and Congressmen agreed to support, in which the principal items were:—To strengthen the Federal Farm Loan System, by placing more money at its diposal; to set Up a pi‘LvUtely»fintuiced corpdrlitißiij. With a revolving fund of .300 million dollars, this fund, to be furnished by banks outside the Federal Reserve Bank'System, with the purpose of re-discounting banking assets that now are legible for re-dis-count at the Reserve Banks, or, if this measure is inadequate, to establish a Federal body for the purpose of extending loar.s to industry, similar to the old War Finance Co-opera-tion.

THE WAR DEBTS. WHAT WILL BE DONE? WASHINGTON, October ?. At the conference between Pr jsflout Hoover and lending members < i Congress and hanking, suggestions for extending the moratorium on in-ter-Governmental ; obligations were briefly touched' upon, but there was no agreement attempted, it is tinderstood bv the conference.

It is possible that the suggestion Tor a moratorium extension will not receive serious consideration until President Hoover has discussed it. with M. Laval, the Premier of France who is about to visit the United States.