ECONOMIC RECOVERY

Rotorua Morning Post, Volume 1, Issue 39, 8 October 1931, Page 3

ECONOMIC RECOVERY

(Press Assn.-

AMERICAN PRESIDENT'S PLAN TO STRENGTHEN CREDIT MORATORIUM NOT MENTIONED

— By Telegraph — Copyright.)

Rec. Oct. 7, 8.55 p.m. WASHINGTON, Tuesday. The formation of a new credits organisation to draw out the "frozen" assets and broaden the facilities of the Federal Farm Loan Board and to effect liberalisation of the discount division of the Federal Reserve system was proposed by President Hoover as a means of hastening economic recovery at a conference with the Congressional chiefs. It is stated there was general agreement on all points on which legislation will eventually be necessary. Democratic senators and representatives expressed their willingness to support the president's proposal. Suggestions for extending the moratorium, to any governmental obligations were briefly touched upon, but no agreement was attempted. It was understood by the conference that it is possible that an extension of the moratorium will not receive serious consideration until Mr. Iioover has discussed it with M. Laval, Premier of France. Included in Mr. Hoover's proposal is the creation of a 500,000 dollar corporation to ;provide bankers to take up the frozen paper of insolvent banks and other institutions to gjVe elasijicity to the credit situHoover stated, he would recommend the creation of a finance corporation of similar character and purpose to the War Finance corporation with available funds suificient for any legitimate call.