NEWS FROM WALL STREET.

Auckland Star, Volume LXII, Issue 290, 8 December 1931, Page 4

NEWS FROM WALL STREET.

EXTENDING CREDIT. "AN IMPORTANT MILESTONE." (From Oar Own Correspondent) NEW YORK, October 28. An important milestone to economic recovery in the United States will be reached when the National Credit CorporatioH, the huge banking pool organised io relieve the frozen loan situation in the banks, sroes into active operation this week. The functions of this organisation are expected to find reflection in the thawins out process as applied to frozen bank assets which in turn should minimise bink closings. Important bankers and business men hold that inculcation of confidence in place of fear in the minds of the general public -will be equivalent to 50 T>er cent of the work necessary to rehabilitate the country. The revival of confidence in the credit "condition will stop hoarding of money and divert such funds into the channels of trade and finance. The beginning of operations by the big banking pool will also have a tendency to dry up the selling of United States Government bonds, which has come largely from banking institutions in all parts of the country needing ready funds. The action of the Treasury Department in deciding to permit the National Credit Corporation's notes to be used as collateral for Federal deposits also goes a long way toward onlarpajr the supply of money which will be put into the money market for the relief of the banking situation.