CREDIT IN UNITED STATES.

Press, Volume LXVII, Issue 20383, 2 November 1931, Page 9

CREDIT IN UNITED STATES.

IMPROVEMENT ASSERTED. PRICES REFLECT RECOVERY REPAYMENT BY BRITAIN APPRECIATED. (UKJTEO I'KESS ASSOCIATION' BJ-.EOTBIO TBMOBAPH—OOPTBIOHT.) (Roceived November Ist, 6 p.m.) WASHINGTON, October 31. President Hoover, summarising assertions in Governmental circles, that improved economic conditions were apparent, asserted that there was a "very great change evident in the credit situation, since the announcement of the financial plans." The president said: "Following the abandonment of the gold standard in England a wave of great apprehension swept the United States," but although he offered no speculative opinions, lie said the upward trond of prices for cotton and wheat reflected a "recovery," which is supported by the fact that the country bank failures have practically ceased. The hoarding of currency apparently had been checked, and 24,000,000 dollars in money had actually returned to the banks within a week. Progident Hoover also pointed out that foreign exchanges had returned to u, basis in which the shipping of gold abroad was no longer deemed advantageous. Moreover, Governmental and financial ciroles hailed the Bank ol England's announcement to repay tomorrow 100,000,000 of the 250,000,000 dollars loaned by the United States and Prance as a highly favourable indication of improved conditions. Qno prominent official said: This ie a good demonstration of the ability and determination of England to meet her obligations. BANKRUPT STATES TENNESSEE AND ALABAMA. NO WAGES FOR PUBLIC SERVANTS. (Received November Ist, 7.50 p.m.) NEW YORK, October 31. Dispatches from Nashville and Montgomery indicate that the States of Tennessee and Alabama aro seriously embarrassed financially. No October salaries have been paid from the Governor down to the Judges of the Supremo Court of Tennessee, and no salaries have been paid to teachers in six normal schools for six months. Many county schools aro closed. A million dollars of Stato obligations have not been paid, as the treasury is without funds. The Alabama Treasurer to-day sent out 285,000 dollars worth of warrants to pay the State employees for October, bnt added :i warning that these irmst not be cashed, as there were no funds in the bank. The bank failures in which the Stato funds had been lodged, and the depression, aro responsible for the conditions in both States. MORE FAILURES. BANK AND TRUST COMPANIES. (Received November Ist, 5.5 p.m.) NEW YORK, October 31. A Columbus (Ohio) message states that the Union Trust Company of Dayton, with resources aggregating 31,000,000 dollars, closed to-day because of frozen assets and heavy withdrawals. . , rr + The Federation Bank and Y" 118 " Company, one of the biggest labour banks in the country, with deposits totalling 15,630,000 dollars, closed on Friday.