CREDIT EXPANSION PLAN

Hawera Star, Volume LIII, 26 September 1933, Page 5

CREDIT EXPANSION PLAN

Currency Inflation Dropped

NEW SCHEME IN AMERICA Release Of Funds In Banks INCREASED PRODUCE PRICES. GOAL OF ADMINISTRATION. (United Pres* Association—By Electric Telegraph copyright.) WASHINGTON, Sept. 24. President Roosevelt and Government financial leaders mapped out a. programme for credit expansion to-night in conference at the White House that centred on the release of funds in closed banks. It was emphasised both by President Roosevelt and his conferees that no new* moves other than that of reinforcing the country’s credit structure were in contemplation. This is accepted generally as definitely eliminating at this time any inflation of the United States currency. It means that the Government s going to use every power to put into circulation money now lying idle in the banks’ tills and funds locked up -n closed banks. President Roosevelt is primarily interested in co-ordinating all Government and financial agencies to .‘.ssuiy full support for agriculture and buAness in the price-lifting and recovery programme. Substantial increases in farm price* in the next two months are •■arkecl off as a goal of the Roosevelt Administration through the extension of the cotton loan plan to drive farm purchasing power upn-ard. Production control null bo definitely linked until the credit extension plan. Farm officials said that the Secretary of Agriculture, Mr Henry Wallace and the farm Administrator, Mr George Peek, were prepared for early, meetings u 7 ith representatives of the producers to consider plans. A reduction of next- year’s United States wheat plantings of more than 3.000.000 acres is assured by the Agricultural Adjustment Administration on the basis of the latest reports of the campaign to obtain agreements among farmers to curtail acreage. The Secretary for Agriculture, M*Wallace, said in an addess to-night that unless world trade was restored 40.000.000 aces of United States land must be taken out of cultivation. “FJ” Roosevelt. Mr George Peck and all of us in the agricultural adiuistmont administration are convinced that this dilemma, of bursting warehouses anl starving multitudes must he solved,'’ he said