Important More in U.S.A.

Horowhenua Chronicle, 8 October 1931, Page 3

Important More in U.S.A.

FREEING HER FROZEN ASSETS. HOOVER OUTLINES SCHEME Received Wednesday, 8.55 p.m. WASHINGTON, Oct. 6. The formation of a new credit organisation to draw out frozen assets and broaden the facilities of the Federal Farm Loan Board, and for the lib eralisation of the re-discount provisions of the Federal system, was proposed by President Hoover for the economic recovery at a conference with Congressional chiefs. - It is stated that there was a general agreement on all points on which legislation would eventually be necessary. Democratic Senators and representatives expressed willingness to go along with the President’s proposals. I Suggestions for extending the mora torium on inter-governmental obligations were briefly touched upon, but no agreement was attempted. It is understood by his confreres that it is possible that moratorium extension will not receive serious consideration until President Hoover discusses it with M. Laval, Premier of Prance. , Included in Mr. Hoover’s proposal is the creation of a 500,000,000-dollar corporation by private bankers to take up the frozen paper of insolvent banks and other institutions to give elasticity to the credit situation; and, if necessity required, Mr, Hoover said, he would recommend the creation of a finance corporation of similar character and purpose to the War Finance Corporation, with available funds sufficient for any legitimate call in support of credit. Primary Need to Mobolise Resources Received Wednesday, 11.15 p.m. WASHINGTON, Oct. 6. President Hoover, following the conference, made an early morning statement outlining a group of proposals offered generally for the improvement of the business situation, specifically in the hope of counteracting the “foolish alarm of certain sections of people in the United States, which has been accompanied by wholly unjustifiable with drawals -of currency from the banks.’’ Mr. Hoover asserted that the present lack of confidence and co-operation was due to a “wholly abnormal situation.’’ He stated: “Our difficulty is the diffusion of our resources. Our primary need is to mobilise them.” The President proposed a definite programme which bankers and Congressmen agree,d to support, in which the principal items were to strengthen the Federal farm loan service by placing more money at its disposal; to set up a privately financed corporation with a revolving fund ’ of 500,000,000 dollars, this fund to be furnished by banks outside the Federal Reserve system for the purpose of re-, discounting the banking assets now ineligible for re-discount at the reserve banks; or, if this measure is inadequate, to establish a Federal body for the purpose of extending loans to industry, similar to the old War Finance Corporation. Stock Market Response Received Wednesday, 9.50 p.m. NEW YORK, Oct. 6. The heaviest buying .in stocks since the announcement of the Hoover debt moratorium in June raised prices of leading shares one to 1(j points following yesterday’s sharp decline and a week of bear markets. The rise to-day is attributed to the news that the stock exchange is applying further control on short selling by demanding a written explanation for each short sale and the Washington announcement that President Hoover tad; called important Congressional leaders, bankers and real estate men for a conference to discuss the business situation. The sales' totalled 4,300,000 shares.