NEED OF CAUTION

Southland Times, Issue 21073, 3 May 1930, Page 7

NEED OF CAUTION

MR HOOVER’S WARNING

WORST OF GREAT CRISIS PASSED

CONSEQUENCE ON BOOMS (United Tress Assn.—By Telegraph—Copyright.) (Rec. 5.5 p.m.) Washington, May 1. Mr Hoover, addressing the United States Chamber of Commerce, said: “The country has passed through the worst of a great economic crisis and will recover.” He proposed the creation of a body to study the recent experience and try to devise measures for prevention and remedy. He added that building construction had been accelerated beyond hopes, and unemployment had thereby decreased, but home building had not progressed because credit had not been available. He asserted that statistics enabled many to read the warning signals and avoid the maelstrom of speculation. “AU slumps are the inexorable consequences of the destructive force of booms,” he said. “The natural optimism of our people brings into being a spirit of undue speculation against the future and stimuates waste and extravagance, with the inevitable collapse in panic. We are not yet entirely through the difficulties of our situation. We have need to maintain every agency and every force until we are far along the road to stable prosperity.”