SERIOUS PANIC WAS AVOIDED.

Star (Christchurch), Issue 18959, 3 January 1930, Page 11

SERIOUS PANIC WAS AVOIDED.

FINANCIAL COLLAPSE IN UNITED STATES. How the American nation handled the serious economic troubles caused by the big collapse on the Stock Exchange in Wall Street in New York in October last made a deep impression o.n the mind of Mr J. R. Templin, of Christchurch, who returned to-day from a. five months’ tour of the United States and Canada. Mr Templin said in an interview that the collapse on the Stock Exchange was long overdue, and the consequences might have been most disastrous to the whole American nation if had not been for the wonderful way in which the situation was tackled by President Hoover. “There was strong feeling that there might be a very serious panic resulting from the financial collapse, and I take my hat off to President Hoover for his great courage in coming forward with a big programme of Government expenditure in order to restore confidence. This programme was much larger than in previous years, and in addition to the expenditure by the federal Government, the President called the members of the various State and municipal governments together, and obtained their cooperation in carrying out public works in order to provide employment. He also was assisted by the railway organisations and the big business undertakings, and as a result of his efforts work costing billions of dollars was put in hand and will be continued during the next twelve months. “In this way a panic was avoided and confidence was restored. There was not a word in the newspapers about panic, and, although very considerable unemployment was caused by the financial collapse, everyone was full of optimism. Quite a number of industries were at a low ebb when I left the United States, but the impression is general that the depression is only temporary. An enormous amount of work has been provided to tide the people over the difficult times, and this is having a remarkably good influence throughout the whole country. Mr Hoover’s work was simply wonderful: he tackled the problem, not so much as a politician as an engineer. One of the industries that was hit the hardest was the motor industry, but there was a feeling that it will get back to normal production early this year.” Mr Templin said he thought- the American people were quite sincere in regard to disarmament. They felt that expenditure on armaments was a waste of money, and as hard-headed business men they wanted to reduce it as much as possible. Mr Ramsay MacDonald had received a truly remarkable reception on his visit to the United States. The welcome accorded to him was stated to have never been equalled before when a foreign representative visited the United States.