New-York tribune., 1921-07-16
Hoover Calls
A.estraint of
Trade a Peril
Secretary Says Government
Must Smash Every Conn
bination Which Attempts
to Control Business
Economic Plans Barred
Twelve Points i'm Harding
Program to Lend Aid to
Industry Are Emphasized
speeial Dispatoh TO The Tribun.

CHICAGO, July 15.-In this the lour-
teenth period of industrial depression
since the Civil War, President Har-
ding's Administration can be of assist
nrce to business generally in three dis
tinct ways, said Herbert Hoover, Secre-
tary of Commerce, in his speech to-day
before 5000 real estate men, who are
assembled in Chicago for their national
convention.
First, the government must" Mr..
Hoover said, "as matter Of primary
duty drive every combination out of
business that attempts to restrain
trade.
Second, the government to some de-
gree directly or indirectly controls or
obstructs the flow of credits, and it is
therefore responsible toward this part
of the problem.
Third, the government can and
should interest itself in dissemination
OF information, in scientific study of
certain problems in materials and
methods and in cooperation with indus
tries, to receive voluntary reduction in
waste that the costs of homes may be
| decreased"
Hoover Outlines Twelve Points
Secretary Hoover outlined twelve
different phases of the economic pro-
gram Of President Harding's Admins
! tration.. He said the President and
his Cabinet were giving every effort
to remove the great burdens upon
commerce and industry" The twelve
! points are: The revision of our tax
system, the reduction of governmental
expenditure, the settlement of the
tariff, the reorganization of the Federal
machinery for more efficient service,
the reorganization of our mercantile
marine, the refunding of foreign loans,
the relief of the world from armament,
| the assistance to exporters of our
commodities, the upbuilding and safe
guarding of our foreign commerce, the
assistance to our farmers through sup
Element to the normal banking ma
chinery by mobilization of private
credit to take care of cattle, cotton and
other commodities distressed through
shifts in world conditions; the expe-
ditious settlements Of the obligations
of the government to the railways in
order that they may quickly resume
rormai employment and enlarged main
tenance and betterment expenditures,
and encourageme to development Of
our great power resources, the syste-
matte elimination of wastes in pro-
duction, research and education upon
improvements in our processes of pro-
QuCClOn ana
I'VE must look forward to read
justment of railway rates that will
give relief to producers" said Mr..
Hoover.
"The question of the purpose and
place of the government in expediting
economic recovery is raised in Wash
ington every hour of the day. We are
| flooded with economic patent medicines
that would evade the stern laws of
economic hygiene. The question of
what the government can do becomes
IN part question of our whole at
titude toward social and economic
| questions. Unless we would destroy
individual initiative and drive our
selves straight into naturalization or
paternalism the government cannot un-
dertake to reduce or raise wages, to
deaf in commodities, no matter how il
is camoufaged.
Housing Problem Reviewed
"Obviously one Of the most difficult
problems in front of the entire coun-
try is that of housing. Nothing is
verse than an increased tenantry aud
landlordism in the country"
The diversion of savings money de-
posted with banks from investment in
mercial channels, the Secretary de-
clared, has tended to maintain high
interest rates.
However" the speaker continued,
the regular procession of economic
depression is first the lowering of
prices and volume of production, with
the consequent reduction in the amount
OF capital needed. and falling rate of
interest. We should expect this to
happen again, and interest rates to fall
to the reach of the home builder, with
| increased sums available for building.
"On the other hand, l believe we
would have much more stable eco
nomic system if we had a more regular
proportion of our savings available for
home building. 1t would seem to me,
therefore, that the amendment pro-
posed to the Federal Reserve act by
which the large proportion of the saw.
ings deposits of national banks could be
rser for building purposes is an advis-
able change. 1t would seem cons+ruc-
tive, also, if 40 or so per cent of de-
posits in postal savings could be dl
verted to home building, as in the case
Of savings banks, instead of allowing
IL to flow to commercial nurnnsec0