Evening star., 1921-07-30
STEPS TO RELIEVE
FINANCE REVIEWED
White House Statement
Tells at'Length What Ad-
miniStration Has Done.

The accomplishment OF the admin
istration toward relief of financial
conditions are reviewed at length in
a statement issued from the White
House yesterday afternoon, declaring
that the work done in that direction
during the last four months consti-
tutes IAN achievement of the largest
Importance to the country"
In support of this assertion the
statement points to and discusses at
length the recent reduction of dis
count rates by federal reserve banks:
steps taken by the Treasury toward
refunding the national debt; the re-
War Finance Corporation; efforts to-
ward final settlement of the railroad
problem; extension of relief to agri-
culture and the live stock industry
and various other items of the admin
istration's financial policy.
1T is unsafe" said the statement.
"to prophesy concerning conditions in
the future. but it may be expected
that recognition will be given to fur
ther improvements in conditions in
accordance with the dictates of sound
banking practice"
Text of Statement.
The statement pointed to success
sive reductions in rediscount rates by
the federal reserve banks. and added:
1T will not have escaped attention
that the rates of discount of the Bank
of England have also been success
sively reduced. and that these re-
auctions have been substantially CO.
incident with the reduction of the
federal reserve rates in this country.
This, would appear to be a frank
recognition of the intimate relation
hetween the money markets in this
country and of Europe. and a recog-
milton as we'll of the improvement in
world credit conditions. The impor-
tance of Coincident reduction by these
two leading banking systems lies
chiefly in the fact that it indicates a
mutual desire to reopen the inter-
national channels of credit upon
which international trade depends.
The Treasury on its part has. dur
ing the past four months, successfully
inaugurated it's new policy of refund
ing the short-dated debt of the gov
eminent and distributing the early
the maturity of the victory loan in
1923 and the third liberty loan in 1928.
The first Offering Of Treasury notes
pursuant to this policy met with a
most enthusiastic response, and the
further development of the program
should bring about a better distribu-
tlon of the public debt and much i'm
proved market conditions for govern
ment securities. There has already
been a marked Improvement in the
market prices of liberty bonds and
victory notes. and the market for all
outstanding issues of short-term gov
ernment securities is in better shape
than at any time since the depres-
sion"
InspiritinE Factor.
The work of the revived War FL
nance Corporation. the statement said.
has been, according to many evil
denceS received an inspiriting and
hearteIlng factor in the whole agri-
cultural situation.
Referring to the Presidents pro-
posa, that the powers of the War
Finance Corporation be extended to
allow it to purchase railroad securities
from the railroad administration in
order TO finance the settlements by
that administration. the statement
vention of tie finance corporation in
railroad finances will again have
beneficial effect on general railroad
credit and also that the corporation
will again be able to secure the whole
hearted cooperation of the bankers
of the country in developing the-mar-
ket for railroad securities"
Speaking in the broadcast way" the
statement concluded. st is felt that
the series of measures mentioned con-
stftute truly constructive effort for
the amelioration of business and
financial conditions. and there are al
ready many eviden es Of beneficial
effects. With a generallyex cellent agri-
cultural production now assured for
the season. there is every reason for
confidence that steady improvement
Of general business conditions may
be anticipated"