Every evening, Wilmington daily commercial., 1921-07-30
PRESIDENT HOPEFUL
OF BUSINESS GAINS
Predicts early and Decisive
Improvement in the. lmme-
diate Future.

ltuation uf the country, and, after
howing what measures had been
AIKEN To relieve bus mess of the bur-
lens expressing it. ,rophesied gem
ral and decisive Improvement i'm the
immediate future.
This survey was made public at the
White House by direction of the Presi-
lent just before the Executive left for
Sew England to take part in the Ply
mouth tercentcnial celebration. The
President regarded the steps taken by
himself and by his Administration for
strengthening business as for such inn
,ortance that he felt some comprehen-
i've summary of the Governments ac-
ivities should be presented to the
american people.
The most important of the develop
nents i'm the Presidents mind is the
eduction in discount rates put into
sffect successively by the individual
federal Reserve banks. These rates, IL
shown. have been reduced one-half
per cent most cases and | per cent
a some.
Referring To this phase OF the busi-
less situation. the White House state
nent says:
Perhaps the most important de-
'elorment has been the action taken
~ the Federal Reserve banks in re-
tucing discount rates. This action is
calculated TO relieve the stagnation of
BUSINESS and at the same time 1t gives
authoritative recognition of the i'm
provement in credit conditions justi-
sying the policy of reduced rates. Dur
ng the latter part of 1919 and from
ime To time i'm the year 1920 increases
" rates of discount had been made by
he Federal Reserve banks in order to
meet then existing conditions. There
tad also been introduced in several
.'eserve districts so-called progressive
discount rates, under which. after the
nembered bank had discounted its
PAPER with its Federal Reserve bank
~ to certain point. it was then re-
luired TO pay progressively higher
'ates for further discounts in ort'"~ :"
heck excessive borrowings. Thss"
'ates have recently been entirely
,bolishd, again indicating improS. =
,redit conditions.
Proceeding further the statement
shows that the discount rate of the
Session bank was reduced from : to 6
Der cent: the New York rate from
- 6i2 per cent; the Atlanta rate from
To per cent: the Chicago rate from
10 81. per cent; the Minneapolis rate
rom : TO 6is per cent; the Dallas rate
rom 10 sis per cent: second New
fork reduction from sig per cent to
Ser cent and the San Francisco rate
rom 10 5l9 per cent.
IL is unsafe" the While House says.
% prophesy concerning conditions in
The future. but il may be expected
hat recognition Will be given to
mrther Improvements in conditions |
N accordance with the dictates OF /
,ound banking practice" This oh /
reryation is taken TO mean in Wash |
'agton that the Administration looks |
,or still further reduction in discount |
,ates.
Turning to the activities of the
Treasury Department, proper. the /
statement shows that refunding of |
obligations is now in pro-
ssss- Referring to the success of these /
Efforts the White House says:
The Treasury on its parts has. dur |
ing the last four months. successfully |
its new policy of refund
ing the short-dated debt of the Gov
ernment and distributing the early
over the period between
the majority 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- |
ton of the public debt and much i'm
proved market conditions for Gov
ernment securities. There has already /
been marked Improvement in the
market prices of Liberty bonds and |
Victory notes. and the market for all /
issues of short-term Gov |
ernnent securities is in better shape /
han at any time since the depression. (" /
The White House also refers at some
ength to the resumption of active op-
srations by the War Finance Corpora
iion. This corporation. it is pointed out.
has now agreed to finance large guam
lilies of cotton. General assistance to
foreign trade also is being extended
Besides the loans actually undertak-
m" IL is stated many Important
involving American ag-
ricultural products are under consid-
sration."
The White House expresses the be-
ief that the proposed enlargement of I
he powers of the corporation will
mean the adequate financing OF the
lew crops for purposes of foreignE
fade.
Another fact in the situation cited
- the White House is the orsa MIA
ion of a banking loan fund of s50,-
roc. 600 by the Treasury Department.
sith which to afford relief to the live
'tock industry. The Farm Loan banks
[ is pointed out, have been enabled
@ resume lending operations as a re-
Iuit of the successful sale of Federal.
"A nd Bank bonds.
The program adopted for the relief
Il the railroads through the funding
II their debt TO. the Government and
he purchase and sale of the funded
Obligations by the War Finance Cor
'ora.ior is dweit upon in the statement
4 considerable length.
1T is expected the statement says,
that the Governments intervention
I This time will again have a bcne-
eial effect on general railroad credit"
In concluding its observations the
resident says:
speaking in The br' lest way, 1t is
elt that the series of measures, of
Which the foregoing is not by any
neans a complete statement, eonsti-i
lite truly constructive effort for the
ne.iorati6n of business and financial
-