Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-20
Further Improvement Expect
ed Through Mail Contracts
and ShipbuiIding.
REDISCOUNT RATE CUT
= ALSO LOOKED TO AS AID
Increased Activities Anticipated to
Maintain Present Employ
ment Situation.
Rv the Associated Press.


by the prospect of easier credit condi-
tions and extensive railroad, shipyard
and governmental construction, was
foreseen today as the first product OF
President Hoover's program for increas-
ing and stabilizing American prosperity.
Those close to the administration
looked forward to prompt and benefl-
cial reaction from the Chief Executives
conferences with the presidents of the
great Eastern railroads and bankers
from all sections of the Nation and
from assurances of large orders for rail-
way and marine equipment that have
grown out of Mr.. Hoover's campaign in
the few days that have elapsed since the
original announcement of his plans.
Laid aside today that the President
might pay his last respects to the late
Secretary James w. Good of the War
Department, the Chief Executives
schedule of conferences with the lead
ers of American economic endeavor will
be resumed tomorrow with a discussion
of what the manufacturing and indus
trial field can do to advance his plans
attended by a group OF men prominent
in that phase OF the Nations business.
Expects Shipyard Activity.
Through the operation of mail con-
tract awards and loans from the $780,
100000 fund established by the Jones
the merchant marine, the adminiStra-
ton expects the shipyards 70 be hum
ming with activity within the space oi
six months.
Plans to bring this about were an.
nounced late yesterday by Postmaster
General Brown, speaking for the inter.
departmental committee on ocean mai
contracts, which for three months ha.
been making study to determine thI
best method Of awarding postal ship
ping contracts.
Contracts will go to the lowest bid
der, Mr.. Brown said, and the construc
ton of total Of 40 new vessels, larg
and fast enough to compete with an,
on the seas, is planned by companie
which have indicated an intention o
submitting bids.
IN all probability" the Postmastel
General asserted, another six month!
will see the shipyard capacity Of th'
country completely filled"
New Liners Planned.
He revealed that new liners for the
North Atlantic service, estimated to cost
approximately $25, 100000, are planned
with vessels contemplated for othel
routes which will be the last word ir
modern marine architecture and engi'
neering.
From the Jones-White fund the con.
structing companies can borrow at low
interest rates up to rs per cent Of the
amount to be expended for new ton
mage. The fund is administered by the
Shipping Board and the Navy Depart
ment.
But while contract awards are to g
to the lowest bidder, degree of favor
is to be extended to those companies
which contemplate immediate con
struction as a means of stimulating
It was pointed out that the pro.
spective marine construction should
mean much to many branches o.
American commerce, through the varl'
ETY. and extensiveness of the articles
which go into the making OF moderr
ocean liner. These include such wide
spread needs as steel, plumbing fix
lures, electrical appliances, upholstery
draperies and furnishings and httingS
Earlier in the day Mr.. Hoover had
conferred with the railroad presidents
and the members of the advisory coun--
Gil of the Federal Reserve Board and
had received assurances OF the support
of the transportation chieftalns and IN
dications of prospective decreases IN col
lateral rates through reduction In the
rediscount rates of all the Federal Re-
serve districts.
Plans Given President.
The construction plans and pros
pectiye euuipment orders of the rail-
roads were outlined to the Chief Execu-
tive and estimated to aggregate consider
ably more for the next six months than
for the corresponding period Of year
ago.
conferences the executive committee OF
the United States Chamber of Com
merce decided to offer any possible as
sistance to President Hoover in carrying
out such program or programs as may
be worked out.
This committee probably will be called
upon to cooperate with the Department
of Commerce and other Government
agencies in co-ordinating the efforts
that are being and will be made to
promote business progress.
AS viewed Dy IIlOSe WIZ are dQViSHlS
with President Hoover, the problem is
to maintain employment by not only
continuing, but increasing industrial
and commercial activities. The belief
IS that this would reach far in the
direction of taking up any slack that
may come in some fields.
1t was explained that generally after
crashes in stock prices there was ten
dency among industrial leaders to hold
back to watch the effects of such
crashes and to proceed cautiously until
the result could be definitely assessed.