Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-16
Business and Other Leaders
to Meet at White House
Next Week.
OBJECT is T0KEEP
BUSINESS BOOMING
Coordination of Efforts Sought to
Divert Capital From Specu-
lative Channels.

Moving to stabilize business through
out the country by co-ordinating buSi-
ness and governmental agencies for con-
tinued expansion and progress, Presi-
dent Hoover has issued call to a
number of leading representatives OF
Industry. agriculture and labor to meet
at the White House next week for a
conference.
This meeting will be preliminary to
similar ones and will be held prob
ably Wednesday or Thursday. The
President will also have present at this
conference the Secretaries of the Treas
ury. Agriculture, Commerce and Labor
and the chairman of the Federal Farm
Board.
In making public this plan late yes
terday, President Hoover'S second de-
cisiye step within the past few days to
steady business conditions and restore
confidence as a result of the distress
and uncertainty growing out OF the
stock market crash, he made 1t clear
that his object is to keep business BOOM
ing generally throughout the country
by diverting capital from the specula-
tive market to business itself. Also ne
wants the people OF the country 10
know that the economic prospects are
good and that there is poSltlVeIy no oC-
casion for peSsimiSm.
In discussing his plans with news
paper correspondents, the President
spoke very candidly. He made It PLAIN
that he deploreS the diversion OF capltal
for purely speculative purposes. He ex-
pressed confidence in the soundness OF
the business structure and the flnanclal
fabric of the Nation and declared with
emphasis that it is foolish for any one
to lack confidence in the economic Iu-
ture or basic strength OF business In the
United States.
First Step Explained.
President Hoover explained that the
first step toward a sterilization is the
organizing and co-ordinattng of for
ward movement of business through the
revival OF construction activities, the
stimulation of exports and OF other
legitimate business expansion, which
fsve LACED as money went into the
speculative field, and to take such ac-
tion In concert with the use of new
Federal powers to assist agriculture. He
said it is fortunate that the sound sense
the capacity and readiness for co-op-
Grafton of our business leaders and gov
ernmental agencies give assurance OF
action.
lone Of the results of the specula-
tive period through which we have just
passed in recent months" the Presl-
dent pointed out, has been the diver
sion Of capital into the security mar
lset, with consequent lack of the con-
struction work in the country. The
postponement of construction during
the past month, including not only
buildings, railways, merchant marine
and public utilities, but also Federal,
State and municipal public works, pro-
vides a substantial reserve for prompt
expanded action. The situation is
further assured by the exceptionally
strong cash position Of the large manu-
featuring industries of the country.
THE magnificent working Of the
Federal Reserve System and the in
l1erently sound condition of the banks, T"
the President went on to explain, have
already brought about a decrease in in
terest rates and an assurance OF album
dant capitalize first time such re-
suit has been so speedily achieved un-
der similar circumstances"
Unfortunates in Vortex.
In emphasizing the soundness of the
business structure, the President stat
Gu III HldTASI bOOlllo VIC dCNCAOp ONCl :
optimism with a corresponding reverse
into ver-pessimism. They are equally
unjustifled, but the sad thing is that
many unfortunate people are drawn into
the vortex of these movements with
tragic loss of savings and reserves.
And lack Of confidence in the economic
future or basic strength of business
in the United States is foolish. Our
national capacity for hard work and in
telligent cooperation is ample guaran-
tee of the future.
my own experience has been, how
ever" the President added, that words
are not of any great Importance in times
of economic disturbance. 1t is action
that counts. The establishment OF
credit stability and ample capital
through the Federal Reserve system and
a demonstration of the confidence OF
the administration by undertaking taS
reduction with the cooperation OF both
political parties speak more thar
words"
In assuming command of the Ma
tion's business for the purpose of lead
ing some of its activities out of the
slough into which they dropped witt
the rise Ind fall of the stock market
the President is applying his favoritt
femedy-a conference of informed, In
tereSted and influential men.
Conferences With Leaders.
AS MIR. Hoover made his plan public
IL developed that he has been confer
ring with business leaders during thu
last week, with regard to the proposed
conference, and that preliminary sur.
(Continlied on PAGE 9. Column IL