The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1929-11-20
Rail Executives Promise to
Push Programs of
Expansion.
PRESIDENT OPTIMISTIC
Feels Session to Speed Up
Prosperity of Nation
Is Successful.
BY RAYMOND CLAPPER
United Press staff Correspondent

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efforts Of President Hoover to speed
up the prosperity machinery of the
country have filed him with hope
for an active winters business
throughout the nation.
Results of the first conference
have forecast additional progress in
those yet to come. Railroad execu-
tiveS promised him they would go
forward with development programs.
This will mean expenditure of more
than billion dollars in the next
year. The federal reserve board and
its advisory council predicted lower
money rates to make 1t easy for
business to get funds for active
operations.
Heads of important industries in
cluding Henry Ford were to have
met with him today to discuss plans
for keeping their factories and shops
running throughout the winter. But
the funeral of Secretary of War
Good caused postponement of that
engagement until Thursday.
Encouraging news came today
from the treasury department.,
where officials gave assurance that
even with the $160,O0O,0oO tax cut
this winter and the additional $175,-
100000 for expansion of the building
program, there will be a sizeable
surplus at the close Of the fiscal
year next June 80.
Prosperity at High Level
Prosperity has been at such a
high level Tor the first nine months
Of this calendar year, officials ex-
planned, that even though corpora
ton earnings were reduced in the
last three months, the TAX returns
still would show an increase as
compared with those for a year ago.
Full effect of the stock market
recession will not be registered in
tax revenues until next March when
the first payments are due on 1929
income. 1t then will be possible for :.
the treasury to estimate It's receipts
for next year and to determine
whether another tax cut is justified.
Indications that money would be
available at all reserve districts at
low rates was viewed in government
circles as presaging a general re-
duction in rediscount rates. Out
side of New York, where the rate
recently was lowered to Az per cent,
the rediscount rate at all federal
reserve banks now is per cent.
Money generally is cheaper than
in two years, factor unique in the
history of stock market defiaJions.
The ease with which business now
may obtain money is regarded he~e
as one of the strongest reasons for
official optimism which prevails.
Facts Speak Loudly
President Hoover believes such
facts speak louder than any words
which he might utter. The admin
istration Is dealing with state Of
mind which can be convinced most
quickly by action, he feels.
The conference Of general busi-
ness heads Thursday is regarded at
the White House as one Of the most
important Of the series. The Presi-
dent hopes to follow up the action
of the railroads by obtaining a sim
liar expression from general indus
try that it will go ahead with nor
NAL expansion and operations.
Friday, the building industries
and agriculture will be heard by the
President. His hope is tc get all
of these basic groups behind his
program for business as usual. Tt
is felt that activity by those indus
tries will make it possible for de-
partment stores, and other retail
businesses to continue sales at sat-
factory volume.
Statement Made Public
Senator Thomas J. Walsh (Dems
Mont.) made public statement to-
day, asserting that having per-
mitted conditions to become unsatis-
factory, the Republican administra-
lion now is calling in such DEM
ocratic business men as Owen D.
Young to help the administration
out of the predicament into which
it has fallen"
He remarked that this was in
spite OF the carefully cultivated De-
lief that the Democratic party is
bent on running the business Of the
country and is unequal to the task
Of directing the financial affairs Of
the country"
Walsh named John J. Raskob,
chairman of the Democratic ma
tional committee as one of those
Mr.. Hoover had summoned TO
Was, Slgton, but the White House