Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-03-08
President Convinced In
creased Building Will Offset
Effects of Stock Crash.
UNEMPLOYMENT is HELD
SERIOUS IN IL STATES
Executive Declares Gradual I'm
provement Is Noted in Business
Since December.
BY. the Associated Press.

BY the Associated Press.
A thorough study of the present eco
nomic situation has convinced President
Hoover that within month or two the
more serious effects of last Falls stock
market crash will be passed, with I'M
employment conditions definitely on the
mend.
To the increased out-of-doors con-
struction work that comes each year as
the weather grows warmer and to the
expanded building programs of the rail-
roads, public utilities and private in
dustries, the Chief Executive looks to
bring about this result.
Mr.. Hoover's views on the situation
were summarized in statement, issued
to Washington newspaper men late yes
terday, based on a statistical study
made by interested departments and
consultation with the business organi-
cation set up by the President as a part
OF his program for economic Sterilization,
Ae the same time joint statement by
the heads Of the Commerce and Labor
Departments was made public.
Looks for Improvement.
can the evidences indicate" the Chief
Executive said, that the worst effects
of the (stock market) crash upon EN-.
ployment will have been passed during
the next so days with the amelioration
OF seasonal unemployment, the gaining
strength of other forces and the con.
tinued cooperation of the many
agencies actively cooperating with the
government to restore business and to
relieve distress"
Unemployment. he said, is serious in
but IL States and hardly more than
| seasonal In the remaining So. He added
that the low points of business and
employment were passed in December
ana that gradual improvement had
been noted since that time. The Chief
| Executive predicted that, with wage
rates maintained. low interest rates pre-
vail1ng and increased expansion expen-
ditures by railroads and utilities, the
advance OF Spring win witness return
to normal prosperity.
An important and beneficial influence
upon the situation. he continued, has
been the Nationwide response to the
request for increased construction by
! public authorities, railroads, utilities and
industries" Construction contracts in
these classes were from 40 to Is per
cent higher in January and February
than ever before in those months, he
said, adding the assertion that the total
for the year seems assured to be larger
than in 1929"
Cites Decreased Money Rates.
Going into an analysis of credit con.
ditlons, Mr.. Hoover said that money
rates have decreased steadily since De-
| cember, with the result that an in
creasing number of bond issues have
been placed for the purpose of making
public improvements. While loans for
mortgages, home building and agricul-
turc have Jagged behind, the President
toresaw an increase in money available
for these purposes as a result of les
Sened demand upon insurance COM
panieS for loans on policies and the re-
| Board
Secretary Lamont and Secretary Davis
IN their joint statement, asserted that
the forces OF recovery were steadily
gaining strength. Although not fixinr
the extent of unemployment In specific
figures, they estimated it St between
one-third and one-half of tnat which
and 1922.
subcommittee of the Senate COM
mercee committee will open hearings on
! tuesday or Wednesday for the purpose
OF formulating legislation for enactment
at this Congress to help in remedyillR
the situation and to stabilize labor con-
oltlons Tor the future. Chairman john
son OF the committee said TODAY that
the inquiry would be short and "Strictlv
factual." Among the first witnesses will
De Secretary Davis, Miss Frances Per.
kins, New York State industrial COM
missioner, and John M. Andrews, leeis-
latlVe representative of the Federated
Trades.
Witnesses TO "Offer Remedy"
Senator Wagner, Democrat, of New
YORK, author of three measures which
VIII form the basis of the hearings is
prepared to present other witnesses, who.
he said, will not give mere speeches
but will direct their counsel toward a
permanent remedy"
johnson said he did not indorse the
wagner proposals in advance of the
hearings, but hopes that out Of the tes-
tlmony given In connection with them
some definite plan" may be evolved.
Senator Couzens, Republican, of Michi-
gan, joined johnson In hoping that leg
islat1on OF this nature might be an
proved before Congress adjourns.
The administration public buildings
oil providing for expansion of Governs
ment construction will be pressed hv
Senator Watson of Indiana, the Repub-
Ican leader, as soon as the Senate is
finished with the tariff bill. It has been
approved by the House.
The text of the Presidents statement
VIII be found on page 2.