Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-03

bearing on this subject through their
effect upon the financial strength OF
the railways and utilities. During q
period of depression the soundest and
most available method Of relief to un-
employment is expansion of public works
and construction in the utilities, rail-
ways and heavy industries. The volume
Of possible expansion of construction in
these private industries is about four or
five times that in public works.
During the present depression these
industries have done their full part, but
especially the railways have BEEN handi-
capped by some provisions of the trans
portation act of 1920. With widAr pub
lie vision the railways could be strength
ened into a greater balance wheel of
stability. We have need to consider all
of our economic legislation, whether
banking, utilities, or agriculture, or any
thing else, from the point of view OF its
effect upon business stability.
Il have never believed that our form
Of government could satisfactorily solve,
economic problems by direct action
could successfully conduct business In
stitutions. The Government can and
must cure abuses. What the Govern
ment can do best Is to encourage and
assist in the creation and development
Of institutions controlled by our citizens
and evolved by themselves from their
own needs and their own experience
and directed in sense of trusteeship
of public interest. The Federal Reserve
Is such an institution.
How Movement Helps.
Without intrusion the Government
can sometimes give leadership and
serve to bring tc-cther divergent ele-
ments and lecture cooperation In de-
velopment Of ideas, measures and in
stitutio,'-. That Is a reinforcement of
our indiv !dualism. It does not cripple
the initiative and enterprise of our
people by the substitution of govern
ment.
Proper cooperation among our peo-
pie in public interest and continuation
Of such institutional growths strengthen
the whole foundation of the Nation, for
government outside of political gov
eminent Is the truest form of self gov
eminent. 1t Is in this manner that
these problems should be met and solved.
IT wish to revert to the influence of
The bankers, through encouragement and
leadership, in expedition of our recov-
cry from the present situation. You
have already done much, and at this
juncture the responsibility of those in
control of money and credit Is very
great. Without faith on your part and
without your good offices, the early re-
turn to full prosperity cannot be ac-
complished. This depression will be
shortened largely to the degree that you
feel that you can prudently, by counsel
and specific assistance, instill into your
clients from industry, agriculture and
commerce feeling of assurance.
I'VE know that one of the prerequi-
sites Of ending a depression is an ample
supply Of credit at low rates of interest.
This supply and these rates are now
available through the cooperation of
the banks and the Federal Reserve
System.
Effect Of Fear Cited.
1.-THE income of large part Of our
people is not reduced by the depression,
but 1t Is affected by unnecessary fears
and peSSimism, the result of which is TO
slacken the consumption Of goods and
discourage enterprise. Here the very
atmosphere of your Offices viii affect
the mental attitude and. If you please,
courage Of the individuals who will de-
pend upon you for both counsel and
money. Many, perhaps all Of you, have
been through other periods of depres-
sion. Those of you who have had occa-
sion to review the experience Of the last
will, believe, join in the thought that
there comes time In every depression
when the changed attitude Of the fi1an-
cial agencies can help the upward move
ment In our economic forces.
81 started with the premise that this