The Waterbury Democrat., 1931-12-08

ucUuuS anu or its resources, jeopardize the finan- cial system, and actually extend unemployment and demoralize ag- riculture rather than relieve it.
 FEDERAL LAND BANKS
 recommend that the congress authorize the subscription by the treasury of further capital to the Federal land banks to be retired as provided in the original act, or when funds are available, and that repayments of such capital be treated as a fund available for fur- ther subscriptions in the same manner. It is urgent that the banks be supported so as to stab 1lize the market values of their bonds and thus secure capital for the farmers at low rates, that they may continue their services to az riculture and that they may meet the present situation with consid- eration to the farmers.
 DEPOSITS IN CLOSED BANKS
 A method should be devised to make available quickly to deposit ors some portion of their deposits in closed banks as the assets of such banks may warrant. Such provision would go far to relieve distress in a multitude of families. would stabilize values in many communities, and would liberate working capital to thousands of concerns. l recommend that meas ures be enacted promptly to ac- complish these results and l sug- gest that the congress should con- sider the development of such a plan through the Federal Reserve banks.
 HOME-LOAN DISCOUNT BANKS
 I recommend the establishment of a system of home-loan discount banks as the necessary companion in our financial structure of the Federal Reserve banks and our Federal Land banks. Such ac- tion will relieve present distress ing pressures against home and farm property owners. It will re- lieve pressures upon and give add ed strength to building and loan associations. savings banks, and deposit banks. engaged In eX- tending such credits. Such action would further decentralize our credit structure. It would re- vive residential construction and employment. It would enable such loaning institutions more eff fectually to promote home owner- ship. discussed this plan at some length in statement made public November 14, last. This plan has been warmly indorsed by the recent National Conference upon Home Ownership and Hous- ing, whose members were desig- mated by the governors of the states and the groups interested.
 RECONSTRUCTION FINANCE
 CORPORATION
 In order that the public may be absolutely assured and that the government may be in position to meet any public necessity. recom- mend that an emergency Recon struction Corporation of the nature of the former War Finance Cor poration should be established. It may not be necessary to use such an instrumentality very extensive ly. The very existence of such a bulwark will strengthen confidence. The Treasury should be author ized to subscribe reasonable capital to it, and it should be giv- en authority to issue its own de- bentures. It should be placed in liquidation at the end of two years. It's purpose is that by strengthen- ing the weak spots to thus liberate the full strength of the nations resources. 1t should be in posi- ton to facilitate exports by Ameri- can agencies; make advances to agricultural credit agencies where necessary to protect and aid the agricultural industry; to make tenn porary advances upon proper se- curities to established industries. railways and financial institutions which can not otherwise secure credit, and where such advances will protect the credit structure and stimulate employment. It's functions would not overlap those of the National Credit corporation.
 FEDERAL RESERVE .ELIGI. On October 9th I Issued c statement that 1 should recom- mend to the congress an extension during emergencies of the eiiEi. biIity provisions in the federal ro- serve act. ThiH statement was approved by 6 representative gath.