Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-09
POOL TO ASK CHARTER TODAY
Mortimer n. Buckner Expected to Head
$5OO,OOO,OOO Corporation

NEW YORK, October 9 R.-Ar
emergency banking organization t.
handle frozen assets of interior banks
along the lines proposed by President
Hoover in his $500,000,000 bank poo
plan was to be incorporated today as
the National Credit Corporation.
Mortimer N. Buckner, chairman Of
the New York Trust Co. and president
of the New York Clearing House Asso-
citation, in announcing the organization
of the new corporation last night, said
the charter would be applied for today
in Dover, Del.
The new credit corporation, with
main Offices in New York. will be au-
thoriZed to issue up to 81 1000 900 00C
of debentures and will be capitalized
with II nominal shares of stock, OF
500 par value each, to be voted by a
director appointed from each Federal
Reserve district.
The opinion in Wall Street today
was that Mr.. Buckner would head the
organization.
Buckner'S Statement.
Mr. Buckner's statement read:
- plan for organization and CO.
operation of a National Credit Cor
poration was unanimously adopted this
afternoon by the Organization Com
mittee appointed by Gov. George l.
of New York and provides the ma
chinery for administering a fund OF
$500,000,000 requested by the President
of the United States.
The project contemplates the es-
Enlistment of a corporation through
the operation of which nks through
out the country may, when necessary
procure accommodation upon the basis
of sound assets. which are not legally
eligible for rediscount at the Federal
Reserve banks. This does not mean
however that banks will have the priv
ilege of applying to the corporation for
cash where there is no immediate
need.
The details of the organization of
groups or associations of banks in each
district will be under the supervision
and control of the director of the Ma
tional Credit Corporation from that
district.
1T is contemplated that the National
Credit Corporation will have its main
office in the City of New York and its
home organization will be compare
lively small, the personnel being Of
fered by the local banks"
To Work by Regions
1t is understood that business will
be done through regional clearing
houses or banking associations, either
now existing, or to be created in those
districts.
Banks benefting by the new corpo-
ration are those not eligible to reois-
count their assets at Federal Reserve
banks.
In the practice of bank borrowing it
is expected that the credit corporation
will function exactly as the Federal Re-
serve System. The Regional Committees
on approving a loan for bank, will
forward the note and the security
pledge to the New York Office.
In this way members of the group as
sumo liability for the borrowings of each
other. The whole plan is explained as
banding of the banks into a mutual
protection society.
Banks are not expected to draw
amounts greater than their debenture
subscriptions to the corporation There
may be special provisions, however, by
certain votes of ma jorities Debentures
will not draw more than per cent.
The plan outlined by Mr.. Buckner
was sent to 391 clearing house associ-
atoms throughout the country, who are
expected to join.