Evening star., 1931-11-14


Sently with groups of bankers. real
Estate and building and loan; associa-
1lon men, still another such conference
is scheduled, for next week. =,
- Then, early in December, he will
Jheet with a White House Conference
kn Home Building and Home owner
GAhip, planned as the first of its kind
6nd expected to delve into every rami-
3jcation of the problem.
4 Mr. Hoover's disclosure'5cf his $780,
400, National Credit Corporation
kplan, of seven weeks ago contained no
4brecast Of the present discount bank
proposal The proposed institution, he
laid, will not displace the former, but
- intended to occupy an entirely dif-
,1erent field ef action" = ~ KS
~ The credit corporation was formed
to rediscount gilt-edge securities held
BY banks but not eligible for rediscount
shy the Federel Reserve System.
There. no element of imitation In
The plan" he asserted, i'but simply a
Netter organization of credit fer these
Shome buifding) purposes" N
~ Hopes for Sharp Revival.
N Since more than 10000 homes are
erected annually in normal times, con-
ffibuting, with furnishings to expendj.
lures Of more than So 900 900 900 a year,
fine president hopes FIR a sharp revival
ssf employment from the operation Of
His proposal.
"A considerable part of our pnem-
.Nloyment," he said, ''iS due to stAgna-
xon in residential construction. II is
&russ9heresh has been some overbuildins
N .etftain locsAtie5 in the boom years.
sHlt even m these localities the in-
ItyitAble need Is obscured by the ten
sdency of the population to huddle tenn
sncrarily due to unemployment. The
real need steadily accumulatss with in
creasing- Population and will become
evident and insistent as we come out
OF the depression"
49,. Here are some elen1MntS OF the PreSi-
hdeHts proposal: - 20
II One bank would be established ir
4 each Of the IL Federal Reserve dis
4 tricts; If necessary.
4 Each would be capitalized initially at
sfrom S5,O00,0oo to $50, 900 900.
4 In order to restrict the aid to smaller
homes and farms. no mortgage loan of
over $4,000 would be eligible for COL
lateral.
4 Each bank would be allowed to issue
sbonds or short-term notes to investors.
not to exceed in aggregate IL times the
scapital of the bank.
The initial capital would be subscribed
by the institutions to participate. as
Z was done with the Federal Reserve
WIFI LilS ~
ing any amount not thus provided.
4 Mr.. Hoover said these details were
sput forward merely as suggestions. The
entire plan, he added, would be sub
Y dect to the action of Congress and many
parts might need development.
\ Although the President has no den-
mite figures before him, he believes the
volume of credit he seeks to stimulate
totals between $50 1000, ,000, 600 and $50,
1000 900, coo. Only small margin OF
this amount he believes, will be neces-
say to stir the whole. the principal fac-
Il tor being restoration OF assurance to
Il the institutions concerned.
n Although Mr.. Hoover has not can
. yassed the entire congressional field to
/ determine the possible reception OF his
\ plan. he has received support from saw
4 ings banks and building and loan and
Il other institutions.
II was disclosed the President has
been formulating parts OF the present
Nsproposal for the last three months, in
|, the course of this time comforting with
I several groups and individuals.