The Waterbury Democrat., 1931-12-08

conduct Of their business would per init. This course has saved us from industrial and disorder which have
 characterized all previous depres-
 sions. Immigration, has been cur tailed by administrative action. Upon the basis of normal immigra- ton the decrease amounts to about 1 30O,000 individuals who otherwise would have been added to our un- employment. The expansion of fed- eral employment agencies under appropriations by the congress has proved most effective. Through the 1 ployment relief, public and private agencies were successfully mobil- ized last winter to provide employ ment and other measures against distress. Similar organization gives assurance against suffering during the coming winter. Committees of leading citizens are now active at practically every point of unem- ployment. In the large majority they have been assured the funds necessary which, together with To- cal government aids, will meet the situation. A few exceptional local ities will be further organized. The evidence of the Public Health Service shows an actual decrease of sickness and infant and general mortality below normal years. No greater proof could be adduced that our people have been protect ed from hunger and cold and that
 the sense of social responsibility in the nation has responded to the
 need of the unfortunate.
 To meet the emergencies in agri- culture the loans authorized by congress for rehabilitation in the drought areas have enabled farm CTS to produce abundant crops in those districts. The Red Cross un-
 dertook and magnificantly adminis- tered relief for over 2,500,000 drought sufferers last winer. It has undertaken this year to administer relief to 100000 sufferers in the new drought area of certain north west states. The action of the fed
 eral board In granting credits to farm cooperatives saved many of
 them from bankruptcy and in- | creased their purpose and strength. By enabling farm coooperatives to | cushion the fall in prices of farm products in 1890 and 1881 the
 board secured higher prices to the
 farmer than would have been ob- tained otherwise, although the
 benefits of this action were partial
 ly defeated by continued world
 overproduction. Incident to this
 action the failure of a large num-
 Der of farmers and of country 1 banks was averted which could
 quite possibly have spread into a
 major disaster. The banks in the
 south have cooperated with the farm board in creation of pool
 for the better marketing of accu- mulated cotton. Growers have been materially assisted by this action. Constant effort has been made to | reduce overproduction in relief of agriculture and to promote the for eign buying of agricultural pro- ducts by sustaining economic sta bility abroad.
 To meet our domestic emergen- cies in credit and banking arising from the reaction to acute crises abroad the National Credit Asso- citation was set up by the banks with resources of s5O0,00O, 1000 to support sound banks against the frightened withdrawals and hoard ing. It is giving aid to reopen sol vent banks which have been closed. Federal officials have brought about many beneficial unions of banks and have employed other means which have prevented many bank | closings. As a result of these meas-
 ures the hoarding withdrawals which had risen to over $250,OOO,- 900 per week after the British crisis have substantially ceased.
 FURTHER MEASURES
 The major economic forces and weaknesses at home and abroad nave now been exposed and can be appraised, and the time is ripe Tor forward action to expedite our recovery.
 Although some of the causes of our depression are due to specula- tion, imitation of securities and real estate, unsound foreign invest ments, and mismanagement of fi- nancial institutions. yet our self contained national economy, with its matchless strength and re- sources, would have enabled us to recover long since but for the con- tlnued dilocatiOns, shocks, and set backs from abroad.
 Whatever the causes may be, the vast liquidation and establishments which have taken place have left us with large degree of credit paralysis, which, together with the situation in our railways and the conditions abroad, are now the outstanding obstacles to recupera- ton. If we can put our financial resources to work and can amelio- rate the financial situation in the railways, l am confident we can make a large measure of recov- cry independent of the rest of the world. A strong America is the highest contribution to world sta bility.
 One phase of the credit situa- tion is indicated in the banks. Dur ing the past year banks, repre- senting 3 per cent of our total de- posits have been closed. A large part of these failures have been caused by withdrawals for hoard ing, as distinguished from the fail ures early in the depression where weakness due to mismanagement was the larger cause of failure. Despite their closing. many of them will pay in full. Although SuCH WlluuTdWdiS nave pTdCtlCdlly ceased, yet $1,100, 100000 of cur rency was previously withdrawn which has still to return to circu- lation. This represents large re- ductlon of the ability of our banks to extend credit which would other wise fertiliZe industry and agricul- ture. Furthermore, many of our bankers, in order to prepare them selves to meet possible withdrawals have felt compelled to call in loans, to refuse new credits, and to realize upon securities. which in turn has demoralized the markets. The paralysis has been further aug mented by the steady increase in recent years of the proportion of bank assets invested in long, term securities, such as mortgages and bonds. These securities tend to lose their liquidty in depres- sion or temporarily to fall in value t,n fI.at fla n ,tIffxr nf tho ha