The Waterbury Democrat., 1931-10-07
Frozen Bank Assets Would Be Released
 By Presidents Plan
Intricate Scheme UnfOIded By Chief Executive at Last Nights Conference
 Garner Opposes Can- cellatiOn of War Debts
DEBT EXTENSION
 AROUSES OPPOSITION
By RAYMoND CHAPTER

By RAYMOND CHAPTER
 Washington, Oct .--(UP)--Ac- ton to release millions of dollars in frozen bank assets has been initiated by President Hoover at a spectacular conference with con- gressional leaders of both parties at the White House.
 The purpose is to get money back into circulation, revive con- fidence, and set the wheels of prosperity spinning again.
 Mir Hoover announced the de- tails of a comprehensive plan, inc voiving the likelihood of extending the German war debt moratorium, at an early hour to-day after the conference had ended.
 The domestic banking phase of the plan has been agreed on in principle.
 The presidents announced in tention of moving for an extension of the moratorium, however. aroused vigorous and outspoken opposition from both republicans and democrats. MT Hoover said he intended suggesting the debt ex- tension to Premier Laval of France when he arrives later this month.
 Mir Hoover's financial program was designed to meet the threaten ed banking crisis, drive away fool ish alarms" and stop hoarding. It provided:
 1. Formation of a bankers cor- poration with at least $500,000,00o to rediscount banking assets not now eligible at Federal Reserve banks. Many bankers have assent tz IA VArK G1an r. ing House already has pledged ury Mellon said the remainder
 9. Appointment of bankers committees by ,Federal Reserve banks to make advances on assets of closed banks. to release locked deposits.
 5. Action by congress to broad en the federal reserve act to greater liquidity to the assets of Federal Reserve banks.
 4. If necessary, Mir Hoover will recommend creation of finance organization like the war finance corporation with funds sufficient for any legitimate credit demands.
 5. Advance of additional gov ernment capital to Federal Land banks to provide greater credit for farmers.
 Mr Hoover planned to confer with real estate men at p. m. to- day to consider the pressing mort gage situation.
 Last nights conference began at g D. m. and ended just at midnight. At 12:40 a. m. to-day President Hoover issued a statement which had been agreed upon in the con- ference. outlining the foregoing program.
 'dThe times call for unity of ac- ton on the part of our people" it said. We have met with great difilculties not of our own making. It requires determination to over come these difficulties and above all to restore and maintain con- fidence. Our people owe 1t not only to themselves and in their own in- terest but they can by such exam pie of stability and purpose give hope and confidence in our own country and to the rest of the world"
 The question of increased taxes and an extra session of congress ! were not discussed.
 President IIoover's sudden ac- ton is summoning more than thirty republican and democratic | members of both houses provided | one of the most spectacular occa- | sions Washington has seen since l the war. Its importance wus marked in Wall street yesterday | when, even before his program was revealed, stocks took a long upward spurt.
 Believing the existing emergency second only to war, MT Hoover l sought a virtual political truce in 1 seeking unified support for his pro- gram.
 Though this support was granted | in principle on the financial pro- gram. some democrats present in- 1 dicated opposition to any sweeping | armistice. Strong independence was | manifested especially by Represen- tation John N. Garner. small, l genial but quick tempered minor- ity hoor leader and probable | speaker in event the democrats orr ganize the house. His attitude | foreshadowed rough political war fare ip event the democrats take | control in the house.
 President Hoover's plan to ex- tend the German moratorium also | brought strong opposition from sev- eral republicans. including Senator Watson. majority floor leader without whose support pro-admin- C-------z---