Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-07
Text of Hoover's Plan
Mobilization of CoMntry's Banking Resources to Pool
Half Billion Redisconnt Fund Proposed
as Means Of Relieving Depression.

to endeavor to secure the cooperation
OF the bankers Of their territory to make
some advances on the security of the
assets of closed banks or to take over
some CT these assets in order that the
receivers of those banks may pay some
dividends to their depositors in advance
of what would otherwise be the case
pending liquidation.
Such measure will contribute 10
free many business activities and to re-
lieve many families from hardship over
the forthcoming Winter, and in meas
ure reverse the process Of defiation
involved in the tying up Of deposits
Several Of the districts have already
made considerable progress to this end
and request that it should be taken
up vigorously as a community respon-
sibility.
Suggests Committees.
"3. In order that the above program
of unification and solidarity of action
may be carried out and that all parts
of the country be enlisted. request the
governors of the Federal Reserve Banks
in each district to secure the appoint
ment of working committees of bankers
for each reserve district to cooperate
with the New York group and in carry
ing out the ether activities which have
mentioned.
a. 1 shall propose to the Congress
that the eligibility provisions Of the Fed
eral Reserve act should be broadened
in order TO give greater liquidity to the
assets OF the banks, and thus greater
assurance to the bankers in the grant
ing Of credits by enabling them To
obtain legitimate accommodation on
sound security III times OF stress. Such
measures are already under consider
alton by the Senate Committee Upon
! Currency and Banking.
IS Furthermore, If necessity re-
ouires, I will recommend the creation
/ Of a finance corporation similar In
| character and purpose to the War
! Finance Corporation, with available
| funds sufficient for any legitimate call
in support of credit.
Would Strengthen Banks.
Sc. I shall recommend to Congress
| the subscription OF further capital
stock by the Government to the Federal
| land banks las was done at theil
! founding) to strengthen their resource:
! so that on the one hand the farmer
| may be assured of such accommodation
as the may require and on the othel
hand their credit may be OF such high
character that they may obtain theil
/ funds at low rates OF interest.
81. I have submitted the above men
/ toned proposals which require legisla'
| ton to the members of Congress whose
attendance I was able to secure or
1 short notice at last evenings meeting
! being largely the members Of commit
! tees particularly concerned-and the,
/ approve of them in principle.
20. Premier Laval of France Is Wis
iting the United States. 1t is my pur'
1 pose to discuss with him the question
/ Of such further arrangements as arr
/ imperative during the period of tn,
! depression in respect to intergovern.
mental debts. The policy of the Amer
lean Government in this matter is wei
known and was set out by me in {
public statement on June 20 in an
nouncing the American proposal for {
years postponement of debt payments
Adjustment Is Problem.
"Our problem in this respect is on,
of such adjustment during the periot
of depression as will at the same tim,
aid our own and world recovery. Thii
being a subject first OF negotiation with
foreign governments was not submitted
for determination at last evenings con-
ference.
- The times call for unity Of &C
! ton on the part Of our people. W.
have met with great difficulties not o.
our own making. 1t requires determin.
alton to overcome these difficulties anc
above all to restore and maintain conf
dence. Our people owe 1t not only Il
themselves and in their own interest
but they can, by such an example o
stability and purpose, give hope anC
| confidence in our own country and Il
the rest of the world"