The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-07-10
5 BILLION LOAN
TO END SLUMP.
NEW PROPOSAL
U. S. Credit for Industry
Essential to Recovery,
Texan Believes.

~ Soripps-Hotoard Newspaper Alliance
NEW YORK, July 1o.-Joseph S.
pullman, an active conferee in many
OF the recent discussions engaged in
by industrial leaders, believes he
has a solution for the problems
which continue to depress business.
Cullinan, a wealthy Texan, is a
member Of the National Industrial
= conference Of The National Foreign
Trade Council and of the council Of
the United States Chamber Of
commerce. His home is in Houston,
Tex, but he spends much Of his
TIME In New York, with offices in
70 West Forty-third street.
He believes that credit, extended
10 productive industry and "busi-
ness" with no strings attached, is
the outstanding need. He would
have the government supply this
credit through issuing $4,000, 900, 900
IN currency, to be retired at a date
speclfied in advance by congress.
Based on Taxes, Worth
This currency would be distri-
buted on quota basis between the
states and our insular possessions,
the amount available to each state
or possession being based on popu-
lation and taxable wealth.
The question as to who might
become eligible to borrow would be
determined by the amount of state
and local taxes paid by the appli-
cant during the previous calendar
year and by the net worth of the
applicant at the end of the same
year. Net worth would be arrived
at through examination by certi-
fed public accountant.
O.. Loans would be made through ma
tional or state banks to corpora
tons, firms or individuals engaged
in production, manufacture, con-
struction, transportation or distri-
button.
Cullinan would have congress
provide that none of this money
should be used for speculation, in
lands, securities or otherwise.
But" Cullinan was asked, "since
there is plenty Of credit in banks,
why could not the banks be looked
to for such loans? Why call upon
the government"
j Banks Interest Marrow
Because" he answered, when a
privately owned bank makes a loan,
it must consider only its own limi-
tations and selfish interest. The
government, which includes the
federal reserve system, would con-
slider the whole public interest.
Ignoring for the time being world
conditions, believe we are agreed
ithat through the marked increase
in consumption of our national re-
sources, improved methods in pro-
Sduction, manufacture, transporta-
ton, distribution and communica-
tion, civilization has progressed
more during the last seventy years,
or since the Civil war, than during
all previous history; further, that
the enormously increased percent
age of our urbanized population has
created a national interdependence
that can not be ignored.
+ Avoids Tax Boost
While there is merit in a recent
6uggestion-that the federal gov
eminent sell five billions in bonds.
distributing the proceeds through
the development of public works
merit in the sense that it would
lessen unemployment, stimulate
buying and relieve existing misery.
the suggestion lacks definiteness
Also it is seriously Objectionable be-
cause 1t would add to our alarming
excess tax burden. The tendency
should be toward leSsening, rather
than increasing, taxes.
THE plan under which it is sug-
gested that the government issue
Ro'OOOOO0,OO0 iii currency is predi-
Gated on the fact that our existing
medium Of exchange represents less
than IL per cent of our national
wealth; that while such percentage
is admittedly inadequate, the only
alternative open to the citizens is
10 establish credit, through bank
owned institutions.
Such institutions, in times Of
stress, necessarily give first con-
Sideration of their own interests
whether such interests are con-
SlStent or inconsistent with general
or public interests"